How the right ERP technology can help manufacturers succeed in 2019

The U.S. manufacturing environment could grow more challenging over the coming months, according to research from IHS Markit. While American manufacturers continue to maintain high output levels and generate strong revenue gains, some serious roadblocks are starting to materialize.

New orders and shipments slowed significantly in December 2018, while overhead costs grew due to increases in raw material expenses, the market research provider found. Together, these developments weighed on business confidence, which dropped to the lowest level in a year.

Unfortunately, these issues may not be temporary, as the larger forces driving them, the U.S.-China trade conflict, for instance, are not so easily and quickly resolved. With this in mind, American manufacturing firms should prepare for the more turbulent times ahead by embarking on operational optimization efforts.

While there are numerous techniques and tools that can help organizations in this industry bolster their backend workflows, one particular solution stands out among the crowd: the enterprise resource planning platform.

These data-driven solutions can catalyze shop floor transformation, giving decision-makers at all levels the accurate insights they need to get the most out of mission-critical assets. However, manufacturers intent on pursuing ERP implementation cannot just select systems at random. Instead, potential adopters must work pragmatically to pinpoint the right ERP technology – products that meet their specific business needs. How can U.S. firms accomplish this goal and set themselves up for success amid the turmoil expected to unfold in 2019?

Here are three proven strategies:

1. Match system requirements to company goals
ERP access alone does not lay the foundation for operational improvement. Adopters must put into place software whose granular components map to shop floor improvements and associated overarching performance targets, according to CIO. By basing system requirements and purchasing decisions on specific business outcomes, manufacturers increase the likelihood of return on investment generation.

2. Carefully consider integration
An estimated 63 percent of American manufacturing firms have undergone or officially embarked on technological transformation, analysts for Prudential discovered. Consequently, most manufacturers enter the ERP search process with ample IT infrastructure in place and must therefore ensure that any potential solutions jibe with existing technology.

Most vendors will claim that their products do this, an assertion that might be technically true but could come with costly qualifiers, such as the need for custom components or workarounds. Adopters can avoid this extra spend by focusing on ERPs that mesh with live backend systems, ERP Software Blog reported.

3. Obtain sustainable support services
Vendor support is essential to long-term ERP success. As the business changes and key stakeholders come and go, solutions providers support workflow continuity and growth via user assistance and software maintenance efforts. For this reason, manufacturers pursuing ERP implementation must emphasize vendor support and find partners that can provide tailored offerings, IT Toolbox reported.

Organizations navigating the U.S. manufacturing arena can prompt true operational change in 2019 by using these methodologies to source ERP technology that is right for them. Is your manufacturing firm ready to start the search?

Consider connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, which allow manufacturers to adopt quality ERP software that supports essential shop floor processes and facilitates operational optimization.

Contact us today to learn more about our products and services.