Make the most of the summer slump to build your digital capabilities

More than half of manufacturers in the UK have embraced digital technology, so if you haven’t made steps to digitise, you risk falling behind. Digital transformation involves data analysis but you need a reliable system to precisely collect, sort and analyse it first. That’s where a cloud-based enterprise resource planning (ERP) system comes in.

An ERP, designed for your industry, provides a central location to store your data from machines or processes, paving the way for new technology like AI and machine learning. Even if you’re not ready to implement these advanced technologies yet, an ERP helps you automate manual processes, improving both efficiency and performance.

Five reasons you need an ERP

Cloud-based ERPs are in high demand in the UK because manufacturers realise the benefits they offer: faster processes, cost savings, visibility, collaboration and better performance.

1. Connected system

If departments are working in silos, you’re bound to have problems like bottlenecks, inconsistent data and in some cases, duplicated work. Discrete manufacturing is complex, so an ERP brings all of your key processes such as production, stock, purchasing, planning and finance into a single system.

Working from a central dashboard, teams will have access to the latest data, drawings and plans, saving time and minimising errors. ECI’s Ridder iQ can also be integrated with your suppliers' systems, so you can keep a track of orders, and it has a customer relationship management (CRM) function to help you manage customer and supplier data.

2. Greater visibility

An ERP offers visibility into each stage of production and your business activity, so you can better manage tasks and resources. For example, planning teams can check on production schedules, so they can allocate budgets and staff effectively.

Shop floor control with Ridder iQ also gives you insight into orders and projects, so your team can see what tasks need to be completed and when, and log any delays. The ERP also offers real-time insights into:

• Lead times
• Bottlenecks
• KPIs
• Financial performance
• Waste
• Delivery and delays
• Demand
• Orders

Armed with this data, you’re able to put in place strategies to optimise processes and even make the case for new digital tools that drive efficiency further.

3. Automation

Manufacturers who haven’t embraced digital tools could be losing hours or days every week with manual processes. Not only is this an inefficient way of working, it could lead to lower job satisfaction across your team. Ridder iQ automates processes such as:

• Reporting: Automatically create and send reports pulling in key data such as financial performance and KPIs
• Work preparation: Generate reports including order forms, guide vouches and material requirements
• Ordering: Set minimum stock levels for your inventory, so the system can generate a new purchase order
• Tracking: Track where materials or components are on your shop floor or warehouse using the system
• BOM: Automatically generate calculations and quotations, and create or duplicate BOMs

This removes many of the monotonous tasks that reduce employee satisfaction, while increasing efficiency across the business.

4. Reduce waste

An ERP offers visibility into the resources used for each project including materials, water and energy to help you accurately calculate waste. With stricter sustainability requirements, these insights are critical to demonstrate your operating in line with compliance, and for easy, accurate reporting.

It also improves inventory management because you can see your stock levels – or get alerts for any shortages – to prevent over ordering. And demand forecasting prevents you from over producing too.

5. Cut costs

A good and reliable ERP can improve efficiency across your organisation, leading to cost savings. For example, by automating manual tasks like data entry or reporting, you can reduce admin and costly mistakes that require time to fix or wastage.

Accurate calculations (based on materials, labour, production) helps you put a fair price on your products, and also reduces the risk of over ordering stock that sits in the factory. Senior managers can make data-driven decisions to improve cost efficiency too.

Futureproof your business with an ERP

Manufacturers are looking to upgrade to cloud-based ERPs because they can be scaled up or down depending on business needs. You also don’t need on-prem infrastructure helping to save costs and reduce pressure on your IT team, who can focus on driving improvements across the organisation instead. Not to mention, an ERP is critical if you’re planning to adopt technology including AI in the future.

While summer is the perfect time to upgrade your systems, the benefits of an ERP are year-round.

Find out how Ridder iQ can improve your operations.