Cost effective ERP solutions for Manufacturing Sector

Almost all the popular ERP solutions were developed for manufacturing sector but their cost effectiveness is to be determined by matching specific requirement of the company and functionality of the ERP solution. Many good ERP solutions are available as SaaS which makes them very cost effective. But, if they lack in providing solution to the problem areas of the user then they remain no more cost effective as customization may prove to be time and money consuming.

ERP solutions are not supposed just to automate the present transaction system, in fact they are required to improve business processes, remove bottlenecks of the system, resolve problem areas and enhance working of the enterprise. The biggest problem area for any manufacturing enterprise is fragmentation of information, ERP solution for manufacturing unit shall be able to integrate all the functional areas of the enterprise in real time and information available to all.

To workout cost effective ERP solution for manufacturing unit the best way is to analyze the ERP solution and check out if it can work well for the enterprise at present. Also check whether it is scalable and adaptable for future requirements or not. Business and market will keep on changing, so will be expected from the solution that is integrating the enterprise, a scalable, adaptable and based on latest technology ERP solution will prove to be cost effective in longer run for users of manufacturing sector.

Purchasing ERP solution is one time expense, one must check what cost it is going to incur for up gradation, refinements and enhancements. With change in manufacturing techniques, new products, increase in work force, inclusion of subsidiaries, increase in number of production units application shall be able to adjust without customization at any time. If ERP solution is not capable of handling these on its own or requires purchase of advanced editions than such ERP solutions will not remain cost effective in the longer run.

Cost effectiveness of ERP solution for manufacturing sector is enhances if it is capable of forecasting market demands with its analytical abilities and statistical model. Better analysis provided by ERP shall allow the managers to capture hidden market trends and upcoming changes which will eventually help in profit growth. Reduction of human intervention in processes like cross checking of purchases with goods receipt or implementation of policies and best practices etc. Improving the business by providing latest options like e-commerce, management of web stores etc., better interaction with customers, vendors and conversion of leads into deals consequently increase profits which makes the implementation of ERP cost effective.

Minimum customization or no customization required while implementing the ERP for any unit of manufacturing sector shall be considered as the most suitable option. Though ERP vendors claim that their customization will make the application run smoothly and effectively for the user but it may not be so and it will not remain cost effective too. Its integration with already in use applications and databases is also an important factor to be considered while calculating ERP’s cost effectiveness.

Ideally a suitable ERP solution available as SaaS will be the most cost effective ERP solution for not only manufacturing sector but for any sector. If the solutions and features available in the ERP are suitable to the company and it is available as SaaS than this will not only be cost effective but also will be an easily manageable investment.

Read about ERP Definition and other related business terms. Also find information on the SAP HR Module with enterprise resource planning software.