There is no shortage of competition in the manufacturing industry and industrial equipment manufacturers (IEMs) are increasingly facing off against offshore competitors. In order to quote and price products quickly, IEMs need quick access to reliable production costs. There are product lines and customers to pursue and some to avoid.
Profit margins in the manufacturing industry are thinning due to fluctuations in the economy, global competition, and changing customer demands. Not every project or customer will deliver a profit, and that’s a reality many businesses need to face. In order to be confident when making these tough choices and preparing a quote, business leaders must fully understand costs across production. This task becomes difficult when using disparate software systems. By the time data crosses your desk, it could be outdated or, quite simply, wrong because it passed through too many hands and software programs. Make data-driven decisions with confidence with cloud-based enterprise resource planning (ERP).
Cloud ERP Solution Will Protect Thinning Profit Margins, Strengthen Customer Relationships
When you replace disparate business systems with a cloud-based ERP solution, you can deliver reliable data to the people that need it, when and where they need it. A single, centralized solution will put key data within easy reach and connect people and processes from order entry to customer delivery. As discussed in “Future of Manufacturing: How Industrial Equipment Manufacturers Build Competitive Edge through Cloud ERP,” built-in dashboards and other business intelligence features deliver KPIs, benchmark data and current information to managers on the floor or in the back office.
IEMs are using cloud-based ERP to:
- Monitor purchasing and inventory moments to improve forecasting and reduce costs
- Analyze project costs including inventory, production, and labor to optimize production flow, improve productivity and asset utilization
- Stay ahead of problems by using alerts for high-risk orders, inventory movement, and other supply chain risks
- Respond faster to changes or deviations to ensure projects are completed on-time and within budget
All of this information can be used to protect thinning profit margins and strengthen customer relationships. Leaders can monitor real-time actual production costs and compare them against estimates to identify and solve problems during production. Stronger production planning and scheduling will optimize efficiency and reduce labor costs. Working smarter, not harder will provide IEMS with a competitive edge in today’s challenging global marketplace. Contact Sikich for more information about replacing inefficient software with a comprehensive cloud ERP solution.
This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.
