A lot of supply chain management is automated. Inventory reorder levels are set so that mission-critical inventory never runs out. A good system takes into account incoming orders and adjusts inventory requirements accordingly.
From a management perspective, the order limit ensures that the relevant manager signs off on the purchase. Most people work through a tiered system based on spending. The visibility of senior managers depends on their level of responsibility. For larger purchases, the final sign-off may be up to the CEO level.
This aspect of enterprise resource planning in manufacturing allows for a common-sense budgeting approach. Does a $200 order need to be signed by a senior manager? You can configure your system so that executives are only involved in big-ticket spending decisions.
ERP automates more than just larger-scale operations. In a manufacturing environment, specific tasks are often automated. This usually takes the form of a report and requires an understanding of what is happening daily.
This provides management with the business intelligence needed to make informed decisions. It also reduces the error rate when important tasks are started, even if no one remembers to do them. This is invaluable during busy times.
Management can use this system to ensure that the plant is running properly. Again, the necessary reports show all the information needed to focus on the operation.
Simplify processes and reduce costs
One of the main drivers for deploying an enterprise resource planning application is cost reduction. This makes inventory management a key ERP module. By automatically reordering and calculating material usage, it is now possible to keep inventory to a minimum. The need to hold large inventories is now obsolete. This simplifies manufacturing costs.
ERP automation and integration often further simplify costs. A better enterprise resource planning system reduces staff costs and provides a human resource management module. In some cases, the system manages aspects such as employee training, annual leave, and sick leave.
Payroll management is a feature of the HR module that enables tighter business integration and visibility. Use automated systems to ensure that necessary HR functions are performed as planned. This ensures that the business stays on the ERP automation track.