The more people you have, the more critical it is for everyone to access the same system for their job functions and pass data along the process. The typical “Quote to Cash” process follows looks like this:
Quote > Sales Order > Work Order/Job/Bill of Materials > Purchase Orders for raw materials > Inventory Receipt > Labor Collection & Other Costs Collection Against Jobs > Finished Goods Inventory with Costs > Shipping > Invoicing
An ERP system ensures that necessary customer information entered at the time of quote follows through to invoicing. The people in production see the specifications entered at the time of the sales order. Shipping sends the products to the correct shipping address, using the customer’s instructions on the Sales Order. Without an ERP, you need the same documents (Sales Order, Purchase Orders, Packing Slips, Invoices, etc.), but if they are created separately, they are prone to errors, take longer to enter, and are not linked to financial reporting.
In summary, you know you need an ERP system when your current business processes consume too much time, depend too much on one or two people, don’t provide the information you need, and don’t support your growth plans. Get started today on your ERP search and discover how an ERP system can launch your manufacturing business to the next level.
For manufacturing businesses, also read our additional guide to the top manufacturing ERP systems.