ERP for Manufacturing Business

ERP is a comprehensive enterprise resource planning system that offers a transformation for manufacturing firms from the traditional software. In today’s hostile business environment, it is essential to be prepared to face a competitive world. ERP offers solution that enables manufacturing companies to compete in the prevailing market. A better management of your manufacturing processes transform the supply chain to achieve production plan with your sales plan, finance and customers.

Deskera brings to you an awesome ERP designed for small manufacturing businesses. Our All-in-One Platform to Run Your Business comes with Deskera Books for your accounting and inventory, Deskera CRM for sales, marketing and support, and Deskera People for payroll, leave and expense reporting.

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Need of ERP System in Manufacturing Business

Manufacturing firms need to address several key strategic issues if they want to successfully compete in this dynamically changing business environment. A common strategy used by firms for achieving this goal is just-in-time and quality improvement programs.

Web-based ERP system is designed to address the problem of breakup of information in manufacturing organizations. ERP system regulates the entire business strategies with a suite of software modules in all the areas of business. Moreover, ERP is used as a desirable link to enhance integration between all functional areas within the manufacturing enterprise.

Enterprise Resource Planning or ERP software is a suite of applications that help you manage your company’s core business processes, such as accounting, inventory, sales, purchase, payroll, human resources, customer support, and CRM.

Accounting for Manufacturing
Cost of Goods Sold (COGS) for Manufacturing Business
Inventory Accounting for Manufacturing Business
Inventory Valuation for Manufacturing Business
Inventory Management for Manufacturing
Fixed Asset Management for Manufacturing
Payroll for Manufacturing
Leave and Expense Management for Manufacturing
Customer Relationship Management (CRM) for Manufacturing
Customer Support for Manufacturing

Accounting for Manufacturing Business

Accounting for a manufacturing business is different from accounting for other companies, as manufacturing firms produce goods from raw materials. Accounting for manufacturing firms includes the calculation of the cost of goods sold and inventory valuation. For other businesses such as retail, the cost of goods sold and inventory valuation calculation are much more straightforward than the manufacturing business. With Deskera all-in-one ERP solution, you can automate bookkeeping for your manufacturing business, and your financial statements, tax reports are automatically generated.

Cost of Goods Sold (COGS) for Manufacturing Business

Calculation of cost of goods sold(COGS) for manufacturing business includes all the direct and indirect costs incurred in manufacturing the finished product. The manufacturing firm total profit is calculated by deducting the cost of goods sold from the total sales amount. Therefore, the accuracy of the cost of goods sold is critical for calculating the profitability of any manufacturing business. With Deskera Books, cost of goods sold (COGS) journal entry is automatically posted in the system once you fulfill goods to your customers, so your COGS are always updated in real-time.

Inventory Accounting for Manufacturing Business

Manufacturing businesses must also choose a perpetual inventory or periodic inventory system to track the inventory units on hand. Selecting the right ERP system is very important for determining the value of your inventory. The periodic inventory system is very easy to maintain, but frequent inventory count is done to measure the inventory levels. The perpetual inventory system is more accurate as it keeps track of inventory levels continuously. The perpetual inventory system is more suitable for the manufacturing business. Deskera Books helps you to automate bookkeeping for your manufacturing business. With Deskera Books, your cost of goods sold is always updated in your central accounting data.

Inventory Valuation for Manufacturing Business

The inventory valuation method selected first-in-first-out (FIFO), Last-in-first out (LIFO), or weighted average cost also plays an important role in determining the value of inventory for manufacturing business. Manufacturing businesses must choose the right inventory valuation method as it affects their business’s profit margin. Manufacturing businesses must consider important factors such as business cost, location, and inventory amount for choosing the right inventory valuation method. Deskera Books advanced inventory reports allow you to view the real value of your stock anytime, anywhere with web and mobile applications.

Inventory Management for Manufacturing Business

Inventory management is very critical for any manufacturing business. ERP has an Inventory management module that is required for a manufacturing business to automate the entire inventory management process from production to fulfillment.

With manufacturing ERP software, such as Deskera Books, you can view your inventory levels in real-time. Deskera Books allows you to manage your inventory in multiple warehouses. Deskera books have advanced inventory management features required by manufacturers such as the Bill of Materials, Stock Transfer, Stock Adjustment, Backorder, Dropship, Pick, pack, and ship.

Fixed Asset Management for Manufacturing Business

Fixed asset management is very critical for any manufacturing business as the machinery and equipment used for manufacturing goods can be very expensive.

Deskera all-in-one ERP solution has an inbuilt Fixed Asset Management feature, which allows you to create and manage the fixed assets for your manufacturing business. With Deskera all-in-one ERP solution for manufacturing, you can view the depreciation schedule for your assets and record depreciation with automated journal entries.

Payroll for Manufacturing Business

Payroll for manufacturing is more complicated as compared to other businesses. Payroll for manufacturing has to account for employee shifts, overtime, contractor payments, etc. The payroll module in ERP for manufacturing helps you to track and manage employee payroll in one place.

Deskera all-in-one ERP solution has an inbuilt payroll module that allows you to save time and reduce admin work. With Deskera Payroll, you can process your employee’s payroll in 3 simple steps: Add employees, select the amount, and pay them.

Leave & Attendance Management for Manufacturing Business

Manufacturing businesses have a large number of employees working in different shifts. Also, manufacturing companies have contract employees and different overtime rates for employees. The leave management feature in ERP helps you to track and manage leave and attendance for your manufacturing business.

Deskera all-in-one ERP solution has an inbuilt leave and attendance management feature, which allows you to automate the entire leave management process for your employees. With Deskera Leave and Attendance Manager, you can record, track, monitor, and evaluate your employees’ leave and attendance details.

Expense Management for Manufacturing Business

Expense management for manufacturing firms is much more complicated as compared to other businesses. ERP with an inbuilt expense management feature allows you to automate expense management for your manufacturing staff.

With Deskera Expense Management, your factory workers can take a picture and submit the expense with the web and mobile applications. Our easy workflows make submitting, tracking, and paying expenses a breeze.

Customer Relationship Management (CRM) for Manufacturing Business

ERP software built-in Customer Relationship Management (CRM) module helps your track, store, and leverage customer data. ERP for manufacturing allows you to manage the entire sales process and track your customers’ sales journey.

Deskera all-in-one ERP solution has an inbuilt CRM feature for manufacturing that helps to maintain a centralized database for all your customer information. Deskera CRM provides you a 360-degree view of your prospects. You can view and track the prospect’s past activities and interactions with your sales team.

Customer Support for Manufacturing Business

In today’s competitive world, customers have much higher expectations for support throughout the entire sales cycle. ERP for manufacturing helps you build and maintain good relationships with your customers by providing them excellent customer service. The customer support feature in ERP software for manufacturing allows your support staff to view and respond to customer issues and questions. An integrated ERP software provides a 360-degree overview of your customers right from sales to support.

Deskera CRM as part of the Deskera all-in-one ERP solution has an inbuilt customer support feature for manufacturing businesses that enables you to add multiple support agents and reply to customer queries and issues. With Deskera Support, you can categorize, prioritize, assign your customers tickets to support agents for better customer service for your manufacturing business.

Manufacturing Companies Look for ERP to Compete Globally

ERP software is an easy to install system that streamlines manufacturing processes through automated planning, scheduling and fulfillment. The ERP system yields new data intelligence that quickens decision making and reduces administration costs.

In the manufacturing process, each step can spectacularly affect profitability. Gaining more visibility into processes and optimizing each step efficiently is crucial for any company wanting to compete globally. An effective ERP system is already tuned to the needs of the manufacturing industry. The ERP tool simplifies the IT environment to make every business process transparent and more effective.

Select the Right ERP System for Your Manufacturing Processes

When a manufacturing company plans an ERP implementation, the primary motivations are business transformation, business process harmonization and the technology upgrade which eventually leads to replacement of the legacy system.

With the business transformation, the aim of the management is to undertake changes at the top line or bottom line of its business process. Business process harmonization is a business transformation exercise where the objective is to generate process benefits across the organization. During a technology upgrade, the IT organization is expected to replace the legacy system with the latest technology to reduce application management costs and total cost of ownership.

There is no harm if decision makers are given little more sleeping time during the evaluation of the right ERP package for their organization. Selecting an inappropriate ERP package is like inviting troubles and business challenges. An ERP system that is not a right fit tends to weigh down the entire organization. Wrong selection of an ERP package can compromise security and audit requirements and have a hampering effect on employee morale.

At a Glance – ERP Benefits for a Manufacturing Business

ERP software helps in minimize manufacturing cost and in increasing of resource utilization
Increase production benefits by using the right ERP tool
ERP ensures on-time delivery
Ensure transparent operational control with ERP

ERP is designed for manufacturing excellence. With visibility throughout the operation via ERP and embedded support for a wide variety of manufacturing processes – including make-to-stock, make-to-order, configure-to-order, engineer-to-order , just-in-time (JIT) manufacturing and materials control, and lean operations.

ERP is changing the competitive landscape for manufacturers. Small to midsize manufacturing companies benefit from a fully integrated, on-demand ERP solution designed to reduce cost, improve customer service, increase margins and generate new revenue streams. Manufacturers can improve business performance with an intensely useful, yet easily affordable, web-based ERP solution.

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