Managing inventory as a manufacturer is difficult with spreadsheets for several reasons, especially when you start to expand operations. While spreadsheet-based inventory management systems assist manufacturers in the management of their company, they only make sense for small companies — especially when they have a limited budget to invest in an end-to-end ERP system.
However, if your organization starts growing or you encounter issues with spreadsheets that affect your service delivery, it might be time to consider other alternatives such as ERP software. Here’s why and when you should turn to manufacturing ERP software for help.
Advantages of ERP software for scaling manufacturers
ERP software has several key advantages that can help improve your business processes compared to traditional methods of managing inventory using spreadsheets.
Generally speaking, process improvements made possible with manufacturing ERP software can also increase revenue and decreased costs. But here are a few more benefits beyond higher returns that may convince you to make the switch.
- Improved accuracy
ERP software can improve the accuracy of inventory management by eliminating manual entries and spreadsheets, improving data quality through the standardization of processes across data input points, and tracking relationships between items that are often not tracked in spreadsheet ERP systems.
- Streamlining operations
Not only does ERP software improve the accuracy of inventory management, but it can also improve many other business processes. Many ERP software solutions have direct integrations with e-commerce and accounting platforms, allowing you to track all business operations and data in one place.
- Access to real-time information
With traditional spreadsheets, some data is entered manually while some comes from a barcode scanner. So, for example, if you do not something, you won’t know if the data is wrong until you receive the physical product. ERP software provides a single source of truth for data, which is updated in real-time as transactions occur. This means that you always have access to the most accurate information possible.
- Reduced costs
ERP software can help reduce inventory costs by allowing users to create and manage Bills of Materials (BOMs). BOMs allow manufacturers to define the components that make up a product and track their relationships. This helps organizations make better decisions about what items to produce and how much stock to keep on hand.
- Better customer experience
Your customers drive your business, and ERP software can improve your customers’ experience by providing sales staff with real-time information about product availability and delivery dates. This allows them to provide more accurate information to customers and helps reduce the likelihood of missed sales opportunities.
- Other benefits beyond manufacturing
ERP software can help improve many other business processes, including accounting, purchasing, and human resources. For manufacturers who are struggling with managing inventory using spreadsheets, ERP software is a valuable solution that can improve accuracy, visibility, and performance.
Manage growth and scale your business with Katana
This is a guest post from Katana. Katana is a manufacturing ERP that gives thousands of manufacturers a live look at their business. The cloud-based software comes with live inventory and manufacturing management features, batch tracking for end-to-end traceability, a Shop Floor App for total floor-level control, open API, and a growing channel partner network.
Real-time master planning features also automate resource allocation based on prioritized sales orders and integrations with e-commerce, accounting, CRM, and reporting services to centralize your operations in one visual platform. Sign up for a free 14-day trial here.