Why Does the Manufacturing Industry Require NetSuite ERP?

One of the key drivers of growth in any growing economy is manufacturing. According to a report in Forbes magazine, manufacturers are slated to set apart one-third of their IT budget for cloud-based applications after realizing that on-site systems can be a hindrance sometimes. 2024 is expected to witness more manufacturers moving to a cloud-based infrastructure. In such a scenario, Oracle NetSuite Enterprise Resource Planning holds great potential for this sector. The International Data Corporation also suggests that almost 90% of manufacturing firms will make use of smart solutions within the next two years.  

ERP for Manufacturing

One of the main hassles facing the manufacturing industry is improving productivity. But, dependence on an ERP system can improve the overall efficiency, reducing costs, and improving productivity. This happens when all major business processes are integrated into a single platform.  

Also, many manufacturing companies have trouble sharing production-related data with employees and external entities. A shared database is necessary for effective functioning, and this is where cloud solutions play a major role in bridging these communication gaps. 

Its advantages in detail 

1. Data management comes easy with an ERP system that can act as a centralized hub for all your operational and financial information. 

2. This smart transition lets you have 360-degree visibility over your supply chain operations like warehouse management, transportation, and inventory. 

3. Various manufacturing methods like - Make-to-stock, Make-to-order, just-in-time, etc are also supported in ERP systems. 

4. Advanced software systems like Oracle NetSuite offer a flawless mechanism to manage businesses across the world. Having a comprehensive view of all your locations will improve visibility. 

5. Offers and discounts based on real-time data are another major advantage. Some systems also help in material planning to reduce wastage and delay.

6. Having a complete view of your production cycle enables you to efficiently manage all manufacturing processes. 

7. Streamlining operations by allotting jobs on the basis of machine and labor availability is also possible. 

8. It is also possible to monitor inventory levels by scanning and storing products and improve the accessibility of items within the warehouse. ERPs also ensure the quality of finished products by using checkpoints.

When is the Right Time for Implementation? 

Sometimes businesses never even realize their growth is stunted unless it is too late. Here is a quick checklist to understand the pain points. 

• If your enterprise is struggling to manage all disparate data sources, consider getting an ERP system for maintaining the integrity of all data.  

• If existing legacy systems are ruining your IT budget with updations and repairs, make the transition and eliminate unwanted maintenance costs.

• Diminished customer experience because of the lack of an effective customer management system also heralds the need for radical change.

• The ability to scale according to the needs of the business is key for a rapidly growing organization. A cloud-enabled ERP system is perfectly capable of such a transition in a cost-effective manner.

How Netsuite ERP Helps Manufacturing Industry? 

Engineering 

Netsuite allows seamless integration with applications like CAD and thus improves product design and Bill Of Materials management. Costing is made more efficient  by embedding LIFO, FIFO, and other costing strategies. 

Service 

Case management, warranties, and other customer service needs can be streamlined and managed easily. By automating case management, it is possible to prioritize support tickets based on client email addresses. Escalation can be set up based on customizable parameters and priority. 

Financials 

The software system allows highly customizable dashboards that reveal various functionalities like accounts payable, accounts receivable, and reports. A comprehensive view of various income statements and balance sheets are available. Taxes, invoice creations, and finance charges can be auto-generated. 

Commerce 

Manufacturing companies often have online and offline sales portals. The smart transition can help in both B2B and B2C order placements. Order management can be enhanced by streamlining all processes. 

Analytics 

It is possible to analyze various data points like search engines, websites, and other marketing insights to drive real-time decisions. Key performance indicators (KPIs)  improve productivity as it allows users to get an overview of various processes.

Sales and Marketing 

Managing Opportunities, sales quotes, and other discounts can be done in NetSuite effortlessly. It is also possible to create email campaigns and effectively convert potential leads into customers. One also gets the ability to access important data such as sales orders and calendars through its mobile platform.  

Order Management 

Patrons receive an in-depth understanding of the entire order management process.  This includes orders, shipping, and other trends. It is also possible to drill down to the last detail with just a couple of clicks. 

Supply Chain Management 

Another advantage is seamless supply chain management with advanced resource planning. Improved demand strategizing helps in understanding inventory levels by scrutinizing historical data, trends, and seasonal differences. Key spending and SCM metrics are also revealed for better business visibility. 

If you are interested in getting a quick demo, contact Jobin & Jismi.