How 5 manufacturing categories are advancing operations with ERP

It was a strategic choice for us at Syte to focus on working with privately held manufacturing companies — but it was also a labor of love. “Manufacturing” may be lumped together as a vertical market, but it is an incredibly diverse and impactful industry.

In recent years, we have seen five manufacturing categories in particular push more toward ERP modernization. In this article, I’m sharing what I’ve learned from these companies, and the advice I’m giving when they approach us about ERP.

ERP Software for the Cement Industry

In many industries, sustainability has become a buzzword — but in manufacturing, it has been a rallying call for meaningful progress.

In recent years, the name of the sustainability game in the cement industry has been decarbonization. For every pound of cement manufactured, 0.9 lbs of CO2 is produced — and when cement goes into the making of concrete, every cubic yard of concrete produces 400 lbs of CO2. That’s the equivalent of a car using an entire tank of gas.

In their efforts to find a solution, more cement manufacturers are turning to ERP software vendors for help.

When considering different ERP solutions, we advise cement manufacturers to look at two things:

1. Supply chain transparency features. Some software solutions can give you more visibility into your suppliers and help you create different supply chain models to move goods more efficiently.
2. The corporate priorities of the ERP software provider. Some ERP vendors are putting decarbonization at the top of their priority list, and introducing features and implementing programs for reducing carbon emissions.

ERP for the Wood Industry

In wood manufacturing, efficiency wins the day — and efficiency is how these traditional companies are navigating wood shortages, supply chain issues, and a changing job market.

Some wood manufacturers are improving efficiency by converting low-grade timber into wood products suitable for construction. Others are creating efficiencies in their shipping practices. And still others are focusing their efficiency efforts on improving the day-to-day lives of their employees — some companies moving locations entirely to shorten commutes and create new jobs (which also benefits customers with shortened lead times).

We’ve seen ERP come into play in a big way for building efficiency in the wood manufacturing space. There are three areas in particular these companies should think about when upgrading or replacing their ERP:

1. Comprehensive control over supply chain efficiency
2. Automation and analytics to synchronize production and distribution activities
3. Agile demand forecasting capabilities to reduce the impact of one-off events

ERP for Make-to Order Companies

Make-to-order manufacturing is a uniquely challenging space. These companies must streamline production as much as possible while still enabling customers to order products customized to their specifications.

In the past, streamlining was all about equipment and floor personnel — but in the last 10-20 years, these manufacturers have looked to streamline many more areas of their business. Communication, changeover scheduling, preventative maintenance, and inventory management have all gone under the microscope as make-to-order companies look to streamline their operations.

ERP software can help make-to-order manufacturing companies in their efforts to streamline, and forward-looking leaders should look to take advantage in these five areas:

1. Integrated functionality to connect processes and applications, and increase the speed of transactions
2. Faster communication between employees and departments
3. More visibility into data for improved customer service and trend predictions
4. Automated data entry to reduce errors and eliminate manual re-entry of data across departments
5. Robust reporting tools to make faster, better decisions with data

ERP for the Dairy Industry

The dairy industry as a whole is approaching sustainability from two angles: reducing greenhouse gas emissions and reducing food waste.

Interestingly, while the dairy industry has come under fire from climate change organizations, it has also created some of the most innovative approaches to deal with their piece of the environmental puzzle. The dairy industry (particularly in North America) has found ways to reduce emissions even as it increased milk production. Dairy farms have also helped reduce food waste by converting the byproducts of other industries into high-nutrient feed, renewable energy, and fertilizer.

With the right ERP solutions, dairy companies can modernize their operations even further. To that end, we recommend that dairy companies look closely at two factors when selecting a new or upgraded ERP:

1. Metrics and insights into production execution
2. More control over the movement of stock and orders, and visibility into the efficiency of each part of the supply chain

ERP for the Metal Fabrication Industry

The metal fabrication industry has progressively turned to automation to improve the safety of their facilities, increase productivity, and fill the gaps created by a growing labor shortage.

Robotics have helped this category stay competitive, and automation has helped it reduce overall costs. The Association for Advancing Automation (A3) reports that robot sales totaled $1.48 billion at the end of Q3 2021, surpassing the previous nine-month record.

We’ve seen automation growing in importance when it comes to ERP software for metal fabrication, as well. These companies are especially benefitting from a new or upgraded ERP in these three areas:

• Optimizing inventory so they’re never surprised by materials shortages
• Automating manual tasks so their highly skilled employees can focus their time on higher-value activities
• Making the right data visible to everyone — so no matter what department an employee works in, they can get the information they need in real time

ERP for Manufacturing Is Anything but One Size Fits All

Each unique manufacturing category has different requirements and sensitivities, and requires a different approach to ERP selection and implementation. In our years helping manufacturing companies navigate ERP initiatives, understanding each category’s needs and constraints has been both a challenge and a pleasure.

While all categories of manufacturing are evolving in their use of technology, the five I covered in this article are leading the charge in many ways. I’d love to talk to you more about how ERP has advanced in your area of specialty, and how a new or upgraded solution might bring your company greater efficiency and cost savings. Schedule a 30-min complimentary collaboration session right here.