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How ERPs Help Build-to-Order Manufacturers and Fabricators with Their Supply Chain Management

A well-managed supply chain is crucial to the overall success of a business, especially one in the build-to-order manufacturing or industrial fabrication industry. To stay on schedule, build-to-order manufacturers rely heavily on partners and vendors to supply them with the right type and number of resources at the right time. That is why enterprise resource management (ERP) software is essential for the continued success of businesses with detailed supply chains.

To streamline operations, supply chain managers require real-time data, up-to-date information, and access to resources to help devise and execute your organization’s strategy. Through the integration of essential supply chain management capabilities, ERP systems can assist your company’s ability to efficiently meet your fiscal goals and customer demands.

What is the Role of ERP in Supply Chain Management?

If you are new to the world of ERPs, you may be asking “What are the benefits of ERP in supply chain management?” Modern ERP systems are an all-in-one software that companies have integrated into their day-to-day operations to help run nearly every aspect of their business – including their supply chain. A key function of these systems involves managing supply chain functions such as:
Inventory management
Production management
Order entry & processing
Vendor management
Warehouse management

Streamlining these services enables businesses to better coordinate and manage certain facets of their supply chain. This built-in integration is a massive relief to build-to-order manufacturers as it also reduces the challenges typically associated with handling multiple different supply chain functions. This also enables companies to automate certain operations which can lead to time and cost savings.

What are the Benefits of ERP in Supply Chain Management

By implementing an ERP into your supply chain management strategy, companies can experience a wide array of benefits that lead to measurable business growth such as:

Improved Efficiency

ERP systems can help greatly improve supply chain management efficiency. ERPs enable companies to streamline supply chain functions through automation. This helps to improve visibility across the supply chain, allowing companies to quickly make informed decisions about how to manage production costs, logistics, and order entry. Automating this process helps businesses ensure that they can reliably fulfill customers’ orders on time – building customer loyalty and retention.

Reduced overhead and operational costs

With better visibility into supply and demand, companies can optimize inventory — buying just enough to meet demand without overstocking. This can help to reduce warehouse space and operational costs. By implementing a supply chain ERP, you can also reduce common administrative costs and errors.

Enhanced Collaboration

ERPs are especially helpful to the supply chain management processes when it comes to the coordination between manufacturers and vendors. Suppliers that are connected to your ERP system are able to work more effectively with you to meet your goals and reduce bottlenecks that occur when certain supply inventories are low.

On-Premise Solutions

For build-to-order manufacturers, fabricators, and distributors, on-premise solutions remain a preferred choice. In addition to reducing the total cost of ownership, on-premise solutions offer greater control over data security, customizability, and scalability. On-premise solutions are not reliant on the internet and thus companies avoid loss of business should your internet connection go down.

Cloud-Hosted Solutions

Cloud-hosted ERP software has become the new normal in recent years. Using a cloud-hosted ERP supply chain solution means that the system can be accessed anywhere and anytime. This allows for quicker action without the need for team members to be together, which can be valuable with the fast-moving aspects of supply chains.

Fewer Technical Difficulties

Using an ERP system for supply chain management can streamline IT as well as supply chain operations. Companies no longer need to tackle the complexities of integrating data from different software systems or learn how to operate applications from different vendors. ERP modules all share the same data in real-time, eliminating the need to convert data between applications.

What to Consider When Choosing the Right ERP for Your Business?

Even more important than adopting an ERP solution is identifying the best one for your business. No two are alike—that’s why you need to take a few key factors into account.

Ease of Use

ERPs serve your entire organization – synchronizing key features across departments. Every element of your ERP should make use of the same underlying technology and database that the rest of the organization is also using. The interface should be intuitive and allow your team to access the files they need easily.

Industry Specific

While there is a wide array of different ERP software available to choose from, your business would be best suited to choosing a system that is uniquely tailored to your industry. Your organizational needs will be different depending on your scope of work. By choosing a system that was designed for your industry, you can have access to the exact tools and services you need to operate at full capacity.

Data Security

When considering an ERP system, it is important to remember that they deal with crucial data that needs to be securely handled. Because of that, permissions must be highly configurable – giving your IT administrators the tools they need to establish access based on the user’s general role, individual user, and field-level security.

Flexible Scaling

You need a system that grows as you do. The on-premise or cloud-hosted infrastructure of ERP systems makes it easy to add resources as you grow..

Reinforce Your Supply Chain with TrulinX

The supply chain industry is always changing. You need an ERP that can adapt, scale, and keep your operations running efficiently. The specialized features of Tribute’s ERP software are designed to help you maximize profits and better serve your buyers.

TrulinX continues to raise the bar as an innovative solution in the supply chain industry. Through our software, we aim to provide solutions that give distributors a competitive advantage in the marketplace. Ready to improve your organization through an innovative modern ERP software? Request a Demo to see how we can help you make that change to your business.

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