Capabilities of Different Types of ERP Systems for Manufacturing
To better understand how you can use an ERP system for manufacturing, it may be useful to look at the basic types of such software products.
Industry-Specific ERP Systems
When looking for an ERP system for manufacturing, you can first find two categories of products. The first one is industry-specific systems designed exclusively for manufacturing. Moreover, they may even be suitable only for a specific type of manufacturing, such as electronics manufacturing or automotive production.
On the other hand, there are ERP solutions such as Microsoft Dynamics 365 for manufacturing that can be successfully used for other industries as well.
On the one hand, industry-specific solutions may contain very industry-specific functionality. On the other hand, the best non-specific ERP systems are designed to work for virtually any industry and provide the same level of convenience. Such products typically have a broader feature set, support more integrations, and can cover far more processes than industry-specific products.
Best-of-Breed ERP Systems
Microsoft Dynamics 365 Finance and Supply Chain Management is one of the best examples of best-of-breed ERP systems, which can be used as a standalone solution or as an addition to a customer relationship management (CRM) system and can be combined with business intelligence tools and many other applications.
Cloud-Based and On-Premises ERP Systems
There is a significant difference between the features of cloud-based and on-premise ERP products. They have their strengths and weaknesses, and manufacturing companies can benefit from both depending on which features a company needs first and foremost: easy integrations and portability or more control over data storage.
Microsoft Dynamics 365 for manufacturing is available both in the cloud version and on-premise.
Open-Source and Proprietary ERP Systems
Although most ERP systems are offered as proprietary products, it is possible to find open-source software as well. This can be useful for companies that need extensive customization, but only highly skilled specialists can do it.
Microsoft Dynamics 365 for Manufacturing Tasks
As a best-of-breed ERP system, Microsoft Dynamics 365 Finance and Supply Chain Management can help companies solve a variety of manufacturing-specific tasks. The exact production specialization of a company doe snot matter as all of these tasks are usually performed by manufacturing companies.
Supply Chain Management
The Microsoft Dynamics 365 ERP system includes two separate applications, one of which is fully dedicated to supply chain management. This solution helps optimize procurement and inventory management with real-time data and analytics on inventory levels, assists companies with production planning, and enables them to perform advanced demand forecasting.
Production Planning and Scheduling
Microsoft Dynamics 365 FSCM makes it easier for companies to plan their manufacturing capacity and allocate resources, which is essential for optimizing production. At the same time, cutting-edge solutions such as The Internet of Things enable companies to monitor their assets and maintain production equipment more effectively, which can significantly reduce costly downtime.
With Microsoft Dynamics 365 FSCM, manufacturers benefit from simplified and efficient defect tracking and quality data analysis. These ERP system features make it easier for them to manage nonconformances and comply with regulatory requirements.
More effective quality control also leads to less scrap and rework.
Getting production up and running is just one of the tasks manufacturing companies need to accomplish. Once production has started, an entire process of maintenance follows. The specificity of this process depends on the product, but every company needs to keep track of its equipment maintenance schedules, manage work orders, and analyze the data associated with these processes.
All these tasks can be carried out with Microsoft Dynamics 365 FSCM, a powerful tool to increase productivity, extend asset life and reduce downtime.
Managing finances is essential for any business, and Microsoft Dynamics 365 Finance is perfectly equipped with all the tools to make this task easier for manufacturing companies. Whether this is basic accounting that covers accounts, transactions, and invoices, or advanced analytics and reporting, the finance module of this ERP system can easily solve these tasks.