Is It Really Important for Manufacturers to Have an ERP System?

ERP System A Must for Manufacturers

Is It Really Important for Manufacturers to Have an ERP System?

The Canadian manufacturing sector reached new heights last year, with sales totaling 55 billion dollars (according to Statistics Canada 2018). Not only is the market growing very rapidly thanks to globalization and new technologies which are making production and shipping much easier, but the number of players in the market space has escalated. In other words, the competition has never been so fierce.

There is no other choice than to begin the shift towards the future of industry by transforming and automating the production line. However, to maximize the ROI of this type of investment, the whole initiative must sit on a strong foundation, meaning that the manufacturing business must have a good ERP software package in place, capable of supporting and ensuring its continuous growth.

What is an ERP system?

An ERP system (Enterprise Resource Planning) is a central tool that allows a manufacturing business to manage all of its operations and processes. Since it is compatible with a number of management functions, the possibilities offered by this type of solution are almost unlimited. It can manage orders (Salesforce CPQ), accounting (Financialforce), sales (Salesforce Sales Cloud), and more.

Moreover, this type of system yields productivity and revenue growth as well as cost and resource optimization for the manufacturing company.

Does having an ERP system really matter?

The answer is obvious since this software lies at the core of the company’s technology infrastructure. Without it, the business will not be able to operate efficiently within an industry and a market now fully immersed in the digital world.

As an example, for a manufacturing business, an ERP system offers end-to-end visibility on key business processes, such as the complete order-to-cash process, or purchasing, from sourcing to payment. This allows management to plan and allocate resources confidently! The long term and short-term benefits are huge. Just to name a few, below are three major outcomes that can be achieved by implementing an ERP system:



  1. Increased Productivity – When repetitive tasks such as data entry or report generation are automated, not only do you eliminate the possibility of human error, but it has been demonstrated that employees are more able to focus on their work, since the distractions and frustrations caused by tasks with no value added are minimized. Also, since all the data is kept in a central location, the business now has a unique, reliable and verifiable version of the data, and it can also provide employees with the information they need to perform their work, instantly and in real-time, which greatly reduces the risk of errors.
  1. Cost Savings – A good ERP system should be able to guide you towards attaining a perfect efficiency score. It will save you time and resources by providing access to realistic and intelligent forecasts based on reliable information. Moreover, you can amortize the money invested in the purchase or replacement of an ERP system over a long period, since it is perfectly able to adapt to change as the business grows, without having to purchase anything else. The inevitable revenue growth resulting from an ERP system makes it the best return on investment that a manufacturing company can undertake. Software such as Rootstock ERP can help you save even more because they are Cloud-based, which means they do not require the purchase of hardware (such as data servers). Another known advantage of Cloud-based systems is their high level of security.
  1. Improved security – You can allow the right people to access the data and you have a global view in real-time over the data as a whole and how it is being used. When you store your information in the Cloud, only those who have been previously granted permission can access it, and every touchpoint is recorded and stored in the history log.

Did you know? It is easier to recover lost or deleted information when it is stored in the Cloud. On the other hand, a data server could wipe out a ton of data if it is damaged, which can happen in an instant.

As the most modern and flexible ERP system on the market today, Rootstock ERP integrates seamlessly with Salesforce CRM and all the necessary tools to manage a business, from front office to back office. Rootstock, therefore, offers a solid foundation on which to base your business growth and your product innovation.

In addition to all these advantages, when you choose this type of solution, you also gain a key partner to help you grow your company. You might have guessed it already, that partner would be the implementation consultant! By analyzing and reengineering your business processes, not only will your implementation consultant help you start with a solid foundation, he or she will show you how to maximize the benefits of your new investment so you can become a leader in your industry.

Nubik is constantly investing in the evaluation and selection of the best solutions available on the market within the Salesforce ecosystem. This is why we are proud to be able to offer you a free and customized demo of the best ERP system which also happens to be 100% compatible with Salesforce.

You won’t want to miss that train!

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By Hamza Ahmed-Fouatih, Digital Marketing Specialist