Manufacturing Software & Small Manufacturers

An ongoing issue in many small manufacturing facilities is determining the best method to monitor and control production. While most large manufacturers rely on comprehensive manufacturing software programs that control everything from orders to transport, smaller manufacturers often assume that these programs will not provide the return on investment that their competitors gain. They, therefore, choose to rely on ERP systems that only track data for parts of their manufacturing process. 

Is ERP Enough for Small Manufacturers?

Enterprise resource planning (ERP) software was one of the first planning systems made available to manufacturers and remains integral to production planning to this day. Initially designed to coordinate the flow of information between different departments, modern ERP programs have evolved to process data and produce reports for nearly every business function—from product transport to HR.

Because of this, ERP programs appeal to smaller companies seeking to minimize risk. As a company grows, however, the limitations of these programs become more obvious. Though powerful, ERP is not a “decision-making” software. Often, a more advanced program is needed to optimize schedules across a single facility, let alone organize company operations across multiple facilities.

A software program that can control almost every aspect of order planning, production scheduling, and product transport to the client can greatly reduce the amount of errors, and ensure that items are produced in the most efficient time and manner possible. Because mistakes such as production overruns can have a much larger effect on a small plant’s bottom line, smaller manufacturers tend to see large benefits from these more advanced software programs.

APS & ERP for Small Manufacturers 

When unexpected events occur, companies of all sizes need a software system that adjusts to them automatically. Unexpected maintenance or a rush order does not have to cause a disruption to the entire week’s schedule. Instead, product can be redistributed to other lines. Workers can be transferred to new stations, allowing production to continue efficiently. Your customers receive their orders on time with little to no delay. Furthermore, you’ll know that the change was the most cost-effective decision to dealing with the crisis. While your competitors scramble to figure out what to do, your customers are receiving their product.

That isn’t to say that small companies can’t benefit from ERP. Many advanced scheduling programs integrate seamlessly with ERP to create fully integrated and fine-tuned production schedules. Advanced systems can anticipate fluctuations in resources and demand while ERP acts as an interdepartmental conduit.

Curious about how manufacturing software can optimize the supply/ demand balance for your company? Read more about it on our blog: 3 Tips for Balancing Demand Planning with Resource Planning.

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