Prominent Contribution of ERP in Manufacturing Industries of Bangladesh

Following are the various functions and roles ERP systems play within an organization:

Financial Accounting

The financial module of an ERP system helps the company track and manage finances. It does most things an accounting department might do and handles the accounting process.

The company may need to carry out reports and documentation processes, including balance sheets, income statements, cash flow statements, ledgers, etc.

Financial accounting has the following roles to play in manufacturing, including (but not limited to):

• Optimizing cash flow
• Increasing efficiency in financial reporting
• Ensuring more efficient closes
• Integrating the views for cost accounts into one
• Enabling making multiple entries into ledgers
• Reducing costs for financial management.
• An efficient ERP system can attain all this using an automated process in real-time.

Payroll Management

Overly integrated ERP systems always hold a module to help manage and track all employees in the organization and the remuneration drawn by them. It also addresses other functions such as HR management, payroll ledger entries, compliance, legal hiring, etc.

The payroll management module of ERP systems may manage the following roles for the organizations:

• Minimizing paperwork for human resource management
• Employee tax information tracking
• Simplifying the process of employee management
• Managerial reporting for employees
• Speeding up business processes and closing
• Integrating view of accounts
• Managing diverse workforce

Read Also: Key Components for ERP Implementation Which Can Change the Pace of Business

Production Planning

This module deals with the daily production process and all directly associated activities. It continuously provides information, updates, and reports about the delivery schedule, production control, inventory management swiftly and easily to the various levels of company management.

Production planning has the following roles in manufacturing, including (but not limited to:

• Providing real-time production updates
• Optimizing and tracking processes within production
• Updating information regarding configuration for production
• Successfully replanning the manufacturing process
• Tracking supply actively to maintain supply-demand equilibrium
• Preventing errors made in manual
• entries

Material Management

This module deals with transferring the material from manufacturer to customer. This module contributes to managing, optimizing, and tracking the supply chain.

Following is a list of components of material management included in manufacturing:

• Using software solutions to improve supply chain management
• Integrating and automating inventory management
• Reporting inventory details real-time
• Keeping a central database for materials and inventory

What Roles do ERP Systems Play for the Growth of a Business?

Growth is essential for any business to be sustainable. For manufacturing companies, growth is even more important since the main purpose is to profit and sustain.

However, growth puts immense pressure on management and is left unchecked, and it can even cause a severe downfall.

When it starts getting more challenging to manage, EPR systems can play a major part in maintaining the growth in an organized manner and sorting all associated concerns.

Following are some of the complications that an appropriate ERP system can help the business with:

Processing Large Amounts of Data

A typical database may slow down data collection and management upon reaching a certain limit. ERP systems help employees obtain and sort through vast amounts of data swiftly and thoroughly.

Supporting New Operations and Upcoming Innovations

This is essential for expanding product lines or growth in the market. A dedicated ERP system helps collaborate with upcoming business operations by providing various customized modules.

Managing Improper Data Collection

Using inadequate methods or software for data collection takes way more than optimum time and leaves room for inaccuracies. Being rigid and swift matters when it comes to growth and stability for a business.

Following are some of the measures that can be taken to ensure business agility with an ERP system:

• Data Analysis with real-time business intelligence
• Process developing encouragement
• Mobile technology integration and its benefits
• Complete Automation Process Ensuring
• Cloud-based architecture

Finding the Right ERP Solution for Your Company

While ERP systems are an increasingly trending concept in Bangladesh, it is still necessary to consider your organization's specific needs before opting for certain software or system. It is advisable to be specific and realistic about your needs, complications, shortcomings, and expectations.

There are customizable options for ERP systems suited for various types of requirements. While deciding on what kind of ERP system you want for your organization, you should keep in mind that using a system more or less advanced than your needs can negatively impact your efficiency.

If a company chooses to use a more advanced system, they would definitely have to spend more on something they don't require. Moreover, it might end up causing obstructions in proper growth as well due to its more complicated nature.

Remarks

Using a less capable system than needed would cause your company and its procedures to overwhelm the system with data and ask it to do things it's not meant to.

Knowing the roles an ERP system can play is essential to determine how you want your company to utilize them. A handful of routine manufacturing operation management tasks require a human touch.

• The rest can be delegated to an ERP system that matches your preference and requirements, and you can watch your operations flourish as everything unfolds.