Whether you’re in charge of one line item in a large assembly line or a group of factories in the Chicago area, understanding how enterprise resource planning software such as SYSPRO can enhance supply chain management is important.
SYSPRO can change how you view your work. Instead of keeping people and plants busy, you’re using data to plan the work according to production schedules. Suddenly it becomes more about achieving goals than it is about demonstrating everyone is working hard. With data in hand, you can do more in less time than you thought possible.
BOM and Requirements Planning
Let’s assume that you are in charge of producing residential kitchen and bathroom faucets at the Great Faucet Company. You’re making faucets to stock, not to order. Inventory levels are recorded on spreadsheets weekly and sent to you by email so that every Monday, you can plan which make and model of faucet to ramp up or scale down.
Now let’s assume that with SYSPRO ERP software in place you have instant access, every day, not just to stock levels in your warehouse but to customer orders. A large builder working on a hotel in downtown Chicago just ordered 100 bathroom faucets in chrome finish, while Big Box Store A has a complicated order of faucets in different styles and finishes.
With SYSPRO ERP’s BOM and requirements planning function, you can define the structure of products and plan accordingly. The Requirements Planning module can be used to plan material procurement so that you have enough metal and washers on hand to complete the faucet order. You can look up stock levels to ensure that in addition to producing the special-order faucets for the hotel builder you can ship inventory items to the Big Box Store. Requirements Planning can help you order plenty of raw materials for exactly what you need rather than guessing at what you might need.
SYSPRO ERP helps you focus on what matters. This narrower focus might at first be uncomfortable, especially if you’re used to simply producing items to fill inventory quantities. But soon, with the right data in hand, you’ll be able to run a lean factory, producing to order rather than on spec.
Supply Chain Improvements
With such fast order turnaround and a greater emphasis on custom orders, improving your supply chain is important, too. If you have multiple plants, you can share resources throughout each location. Using your enterprise resource planning system to allocate materials ensures that you use everything efficiently.
Suppliers can be connected to an ERP system so that you can keep in touch and track raw materials orders on their way to a location. Centralizing your warehouse is another step you can take to ensure that materials are shipped quickly to various locations. Raw materials can be received into a central warehouse then shipped to locations quickly.
The Hardest Part Is the Beginning
If you aren’t currently using an ERP system, the hardest part is in front of you—the selection process. Once you get over the initial learning curve of using new technology, SYSPRO ERP will become an integral aspect of your business.
Software such as SYSPRO ERP provides a big boost as you step up from using spreadsheets and emailed information to track your work to real-time dashboards and access to business intelligence reports. As your company grows, you can integrate additional packages into the system so it supports your business, your way. The right software can make a big difference.
For more information on SYSPRO ERP, visit PositiveVision. PositiveVision provides consulting and services to manufacturing, warehousing, and distribution companies. SYSPRO automates many businesses processes and can help you improve communications with customers, among other benefits. With the right data, you can better manage your business. Learn more on our website or contact us today.