Enterprise Resource Planning (ERP) is a software application which integrates the management of core business functions including estimating, order management, accounting and logistical management into one system to increase capacity and cost savings.
For example, let’s look at a customer order and the paper based journey it takes from one team’s in-tray to another, with no tracking and no easily accessible status updates. Orders can get lost or delayed and human error can occur when re-entering information into different systems.
ERP is one system which allows the different teams to access the same information and allows them to perform the duties they performed in standalone systems. There is no need for information to be re-entered into separate systems, and human error and delays are minimized.
Finance, manufacturing and the sales team can all see the order, where it’s up to and the software allows them to do their part with centralized, real time information.
What does an ERP allow manufacturers to do?
Let’s look at the components of ERP and what it allows window and door manufacturers to do:
- customer order management: entering orders, pricing, credit checks, inventory management and sales analysis.
- human resource management: recruitment, payroll, training and benefits.
- finance resource management: cost management, budgeting, accounts payable and receivable, general ledgers and asset management.
- manufacturing management: bill of materials (BOM), work orders, workflow management, quality assurance and life cycle management.
- project management: resource planning, project costing, billing, expenses and performance management.
- supply chain management: planning, product configuration and warehousing.
How does an ERP benefit processes?
Let’s now look at the customer order using an ERP. The sales representative enters the customer information and order into the system which shows product stock levels from the warehouse and allows for accurate delivery dates. The system will alert the finance team to raise an invoice for the deposit payment and the factory to schedule the work.
Information is easily accessible, everyone is on the same page and working together.
Do window and door manufacturers REALLY need ERP software?
Implementing an ERP offers many benefits to businesses including streamlined processes, superior customer service and puts an end to silos and relying on one person’s memory.
A more in-depth analysis along with your requirements, size of your business and capacity will allow you to decide whether an ERP is right for your business.
Want to read more about ERP’s for the door and hardware manufacturers and distributors? Check out this great resource from our business partner contractERP.
Get in touch to discuss how Soft Tech V6 can be integrated with ERP solutions.
