Editor’s Note: This blog post was originally published in may 2012 and has been fully updated and improved in september 2024 to be comprehensive and easily understood.
ERP is a software that maps real-life business processes in the computer for analysis and reporting. We’ve also written an introductory blog post about what ERP software is. An ERP may have modules to support operations such as Project Management, Human Resources, Order fulfillment, Inventory, Accounting, and many more. ERP software can be very interesting for manufacturing businesses.
Due to the mindset, “you get what you pay for”, many managers try to avoid cheap solutions for their billion-dollar companies. This leads to ERP software being costly. With the software being so expensive there come customization expectations from the user. The vendor’s salespeople will always agree with these expectations. Customization makes the software more complicated and harder to use. This leads to complaints or even failure and therefore expensive after-sales support. This deadlock process was -and still is- feeding dollars to huge companies such as Oracle and SAP. This IS their business model. But it is changing and we will explain how it is changing in the following.
Affordable ERP-low-Cost or Even Free Solution for your Manufacturing Business
Business software such as ERP are getting consumerized. This means that the software is getting simplified both in terms of user interface and operational complexity. Therefore ERP software can be used by manufacturing businesses out-of-the-box without any training by non-experts.
This trend is set by web 2.0 pioneers such as 37signals and ingenious hardware such as the iPhone or the iPad from Apple. Facebook has also helped by getting online software into nearly every home on the planet. By that, people became subconsciously familiar with the Software-as-a-Service (SaaS) concept.
Fewer companies are paying for complicated software that requires months of training or dedicated servers. ERP will not only provide flexibility by being easy to adjust to the needs of your business without requiring costly investments, but the SaaS model with its zero hardware requirement and online support communities will also continue to push prices down. This means ERP will be affordable by being low-cost or even free for your business.
Compatibility with Third-Party Applications
Another amazing thing is, that you can integrate ERP systems with third-party applications. This improves functionality and customization. By combining ERP software with third parties, manufacturing businesses can add essential features that may not be available in the standard ERP system.
Linking ERP with Megaventory ensures that your inventory and business data are always harmonious. When changes happen in your ERP, like new orders or financial updates, Megaventory automatically adjusts its inventory records. This connection helps keep everything organized, accurate, and up-to-date, making your business operations smoother.
For detailed guidance on choosing the right third-party integration, read through the steps of (Medium link).
While linking ERP with Megaventory enhances operational efficiency through synchronized data, the future holds exciting possibilities with social features in ERP systems. Yammer is on its way to integrating business data into a social feed suggesting a shift towards a more connected and interactive approach to managing and sharing operational information.
What Are the 3 Benefits of ERP Being Social?
This is the beginning of a whole new concept in business. Social entities will not just be confined to chat and communication messages, but operational information will get its place in the social feed/timeline. Manufacturing processes, sales events, inventory alerts, EDI (Electronic Data Interchange) alerts et cetera can get a social substance. They can also be distributed to the correct people inside the organization or even outside of it.
Here are the three main benefits of ERP being social:
- Enhanced Collaboration and Communication
Through this, employees can work together more easily by allowing them to chat, share information, and collaborate on projects directly within the ERP platform. This allows the communication between departments to be faster and more efficient.
2. Better Customer and Supplier Interaction
This enhances the interactions with customers and suppliers allowing more transparent communication, faster feedback and ultimately strengthening business relationships
3. Real-Time Updates
For manufacturing businesses, social features in ERP systems, like Real-Time Updates, help quickly solve problems on the production line. When issues like machine breakdowns or delays occur, workers can instantly communicate and work together to fix them, which helps keep the production running smoothly and reduces downtime.
The social trend can get really interesting when a user -or a group of users- will be able to act on intra/inter-organization operational information from their social feed/timeline.
ERP: How it Operates: A Theoretical Overview for Manufacturing Businesses
Imagine having a direct and interactive connection with your suppliers that enhances your workflow and keeps you updated in real time. By integrating social features into your ERP system, you can maintain a dynamic ‘friend’ status with your suppliers, ensuring that all relevant actions and updates are seamlessly integrated into your social feed. This approach transforms how you handle invoicing and inventory management, making the process more efficient and transparent.
Adding operational info to one’s organization’s social feed/timeline will bring collaboration to a whole new level. It introduces significant improvements in optimizing processes and minimizing mistakes due to miscommunication. It ensures real-time updates, efficient invoice validation, and optimized inventory tracking.
How ERP Systems Deliver an Engaging User Experience?
ERP systems are also evolving to become more engaging by adopting ideas from the gaming industry. By incorporating interactive user interfaces and virtual rewards, ERP systems can transform the traditionally monotonous task of managing business processes into a more enjoyable experience. What does this mean for your manufacturing business?
This approach not only makes the software more interesting in general but also boosts user satisfaction and productivity, as happy and engaged users are likely to work more efficiently and stay motivated. A gamification in EPR could for example be an interactive Dashboard, which includes real-time data access, alerts and notifications, and more. This would be especially useful for the resolution of issues, optimizing processes, and improving decision-making.
In Summary
The outlook for ERP software will provide social software, that will be easy to use and that will be perfect for collaboration. Through its compatibility with third parties, it is perfect for manufacturing companies and will be able to provide everything you might need for low to no cost. Modern ERP systems are evolving to become more engaging and accessible, transforming how businesses manage their processes. With advancements in real-time updates, interactive features, and gamification, these systems enhance user satisfaction and productivity, while streamlining operations and fostering better communication.
Learn more about the integration of ERP Software in Megaventory!
Dimitris Athanasiadis oversees Operations and Customer Relations in Megaventory.