Since the 1940s, plastic has become an integral component of human lives, and now it’s one of the frequently used compounds in industries.
How Plastics Manufacturers Use ERP Systems to Scale Operations
The common reason businesses prefer to use plastic goods is they’re lightweight, durable, waterproof, economical, and recyclable. What’s more, they even occupy less space during transit.
Because of these, they’re mostly used by the food and beverage industry for the packaging of items. But to make the most out of plastic manufacturing, it’s crucial to utilize several strategies, such as enterprise resource planning (ERP) systems.
The use of such a system has ensured the success of companies like Agri Plastics and related enterprises over the years.
What Is an ERP System?
ERP is a class of systems that can manage and simplify all crucial business activities. In other words, it can assist in streamlining the activities of a plastic manufacturing enterprise and ensure the management team has access to valuable data and actionable insights.
Although ERP has been around since the 1940s, advanced systems have been developed over the years that use artificial intelligence. Technology has improved the capability of the system to provide support to decision-makers.
Thus, now, the management can focus on other important things, such as discovering methods to improve workforce efficiency and profit margin.
What Are the Major Types of ERP Systems?
As a plastic manufacturer, each day you experience a challenging but opportunity-rich environment. So it’s crucial to adapt to changing demand patterns and global markets and fulfill the growing compliance and sustainability needs.
An ERP system can certainly be beneficial, but one of the most expensive mistakes you can commit is choosing ERP software that doesn’t fit your activities. With that said, here are some of the major categories of ERP you can choose from:
Boxed ERP
This is a system that’s easy to operate and install but not that simple to configure or customize, plus you can’t have add-ons with this type of ERP. However, it’s suitable for small businesses because it’s cost-effective.
Large-Scale ERP
it’s important to understand this system as a framework. As a company owner, you’d provide a framework from which distinct software would be developed.
But as the development starts from scratch, this system would take a considerable amount of time to ensure a unique final product.
Industry-Specific ERP
this system is developed to operate in a specific industry and is usually incorporated with highly specific features. The only downside to this type of ERP is it generally lacks configuration capabilities, meaning users have limited opportunities for customization.
As a plastic manufacturer, before you choose any ERP, it’s important to conduct extensive research to ascertain you select the right system for your operations.
Consider your company size and scalability to ensure you employ a system that helps manage your operations to increase efficiency and production volume.
How Can You as a Plastic Manufacturer Use ERP’s?
ERP installation will be beneficial both at the micro and macro levels. The following are some of the ways ERP may help you scale your business operations.
1. To Automate and Streamline Business Activities
A proper ERP system would streamline your firm’s activities and automate your manufacturing processes. By streamlining your business activities, all your company data would be accessible from a centralized location with complete visibility in all functionalities.
These include areas of design, development, production, finance, purchases, and delivery.
Additionally, employees would be able to monitor the production process in real-time without depending on an individual or team.
For example, the design department may track the development and status of production and update the finance team concerning the need for additional raw materials.
Through this, you may improve efficiency in your processes, leading to an increased production volume. Automation would reduce your company’s dependence on manual processes as it’d speed up the manufacturing process and reduce room for errors, thus improving profit margin.
2. To Provide Accurate Data
Centralized data collection would make it easier for plastic manufacturers like you to access complete data sets.
You’d be able to access data on all aspects of your enterprise activities, including performance, revenue, stocks, labor, and customers.
The ease of access would help all stakeholders make more accurate forecasts, empowering the management to make timely, smart decisions.
3. To Save Time and Money
It’s the ultimate goal of each plastic manufacturer to reduce production costs so as to improve profit margin. Therefore, when your business data are streamlined and processes are automated,
ERP reduces the need to revise your paper documents, search for documents in files, and do similar tasks. This would reduce errors, save time, and ensure no extra costs emerge.
With the right ERP system, you’d experience the following benefits:
- You’d avoid investing in several strategies as an ERP system would serve the purpose.
- You’ll use less time to accomplish more work.
- It’d reduce operational costs while refining workforce efficiency.
An ERP system would indeed reduce costs and improve the profit margin for your firm. It may encourage lean manufacturing, which could lower your operational expenses in multiple ways, including the following:
- Lowering supply costs
- Boosting efficient time strategies
- Retaining clients and workforce
4. To Improve Customer Service
ERP systems would help you enhance your capability to meet delivery deadlines and your other commitments with your clients. This would be possible as you’ll have precise control over your inventory, ordering, and scheduling.
On the other hand, customers would be able to view every step in the transaction in a real-time world, as well as the status reports. It’d improve efficiency across the board for both your business and customers, increasing chances of customer happiness and satisfaction.
Takeaway
Now that you understand how ERP may help you scale your operations as a plastic manufacturer, this may be the time for your company to take a step closer to being the best it can be.
However, ensure to conduct extensive research to identify the best ERP solution for your organization. Another thing to note is ERP may help keep your bottom line healthy.
This would result in a healthier balance sheet, making a real difference to the firm’s performance in this competitive world.
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