7 Ways to Achieve Manufacturing Success with ERP [Infographic]

Manufacturing is complicated, with many competing priorities vying for the lion’s share of attention. Each priority is like a “house” on HBO's Game of Thrones, and it isn’t easy to tame even one house, never mind all of them. But tame them you must, if you want to rule the throne of manufacturing.

Here are few tips for bringing your 7 ERP houses into alignment.

1. House of Compliance

Most industries must conform to government regulations, and there are harsh penalties for failure. In Q1 2015 alone, there were more than 417 FDA recalls, a 5 percent increase from the prior year. The cost of a single recall can reach $600 million, according to Aberdeen Research. A hit like that can put an end to your hopes of leading the industry, so make sure your ERP system has strong and true lot and serial traceability.

2. House of Plenty

It's a fine balance between too much and too little when it comes to inventory. You need enough to keep the plant fed, but not so much that you drain your coffers and stuff your warehouses. Best-in-class companies track forecast accuracy so they can react quickly to changes in demand. If you want to win the throne, you need to be one of the 85 percent of manufacturers who report better visibility and real-time access to inventory insight from a complete ERP system.

3. House of Innovation

The world moves at a faster pace than ever before, and rapid product innovation is the doorway to gaining market share. If innovation is the door, engineering change order (ECO) management is the key that unlocks that door. Data integration that streamlines business processes is a key driver of product innovation, according to 59 percent of respondents in a recent survey.

4. House of Hierarchy

Designing for manufacturing flexibility helps enable mass customization and supports outsourcing of complex processes, and that means you need accurate bills of materials. According to Aberdeen Research, 42 percent of manufacturers consider maintaining bill of material accuracy a growing challenge. When selecting an ERP system, pay careful attention to the BOM functionality, or you may find yourself at the mercy of a monster from beyond the wall.

5. House of Winter

We all know that “Winter is coming.” You need to plan ahead to match supply and demand to keep customers happy. Best-in-class companies have an average customer service level over 93 percent because they plan carefully using MRP to ensure they have enough—but not too much—of the right materials to meet the plan.

6. House of Uniformity

If there’s one factor that can topple your bid to rule the market, it’s poor or inconsistent quality. Quality is not a “nice to have”—it’s the price of admission. Discrete manufacturing leaders are 44 percent more likely to have a QMS system integrated with their ERP system so they can react quickly at the first sign of trouble.

7. House of Clairvoyance

Most manufacturers find that ravens don’t deliver insight with the regularity necessary to stay in the running for market leadership. Instead, manufacturing leaders rely on analytics to provide the insight they need. Companies that use analytics reported a 29 percent increase in organic revenue growth and a 32 percent increase in operating profit. That’s the kind of strength you need to make your try for the Iron Throne of manufacturing.

Nobody wins the Iron Throne without allies to help them tame the unruly houses that try to stop their progress. The right ERP system is the ally you need to create order from chaos and win the throne of market leadership—a prize more valuable than even the Iron Throne of the Seven Kingdoms.