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NetSuite for Manufacturers: 7 Ways to Improve Manufacturing Productivity through NetSuite

Posted On October Wednesday 19, 2022

NetSuite for Manufacturers: 7 Ways to Improve Manufacturing Productivity through NetSuite

If you’ve landed to this blog post, then you must be a business owner or operations manager of a Manufacturing business and looking over different choices of ERP solutions available in market for Manufacturing industry. Well, you’ve landed on the right blog.

According to a survey, 81% of manufacturers planned to invest in the new digital technologies for boosting their productivity and streamlining the processes across the organization. We know that you are searching for a specific challenge to solve with ERP for Manufacturing industry. So, here we are going to list down the ERP challenges that a manufacturing business faces in managing multiple segments of the businesses like inventory, supply chain, orders, product life cycle, accounting & financial, sales and marketing and many more.

Challenges that Manufacturing Industry faces without an ERP implementation:

  1. How to solve the inconsistent data / information available in system?
  2. How to build an integration between Operations & Multiple Location?
  3. How to automate the process of maintaining inventory?
  4. How to ensure the optimum utilization of resources?
  5. How to boost the employee productivity?
  6. How to control the cost across the business?
  7. How to ensure the on-time delivery without fail?

Great that you are here! We are going to discuss all the challenges in this blog to make sure you get the right answer and right ERP solution for your business.

  • More Inconsistent data / information

Most of the manufacturing businesses are still relying on the manual processes of collecting data, which is inconsistent, error prone data and ultimately leads to decrease in the productivity.

  1. Huge amount of time is spent on preparing and entering data manually in the system with more chances to human errors.
  2. No auto-capture of data method is used leading to delay in putting the information in the system.
  3. Never up-to-date information are available in the system.
  4. Since the process of data entry to validation is completely manual, so creation of reports take time for evaluation process.

How NetSuite ERP will solve the challenge of inconsistent data input across the system in Manufacturing Business?

  1. NetSuite ERP gathers different types of data across multiple departments in digital formats.
  2. Itis a cloud-based ERP and offers mobile apps to input the real-time updates.
  3. It ensures consistent and up-to-date information are available across the organization.
  4. It stores data at centralized location and offers easy access – “Anytime-Anywhere”.
  • Integration between Operations and Multiple Locations

Many manufacturing businesses are spread across multiple locations and works on disparate system. This results in lack of information flow and coordination among the organization. Therefore, the business can’t implement standard operation processes across the organization.

How NetSuite ERP build an integration between Operations & Multiple Location?

It integrates with multiple business processes in manufacturing and maintain operational processes and gives full control over the company-wide manufacturing objectives like production, planning, inventory, purchasing, marketing & sales, human resources, finances and collect these data from multiple departments, locations, & business verticals.

  • Maintaining the Inventory

In order to maintain continuous control over the production process, it is important for manufacturers to maintain the inventory. However, complete visibility over the inventory like in the production line, stocks available in warehouses and at multiple locations, in-transit, and so on. Ultimately, it will lead to a situation of stock outage or overstocking and leads to increase or decrease in the production process.

How NetSuite ERP automates the process in maintaining inventory across the organization?

It enables implementation of standard inventory system and processes where defining the lead time, reorder points, safety stock, and set up alerts & notifications for approvals & authorizations for inventory purchase works smoothly. NetSuite offers real-time visibility & accurate knowledge of items in the stock across an organization

  • Optimum utilization of resources

In order to maintain cost effective and increased production, manufacturers need to optimize their utilization of resource where maintenance alerts are triggered, through plant routine check, equipment maintenance and servicing, inspection etc needed to be taken care. This will ensure that the machinery & equipment in plant are best in conditions for producing maximum output.

How NetSuite ERP help manufacturers in utilizing the resources?

It enables the manufacturers to set trigger for maintenance alerts, reminders to do routine check-up of plant monthly, quarterly and annually, servicing, inspection process etc., which streamlines the production process to maximum efficiency and eradicates the overutilization of resources. It will provide Capacity Utilization Report, Overall Equipment Efficiency reports, Machine Downtime report which provides an insight on production and maintenance.

  • Low employee productivity

Believe it or not but employee productivity is directly proportional to the structure and management of the organization. Manufacturing companies who haven’t yet implemented an ERP for the business does a lot of manual paperwork, lots of pending routine tasks for human resources, no reminder and alerts to improve communication, which increases the manual process & reduces efficiency of employee.

How NetSuite ERP help manufacturers in boosting up the employee productivity?

Implementation of an ERP reduces the extra manual task of doing paperwork, automates the routine tasks of human resources, alerts & notifications to improve communication, e-Approval process via email that speeds up the process & reduces cycle time.

  • Cost-effectiveness

Without an ERP software, costs incurred for buying the raw materials, procurement, purchase, maintaining the inventory module, etc becomes hectic and it takes a whole lot of effort to keep a close watch.

How NetSuite ERP builds a cost-effective model for manufacturers?

It enables manufacturers to standardize the procurement processes, manage the inventory and many more. This enables organization cost for operations, leading to the profitability of business. NetSuite ERP provides in-depth reports in real-time cost incurred for the company where you can generate custom-reports for the Cost incurred in Production, Overhead cost, Departmental cost, Materials cost, etc. This leads to keep a close eye over the expense and trends. Leading managers check whether these expenses exceed the estimations or not and accordingly corrective measures have been taken care.

  • On-time deliverables

When you are in manufacturing sector, it is very important to manage the on-time delivery of the products despite of the challenges which are delay in raw materials transportation, downtime in the production plant due to equipment failure, etc.

How NetSuite ERP enables the on-time deliverables and maintain right supply chain of the production?

With the implementation of an ERP in manufacturing business, it ensures correct supply chain mechanism where right product will reach to right place in right time. ERP manages the companies to follow the right requirement practices and establish a good long term supply contract by maintaining inventory for the product.

Overall, NetSuite ERP is a package of multiple modules which help businesses to streamline and automate processes. It integrates business operation and implement effective policies to achieve Financial & Business discipline. All of this helps manufacturing businesses to overcome the challenges where NetSuite ERP achieves an operational