Better Reporting for a Competitive Advantage
Hello again,
This post is for small and medium-sized manufacturers that are vetting new manufacturing software systems. We hope you find it useful.
The cost of raw materials has always fluctuated, but due to inflation, lingering supply chain issues, and possible forthcoming tariffs, controlling costs may be an ongoing challenge.
Ian Creswell, Passport Software’s Manufacturing Product Manager, spoke to a manufacturer several years ago that was side stepping tariffs on parts. Some subcomponents were made overseas and then shipped to Mexico for assembly. Now the company was importing from Mexico, hence the partial side-step.
They optimized product costs with this purchasing strategy, as well as utilizing the lower cost of labor in Mexico.
In addition, the company knew a lot of material was being scrapped in Mexico but wanted to see how much was being discarded. Resolving this type of data gap involves solving the discrepancy between what data you feed your manufacturing ERP system vs. what information you wish to get out of it.
First, decide what it is you what to achieve with your system and what data input you’re providing. These need to be balanced to facilitate useful, in-depth reporting. With PBS™ Manufacturing this may also mean implementing more, or fewer, modules.
For example, not everyone is interested in collecting labor. Hence, the need for the Shop Floor Control and Job Costing modules is eliminated. As such, you won’t get labor efficiency reporting or good job costing related information.
As long as the user is comfortable with not having that information on the back end, then that’s fine. There is a combination of factors that come into play within this discussion: What you want to get from your system, what data you are feeding your system, and do those net out?
Any ERP system should be a decision support system providing the company with the ability to make fast, accurate decisions. With PBS™ SQL or even XDBC, a manufacturer can have their data almost any way they want it.
PBS™ Manufacturing
Implementing a tool like PBS™ Manufacturing introduces the opportunity for data control, when the staff is trained correctly to ensure data quality.
By collecting the right data and maintaining data integrity, a manufacturer can often turn their data into a competitive advantage.
How? Insights into customer trends, spotting a drop off year-to-year with a specific customer (important for sales to know this so they can try to rectify it), which vendors are more reliable than others, and many other key factors related to an organization.
Supply Chain Management
Trying to manage purchasing with a manual or outdated system can be slow and ineffective. PBS facilitates comprehensive data visibility to gain better control of your operation for more profitability.
PBS™ Manufacturing ERP is modular in design and integrates with PBS™ Accounting to adapt to your unique needs and processes. You can select only the modules you need and scale up as you grow:
– Set alternate vendors in the system to manage sourcing
– Streamline purchasing, inventory management, and more
– Have materials on hand when you need them
– More throughput with fewer employees
Everyone has their own questions they need answered quickly and accurately. Using tools like Excel, Access, Crystal and a whole host of others can even help you refine your data integrity.
Being able to slice and dice up your data pretty much any way you want allows you to spot holes, or even poor collection practices. And, if acted on, can improve the data integrity thus improving what you can do with your data.
Call 800-969-7900 to learn more about PBS Manufacturing ERP, an affordable yet robust system designed to serve the needs of small to mid-sized manufacturers. Or, contact us – we are here to help.