ERP (enterprise resource planning) optimization is the process of analyzing an existing ERP implementation to find and address gaps in the system. It is an important part of enterprise resource planning because even with an ERP system already in place, gaps can still occur that need to be addressed. ERP optimization can help businesses uncover productivity issues that can be fixed by an enhancement or development that improves the performance and efficiency of the ERP system, and thus its ability to deliver results.
As production planning is about avoiding delays and problems in manufacturing and services, it is important to fine-tune an ERP system to ensure that the production flow runs more smoothly. The optimization process aims to reduce overall manufacturing costs while increasing the optimal usage of available resources.
How to get more from ERP optimization
In order to maximize the benefits of ERP optimization, business owners can integrate their ERP system with machines and plant floor equipment for automation. Users can choose to integrate machines during an implementation, or after go-live as part of the optimization project. Integration and machine automation in manufacturing greatly improve data accuracy, real-time data access, and efficiency.
Benefits of ERP optimization
ERP optimization of the production process benefits businesses in a number of ways.
It can help control costs by ordering inventory only when needed to balance supply and demand and avoid stock surplus.
It can give a business control over ordering, warehousing, and shipping to ensure accurate planning and streamline costs.
ERP optimization can connect an ERP system to an employee database so managers can assign tasks and address issues faster.
ERP optimization can also help strengthen employer-employee relationships by providing a direct line of communication for both parties.