The manufacturing industry is under pressure. Staff is and remains scarce, delivery times demand tight control and costs are rising. At the same time, customers increasingly expect flexibility and customisation. Many SME manufacturing companies recognise the tension: there is ambition to grow and improve, but little room for major change projects.
It is precisely in this tension that a silent shift is taking place. And it is not towards 'more technology', but towards smarter use of existing technology, in small steps. ERP systems are playing an increasing role in this. The wealth of data collected in ERP systems can become a steering tool for daily operations. After all, ERP brings processes and data together.
Lots of data, still little grip
Research by ECI Software Solutions shows that many manufacturing companies have a lot of data at their disposal. Cost prices, stocks, lead times and capacity utilisation: everything is registered somewhere. Yet in practice, decisions are still often made on experience, feelings and assumptions. This is understandable. In an environment that is all about customisation, project-based work and ad hoc changes, managing by figures does not always feel natural and standardisation is not always possible.
Yet there is an opportunity here. Because those who only look back based on data continue to react to what has already happened. Those who use data to look ahead can make adjustments sooner. This is exactly where ERP's role is shifting: from retrospective administration to a compass for operations.
ERP: compass in a tight market
The reason ERP is gaining momentum now is not technical, but mainly practical. Staff shortages are forcing companies to plan smarter with the people they have. Margins are under pressure, making better insight into cost prices and deviations increasingly important. And customers expect reliability, even when schedules are under stress.
ERP helps create coherence between those issues. Not by automating everything at once, but by connecting processes and data. Companies increasingly use ERP to plan better, optimise inventory and gain insight into where time and margin are leaking away. This creates peace of mind: fewer surprises and more predictability.
Why this works especially for SME manufacturing companies
For SME manufacturing companies, digitisation sometimes feels like something big and abstract. There is little room for long-term trajectories and there are often only a few people who 'really get the systems'. At the same time, this group in particular benefits from overview and simplicity.
ERP as a steering tool does not mean: starting yet another project. It means: making better use of the information you already have. By taking a more focused look at planning, capacity and costs, you create room to get a better grip on the work with the same team. This not only helps in busy periods, but also in making better choices about which assignments to take on or not.
Three small steps with visible effect
Progress does not have to start big. Three practical steps that go a long way:
1. Choose one steering question
For example: where do we structurally lose time in planning? Or: which orders yield less margin than expected?
2. Make one dashboard leading
Instead of ten reports, choose one overview to be discussed weekly. What do we see? What does this mean for the coming weeks?
3. Involve the shop floor
Data only works if people can do something with it. By involving planners, work planners and team leaders, managing by numbers becomes a joint effort instead of something 'from above'.
Small steps, consistently repeated, make the difference in the long run.
Enabling people to grow with technology
Many manufacturing companies invest in systems, but underestimate the time it takes for people to work with them. Digital skills do not develop naturally. Without attention to adoption, dashboards remain figures on a screen, instead of tools for better choices. Companies that consciously invest in this build a head start. Not because they have everything perfectly organised, but because they learn to work with data as part of the daily process.
Small improvement, big impact
Companies that gain the most in the coming years are often not those with the biggest plans. They are the companies that push through small improvements, measure results and bring their people along in working with data. Companies that see their ERP not as a system that has to, but as a steering tool that helps.
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Wondering where your organisation stands compared to other manufacturing companies?
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By: Lissa Verhoog, Senior Product Marketing Manager at ECI Software Solutions
