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The Datacor Blog

2022 Guide to ERP for Industrial Manufacturing

December 14, 2021 by Admin

Enterprise resource planning (ERP) is a type of software that helps businesses organize and manage daily tasks and processes, ranging from procurement and supply chain operations to customer relationship and compliance. ERP is an essential tool for industrial manufacturing, helping users stay on top of their orders, inventory, and finances.

An ERP system automates and simplifies operations, allows for better record keeping and minimizes the risk of manual errors. In the context of industrial manufacturing, this also means ensuring the safe delivery of often hazardous substances.

The industrial manufacturing industry is responsible for the creation of raw materials that will later be used to mass manufacture different end products. Those cover a variety of sectors, including automotive, paints and coatings, pharmaceutical, industrial lubricants and adhesives among others.

A lot of intermediate chemicals need to be produced, blended and transported for these end products to be manufactured. The role of chemical manufacturers and distributors is, therefore, critical at the initial stage of the production of many essential products.

It is vital to identify quality issues as soon as possible, especially today when the supply chain is particularly strained. The cost of identifying potential problems increases down the supply chain as they result in logistical and production delays. Using a reliable ERP system minimizes the risk of such situations arising while also boosting productivity and increasing visibility for the business that uses it.

Key Features

An ERP system that is used by industrial manufacturing businesses centralizes all back-end operations under the same platform. It allows a chemical manufacturer or distributor to keep track of their orders, inventory and finances.

“An ERP system helps you organize, plan and commit to that plan. It makes sure you never drop the ball. It helps you complete your own checklist while also taking care of each of your customers,” says Sean Doran, Customer Success Manager at Datacor.

Inventory management and operations planning are among the essential ERP features for an industrial manufacturing business. A number of daily tasks could be completed automatically, which ensures their smooth completion while also increasing visibility. Such tasks include:

  • Matching inventory levels with changing customer demand.
  • Automated daily order intake, purchasing and invoicing.
  • Real-time planning of demand and stock trends.
  • Automated production scheduling and procurement process.

Datacor’s ERP is specifically designed to help chemical suppliers manage their inventory. It separately offers a variety of add-on products that help companies manage their finances, easily adhere to regulations, and ensure a high level of customer satisfaction.

Financial Management Tools

Finalizing transactions, processing invoices, and keeping detailed financial records are all essential aspects of an industrial manufacturing business. Datacor ERP offers a handful of tools to automate and centralize all the financial aspects of a business.

The Datacor e-payments feature enables payment to vendors and allows for payment from their customers in their preferred method, including ACH [Automated Clearing House], credit cards, and electronic print checks.

Separately, Datacor’s AP [accounts payable] automation tool matches vendor invoices with purchase order receipts electronically utilizing optical character recognition (OCR), while still allowing for easy adjustments of freight and VAT costs.

There are also a number of accounts receivable and accounts payable features that help manage cash flow and avoid costly mistakes. Those include keeping detailed credit history and daily transaction reports, as well as tracking payment due dates. Users can also create their own business charts via the General Ledger feature.

Regulations and Compliance

As industrial manufacturing often involves handling of hazardous substances, it is vital for each business to demonstrate adherence to a set of regulations.

Datacor ERP provides tools that integrate government reporting requirements with business operations, ensuring every shipment is compliant and safe to dispatch.

Once a business integrates its regular compliance, the shipping documents are automatically generated by the ERP each time an order is placed. Chemical suppliers typically have to adhere to regulations by the Food and Drug Administration (FDA), the International Organization for Standardization (ISO), The Occupational Safety and Health Administration (OSHA), as well as the U.S. Department of Transportation (DOT).

Datacor ERP can also generate a Certificate of Analysis (CoA) – a document that summarizes all the tests performed on a product before it is shipped.

Customer Service

Daracor’s ERP comes with an integrated customer relationship management (CRM), which provides a repository for customer engagement and activity, and ensures every team from Accounts Receivable to Sales has real-time data. Access to detailed information on customers’ pricing and product portfolio further facilitates the sales process. For CRM Premium users, Predictive and Advanced Analytics can alert the sales team whenever a customer is not following their typical order pattern.

As part of its CRM, Datacor has also developed a Customer Portal. This is a platform that allows customers of chemical producers and distributors to make online orders, access important documents, and easily find answers to routine requests.

Datacor ERP is user-friendly and easily adaptable, acknowledging that industrial manufacturing businesses vary in their size and product portfolio and may therefore require different tools. It helps chemical suppliers to complete mundane tasks in an easy and smart manner, which ultimately results in bottom line savings.

Frequently Asked Questions

What are the different types of manufacturing software?
Discrete manufacturing software, continuous manufacturing software and batch manufacturing software.

What is ERP in industrial management?
It is the process control that enables a company to establish its workflow and have its finger on the pulse of its business from an inventory standpoint.

What industries use ERP?
Every industry that maintains inventory needs an ERP. It is not a must for service-based environments.

Why is ERP software used in manufacturing?
To streamline businesses by giving more visibility into the status of their inventory and ensuring product is bought in a timely fashion, matching demand.

Click here to find out more about Datacor’s ERP solution or to request a demo.

See Datacor ERP in Action

Topics: Inventory Management, Datacor ERP, Manufacturing, Benefits of ERP


Written by Admin

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