Increasing Efficiency in the Manufacturing Industry with SAP Business One
Monday, 2 Nov, 2020

Increasing efficiency has always been a goal for forward-thinking manufacturers. With pressure from all angles, it is essential for manufacturers to put systems in place to help them increase efficiency and reduce costs, while providing the information they need to make accurate and informed decisions.

The manufacturing environment is often complicated by unexpected, external factors, such as long lead times from overseas suppliers, changes in raw material pricing and foreign exchange fluctuations. Internal factors, such as management of resources, machine downtime and shortages of raw materials, can make creating an efficient manufacturing environment an art rather than science.

Increasing competition in a dynamic industry means that companies need a powerful, integrated ERP solution to maintain high productivity – this is how SAP Business One can help. As a comprehensive ERP solution, SAP Business One covers every aspect of a manufacturing business, offering:

Material Requirements Planning – manage complex calculations of lead times, stock levels, forecasts and purchase intervals to optimise your production process and keep customers happy with orders delivered on time.
Inventory control – manage stock levels with multiple units of measure, valuation methods and expiry dates, stock and bin location, batch and serial number traceability, providing real-time visibility with effective analysis and control.
Resource planning – optimise the planning of your resources, including labour and machinery, as well as analyse budget costs and generate reports.
• Works orders – maintain notes and instructions, raw materials and resources on planned and released works orders.
• Bills of materials – multiple, different BOM types enable you to manage every aspect of product development and assembly, also including labour, resource requirements, and multiple units of measure for accurate cost control.
Purchase planning – manage the complete order-to-pay cycle, linking purchase documents and trails for audit purposes, giving a detailed insight into supply and demand, as well as forecasting based on previous years’ sales.
Reporting – Numerous standard manufacturing reports available as standard, with the ability to write your own to display the information you need to see, provides detailed information required to make strategic decisions.

Benefits of SAP Business One for manufacturing companies

The benefits of SAP Business One for manufacturing companies are extensive. With in-depth visibility of the supply chain, manufacturers are able to control their inventory levels and costs, while meeting customer demand. By linking sales with inventory data, manufacturers can streamline the sales order process with real-time data on stock levels and location. Inventory accounts are updated instantly, and significant time-savings can be gained through not having to control stock levels manually. Managing inventory is a fine balance. Manufacturers need to hold enough raw materials to meet customer demands while not holding too much that they incur excessive overheads from too much stock. Product expiry dates are also an issue here and can result in unnecessary wastage if not managed properly. SAP Business One was designed as a solution to meet all the requirements of inventory and production management, with real-time information available across a variety of devices, which supports strategic decision making and helps increase efficiency.

Productivity is increased through the MRP function, enabling optimum planning for multi-level production processes and ensuring less downtime of machinery. This provides a structured, streamlined process of production planning and gives an accurate picture of the production and supply chain. It also adds resource information to requirement planning for machine maintenance, as well as helping you specify timelines, data sources and stock for effective planning. Integrating purchase orders and bills of material helps to allocate materials correctly and minimise waste.

SAP Business One ensures that everyone has access to the information they need to do their jobs efficiently and effectively through a centralised system. Accurate workflow management ensures that instructions are received by the right people at the right time, and that they are followed correctly, which increases efficiency and productivity.

For more information about how SAP Business One can help manufacturing companies optimise their processes and increase efficiency, please contact our friendly team now to learn how we’ve helped other manufacturing companies.

Increasing efficiency in the manufacturing industry

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