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The Huge Untapped Manufacturing Potential in India- Can Manufacturing ERP Software Rise to the Demand?

Category : ERP
Blog posted by : Admin / 23 Jul, 2021

 

The budget to invest in Manufacturing ERP systems is nonexistent in most companies. The low budget of hiring and employing human resources is often used to increase purchasing capacity of power-driven machines and automatic equipment. Even then the automation of business processes is overlooked. 

 

India’s manufacturing industry is sitting on a lot of untapped potential in terms of resources as well as demand. Owing to its large geographical area, vast diversity, population and cultures, streamlined manufacturing has the potential to thrive in the country. 

 

The Indian manufacturing sector has been adapting to changes and overcoming challenges since the beginning.

Can Manufacturing ERP cloud help drive the industry forward? With the announcement of the Union Budget, the prospects for the industry look good as the effort is on to increase domestic manufacturing. Infrastructure and utility have also received a push in the manufacturing sector.

Incentives by the government for small as well as large companies compounded by the interest of foreign investors, brings in much needed hope to the Indian manufacturing sector.

 

Manufacturers in India have been heavily dependent on a human workforce for operations, delivery, handling and more. As the industry practices have evolved over the centuries, it still remains a labor-intensive sector. 

 

1. A large part of the workforce being laborers, it is essential to streamline human resources to extract maximum productivity and limit the number of unproductive hours. 

 

The human resource module of Manufacturing industry ERP incorporates all functions needed to manage the company’s taskforce. 

  • Recruitment and screening 

  • Plan, record and track Training 

  • Appointment and Joining procedures 

  • Employee information management

  • Salary processing and payout

  • Leave and attendance 

  • Integration of Biometrics 

  • Geotagging to log in from any location 

  • Automating Tax compliance 

 

 

Undoubtedly, the country’s employable population is high, yet the unemployment rate is also high. One of the many reasons is the lack of skilled labor. The manufacturing and production industry too struggles in finding employees with specific skill sets. 

 

Only a few manufacturers have adopted the practice of training their workforce on the job to provide them with necessary skills. This is majorly done in two ways. One way is to provide training through the already qualified and experienced senior staff on the premises. The second option is to outsource the training to an educational institution or a skill-based academy. 

 

2. Creating goals, timelines and tracking the training process becomes overwhelming and often deters manufacturers from conducting full scale training programs for their  employees. 

 

The HCM manufacturing ERP modules can ease this burden. Recording certification completion on a centralized system and providing short training sessions on the system, can be accessed by the employees. 

 

The manufacturing ERP modules can also be customized to integrate academic sessions. Once trained, retaining such new skilled workers will add tremendous value to the company. It will also increase the skilled workers’ numbers and create more job opportunities, which in turn will propel the industry forward. 


 

3. One of the infamous bottlenecks of Indian manufacturing is inventory control. This is one area where automation with manufacturing industry ERP will result in a much higher productivity gain. 

 

The reasons for unregulated inventory are many. Clearly, not all can be solved with business process automation but some issues can be tackled directly with the implementation of the inventory management manufacturing industry ERP module. 

 

Challenge- Skewed levels of demand in the market accompanied by sudden rise and falls. 

 

Solution- Even though the creation of demands cannot be controlled by manufacturing ERP software, the tracking and prediction can be analyzed up to a certain extent. Tracking stock and finished goods in real time allows the software to predict scenarios in the future. According to the predicted demands, inventory can be increased or decreased without affecting supply. 

 

Challenge- Delays in supply chain networks

 

Solution- Supply chain networks are affected by a number of environmental factors but also due to human mismanagement. The environmental factors can only be predicted and mitigated but human intervention in supply chains can be managed. In India, the success of a seamless supply chain greatly depends on maintaining open communication lines with suppliers. 

 

Manufacturing ERP cloud can act as a common link among all stakeholders in the company. A single system for everyone eases the lines of communication and provides a common platform for process updates. 

 

Vendor registration on the system greatly helps in acquiring data about which vendors are faring better. This also reduces the company’s dependent relationship with one particular supplier only. 

 

Registration of vendors and suppliers combined with real time tracking of inventory is a big factor in reducing delays. Any changes or process delays can be updated immediately for all concerned persons. Decision making can take place immediately because of high supply chain visibility provided by Manufacturing ERP.

 

 

Challenge- High returns and creation of sub-par products

 

Solution- Manufacturing ERP cloud tracks movement of finished goods from warehouse to vendor, including the number of products returned due to various reasons or rejected as they did not pass the quality test. 

 

Analyzing the number of such sub-par products can give you information about the warehouse with higher numbers  of unacceptable products and at what point during the project timeline the number of rejected products increases. Armed with such valuable data, manufacturers can go back in time to check where things started going wrong to reduce the production of sub-par goods. 

 

 

Equipment and power machines occupy a big chunk of the company’s budget. Undoubtedly, all manufacturing equipment needs to be maintained to function at full capacity with least wear and tear. 

 

4. Equipment maintenance requires human interference but can be incorporated into Manufacturing ERP Software to increase transparency and efficiency. 

 

For instance, weighbridges are often used in manufacturing, construction and production industries. These can be integrated with the Manufacturing ERP software to provide real time data directly onto the system. It reduces any chances of making errors in manually recording or entering values. Some manufacturing ERP modules can also be customized to run diagnostics on various equipment and set reminders for maintenance checks. 

 

If budget is not a concern then companies can opt for more advanced manufacturing ERP technologies to reap its benefits. 

For smaller organizations reeling from the effects of the pandemic, taking small steps towards automation is the safest choice. A SaaS manufacturing ERP cloud system can turn these challenges into opportunities. 

 

If the manufacturing industry becomes streamlined and controlled then it will attract foreign investment resulting in exponential growth. To have a look at manufacturing ERP software, visit https://strategicerp.com/

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