In today’s complex and fast-moving supply chain landscape, it no longer makes sense for businesses to stagnate with primitive or manual optimization systems. Businesses require efficient and effective solutions to manage their operations and processes in order to stay ahead.
While many operations turn to ERP systems alone to help manage their systems, supply chain leaders are recognizing the need to augment and enhance them with additional tools like a robust MRO solution. In this article, we’ll explore how ERP and MRO optimization systems can work in tandem to fuel more efficient systems.
How ERP can help optimize your operations
Why use an ERP?
ERPs (Enterprise Resource Planning) are advanced systems of record designed to help businesses consolidate and streamline complex information pertaining to their operations, finance, and processes. While they consist of integrated modules that manage a company’s core business functions, such as finance, customer relationship management, supply chain management, human resources, and more, they are often only surface level in their functionality.
Some benefits of a tech ERP system include but aren’t limited to::
- improved efficiency
- better management of customer relationships
- insights into Key Performance Indicators (KPIs)
- enhanced decision-making capabilities
While helpful and representing a critical component of an organization’s tech stack, ERPs, in many cases, often present information without any detailed analysis. Furthermore, the functionality of the search and inventory systems is limited to exact query and search functions, which can return inaccurate or no results if things like misspellings or non-exact phrases are used. This can be especially troublesome for organizations that are using multiple ERP systems unless efficient MRO systems are used in conjunction to offer a streamlined, holistic, and robust collection of disparate information.
Create resilient, organized systems
With an ERP system being enhanced by a purpose-built MRO solution, businesses can consolidate MRO data from multiple instances and manage them through a single platform. This consolidation helps organizations to harmonize their MRO operations, reduce excess materials , and eliminate spare part redundancies, all while increasing the efficiency of their processes.
A unified platform that manages multiple processes means businesses have a central location for all MRO-related data. This enables users to quickly access critical information such as inventory levels to align with maintenance schedules, material consumption rates, bin location, supplier lead times, and more. By having this information readily available in one place, businesses can better plan and allocate resources, reducing downtime and improving overall equipment effectiveness (OEE).
This makes it easier for businesses to facilitate better communication and collaboration between departments and locations, ultimately improving decision-making, preventing miscommunications, and ensuring that all relevant parties are on the same page when it comes to MRO-related activities.
Reduce costs and increase efficiency
An ERP system can help operations organize information. Paired with an intelligent MRO platform, it can reduce costs and increase efficiency by automating tasks that would otherwise require manual processing. By automating processes around material data management, companies can save time and reduce errors, which can translate into cost savings and increased productivity.
Furthermore, by automating many of the manual processes associated with MRO operations, these systems allow employees to focus on more value-added activities.
MRO intelligence can add to the efficiency of an ERP system by translating data into meaningful data-backed insights for strategic improvement. This allows organizations to identify areas where they are overspending, inventory shortages, and reductions in unplanned downtime.
For example, an organization may find that it is spending more on replacement parts than necessary due to over-ordering or increased production downtime as a result of poor maintenance planning. By analyzing the data provided by the ERP system, organizations can identify these issues and take steps toward corrective action.
Getting more from of your ERP through the right MRO tool
Gain end-to-end visibility
You’re not alone if your organization uses more than one ERP system. While it may be productive on a micro level, it can result in disparate data silos when it comes time to understand the big picture. An intelligent MRO solution can translate and make sense of multiple data sets before providing a holistic view of the enterprise. This increased visibility allows manufacturers to manage inventory levels more effectively, reduce lead times, improve order accuracy, and maintain strategic procurement relationships.
An intelligent materials management solution houses all material data in a single, centralized location, where managers can find relevant data with just a few clicks or a fuzzy search tool that doesn’t require specific descriptors.
Advanced global material search functionality allows managers to use a “Google-like” search for parts that exist anywhere within their organization. As a result, they can quickly find specific parts without needing to remember the specific identifier. This finds data across ERP systems with a level of unprecedented ease.
Increase accountability in your operations, from the office to the warehouse
An intelligent materials management platform allows organizations to keep their stakeholders aligned on actions and decisions. A transparent supply chain means all parties are aware of what is happening at every step of the process. As a result, it becomes easier to track performance metrics and identify areas where improvements can be made.
For example, a materials management software can help track relevant KPIs and measure supplier performance. If material lead times times are long, product quality is poor, or defect rates are high, managers can immediately take action to keep their existing suppliers in check or replace them with better ones.
By providing detailed insights into every part of an operation, organizations can not only reduce the risk of errors but can also make better-informed decisions and ensure that everyone is working towards the same objectives.
Create systems that last with tools you can trust
Legacy systems are simply not cut out to survive a supply chain landscape that’s constantly shifting. A tech-driven approach can not only allow MRO managers to navigate a rapidly evolving environment but also keeping operations efficient.
Learn how organizations can optimize MRO performance through intelligent materials management.