The high-tech and electronics manufacturing industry needs to adhere to industry-specific business requirements. They demand specific ERP system functions that can support the cost-effective design and produce, sell, market, distribute, and service innovative products. In addition, many electronics manufacturing units are deploying service-oriented business models involving subscription services, extended warranties, and maintenance contracts.
With each passing industry or consumer trend, manufacturers must continuously update their ERP for Electronics Industry with additional functions. With the right ERP platform, electronics companies can institute and organize every business process and function per the industry’s best practices and company values.
In this article, we’ve enlisted some crucial functions of ERP without which the electronics manufacturers can’t do business.
- Transparent Inventory Management
Electronics manufacturers are very well aware of the trouble of managing large volumes of small electronic components as they undergo fast assemblies. An ERP software capable of promoting intelligent inventory procurement practices depending on real-time consumer demand and turnover rates can lead to long-term cost savings and misted risks that come with parts shortages and overages.
You can avail of more benefits by adding ERP’s inventory management capabilities to forecasting. Such systems are powerful enough to protect sensitive electronic components via efficient process visibility.
Users will know how each electronic part is organized and why each part’s quantity is replenished. It will further limit the amount of excess inventory stock on site and allow to leverage inventory management resources optimally. Smaller volumes will prevent the parts from damaging.
- Buying Power via Sales Forecasting
Electronics manufacturers better understand their sales pipelines and will always make strategic decisions related to production and purchasing. It’s all linked, but knowing the consumer buying power commences with making accurate, actionable sales forecasting.
Too little sourcing can result in frozen production until the team acquires the missing parts. And too much sourcing can lead to overextended business cash flow. Deploying the right electronics manufacturing erp software can help managers derive parts quantities by accurately forecasting sales figures and reaping the benefit of price breaks more often.
- Protection from Flakes and Flaws
The electronic industry often has a complex supply chain due to several causes, including higher consumer demand for fast development cycles, geopolitical influence on international economies, the value of risk diversification among vendors, etc.
Unfortunately, the electronics industry has experienced a great deal of intellectual property theft and counterfeiting while attempting to manage the reliability of suppliers and sales channels stretching worldwide. It’s when comprehensive ERP solutions equipped with web-based vendor portals are used as a frontline defence against furthering fake electronic parts along supply chains.
These systems are featured with OEMs that help establish approval lists depending on current industry regulations and incorporate important compliance documents directly into the interface. With shifting laws and standards, electronics manufacturers can update requirements, ensure they adhere to the rules, and stop working with vendors who do not comply with industry standards.
- Version or Revision Control
No industry is impacted more by speedy innovation, quite like electronics manufacturing. When there is a changed engineering order, businesses must adapt to improve their product offerings and ensure smooth, ongoing operational excellence while debugging issues discovered during production.
Creating real-time records of the up-to-date electronics production recipes, past iterations, and current product specifications is valuable – all that constitutes version or revision control. But how versioning is employed in the manufacturing unit will ultimately dictate what it can get out of the process. For good version control, you will need a platform providing easy access to historical documents, seamless real-time collaborations, and strategy in the event of a conflict.
An ERP application equipped with Production Planning and Control and CAD integration is the right platform for series electronic manufacturers requiring comprehensive product lifecycle management.
To sum it up all!
Complex high-tech and electronics manufacturing units need sophisticated end-to-end functionality to support ever-changing consumer demands and business operations. An ERP for manufacturing industry with the above-discussed features is an ideal solution for managing day-to-day business activities, including procurement, project management, accounting, supply chain operations, risk management, and compliance.
Whether your electronics manufacturing company is a project-based, engineer-to-order or high-volume, repetitive business, select the right fitting ERP system supporting your short-term and long-term needs.
