Data-driven manufacturing is the need of the day. Digital transformation has entered the manufacturing industry and is changing the sector through data analytics. Business intelligence is the key to revamping manufacturing and improving quality, production, and returns. This has stirred the interest of the manufacturing industry in integrating business intelligence with their existing ERP system for Manufacturing Industry.
An in-depth understanding of the manufacturing industry gives an idea that data is present everywhere and is mostly in offline databases until entered manually into the systems. This is where Business Intelligence comes into play.
Business intelligence offers a way to quickly and easily combine data. It offers to collect data, clean it up, and use analytics to enhance industrial procedures and boost profits. Business Intelligence has become a very important requirement of their database management systems. And, this is forcing the industry to upgrade its ERP systems to Intelligent Enterprise Resource Planning (iERP) systems.
Before understanding the need of the Manufacturing Industry for opting for business intelligence, we need to first get a clear understanding of the Manufacturing Industry and its processes.
Manufacturing, very simply, is the process of creating items or products out of raw materials and tools. The procedure to create the finished product might also be biological or chemical. Manufacturing is the process of turning raw materials into completed products by following a planned and methodical process, whether it is for the creation of a tiny toy, home appliances, or automobile.
The truth, however, is much more complicated and depends on a variety of factors, including cost, supply chain, cycle time, quality, and more. There are many variables along the road from purchasing raw materials to delivering finished goods to the market that aren't always in the control of the manufacturer. In addition, three categories of manufacturing processes are recognized:
The Make to Stock is where the finished goods are produced in bulk and kept as inventory in retailers. These are often used and in high demand. Nevertheless, producing too much in excess might result in blocked capital and losses.
Make to Order is the stage before manufacturing begins while the manufacturer awaits an order. The clients or customers must wait until the production process is finished and the finished product is delivered to them.
Make to Stock and Make to Order are combined to form Make to Assemble. The components needed to put the finished product together are already on hand at the manufacturer. Only after receiving an order will the assembly take place. This can leave the manufacturer with extra parts if there are no orders, which can also shorten the time it takes to deliver the product to the customers.
Business intelligence is used throughout the production process of the Manufacturing Industry, from locating raw materials to delivering finished products to customers. Adopting a BI and data-driven strategy is not overly challenging as industries can now opt for Intelligent ERP software with embedded Business Intelligence.
Adopting Intelligent ERP with Embedded Business Intelligence can benefit Manufacturing Industry following ways:
Business Intelligence is the next step in the future. Industries are opting for data-driven decision-making to make informed decisions. But subscribing to business intelligence software separately for the organization proves to be very costly. Adopting Intelligent ERP with embedded BI is the key to these problems.
To know more about how ebizframe Intelligent ERP BI function could help streamline your business, contact us today at firstname.lastname@example.org