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Does your ERP allows you to fulfill product deliveries timely and accurately?

27-08-19

If you are the operation director of a manufacturing company and, although you have an ERP, you feel that you lose control to deliver your products in a timely manner, this blog is for you. Keep reading because we will tell you what your ERP should have to successfully overcome all the challenges of your operation.

There are two main scenarios that you face in a daily basis and with which you will surely feel identified:

 

First scenario 

 

We bet you had face and tried to solve some of these operation internal problems:  

  • Not having the complete information to be able to decide what to produce and which process to follow in order to have the product on time. This occurs specially when the planning is performed in Excel and therefore it is difficult to know if you can meet the times.
  • You do not know the availability of machinery and equipment for production. Although you have a system you do not have organized the production process. 
  • The plant’s staff is busy is doing other tasks.
  • Changes in production priorities. A clear example is when suddenly an order arrives with a greater assortment requirement and the production stop sorting other orders and gives priority to this one. 
  • Not having control over the necessary tools to carry out production operations.

Second scenario

In this second scenario you face external operation problems such as:

  1. You cannot deliver your products on time because you do not have the availability of material. These cases occur when, for example, the material of your supplier is in customs and that is why it has not arrived on the date you expected it. 
  2. You don't have the necessary raw material to fulfill an order, which translates into cost problems.

As you well know, having delays in the delivery of products to the customer - by any scenario mentioned above - generates negative consequences that especially impact the cost of the operation because you have to pay overtime in order to reach the delivery times, accelerating the production process jeopardizing the quality of production, fines for non-compliance with delivery dates and, on top of that, you expose yourself to losing the customer. 

So, maybe the question that you are asking yourself is how to reach that perfect scenario to avoid any failure in my production process and achieve deliveries in a timely manner? 

At Linktech, we recommend that first of all, you evaluate how your current ERP is working. To evaluate it you can ask yourself the following questions: 

  •  Does your ERP give you the ability to do long-term planning? This means, for example, that you have the ability to verify whether materials can take time to arrive or not.
  • Does your ERP allow you to verify that everything is ready before releasing orders? 
  • Does your ERP offer a complete visualization of the orders and the equipment and tooling that will be used by and during the production or you are just able to see this information for each order?
  • Does your ERP offer load distribution?
  • Are you able to send notification at production level? 

If you answered any of the above questions in a negative way, it is time to consider the option of having an intelligent ERP like SAP S/4HANA in your business to have a more efficient production, reduce costs and above all have the ability to make real-time business decisions and thus be more competitive. 

An Intelligent ERP like SAP S/4HANNA provides competitive benefits such as: 

  • When you enter a sales order, the system tells you if you are able comply with the product delivery to your final customer, based on the delivery times of your suppliers and what you have in stock.
  • You can make your long-term planning through projections with predictive scenarios. The advantage is that these will not only be based on historical data, but that it takes into account external variables such as climate, demand, legislation, among others, to have a long-term planning so you can decide and react  accordingly. 
  • You can include artificial intelligence to detect different scenarios and react effectively. 
  • Transparent integration of all equipment to know what is happening on at production level. You can send notifications automatically, see quality schemes and make decisions faster. 

 

Get the performance your production needs by upgrading to an Intelligent ERP like SAP S/4HANNA. Linktech we carried out the first successful implementation of S/4HANNA in Mexico. Request a consultancy and ask us how we can help to make your operation more efficient and compete in the market. Contact us!

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