Here are some of the industries that benefit most from ERP systems

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Wednesday, 19 February 2020
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Here are some of the industries that benefit most from ERP systems



Here are some of the industries that benefit most from ERP systems 


Enterprise Resource Planning (ERP) systems, also referred to as business management software, essentially helps businesses in a cross-section of industries to create more efficient automated operations. 

What are Enterprise Resource Planning systems?

  • ERP systems are implemented to assist businesses with daily activities, such as:
  • Human resource management
  • Financial management
  • Sales and marketing
  • Customer relations’ management
  • Manufacturing
  • Supply chain management
  • Purchasing

Industries that benefit from Enterprise Resource Planning Systems

The features of ERP systems are able to assist businesses across a number of key industries by improving business efficiency, streamlining processes and minimising the margin of error. Here is a look at the industries that will undoubtedly benefit from installation of ERP systems. 
Manufacture industry
When it comes to manufacturing, one of the areas that ERP systems will make a big impact is the transmission of vital company information between departments. ERP systems empower manufacturing organisations with the ability to communicate effectively between departments – the key ones being production, purchasing and accounting – internally, externally as well as with relevant suppliers. By enhancing this supply chain management, manufacturers are able to keep tabs on inventory and costs. 
Aerospace and defence industries
The aerospace and defence industries are heavily regulated which is why, particularly for the manufacture sector, ERP systems are so effective. ERP systems will be able to manage each and every product manufactured and track the path towards implementation, ensuring all industry standards are maintained at each checkpoint. Aspects such as distribution schedules and deliveries are tracked, as well as inventory development and complete supply chain execution. 
Retail industry 
The intricacies of the retail industry can be carefully monitored by implementing ERP systems, thereby minimising costly errors. Features such as sales, payments, inventory management, tracking and marketing are all overseen by ERP systems, tailored to each individual industry. 
Agricultural industry 
This is one industry that is quickly realising the advantages of ERP systems for overall production. By using ERP systems, the agricultural sector is able to plan and track data related to weather, including temperatures, rain forecast, and impact on the growth of crops. By tracking these details, farmers are able to forecast future earning potential. ERP systems are also beneficial in terms of supply chain management for the vast agricultural industries as well. 
Healthcare industry 
ERP systems have made a dramatic impact on the healthcare services provided through a number of ways. Patient details are easily stored and transferred between relevant healthcare providers, ensuring immediate access in times of critical medical care, as well as updating vital healthcare information across all systems. Other features such as financial management, inventory and supply chain management are all catered for as well. 
Construction industry 
Because of the numerous locations related to the construction industry, tracking of resources, management of equipment, raw materials and labour, as well as financial management and inventory control can all be problematic. However, ERP systems are extremely effective in assisting across these sectors within the construction industry. Building Information Modelling (BIM) manufacturing and management software has assisted the industry, while enhanced communication has led to an improvement in customer relationships. 
Pharmaceutical industry 
Quality control and adherence to industry standards are vital within the pharmaceutical industry which, like the umbrella healthcare industry, is benefitting from ERP systems. Using ERP systems, the pharmaceutical industry is able to create precise formulations and ensure environmental control by monitoring temperature and humidity for storage. Other aspects such as sterilisation of products, inventory control and increased visibility will ensure a safe delivery of pharmaceutical products. 
Food and beverage industry 
To ensure the manufacture of a standard product that meets industry requirements, ERP systems are being used in the food and beverage industry. Elements such as maintaining optimum temperature for storage – from raw material through to distribution – as well as traceability features and enhanced visibility all the way to the consumer, are now controlled by ERP systems. In addition, areas of waste reduction can be quickly identified and acted upon. 
Metal industry
ERP systems are now able to actually record and indicate the chemical make-up of metals which is extremely useful for the metal manufacturing industry. There is also more efficiency in regards to plant floor operations, including real-time manufacture monitoring to meet industry standards. 
Paper industry
 The tracking of all paper-manufacture processes is performed through ERP systems, including ethically-sourced materials and waste management. Some subsets of the paper industry are concerned with the creation of products, such as cartons and boxes, and will require documented product configuration and quality checkpoints throughout the process. 
Plastics’ industry 
Another industry requiring ERP systems for waste reduction and supply chain management is the plastics’ industry. The production of chemical materials needed for plastics will be monitored by ERP systems, as well as establishing ways to increase the use of raw materials and reduce scrap. 
Academics’ industry 
The day-to-day logistics of higher education and research facilities can be managed by ERP systems, meaning the researchers don’t need to waste time physically tracking the supply chain. In addition, ERP systems offer accounting management, procurement tools and general management tools for various projects. 
Hospitality industry 
Managing hotels, restaurants and bars requires a lot of daily scheduling – if there are multiple establishments, then even more so. Staff schedules, cleaning schedules, food orders, sales, bookings… all these require ERP systems for streamlining and effective management within the hospitality industry
Automotive industry
The production line in the automotive industry is extremely complex, involving hundreds of individual parts, various roles and a variety of vehicle types. There is also the international aspect of the automotive industry, requiring one automated system for management. ERP systems are able to centralise information and ensure streamlining of operations. 
Refuse collection
Various government departments are implementing ERP systems for functions such as city cleaning and waste collection. The implementation of ERP systems ensures all schedules are managed, and systems across cities are centralised for effective waste management and reporting. 

ERP systems can be incorporated into almost any industry as a way to promote inter-departmental collaboration, enhance overall business efficiency, increase data security, promote industry compliance and reduce operational costs by streamlining business operations.

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