Industry Blog

Optimizing Metal Fabrication Processes: How ERP Software Revolutionizes Efficiency

The Enterprise Resource Planning (ERP) software market is valued at over $25 billion in the United States alone. It’s used by some of the biggest companies in the world, with millions of companies thought to be relying on ERP systems to manage operations, finances, and production. It’s particularly important in the metal fabrication industry, where proper implementation and use can significantly boost profit margins.

These boosts are largely down to improved efficiency, which is the main selling point of ERP. So, how does it work, and in what ways can it improve efficiency for a metal fabrication business?

It Simplifies Procedures

ERP combines multiple systems and processes into one streamlined, automated system. All those box-ticking, t-crossing, i-dotting tasks that would otherwise require extensive man-hours are now handed over to an effective, efficient system. It frees your employees for more important tasks, ones that extend beyond simple copy-pasting and actually make use of their skills.

Not only does the business expend fewer man-hours on repetitive tasks, but employees can do what they were trained and paid to do, increasing job satisfaction and reducing employee turnover.

It Provides Real-time Reporting and Instant Decisions

ERP systems capture data in real-time and use this to prove reports on-the-fly and facilitate rapid decision making. Sales and operation managers can view reports as soon as they are created, giving them insights into key business operations and allowing them to act proactively.

It Makes Fewer Mistakes

Humans make mistakes. We are not infallible. But for a business in the steel fabrication industry, one that operates expensive machinery, has demanding clients, and works on a very slight profit margin, those mistakes can be incredibly costly.

ERP systems don’t make mistakes. They use historical data and run in-depth business analyses to gain a deep understanding of the business and provide supporting analytics. Fewer mistakes and greater insights lead to improved efficiency and happier customers. You don’t need to worry about forgiveness if no one is making mistakes!

It Helps with Inventory Management

Do you know how many raw materials are sitting in your warehouse or on the factory floor? Do you know how much more you will need today, next month, and two months from now when demand increases? ERP systems do. Inventory management software tracks everything that enters the facility and follows it on its progression through production and supply. If more of a particular material is needed, it can even order it.

ERP forecasting can then look at historical data for the business and across the industry to predict demand in the coming months. If a significant increase is expected, sales managers will be notified and can plan accordingly, ensuring the business isn’t scrambling to order newer materials when the demand suddenly increases.

It is Scalable

The best ERP systems are made to grow with your business. They are costed to suit your budget and needs upon implementation and can then grow as the business takes on more staff and clients. This adaptability means that you don’t need to worry about completely redesigning your systems and can continue operating as normal, with only a few minor upgrades and tweaks.

It Optimizes the Supply Chain

Every business is guilty of overordering at some time or other. All of those excess materials need to be stored, which means they end up taking up valuable space and resources. By analysing current and future demands, and keeping a close eye on stock levels, ERP can help a steel fabrication business to keep its stock under control, making sure it never has too much or too little.

Support for Customers

Employees and owners aren’t the only ones benefiting from properly implemented ERP systems. If ERP is used alongside Customer Relationship Management (CRM) software, customers could also benefit from improved efficiency. They can see previous and current orders and contact customer support teams, building a stronger relationship with the business and encouraging future orders.

Conclusion: Implementing ERP Metal Optimization Software

Metal fabrication businesses rely on advanced machinery and systems to procure, produce, store, and sell. They have a wealth of data and countless processes to track, including plate processing software, coin processing software, cut-to-length software, sheeting and leveling software, multi-line processing software—need we go on?

It’s a lot, and once you add procurement, ordering, inventory management, and financial management to the mix, it gets very complicated very quickly. At RealSTEEL, we specialize in all-in-one solutions for the manufacturing sector. We create tailored systems designed to adapt to your current needs and scale to meet future ones.

We produce some of the most advance metal fabrication software and metals optimization software around, streamlining and simplify everything and allowing your business to focus on what it does best.

Request a demo of our ERP software to learn more about how RealSTEEL can help you optimize your metal fabrication process.

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