Different types of manufacturing production and how ERP can help

Posted by WinMan on 15 Sep


When it comes to manufacturing products, business owners are often under continuous pressure to meet growing demands. With this comes logistical challenges, such as managing the complexity of a global market and navigating changing demand patterns. An Enterprise Resource Planning (ERP) software system can help you save time and money, but you need to find a solution that works for your manufacturing production type. With only 8% of businesses feeling confident they can improve profitability without significant changes, the sense that ERP innovation is a necessity in the UK is prominent in the market.

In this article, we are going to look at three different types of manufacturing production and examine how ERP can help make your process more cost-effective and time-efficient.

What does ERP have to do with manufacturing?

ERP stands for enterprise resource planning and encompasses the front-facing and backend office operations into one centralised system. These systems can handle small niches like material stock management or incorporate a broader proportion of your business right up to human resources.

In the manufacturing industry, an ERP system can help you manage your warehouse, distribution, supply chain and inventory all in one place.

Make-to-stock (MTS)

In this business strategy, manufactures anticipate customer demand and stock their inventory to match. For MTS to work effectively, these estimates need to use accurate and timely data to maximise profits. Errors could lead to limited liquidity and overstocked warehouses.

ERP can help in optimising MTS efficiency. According to a study from Lancaster University, 97% of MTS firms using ERP have adopted a ‘Purchase & Logistic’ module. This module refers to a streamlined procurement and purchase operation, monitoring everything from the purchase of raw materials to the receipt of the goods. At WinMan, our Master Batch function acts as a paperless traceability system for this purpose, creating a unique code for every batch of products.

Make-to-order (MTO)

Unlike MTS, which is reliant on forecasts, MTO is a demand-driven system. Yet, it comes with challenges. A study from the Journal of Production Research highlights that in this model, there is more imposing pressure on order execution and the delivery time as production only begins when the customer submits an order.

With an automated ERP system, you can configure a prompt response to new orders, optimise efficiency in product manufacturing and provide accurate lead times. In the same way, you can improve supply chain efficiency by automatically ordering new materials when your stock reaches a certain level.

Make-to-assemble (MTA)

MTA accounted for 23% of the UK's overall GDP in 2018, making it a significant proportion of the manufacturing market. In this model, manufactures produce the components of their product and assembles them upon receiving an order. It is a strategy commonly used in food manufacturing. However, it can become a slow process, making it less efficient than other industries.

In using an effective ERP system, you can track the number of hours and resources used in each production line, optimising efficiency where needed and creating an accurate invoicing system. As such, they can help businesses improve profitability and grow into a sustainable future.

WinMan offers comprehensive manufacturing ERP software, creating an all-in-one platform for competitive production companies. We combine our wealth of industry experience with the individual needs of our customers, helping you produce outstanding results and innovative solutions. Get in touch with our friendly team today to find out more.

>> See WinMan's ERP software functions here

Topics: Manufacturing, ERP Software, Business Management Software, Production Management, Cloud ERP

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