Reducing production waste with ERP software

Posted by Stephen Whitehouse on 10 Sep


Reduction of waste through lean production is a key priority as it can cut costs and elevate its profit margin. Many businesses are using ERP software to help reduce production waste. ERP software developers have acknowledged the importance of lean production by incorporating methods of reducing waste in manufacturing processes. Here are some of the areas where ERP software can help your company to reduce or eliminate waste during production:


There are always defective products in any manufacturing process. However, an integrated ERP software can help detect, monitor and track defects by storing all production data. With the ability to monitor the production lines, ERP software can notify you of any errors and malfunctions. Quality assessments of raw materials can also be put in place before materials enter the production line. While it may be difficult to eliminate defective products, ERP software can go a long way to limit damage extent, thus saving both money and time.

Waiting times

Employees wait on things like approvals, materials, information, and verdicts, which can always limit their abilities to act. In most scenarios, it results in loss of synchronism, administrative bottlenecks, and slow pace of production. However, the problems can be addressed by using ERP software, which can consolidate and streamline the production process. The system enhances automation and coordination of operations by ensuring all team members are on the same page. Waiting times may sometimes seem trivial and end up being overlooked but avoiding them ensures that profit opportunities are not lost. 


Transportation and logistics tend to be an area that may waste valuable manufacturing time without realising. You may also be using unnecessarily more intermediaries to make deliveries to the market. Could there be a better and faster way of transportation? Having a well-mapped ERP system will allow you to automate most operations involved in shipment and delivery. ERP software can also be used to enhance the efficiency of your supply chain as well as monitor the performance of your logistics.

Excess production (overproduction)

A company may manufacture excess products beyond the storage capacity of its warehouses and market demand. Overproduction is usually caused by factors such as inventory overloads, poor supply chain management, overuse of production lines and a lack of accurate forecasting. It can be problematic to handle, especially where perishable products are involved.

Adopting ERP can remove such issues, as it can provide you with the tools for accurate forecasting and demand planning. It can use past information to predict expected sales accurately, thus guide your production strategy and in turn, reduce waste. With ERP software, you can be assured of aligned production, demand, and storage.


Movement of people and machinery during production processes can cause wear, injuries, damages, and stress. Movement-induced wastes can result from poor workstation layout and flawed configuration of production lines. With modern and powerful ERP software, your business can avoid such wastes by optimising factory and warehouse layout. For example, insightful data gathered can be used to determine which machines are used the most and what components should be stored where based on the demand of the finished products. ERP solutions can help in reducing unnecessary movement and facilitate better distribution of workload among machines and a better environment for the workforce.

In conclusion 

ERP software will help you to reduce or eliminate waste in processes that might have been holding back your production without you being aware. Waste or inefficiencies, however trivial they may look at first, could accumulate rapidly to devastating and damaging levels within a business if left. Implementing appropriate ERP software can immensely benefit your business in terms of long-term waste reduction.

>> Download our eGuide on 'How to Tell You Need a New ERP System' 

Topics: Manufacturing, ERP Software, Business Management Software, Production Management, Lean Manufacturing, Business Efficiency, Productivity

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