Enterprise resource planning (ERP) systems have been in use for several decades, helping organizations consolidate their operations, provide a single source of truth, and improve efficiency. Over the years, they have incorporated various elements and technologies to meet the needs of manufacturing companies, including those involved with metal fabrication and metal framing.
What is an ERP System?
ERP is a comprehensive software solution that incorporates various programs and tools needed for daily operation.
Think of it in the context of a smartphone.
All of the apps you install on that device can perform various singular functions. The Notes app is good for jotting down notes. Messaging and call apps facilitate communication. Productivity apps keep you on your toes. Banking and budgeting apps help you control your finances.
In this context, ERP is your phone—the device that brings all of these sperate programs together and presents them in a way that is simple, easy to understand, and clearly presented.
This means you don’t need to use various programs that collect data and perform functions independently. Instead, all of that data is fed to a single source, and all possible choices can be made from the same source.
What Does an ERP System Contain?
The degree of complexity will depend on what your business needs. To a steel and metal fabrication business, this could mean incorporating various production programs to assist with multi-line processing, sheeting and leveling, plate processing, coil processing, and metal framing, and that’s just the start.
Some of the other integrations regularly used by companies in the steel fabrication industry include:
Accounting and Finances
Accounting takes up a great deal of resources for the average steel manufacturing business. Sales orders need to be created and sent, invoices must be chased, and all of that data needs to be logged upon completion and then prepared for profit and loss reports and taxes.
There are specialist accounting, invoicing, and tax software to assist with all of this, but ERP integrations are just as comprehensive, and as they connect to other departments, they automatically have the data they need to compile fast and accurate reports.
Thank to machine learning and AI, these tools can also automate sales orders and invoices while sending follow-up requests when they are not paid on time.
Inventory Management
Keeping track of inventory is a big problem for manufacturing companies. In the past, they relied on manual checks, but with various factors to consider, including the dimensions and condition of the materials, it was an arduous and thankless task.
ERP integrations remedy these issues with automatic inventory management. After the sales orders are sent and materials are shipped, the software will track them from the supplier to the warehouse before recording various data points.
All data is presented clearly and in real time; steel fabricators know what they have, how big it is, how good it is, and how to quickly acquire more if they are short.
They don’t need to stock more products on the off chance that sales will increase, and there should be no more issues with understocking.
Human Resources
The HR features in ERP systems include aspects such as:
- Employee recruitment
- Payroll processing
- On-boarding
- Training
- Time tracking
- Talent management
- Performance tracking
It’s a comprehensive and non-intrusive way for an organization to keep track of its employees, and it can be enhanced further with the addition of wearable devices that work though the internet of things (IoT).
Sales and Marketing
Every part of the customer journey is tracked, generating data that can help with future marketing campaigns.
For instance, ERP can answer sales and marketing questions such as:
- Where are customers coming from, and how much are they spending on average?
- How effective are current marketing campaigns, and where can improvements be made?
- Did recent changes in pricing or quality impact total conversions?
- Can customers be led through more effective sales funnels?
Marketing is a cornerstone of any modern business, including those in the steel and metal fabrication sector. However, with so many different marketing platforms generating vast quantities of data, it can be hard to keep track. ERP solutions simplify everything and feed all of that data into a single, readable source.
Customer Relationship Management (CRM)
Customer interactions extend far beyond sales and marketing channels. You need to keep those customers happy if you want them to return, and that means making it easier for them to ask questions, check on deliveries, customize orders, and initiate refunds.
There are dedicated CRM solutions that can manage all of this, but the same options are available through ERP CRM modules, which are a must for organizations of all sizes and in all sectors.
Advantages of Using ERP Solutions for Steel and Metal Fabrication
Whether you’re a small business with a limited operating budget or an established organization with sizeable capital, there are numerous benefits to implementing a comprehensive ERP solution:
- Automation Saves Time: Many of the processes that previously required countless manhours can be automated with ERP, freeing up time and allowing you to direct resources elsewhere.
- Real-Time Data: You don’t need to generate reports from various tools and then look for data duplications before making sense of everything. ERP paints a clear picture of business operations, directing various data feeds into a single source.
- Flexible and Scalable: As you change and grow, the system will adjust and adapt. New modules are added with ease, updates are performed quickly, and you won’t be left to deal with modules that are outdated or no longer required.
- Increased Efficiency and Productivity: All of the aforementioned solutions make the business more efficient and its employees more productive—improvements that every business seeks and ones that can advance the bottom line.
Position Your Business for Success with ERP
Ready to switch to a tailored ERP system that considers your company’s needs and adapts accordingly? Whether it’s metal framing, human resources, metal fabrication, coil processing, inventory management, or multi-line processing, ERP brings all the elements of your business together and greatly enhances productivity and efficiency.
Contact us today to request a demo of our ERP solutions for the steel and metal industry. We can help you plot, build, and implement the perfect system for your business.
