3 Must-Do Steps for Manufacturers to Cut Costs and Still GrowManufacturing Operations Management (MOM)
Squeezing every dime out of operations in the name of optimal efficiency is a key strategy for today’s manufacturers. But running a bare-bones business makes it difficult to handle the increased demand that comes with growth. So how can manufacturers continue to cut costs without inhibiting their infrastructure’s ability to expand and grow? These companies have manufacturing with cloud ERP and they’re counting those dimes as they secure a favorable position for growth:
1. Lower Total Cost of Ownership (TCO)
Quatro Composites, a component manufacturer for the aerospace, medical, and industrial markets, needed to consolidate its disparate business systems. And that presented major challenges to its growth. The company also wanted to avoid a significant upfront investment. Going with a manufacturing cloud ERP provided the scalability the company needed while lowering TCO over 10 years. Now Quatro is in a much better position to continue its steady growth of 25 to 50 percent year-over-year.
2. Increase Operational Efficiency
Bhar, Inc. (now Sanko Gosei Technologies), manufacturer of large tonnage injection molding for the automotive industry, automated many of its manual processes with a manufacturing cloud ERP solution. In 120 days, the company noticed a 30 percent increase in efficiency, resulting in reduced overall costs and an increase in customer satisfaction. Bhar management attributes this to two attributes of the solution: a single point of data entry and a user interface that demands correct input.
3. Improve Cost
Avon Machining, precision-machined components and subassemblies manufacturer for heavy industrial equipment, was searching for an ERP software solution that integrated information across its entire business. The company went with a manufacturing cloud ERP to track and record production activities, inventory status changes, receiving, shipping, and other data from its plant floor. Now the company can generate in-depth information for more accurate costing analysis. As a result, Avon Gear has improved inventory accuracy and sustained an average 20 percent growth annually.
Discover more ways to cut costs and position your company for growth. Watch the on-demand webinar: How Cloud ERP Drives Rapid Growth.