Why you need an ERP system in the metal industry

ERP systems have become indispensable in many companies and have developed into an important support in daily business. In the metal industry, too, more and more manufacturers are recognizing the advantages offered by an enterprise resource planning system. ERP is not only of interest to large corporations. Small and medium-sized companies should also look into the subject. We explain why.

The challenges for companies in the metal industry

The concept of Enterprise Resource Planning has been around for many years in various incarnations. In times of Industry 4.0, however, it is increasingly about networking different IT systems and creating communication channels. However, many small and medium-sized companies in particular still often work manually and have hardly considered investing in an ERP system.

Looking to the future, however, this may soon turn out to be a mistake. The competition is growing, especially due to globalization, and the speed with which companies have to react to changes is increasing. Only those who are able to gather and process information quickly have the potential to create a competitive advantage over their rivals. However, small and medium-sized companies often have difficulty adapting to this increasing fast pace. But if you want to keep up in the modern world and stand a chance in the global marketplace, you need to optimize the way you work. ERP systems are an important means of bringing about this change and becoming more economical.

Why an ERP system is worthwhile

The goal of most companies is to fulfill their customers' wishes at the right time, at the right price and with the desired quality. However, achieving this goal in reality is not always that easy. It is particularly difficult when there is no central point where all the information comes together. This is exactly where ERP systems come into play. With their help, all data can be collected and processed so that companies are able to fulfill customer orders at exactly the right time and do so with optimal efficiency and high profitability.

Another major advantage is that the software systems are fully customizable and scalable. This means that even small companies that have not yet dealt with this topic can find the optimal solution. Especially if a company wants to achieve a higher quality of service, it is worth looking at an ERP system. In the manufacturing industry, however, there is often still a lot of catching up to do in this area. Many companies, which are more classically grown, are usually skeptical of new technical possibilities and tend to rely on the supposedly tried and tested methods. Especially in view of growing global competition, however, this can prove to be a fatal mistake.

The fact that digitization will also increase rather than decrease in the metal industry in the future also speaks in favor of an enterprise resource planning system. One example here is the topic of 3D printing, which is very likely to become even more significant in the future. However, classic CNC technology is unlikely to be able to keep up with innovations in this area, while modern ERP systems are already able to interact with machines on the shop floor.

Finding the right partner

An important aspect of integrating an ERP system into a company is choosing the right partner. To ensure a smooth transition, it is of no small importance to work with someone who is also familiar with the company's industry. Many systems initially have teething problems or challenges that need to be overcome. A partner who already has experience with the problems to be expected, and this also quite specifically in the metal industry, for example, knows which difficulties can arise and how these can be solved as quickly as possible. Especially companies that have hardly dealt with the topic of ERP systems before, benefit from the knowledge of an expert partner and can more quickly exploit the full potential.

Monitor ERP System is one such company. Founded in Sweden in 1974, Monitor is now an expert in ERP systems that are also specifically suited for manufacturing companies. In addition to the software itself, Monitor also offers employee training, consulting and support. The company is now active all over the world and has customers not only in Europe, but also in Malaysia and China.

Susanne Harten, ERP consultant at 5CUBE:

If companies want to operate successfully in today's world, they need to be efficient as well as growth and customer oriented. ERP systems are an important tool that more and more companies rely on to achieve exactly this goal. Companies in the metal industry also benefit from such a software solution, as they act as a central point for data collection, enabling companies to produce and deliver in an optimized manner. However, implementing an ERP system is not always easy, which is why a company needs a suitable partner who already has experience in the industry.

We are happy to be that partner for you! If you are interested in the advantages of Monitor G5, please contact us. We will advise you individually and help you to find the right solution for your company.