This New Year, Reach has come out with tailor made ERP software for Process Manufacturers in the small and medium business segment. Let us first understand how a process manufacturing works.
Generally, the Sales person at different locations will take Sales order from Distributor/Dealer/Wholesaler and send these orders to their regional heads/national heads. Based on the order products will be sent from the warehouse in respective locations or from head office. Once the products are sent from warehouse then there will be a decrease in the overall stock. This is when the production manager will do the production planning. The production planning will happen daily, weekly or monthly based on the convenience of the company. Production planning will also be based on the time taken to get raw materials required for production. By doing the production planning, it makes the job much easier to deliver the products on time. This is how any small and medium size manufacturing company will operate.
If you take Reach ERP Software, it will capture all the above-mentioned processes and will help you track the process at every stage. The moment the Sales order is raised it shows to the warehouse manager what has to be shipped for delivery. On seeing the details of the order the warehouse person will pack the goods, print the delivery slip and send it to the respective destination. All of the above-mentioned activities happen in real time without any time delay. This is the major advantage of being in cloud technology.
How Process manufacturing is different from job order manufacturing and assembly manufacturing
The main difference in a process manufacturing business is there will be different process/stages involved before coming out with the final product. At various stages, there will be different costs involved in process manufacturing. On the other hand, if you take job order manufacturing or an assembly manufacturing the cost involved in the process is minimal or fixed. So it may not be necessary to track the cost at the process stage. A good example can be a computer assembling business where various parts of the computer will be fixed and sent to the seller. In the above scenario, there is only one stage before getting a final product.
If you take a process manufacturer, they will have different stages of processing and various raw materials added at different stages which needs an additional tracking mechanism. There will be different costs involved at different stages. So it is very important to track the cost involved at various stages and the wastage part of it. With Reach ERP software you will be able to know the cost involved at various stages with ease. It also helps you to measure the production efficiencies by comparing the production plan with
the actual production. This helps the manufacturer to know the efficiency of the production team.