Is the lack of a Shop Management System Costing You Money?

We all know time is money, so we just want to take a quick moment to emphasize how not implementing a shop management system could actually be costing you revenue.

A shop management ERP system is an essential part of any modern manufacturer’s technology stack. These software systems manage production and inventory, track orders, monitor revenue and oversee staff within an integrated dashboard. Businesses of any size can reap the benefits from this robust business management software, while companies that choose not to invest in a shop management system tend to suffer in the following ways:

Wasted Time

Keeping info organized and accessible is critical, and though you may already have one or more database systems in place, that doesn’t necessarily mean your operations are streamlined. Does your project team use one system for estimating while production uses another to track manufacturing? Think about how much time you could save by getting those processes linked within a single system that can record, track, cross-reference, analyze and report on different data and metrics. More importantly, this data is tied to processes—estimating is linked to production and inventory tracking—so data needs to be recorded and displayed in real time. That’s the true function of shop management system—to compile up-to-date info about every facet of your business so people on your team can make better decisions faster.

Preventable Labor Costs

Do you know which days are your company’s busiest? Or which departments are your most efficient? Can you identify points where more than one person may be inputting the same data in multiple systems? Chances are, you may not have the answers to these questions, and that’s completely normal. But as a company begins to grow and more transactions are being tracked, decreased productivity can be an inevitable consequence of that growth. Business processes become more time consuming when there’s a larger volume of data to input and analyze. A shop management system can improve communication internally and externally with suppliers and customers, so users spend less time manually processing and relaying raw data and more time growing their businesses. It’s not unusual for companies with an effective shop management system to report faster response times, enhanced customer service, streamlined workflows and higher productivity.

Inventory Issues

When inventory regularly goes missing, the tendency is to overproduce. The result is a surplus of product that never truly reflects demand and usually remains unsold. Tracking inventory across multiple locations using multiple independent systems, or worse, using staff to perform manual stock checks, makes lost inventory an ongoing challenge for many companies. Investing in a shop management system helps those organizations keep track of their products not only by location and serial numbers, but even sizes, colors and styles. A quality shop management system can reduce costs incurred from a lack of inventory awareness by as much as 15 percent, allowing companies to process large and rush orders with certainty.

Lost Customers

Even your best customers can become frustrated with production schedules that never seem to deliver on time. Most reasonable people will allow you to make a few mistakes before they seek out a new vendor, but when they experience repeated, persistent delays and errors, even the most forgiving of your customers will take their business elsewhere. Behind the scenes, you know how many different variables need to be managed to hit your delivery schedule, but your customers just want to receive their orders on time. Without effective technology to manage your production processes, there are countless ways that your projects can run off track. With the right shop management system in place, you will be able to not only respond to production issues as they arise, but also to anticipate those issues before they occur. The results will be higher customer retention, smoother relationships, increased trust, and ultimately, more orders!

To discover more about how your business will benefit from a new shop management solution, take our Manufacturer’s Health Check Survey. In 2–3 minutes, we’ll help you assess whether your existing technology is delivering ROI or if it’s time for an upgrade.