ERP Solutions Improve Forecasting Accuracy

Dec. 12, 2012 - PRLog -- Forecasting involves predicting the future. It is not an exact science. In the manufacturing industry, with fluctuating customer demands being part of the territory, the task of forecasting can be especially challenging. But with the right controls in place, and with the help of a robust manufacturing software solution, companies can maximize the effectiveness of their forecasting efforts.

Forecasting Basics

There are many variables that must be taken into account within the forecasting process, such as sales and material usage histories, current and impending orders and economic trends.

Accurate forecasting calls for the gathering and consolidation of information from budgetary, sales, production, inventory and manpower perspectives. Optimally, that information is then refined to form projections precise enough to ensure customer demands continue to be met, while limiting waste and avoiding contingencies such as inventory shortages or overages.

Where Enterprise Resource Planning (ERP) Comes In

ERP software (http://www.shoptech.com/shop-management-products.cfm) is used by businesses and organizations around the world to streamline processes and improve operational efficiencies. ERP solutions maximize overall productivity by integrating and automating all aspects of an enterprise. This enables each function — from the front office to the production floor — to share information, allowing for improved workflow and the meticulous management of resources.

Manufacturing operations large and small have realized significant benefits by implementing ERP programs such as Shoptech Software Corporation’s “E2 Shop System.” From a forecasting standpoint, ERP systems provides real-time collection of data from all departments within a manufacturing business. This data is then processed using formulas that can be customized to generate a desired set of predictions.

Competent, accurate forecasting greatly enhances a manufacturing outfit’s ability to establish goals in all areas. It also helps predicts future sales, material and labor-related requirements.

With the uncertainties that often exist within the manufacturing world, ERP and job shop software give management the tools they need to effectively plan ahead, and to diminish the possibility of unwanted surprises.