How ERP can help Industrial Machinery and Equipment Manufacturing Challenges

Many businesses today have adopted the most recent systems and adapted to technologies that they never thought they would use in the future. These changes are often driven by digital disruption and digital innovations.

Take this example:

The Internet of Things (IoT), which simplifies data collection around the globe, has been a game-changer.

Running Equipment with an App that Controls Critical Operational Parameters and Does Not Require

The concept of Products-as-a-Service means that customers won't pay for a product outright but will pay for uptime availability and usage.

Parts made from recycled material are essential for sustainability.

These may seem "optional" right now, but they could be essential in the future. Considering how rapidly technology has advanced over the past few years, IM & E-businesses need to quickly address existing problems and prepare for new ones.


the pandemic brought many operational challenges to the forefront, but also presented new challenges.

Product design

Manufacturers of industrial machinery and equipment often deal with complicated specifications and production problems. It can be very complicated to translate engineering requirements into machine specifications, whether for new orders or modifications to existing machines. A structured change process must be implemented, supported by the appropriate software, to convert specifications into working designs. They must also consider production plans and inventory requirements. Expert product design relies on the details provided by suppliers. Without timely feedback, it can be difficult to make the best design decisions.

Production planning Management

Manufacturing teams face challenges in keeping track of jobs and planning for new orders. The visualization of the production process allows you to evaluate the progress of each job and give you an indication of potential delays. This is necessary to ensure manufacturing runs on schedule and that delivery is made on time. These are key manufacturing and supply chain management tasks that often have a lot of overlap in responsibility, but they can still solve manufacturing problems when they work together.

Critical resource management is a major problem in the planning of jobs. Manufacturers need to link people and materials to jobs to address unexpected changes such as escalations, interruptions, and absences.

Quotation Management

Manufacturers of IM&E face this challenge because most of their work comes from quotations. Manufacturers want to lower the cost of creating quotations and increase conversion rates. However, it takes a lot of time to calculate costs to provide accurate quotations. The success rate of a request for quotations is determined by its promptness. However, inaccurate quotations can cost the manufacturer a lot of money due to their extremely low margins. A real dilemma!

The quote could be rejected if the information is not accurate, including costs, production details, and other pertinent information. This can lead to lost sales. Therefore, sales personnel must have access to all details to ensure that they can provide a competitive quote for their customers.

Forecasting and inventory management

Manufacturing companies often lack visibility into operations outside their factories, which can lead to complex supply chains. A better understanding of the supply chain and all its nuances will reduce uncertainty and help with planning and inventory management.

It takes a lot of effort to manage the large inventory of parts and stock that IM & E companies have to keep. It is crucial to ensure resource consumption is balanced and that delivery times are met by the accurate and timely dispatch of this inventory to the shop floor.

For accurate, timely, and efficient production, it is important to have accurate demand forecasts. This required optimal inventory levels to meet the customers' delivery dates. Forecast accuracy is dependent on this data. This data is usually based on historical trends or seasonal patterns. Collecting this data requires collaboration from all stakeholders, as well as across the entire supply chain, including customers.

Quality control Traceability

Manufacturers are increasingly being held accountable for the quality and safety of their products. This is done to ensure that products meet minimum standards. Customers expect suppliers to be able to trace any problems from procurement through production and delivery.

Customer Centricity

Understanding the immediate problems of customers can help manufacturers reap the benefits. This will help with planning and responding to regulatory changes. The partnership should result in improved profitability for both businesses.

Companies can use customer data to segment customers. This will allow them to gain a better understanding of their customer needs and help them choose the best offerings.

Product lifecycle

Manufacturers should think beyond the physical product and consider how they will use them over their lives. This involves thorough planning and assessing the support tools required. This may require the development of apps and other digital services. Sometimes products have physical and digital launches. This will require separate planning.


Manufacturers must be aware of the fact that consumers are more concerned about the environmental impact of their products. Sustainable manufacturing refers to the production of goods or services that have minimal negative environmental impacts and conserve natural resources. Many environmental regulations must be considered when developing future products in many countries.

ERP and IM: How ERP can help IM & E

Companies in the IM & E industry should pay attention to the most recent technological advances to address these issues.

A fully integrated system: Companies need an integrated system to ensure that different manufacturing functions do not operate in isolation. Change orders and new specifications should not only affect design plans but also communicate with resource planning (e.g. At the same time, Bill of Materials and Master production Schedule should be communicated to resource planning (e.g. Collaboration with suppliers online is essential to ensure design specifications are communicated accurately and that changeover plans are executed.

Shop floor IoT devices: Traditional shop floor is changing. These new digital technologies have been realized by some manufacturers to significantly lower costs, increase productivity, and reduce errors. Businesses can use the data from interconnected systems, including IoT devices on factory floors, to optimize production and improve end-to-end manufacturing processes.

Sales orders: Sharing sales order processes with other departments can help provide current information for quick and accurate quotations. Despite not being able to promise in complex IM & E environments, sales staff can see the status of inventory availability and production orders, which allows them to provide better customer service.

A supply-chain portal: An ERP integrates information from all business areas, giving better information to help manage inventory and parts availability. An ERP solution that includes an online portal for suppliers allows collaboration on pricing, stock availability, and planned delivery. This can help improve customer service and build an agile supply chain.

Traceability An ERP system that provides a complete traceability system allows you to quickly identify, trace, isolate, report, quarantine, and place affected products on retain. It provides visibility across the entire value chain, ensuring compliance with regulatory requirements and quality. The customer expects the supplier to manage the asset in today's manufacturing environment.

The ability to connect with digital services is crucial in the new world of manufacturing, where products are part of packages that also include services. Although many applications can support this, it is becoming easier to integrate and consolidate the information within an ERP system. A wide range of systems can be connected to an ERP solution, allowing customers to access the services they need from one central location.

Businesses must be able to monitor their production processes to determine what resources are being used and how best to recycle them. This is essential to sustainable manufacturing. An ERP system will help you monitor material consumption by process and assist in sustainability planning.

Get a Free Estimation. Talk to Our Business Manager

This is the new norm for manufacturers 

Many companies have begun to become more digitally literate and well-organized. Take, for example:

- 91% of respondents have increased their digital transformation investments over the past year.

95% of respondents believe digital transformation is crucial for future success.

54% - The aim is to accelerate product innovation through digital technology;

40% - 40% of respondents say they prioritize investments in sustainable manufacturing processes.

This is a significant segment of businesses. Manufacturers should ask these questions.

Is it possible to remain in the minority that resists change simply because it seems too risky?

Are old business models changing? Are business models changing? Are our business models changing? If so, what ones and how are they changing.

What technologies should be prioritized for adoption to support new business models?