How an ERP System Reduces Costs for Discrete Manufacturing

March 17, 2020 | Discrete Manufacturing

When your company can reduce manufacturing costs while increasing production, you’ll be in a fantastic, competitive position. It may be more attainable than you think, especially when you have the right ERP software on your side. Reducing manufacturing costs comes down to efficiency, which is precisely where an ERP can help your business make improvements.

Statistics show that an ERP can:

  • reduce operational costs by 23 percent
  • cut administration costs by 22 percent
  • increase on-time deliveries by 24 percent

With every bit of information and every application your company uses integrated into one modern, streamlined platform, the entire manufacturing process is powerful, productive, and profitable. 

Let’s take a look at what an ERP can do for reducing manufacturing costs in your business environment.

Reduced Complexity

The more complex your discrete manufacturing landscape is, the more it will cost. Every independent workflow and operation requires money. But with ERP software in place, your systems are interconnected, as they should be. Instead of handling areas such as materials, supplies, and customer service with a siloed, redundant, and wasteful approach, an ERP lets you tackle discrete manufacturing with control, visibility, and flexibility.

When something influences one area of your operations, the ERP makes every interdependent workflow aware. Systems adjust intelligently for those changes. This optimized approach reduces costs while ensuring your production is at its peak performance.

Improved Inventory Accuracy

The combination of too much inventory and not enough orders leads to increased costs for discrete manufacturing. Any excess inventory sitting around is money wasted. The same holds for inaccurate inventory where customer orders cannot be fulfilled quickly because the inventory isn’t there.

With ERP software, your systems keep better track of supply and demand, intelligently forecasting the inventory levels you need to keep up with your clients. It’s also an easier way to track what is already in place, so client orders are fulfilled quickly and accurately.

Intelligent Analytics

Tracking key performance indicators is always an excellent way to reduce costs and increase production, as these metrics show where your manufacturing is working and where it needs to be improved. An ERP system improves your decision-making with embedded, intelligent, industry-specific KPIs, giving you greater insight into operations.

If your KPIs show, for example, that you have been over-ordering inventory, you can automatically enact those inventory-based improvements listed above. Your ERP lets your interconnected systems respond dynamically to the information found in your KPIs, so you can spend less time worrying about how to optimize your business and more time working to meet the needs of your clients.

These are just a few of the ways an excellent ERP system will reduce costs in discrete manufacturing and position your company as a competitor in the industry. Talk to our team DRI’s friendly ERP experts today to learn more about what an ERP can do for you. Call us at 412.562.9660 or email

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