Is an ERP system the key to your company’s success?

Is an ERP system the key to your company’s success?

With new innovations and products emerging daily, a fast-paced industry such as cosmetics relies heavily on quality control and science-backed precision to ensure smooth operations and manufacturing processes. We understand that the struggles that many manufacturers face are things such as keeping up with strict regulatory rules, the everchanging price of raw materials, and making sure they can deliver high-quality products that are simultaneously eco-friendly. One way to help optimize and streamline these processes is by implementing an Enterprise Resource Planning (ERP) system. With an ERP system in place, you will be able to make sure things are done more efficiently, have instant access to your most important information, and these things done together will aid in faster growth and higher profits for your company in the long run.

Efficiency and Traceability

One of the ways an ERP system can help you run your cosmetics business more efficiently is by helping eliminate any administrative tasks that are time-consuming and unnecessary to the manufacturing process. By making the process more efficient, you can cut down one of the largest costs involved in the manufacturing process, which is the costs associated with labor. As part of good manufacturing practices, an ERP system can help by allowing you to have records of every manufactured batch through batch numbers. This helps you know where all your items are in the process from manufacturing to delivery.

The reason tracking and traceability are so important, especially for a company that manufactures perishable items such as cosmetics is that being able to catch quality control problems early on and eliminate them before you go further down the process can save you not only time, and money, but also prevent waste.

Data in real-time

Makeup Products on a White Background

Another advantage that comes along with having an ERP system for manufacturers is being able to view all data from the manufacturing process in real-time. This helps with communications between different steps in the operations and the decision-making process if problems do arise. Why this is so essential to a company’s success due to the interconnectivity within departments and how when data inconsistencies and discrepancies occur in one department, they can bleed into another and cause a great deal of confusion, leading to errors and slowing down productivity.

Managing perishable inventory efficiently

With inventory management being one of the most important parts of a company, to make sure the right number of items are stocked at all times, as well as aiding in avoiding crises during recall, the use of lot numbers is essential to the inventory management process. This is especially important in an industry such as cosmetics where items are perishable.

Lot numbers are unique tracking numbers that are used when tracking items throughout the manufacturing process and can be used to identify recalled items or products with defects.

Like any other perishable good, having an overview of the location and knowing critical use-by-dates, are musts in dealing with products that have fixed lifespans.

Managing a broad inventory range

One of the major benefits a cosmetic company obtains by having a good ERP system in place is assistance with managing broad inventory. The Cosmetic industry has many unique attributes that make it different to manage from others. With a wide range of products on hand at any given time, specific characteristics for products such as color, usage, and sizes, and required knowledge in managing complex inventory based on the consumers’ demand, without an ERP system in place, this complex process can soon become very challenging. Therefore, the implementation of an ERP system can aid in this complex process.

Whether there are two product lines or thousands, having effective management over your inventory can become a daunting task, and counting manually is no longer an option when your company is growing rapidly. Having a system in place that can easily automate all these processes, and make sure you always have enough stock on hand can provide you with a competitive advantage and save you time and money in the process.

Bill of Materials (BOM) and Raw Materials

The complexity of handling formulas, which is essential for manufacturing, requires a flexible ERP system that can handle a flexible BOM. The right ERP can help with scaling based on desired finished goods, quantities, and concentrations, taking into account any shrinkage or reduction due to manufacturing processing.

A Bill of Materials refers to a list of raw materials, as well as quantities of each needed to manufacture a particular product. An ERP software with Bill of Materials capabilities allows you to create and manage your materials by giving you a list of all essential items and their quantities to help make the manufacturing process more accurate and overall efficient.

Having these capabilities will allow you to lay out a well-detailed plan that helps your company follow aspects of the production process such as the planned purchase of raw materials, estimating material costs, managing inventory, tracking and planning material requirements, budget control, and compliance with FDA regulations.

Kechie ERP

To avoid the struggles that come along with managing a large inventory and the hassle of implementing an unsatisfactory ERP, selecting Kechie ERP will give you the competitive edge you need to make this process as simple as possible. Kechie’s innovative easy-to-use software can easily take the struggles that come along with inventory management and provide you with a system that can be tailored to your unique business. Having the right software in place and working with the right people can help you run your business more smoothly and save you not only time but also money. Contact us today to schedule a demo or learn more about how Kechie from My Office Apps can redefine your inventory management process.