ERP (enterprise resource management) software helps companies to manage their business. It helps with all aspects of running a business, from sales to production to inventory management. In addition, ERP systems organize data and automate specific processes.
While all companies can put an ERP to good use, certain companies stand to derive particular benefits. For example, ERP software benefits furniture manufacturers because it helps them design and produce products more efficiently. It also improves their production capacity by allowing them to use the right resources at the right time.
This article will explore the specific challenges furniture manufacturers face, how an ERP can help them overcome them, and what to look for in an ERP.
What Are the Challenges Facing the Furniture Manufacturing Industry?
Furniture manufacturing is a competitive industry facing a lot of challenges.
Declining sales
The furniture industry is in a slump. The market for new furniture has been declining for the last few years, and it is expected to continue to do so in the coming years. Furniture stores are having difficulty staying afloat, with many closing their doors forever. People are just not consistently buying furniture.
Because of the stiff prices in the housing market, people are moving to smaller living spaces. This means they don’t need as much furniture as before, creating less demand for furniture. This, in turn, decreases prices.
There is also less demand for new furniture versus secondhand furniture, further crippling the market.
Changing styles
In the past, furniture manufacturing was a craft that required years of training and apprenticeship. Today, it’s a fast-paced industry with constantly changing trends and new styles. This can put pressure on manufacturers to keep up with these changes.
The changes result from various factors, including economic and market conditions, the introduction of new technologies, and evolving consumer preferences.
Big-box competition
Another challenge is that furniture manufacturing has become less popular as people choose instead to buy their furniture online or from big-box stores like Ikea and Target. These businesses’ scale makes it difficult for smaller companies to compete.
Labor shortage
The furniture manufacturing industry has also had to deal with increasing labor costs and a shortage of skilled workers.
Labor shortage is affecting all sectors of manufacturing. Furniture manufacturing, in particular, requires a lot of skilled manual labor. This means that it’s difficult for manufacturers to keep up with demand, especially when they have to compete with factories overseas that can produce goods at a lower cost.
How an ERP Can Help Your Furniture Manufacturing Business
For your business to succeed, you will have to develop new production process strategies, improve marketing and advertising efforts, and find ways to reduce costs.
Luckily an ERP can help with all of that. Here’s how.
Improve efficiency
Using an ERP helps with the production process as you can track your raw materials from when they are sourced to when they are delivered to the factory floor.
ERP helps manage your production schedule by optimizing workflow and ensuring there aren’t any bottlenecks at any point in the production process.
The main advantages of ERPs are that they are easy to use, provide accurate information about inventory levels, and offer a complete overview of operations. This software also makes it easy for companies to keep track of their production process and ensure that they meet customer requirements on time.
Stay up to date
ERP software can help you design and produce products more efficiently. This can give you the edge in a constantly shifting industry when getting new products to production as quickly as possible is essential.
It also improves production capacity by allowing you to use the right resources at the right time.
Keep your costs low
With declining sales, keeping your costs low and maintaining quality is essential. An ERP reduces errors, wastage, and time consumption.
It also provides real-time information like cost and profit margin, which helps make decisions regarding pricing.
Work smarter, not harder
Your employees shouldn’t be stuck doing jobs that a robot could do. An ERP reduces manual data entry and frees your employees to do more demanding tasks.
Access to information at all times also improves collaboration among employees.
What To Look For in a Furniture Manufacturing ERP
Every company is different and has different needs. That’s why when choosing an ERP solution, it’s important to take the time to understand your company’s specific requirements.
There are many things to consider when looking for the right ERP solution for your furniture manufacturing business.
- You should ask yourself if you need an integrated solution or a more customized experience.
- Do you want to be able to customize your system or not?
- Do you need a cloud-based system?
- What about mobile access?
You also need to look for a scaleable ERP system. The software should be able to grow with the company’s needs without requiring any significant changes or upgrades.
Another thing to consider is how easy it is to use. If there are too many steps for simple tasks, it will be difficult for employees unfamiliar with the system to use it effectively.
It would be best if you also considered whether the software can integrate with other systems that your company already uses, such as accounting or payroll systems. Ideally, you want everything in one place so you don’t have different data sets that need reconciling.
There are many different ERP systems, each with unique features and benefits. Some of the features you might want to consider include the following:
- Manufacturing Processes
- Material Management
- Inventory Management
- Sales and Marketing
- Accounting and Financials
- Customer Service
- Product Development
Your Business Needs an ERP
ERP software helps furniture manufacturers streamline their processes, increase productivity, improve customer satisfaction, reduce costs and improve efficiency. It also helps them to make better decisions by providing them with accurate data from which they can make informed decisions.
Acumatica is an ERP software that offers robust accounting features alongside its other modules. In addition, it is a true cloud option, meaning it was built for the cloud and requires no software to run. Acumatica was founded in 2008 when the founders saw the need for a flexible, cloud-based ERP solution for small and mid-sized businesses.
Acumatica’s manufacturing cloud ERP software integrates with customer management, sales, inventory, and financials, providing real-time coordination of activities. Acumatica Manufacturing Edition helps manufacturers manage resources, reduce costs, and improve profitability. Acumatica pricing is based on the features and resources that you choose to utilize, not on the number of users who access the system. Still wondering how much does acumatica cost? In the event you attempt to know acumatica pricing model, contact Confianz Global Inc.
Also get an Acumatica demo from us, an Acumatica partner!
If you don’t use an ERP, you’re missing out. Choosing the right solution for your company and implementing it can be tricky, but that’s where Confianz can help. So contact us today and get started with your ERP.
