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Key Benefits of CRM for Manufacturing Divisions
Key Benefits of CRM for Manufacturing Divisions

Key Benefits of CRM for Manufacturing Divisions

Businesses have divisions between departments. There are sometimes problems between divisions and people don’t work in a harmony for the better purpose of the company.Most businesses must solve serious communication problems between departments to establish new processes.  When the new processes are established divisions run smoothly between departments. The same holds true for data flows. When an IT process links data between departments, that link is usually stable until a change is needed.

Sales versus Manufacturing

Interdepartmental competition is usually strong between sales and manufacturing. Both departments are linked in their processes. Sales department is the basis for what is produced and sold. The products are what can be sold. The rivalries between these departments are also about the preferred enterprise application. Sales departments rely on their CRM system for daily operations and processes in businesses.  Manufacturing departments operate with an ERP systems and nothing else. If the companies decide to integrate two enterprise applications, that has to be done by a professional and experienced vendor. It has to be taken seriously. There are many ways and potential benefits to integrating data. Here are the main benefits of CRM and ERP integration in manufacturing.

Near-Term Production Planning

Companies have to deliver the products they produce for customers on a timely basis. Customers don’t want to hear that the items they had ordered won’t be available for delivery. Linking the CRM system to the ERP system allows businesses interchange data to optimize their near-term production planning. A CRM system will provide a real time sales forecast. Based on this data manufacturing departments can schedule production earlier rather than just producing when the orders are placed by customers. Better production planning place the orders ahead of time and any problems with production won’t be reflected on customers who are waiting for the items.  

Cost of production and Revenue

There are many different ways to calculate cost of production. Different numbers has different meaning to management. Overhead and indirect costs sometimes factor into costing calculations—sometimes not even within the same company. Often times the cost information is stored in both the Customer Relations Management system and the ERP system. Using a single version of costing means that manufacturing department will able to utilize the information  and prioritize production scheduling to minimize the value of stored inventory.

Planning Long term Production

Planning production for the future is critical for optimizing equipment, labor and raw material budgets. As product mixes change over time, those changes directly affect plans for equipment, warehouse space, vendor relations, and so on.The Customer Relations Management system functions as the early warning system. Sales professionals put clients’ preferred products into the CRM system for future sales.  Data insights provided by CRM will identify changes in customer preferences. Manufacturing department will able to use this information for the prediction of future revenues.

Improving Inventory Levels between Locations

Managing where to keep inventory is a constant battle. Missing product in one-location results in either multiple shipments or backordering, both of which can be costly to the company in terms of client relations or the added cost of extra shipment. Knowing the orders about to come in allows manufacturing to transfer finished items between locations in time to make combined shipments. This way your business saves money in shipments which will eventually increase the bottom line.

Collaboration Is a Start

As the CRM provides data insights and the data is shared between sales and manufacturing management start to use this information to improve the operations of the company. Data analysis leads to improvements in manufacturing. The ideas above are just a starting point that applies to any manufacturing company that runs a Customer Relations Management application. The hardest part is making sense of the two systems’ data. That is where your business has to choose an experienced vendor that has the qualified technology staff and project manager to integrate both systems with no hurdle.

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