Whether planned or unplanned, business growth is an exciting time for any type of company. For make-to-order manufacturers, the journey of business expansion is a monumental step. It presents a spectrum of challenges and opportunities, each requiring meticulous consideration for a successful transition, including manufacturing ERP software.
In this comprehensive blog post, we will discuss key factors of an effective expansion strategy for custom manufacturers. We will also explore the pivotal role that manufacturing ERP software plays in facilitating cost-effective, seamless growth.
8 Considerations When Expanding Business Operations
Make-to-order manufacturing growth comes in various forms. It might involve the introduction of innovative products, the exploration of new markets, or the establishment of additional facilities. Successful business expansion demands a comprehensive review of critical factors, ranging from facility location and capacity to technology integration and shipping. The following are some key details to consider when expanding manufacturing operations.
1. Location and Capacity
To optimize expansion, strategic decisions are involved regarding location and capacity restraints. These will depend on the type of growth the company is experiencing. A make-to-order manufacturer may need to locate close to a raw material source or a large customer for shipping ease. Or the expansion of current facilities is needed to increase production capacity. The best manufacturing ERP software integrates new facilities and accommodates raised capacity seamlessly for optimal efficiency.
2. New Inventory
Address the location of new inventory storage when adding new product lines or raw materials. The inventory type will help determine the ideal storage location. This is important for wood types and HAZMAT materials as well as for items used regularly during production.
Account for the time it takes to integrate new inventory into an inventory management system. A robust WMS software module can aid in efficient space allocation and inventory management.
3. New Production Lines
Introducing new production lines necessitates detailed scheduling, lead time management, and location selection. For maximum efficiency, select the best space on the production floor for the new line. It may be near shipping, necessary inventory, or established production areas. Production planning and lead times will also be impacted by the addition of a new line.
Don’t forget about your workforce when planning or experiencing growth. Enhance workflows during a period of growth by implementing effective scheduling, order processes, human resources management, and training. Consider that a knowledge gap may happen with the introduction of new technologies. Don’t overlook additional training for current employees and new hires.
5. Shipping and Receiving
Efficient logistics, adherence to packaging requirements, and spatial optimization are crucial for streamlined shipping and receiving operations. Manufacturers must consider how new product lines or materials will impact future shipping and receiving operations.
Plant location may come into play to better serve a local market or because of inventory availability. This allows for improved shipping lead times and reduced costs. In addition, an increase in received goods will require more warehouse space. In either case, it is essential that a make-to-order manufacturer plans accordingly to maintain a competitive advantage.
Introducing new products or materials into a facility or implementing additional production lines requires updated safety plans. Safety methods take many forms. Some examples include adding MSDS data into a software system or new HAZMAT protocols and storage requirements. All are essential for maintaining a secure working environment.
Financial departments are directly affected by business growth in any form. The addition of new suppliers and customers increases the need for effective accounting management. Consider that company expansion may require working with foreign customers or suppliers and multiple forms of currency. Coupled with an increase in accounting activity, foreign currency requires crucial financial planning and oversight during an expansion. Manufacturing ERP software with financial management capabilities handles these concerns accurately and reliably.
Custom manufacturing requires the seamless integration of advanced technology. It is paramount for sustained growth and operational efficiency. The incorporation of cutting-edge manufacturing ERP software serves as the backbone, orchestrating various facets of the production process. The connection extends to hardware and machinery, forming a cohesive system. The result is streamlined day-to-day activities that position the business to adapt to evolving industry standards.
Integrating manufacturing ERP software becomes instrumental in managing the ups and downs associated with growth. The best ERP software for manufacturing acts as a central nervous system. Coordinating and streamlining diverse aspects of the business through ERP ensures cohesive and efficient operations even during expansion.
Frontier Manufacturing ERP Software Scales with Your Business
Frontier ERP for manufacturing companies grows with your company. You can count on Frontier software as your strategic ally in navigating the multifaceted challenges of business expansion.
Scalability: Frontier manufacturing ERP software ensures scalable solutions that seamlessly grow with your business. This reduces the waste of valuable resources and eliminates the need for disruptive overhauls.
Multi-Company Architecture: Schedule your fulfillment based on staffing, manufacturing capacity, shipping distance, and more. Efficient fulfillment from different locations, based on inventory and shipping cost considerations, is made easy with Frontier ERP’s multi-company architecture. Our system is the most user-friendly manufacturing ERP software to manage diverse fulfillment needs.
Optimized Scheduling: Effective management of production schedules is paramount for meeting increased customer demand during expansion. Manufacturers can rely on the efficient scheduling of resources using the Frontier ERP production scheduling features.
Refined Financials: It can be challenging to adapt to the complex financial requirements of new markets or foreign suppliers. Custom manufacturers can simplify accounting integrations with Frontier ERP’s multi-currency support and adaptability for multiple locations.
Industry Expertise: Frontier ERP’s industry-specific expertise ensures tailored software solutions for make-to-order manufacturers. The system’s specialized knowledge addresses the unique challenges of the manufacturing sector. Our manufacturing ERP software expertise includes the following industries and more:
- Kitchen Cabinets
- Furniture and Textiles
- Window & Glass Manufacturing
- Window Fashions
- Custom Door Manufacturing
- Building Products
- Promotional & Ad Specialties
- Industrial Products
- Automotive and Aerospace
- Metal Fabricating
Innovative Technology: The stability and reliability of cloud hosting are essential for smooth operations and integration with various tools. You can choose to use Frontier ERP software on your own servers or in the cloud. Either way, you can significantly improve the handling of customer and dealer orders, and manage internal manufacturing and financial operations.
First-Class Support: Frontier ERP software for manufacturing offers robust support. This helps your employees navigate any challenges encountered during the expansion process. Our dedicated client services and support teams are specially equipped to assist you throughout every stage of your project. Manufacturers also benefit from our continuous support and ERP training from implementation to completion.
User-Friendliness: Frontier ERP’s intuitive interface makes it easy for employees to learn and use daily. The user-friendly nature of the system helps a custom manufacturer to maximize the system’s potential for greater efficiency.
Fully Customizable: At Friedman, we embrace and showcase the shift toward customer-driven products. The robust parametric product configurator at the heart of Frontier is a cornerstone of our manufacturing ERP software. Frontier ERP is designed to meet the unique requirements of custom product manufacturers across a wide range of industries.
Whether a carefully planned endeavor or an unforeseen opportunity, growth is exciting for make-to-order manufacturers. The journey itself is significant, bringing forth a multitude of challenges and opportunities. Each demands thorough consideration for a successful transition. Manufacturing ERP software plays a crucial role in ensuring a seamless and efficient path to growth.
Frontier manufacturing ERP software helps companies navigate through the intricacies of business expansion. Our industry expertise in ERP manufacturing software is not merely a technological necessity. It is a strategic advantage in the evolution of a thriving make-to-order manufacturing enterprise.
Want to learn more? Contact us today for a free Frontier ERP demo!