Equipped with new-age technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Industrial Internet of Things (IIoT) and cloud computing the industry is currently experiencing the 4th industrial revolution significantly making it Industry 4.0. However, one of the important shortcomings the industry currently faces is faulty and unsuitable manufacturing development. In the present competitive market scenario, having an ideal manufacturing process for a business can ensure the minimization of errors as well as higher efficiency of production.

Adding to this, in from the year 2016 to 2020, the estimated cost reduction in various industries across the world is around 28 billion dollars. ERP software tool is considered to be the intermediary backbone of any enterprise, as it connects the different departments to form a single unique platform for the unperturbed flow of data. Also, the productivity achieved by the IIoT adopter’s results in a drop of 30 percent maintenance charges, 10 to 30 percent decreased production cost and 30 percent of logistics costs. 

Useful in managing everyday business actions, ERP solutions assist the organizations in the automation of many business processes through a set of integrated applications. A kind of management software, ERP solutions ensure the accurate and error-free flow of data along with the management of various activities related to accounting, finance, production, sales, inventory and more.

Some of the key points are stated below, highlighting how the ERP solutions implemented in the manufacturing process can tackle the challenges of industry 4.0.

• Precise Demand Predictions: Insufficient production or inventory can lead to a mismatch of supply and demand, ultimately causing a reduction of the company’s revenue and dissatisfaction of the customers. This underestimation of demand can hamper the growth, revenue as well as customer relationships of the company. Similarly, overestimation of demands can lead to loss of resources, finance and raw materials, simultaneously leading to a loss for the company. Implementation of ERP in the manufacturing process can ensure more accurate demand predictions and eradicate this demand uncertainty which ultimately pilots to either under or over-production.

• Effective Management of Orders: The order from customers plays an important role in the manufacturing process. Tracking the real-time production process ongoing at the current scenario, ERP avoids the rush orders and effortlessly handles the alteration or replacement of orders. It regularly checks the inventory data so that the stock never goes dry and there will be no rush hour production. As in rush hour production, the demand is more and the time is relatively less, it can cause faulty manufacturing.

Similarly, a customer can request a last-minute alteration or replacement of products. By the efficient execution of the replacement orders ERP enables faster production of the required goods to avoid any kind of delay for the delivery of correct products. Similarly gathering information such as product delivery, pricing, delivery charge, discount and so on, the ERP updates the system to avoid any kind of misconception in the future.

• Work-in-Progress Amendments: Wireless sensors in the goods provide the opportunity to make ongoing manufacturing adjustments via IoT in real-time. Similarly, The RFID tags and various other tracking apparatus can give a clearer picture of the manufacturing process in the factory floor right from the processing of raw materials to final products. These IoT enabled technologies to enable the smooth manufacturing process by tracking the availability of raw materials, on-time production schedules, accessibility of equipment, and management of assets.
   
• Well-timed Delivery of Goods: ERP software application ensures faster and effective supply chain management resulting in the timely delivery of products. By tracking inbound and outbound inventory details, the ERP applications incorporate faster production procedures following the latest need and demands of the customers. Any delay in the production due to damaged equipment or scarcity of raw materials can be reverted to the ERP software, which in turn can extend the date of delivery based on the situation.

Quality Management: The most vital factors of the industry are quality as the time and speed of the production are irrelevant if the quality of the manufactured goods doesn’t meet up the industry standards. Monitoring all the production work by tracing the manufactured goods through every phase of the manufacturing cycle, ERP facilitates corrective measures for any kind of defective products while the manufacture. Operating via IoT sensory networks, the faulty material is removed from the inventory eliminating the possibilities of liability issues and in recent years the quality management costs have reduced by 20 percent.