Metal manufacturers are under significant pressure to ensure their operations run as smoothly and profitably as possible. However, various operational challenges can arise in manufacturing, making day-to-day tasks more complex. Many companies try to manage these realities with disconnected systems and manual processes, limiting visibility into their operations and data.
Modern enterprise resource planning (ERP) systems can make a significant impact. Microsoft Dynamics 365 Finance and Supply Chain Management (MS D365 F&SCM) can address the real issues that metal manufacturers face across their operations and supply chain. Learn what challenges ERP can solve for an organization below.
In some metal manufacturing environments, each department leverages a different system. For instance, finance teams may use one data solution while production and warehousing use another, and none of these systems can easily connect to or communicate with the others.
So, while finance may think a job is profitable, production knows in actuality it ran overtime and blew the budget. By the time management finally gets accurate data, the damage is already done.
Here is how siloed systems and data can negatively impact operations:
D365 brings all operations together into a single integrated platform. Everyone sees the same, real-time data. For example, if production runs over budget, the finance department can immediately see it. When material costs change, planners see their impact on your margins right away. There’s less confusion and miscommunication. With MS D365 F&SCM, you can make faster decisions with confidence.
As a manufacturer in the metal industry, you deal with specific raw materials and partially processed goods. These items are often managed across multiple warehouses, yards and production lines. Another layer of complexity is that these inventory items have various measuring units, such as weight, length, grade and heat number. When your inventory data lives in disconnected systems, teams have limited real-time visibility on what’s actually available.
For instance, a purchasing department might order more steel because its system shows the stock is low. However, production might sit with usable material that was never properly recorded.
Here’s the operational impact of this challenge:
Metal manufacturers can see a single, real-time view of their inventory across all areas with D365 F&SCM. This means there are fewer manual entries and subsequent delays. Inventory levels are automatically updated as materials are received, produced, moved or consumed, reducing guesswork.
The demand for metal products is heavily tied to the automotive, construction, energy, and infrastructure industries. However, these markets often fluctuate frequently for various reasons. It could be changing economic conditions or seasonal demand.
To predict demand levels, many metal manufacturers still rely on historical sales data or manual forecasts. Unfortunately, they don’t account for sudden changes. Poor forecasting can create a ripple effect, leading to unfavorable outcomes:
D365 connects all your data and trends with your current inventory. The combination of all of them helps create a more realistic demand forecast for your manufacturing plant. Forecasting becomes part of a connected planning process, and metal manufacturers can avoid over- or underproduction.
Metal manufacturers depend on global supply chains. Raw materials are often sourced internationally, which can entail long lead times and volatile pricing.
If there are any disruptions, it can potentially shut down entire production lines. Extreme climate events, geopolitical issues, supplier shortages, and transportation bottlenecks are just a few examples.
Here’s what supply chain disruptions mean for manufacturers:
D365 can help you anticipate and proactively respond to disruptions. For instance, if a supplier’s delivery is delayed, planners can see which production orders are affected and adjust their schedules or sourcing decisions accordingly. Your teams can make informed decisions before a supply chain disruption escalates.
The manufacturing industry also depends on highly skilled labor. However, there is a global shortage. In fact, between 2024 and 2033, there will be a need for about 3.8 million new manufacturing employees, but experts estimate that 1.9 million job openings will not be filled.
A survey also showed that three-quarters of manufacturers state that attracting and retaining talent is difficult. This challenge impacts operations in the following ways:
D365 can also help metal manufacturers align their labor availability with production needs. This is because the tool supports better production and workforce planning. In D365 F&SCM, you can better plan shifts and balance workloads, which can lead to more predictable outputs and less reliance on overtime. Also, D365 offers automation solutions that help streamline repetitive tasks. There’s less reliance on manual labor, which in turn mitigates the impact of talent shortages.
Metal manufacturing involves tight quality tolerances and the use of heavy equipment and energy-intensive processes. If any quality issues are found, you’ll have to rework or scrap the item. Some manufacturing plants may still opt for manual quality checks, which are more often reactive rather than proactive. This can leave you with high operational and quality costs.
Facilities may experience the following impacts:
The D365 system provides a comprehensive solution for quality control and assurance. You can track your facility’s quality checks, production data and equipment performances in one solution. Manufacturers can build quality and cost controls into their daily operations rather than catching potential issues after the fact.
Growth itself may not be the challenge, but in some cases, this is where legacy systems fall apart. As metal manufacturers grow, they add new facilities or diversify their product lines. A legacy ERP system may struggle to keep up. They can be expensive to maintain and are often rigid and inherently difficult to customize.
An outdated ERP system makes it hard to align your day-to-day operations with your larger business goals. Expanding can also be complex and costly. Here is the operational impact of this challenge:
D365 grows with your business, as it’s a scalable, cloud-based system. There are no expensive hardware costs to replace the ERP every few years. D365 F&SCM also has multi-warehouse and multi-company support, so leadership can gain visibility into each location’s day-to-day operations.
The benefits of Dynamics 365 Supply Chain Management are clear. You can address multiple ERP production pain points with a single system. Winfosoft’s Metals PRO ERP module is specifically designed for the realities of metal manufacturing. Our solution helps you address these challenges in a way that aligns with the reality of your processes.
Complete our online form to learn more about how our Metals PRO ERP module’s functionality works.
