Reduce furniture manufacturing and inventory costs with increased visibility, sales/manufacturing sync, and more.
Keeping in-step with the market is an ever-increasing demand for furniture manufacturers. Two large points of pressure are driving costs and price. On the one-hand, low-cost production occurring in foreign countries (e.g. China) is driving down prices; and on the other hand Big Box retailers are mass producing, and selling, at a low cost per item.
How can you reduce costs to stay competitive, without losing the quality that defines your product? One way is through implementing an ERP solution for your business.
By implementing an ERP solution, you gain centralized knowledge and visibility into your company operations. This visibility will help you identify problem areas and find ways to optimize your business. In addition, managers can more easily view the progress of projects, rather than relying on contacting an individual every time to see what’s going on.
Typical modules for ERP solutions include:
- Supply Chain
- eCommerce, and more.
More specifically for manufacturers, you can also keep track of costs for manufacturing and inventory. Since purchasing and manufacturing processes, etc. are all in the software, you can immediately calculate costs from this data without additional manual work. This allows you to pick most cost-effective methods for different products.
Finally, by syncing your CRM with your factory operations, you can make production more responsive to sales orders as they come in. This will reduce your inventory costs and speed up your production cycle, increasing customer satisfaction. It also enables just-in-time production, which can help you compete more efficiently on cost terms even if you’re not a big box store.
How Bista Solutions Helped out Furniture Manufacturing Company Farmazan
Bista Solutions has implemented software for many manufacturing and furniture manufacturing companies. One of these was Farmazan, a custom furniture manufacturer in Dubai. Bista implemented NetSuite ERP for Farmazan, granting many of the benefits discussed above.
Firstly, the solution allowed Farmazan to keep track of manufacturing costs within their system. Previously, Farmazan did this manually, with a lot of additional labor.
Furthermore, the new system allowed management to see what progress was being made on projects. Before, almost no business processes were kept track of digitally, making it very hard to tell what was going on. Management would have to ask the specific people to see what they had done, which would take longer and add difficulty. Instead, the ERP solution gave the furniture manufacturer full visibility.
Finally, Bista connected Farmazan’s sales orders with their manufacturing processes. Bista custom-designed a mechanism for automated work order creation based on incoming sales orders. Given that Farmazan was a custom furniture manufacturer, the system was designed to create dynamic routing procedures, since the company had to change routing for every different order. These processes helped Farmazan tremendously.
If you’re a furniture manufacturer interested in ERP implementation, please contact us using our contact form or at 404-631-6219. Bista Solutions serves businesses globally and has locations in the US, Canada, UAE, and India. We’d love to design a solution to fit your needs and help you increase your business success.