Since time immemorial when mankind figured out tools to make life easier, furniture has evolved to be a necessity rather than a luxury. Since then, the furniture sector has been marked by an eclectic mix of skill, creativity, innovation and capable labour to make products of fine value and comfort.
Gone are the days of a basic chisel and hammer. Present day furniture manufacturing businesses operate highly complex processes that need to consider the hem and haw of demand and trends. IKEA will never let furniture manufactures sleep at night as the company remains at the top of their game. But technology has played a part in its success as IKEA, one of Forbes World’s most valuable brand successfully rolled out an ERP solution for its franchise in Hong Kong and Taiwan in 2007.
On a positive note, global GDP will grow at a robust 4% and this is good news for real estate and furniture industry performance.
That brings us to technology. What do Furniture and Technology have to do with each other? It makes life simpler and business more efficient. ERP technology assists furniture manufacturers by providing solutions for planning and production, procurement and warehousing, distribution, customer service and finance. It also provides analytical trade data, opportunities to save cost and enhance your company profile.
Let us take a closer look:
How can an ERP help in becoming Customer-Centric
Maintaining long-term customer relationships is the bread and butter of this industry. However, with Rental furniture becoming the next fad, the various design, style and price choices demanded by the customer can result in innumerable product combinations which are almost impossible to handle manually. This notorious nature of a furniture manufacturing process will be a lot easier to control with the help of an ERP system.
Strong Customer Relationship Management (CRM) coupled with Product Configuration and Product Data Management in an ERP solution can assist these organizations in staying agile while also minimizing overhead.This will help to put the customer at the epicentre of the business and we all know that customer is KING.
Role of ERP in Inventory Management
Another challenge in the industry is keeping inventory on-hand and available for customers. With online retailing, customers look for timely delivery or availability when making purchases, and furniture is no exception. This becomes a major challenge, as different styles and consumer trends rule the market. It’s difficult to predict which styles will be the most popular in the future as trends change rapidly. An ERP solution allows for Industry-specific functions for managing bills of materials as well as innovative production planning and control to enable reduced material consumption and production times using historical data. This ensures that there is no excess or scarcity of raw materials in the inventory. Less inventory means better cash flow for your business.
Benefits of ERP Inventory Management – Read More
Role of ERP in Production Planning and Cost Control
Profitability is the goal of any business. Smarter production planning and ERP implementation mean a significant drop in production costs and wastage. This is where an ERP proves to be obliging. An Epicor ERP solution that supports demand management and inventory control along with material requirements planning (MRP) and purchase suggestions capabilities, will help manage raw materials and finished goods along with ensuring quality control and maintaining optimal product cost. This ensures more money in your coffers.
Role of ERP in Supply Chain Management
As generic as this may sound, an ERP solution eliminates supply chain inefficiencies thereby supporting the company’s extended and global operations. How?
Well, you can Purchase more strategically with data-driven forecasts based on history, seasonality and supplier lead times. You can also gain visibility to streamline MRP processes and optimize inventory. Optimize advanced forecasting and planning tools and manage returns and exchanges of supplies and materials.
The biggest challenge for Furniture manufacturers in comparison to other types of manufacturing is advanced technologies. The perception of the dusty work floor and physical labour image needs to change to a technology-centric, state-of-the-art industry. Technology interventions make the production of furniture more sophisticated and the business more efficient and profitable.