In today’s world, demand for oil, natural gas, coal, renewables, etc are rapidly growing industries. Along with this rapid growth comes a need for new management techniques to optimize performance while reducing operational costs.
ERP software for the energy industry is a critical endeavor that will set the direction of growth in the energy industry for years to come. As manufacturing growth continues to boom, energy producers need better ways to efficiently handle their production line, from production to sales.
Such is the goal of ERP software—to give integrated management of core business processes that is mediated by technology and software.
What Is ERP Software?
ERP (enterprise resource planning) software is the general name for a kind of business management software that collects, organizes, interprets, and analyze data regarding business activities. ERP software is meant to give a comprehensive catalog of business resources and can track things from raw materials to payroll to sales.
Data gathered by the software is dispersed to all departments which facilitates workflow between departments. Using ERP software can streamline costs, reduce inefficiencies and achieve steady growth. The automation of daily tasks frees up human resources too so they can be put towards more dynamic projects.
ERP application suites normally contain modules for:
- Procurement: maximizing cost savings
- Production: planning and optimizing manufacturing
- Distribution: control the flow of resources
- Accounting: automation of financial transactions
- Human Resources: Manage and recruit employees
- Customer Service: evaluate customer data for their best experience
- Sales: Implements ordering, scheduling, shipping, and invoicing
ERP Software for the Energy Industry
Strictly speaking, ERP software can be used for any kind of business. However, the energy industry shows a particular need for ERP software. Manufacturing energy industry enterprises normally have a very complex organizational structure, from resource acquisition to manufacturing to purchasing. Energy manufacturers who deal with multiple many sellers, different types of interfaces, a complex flow of information, and poor visibility can be beset by many hidden inefficiencies.
Not only is the energy industry production line complex, but it also relies on very time-sensitive delivery. ERP software is a rapidly growing digital management practice in the energy industry as it cuts out the waste and makes these complex production lines and related activities very efficient.
Some benefits of ERP software in the manufacturing energy industry include:
- A single pool of data to draw from to make purchases and sales much easier.
- A comprehensive database of equipment and services; can keep track of equipment currently operating in the field.
- Unambiguous and organized data surrounding revenue, growth, expenses, etc.
- Forecasting and projecting future business conditions.
- Comprehensive risk management and contingency planning
Manufacturing ERP software can identify inefficient floor plans or business practices that hold back manufacturing from its full growth potential.
How Can ERP Software Help?
ERP software can help businesses in the energy industry with problems that are particularly pronounced in that domain, problems such as:
- Supply chain problems: Supply chains are the core of any manufacturer, energy included. Assets for power generation are among the most important components of the energy industry and optimizing the supply chain to get those assets is one of the points of ERP software.
- Information management: Energy suppliers usually work with multiple vendors on the lower levels instead of on a high project-oriented level. ERP software keeps information visible between all tiers of organization so everyone knows exactly what they are supposed to be doing.
- Inventory management: Power generation takes very specialized tools and equipment. This is why the power generation industry can be beset by long wait times: technicians spend time waiting for parts and resources they need. This is due to poor management and communication. ERP software keeps a tab on all inventory and tracks the movement of parts and equipment through different departments.
Here at MCA Connect, we offer ERP software for energy producers. If you are interested in ERP software for your business, contact us to talk to one of our experts to figure out what is best for you.