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Why You Need ERP in the Metalworking Industry

Why You Need ERP in the Metalworking Industry

Why You Need ERP in the Metalworking Industry

Todd Abrahams of Monitor ERP System talks about why the metalworking industry should adopt ERP systems in the manufacturing line.

Todd Abraham

Todd Abraham

Monitor ERP System AB was established in 1974 by Åke Persson in Hudiksvall, Sweden. The company provides complete ERP (enterprise resource planning) systems optimized for manufacturing companies. The company also provides training, consulting and support services. It currently has about 260 employees, most of whom are based in Sweden, and is represented in Denmark, Finland, Germany, Norway, Estonia, Lithuania, Poland, Malaysia, and China.

Todd Abrahams, business development director for Monitor ERP in Penang, Malaysia, talks about why the metalworking industry need to adopt ERP systems in the manufacturing line in this interview with Asia Pacific Metalworking Equipment News.

What are some of the major drivers for growth for monitor ERP?

Todd Abrahams (TA): Monitor has always focused on production management solutions for the manufacturing industry.  Our operations in the ASEAN region have doubled year on year for the past five years, and 2019 doesn’t show any signs of slowing down.

The main driver for growth is the need for small- and medium-sized enterprises (SMEs) to improve how they operate. The global landscape is becoming ever more competitive, driving the need for companies to collect better operational data to help improve their competitive advantage through higher levels of customer service, and better control of their cost of production. Monitor ERP is the enabler for this change.

Why should the metalworking industry adopt ERP systems?

TA: The metalworking industry, just as any other, has the need to service their customer base with a high level of service and cost control in order to sustain and grow from profitability.

What manufacturing trends are driving the need to adopt ERP systems?

TA: ERP has been around for decades, just in different fashions. Today, the topic on the tip of everyone’s tongue is Industry 4.0. This discussion is causing confusion for many SMEs operating in the ASEAN region. For many, they have operated on manual processes for years, never thinking about investing in an ERP system, or following the understanding that the required investment for such a system was out of their grasp.

Now, the pace of the competitive landscape is increasing, and many SMEs are realizing the time for change is now if they are to secure a sustainable operating model for the future of their business.

What about the smaller job shops, how would they justify the need to invest in ERP systems?

TA: It really depends on the characteristics of the market and customer they chose to serve. But, if they recognize the need to increase their level of service, then it’s a must to operate with through a system like MONITOR.

When you talk to your customers, what usually comes out as their top manufacturing challenge?

TA: Our customers are usually concerned with their ability to address their customers’ needs at the right time, price, and level of quality. Our customers coming off of manual operations find that a centralized point of information is a major contributor to departments making decisions, which are more accurate.

Monitor ERP is used to help manufacturing companies produce what their customers demand, deliver it at the right time, and achieve optimal profitability.

What forces do you see driving the ERP industry?

TA: It’s now more difficult than ever before for SMEs to operate and compete globally or even domestically without an operational system in place.

What’s the latest innovations in ERP systems?

TA: Modern ERP system are offering the ability to integrate with machines on the shop floor, and APIs to enable connectivity to external complimentary systems like CAD systems, or high-bay storage systems.

What trends do you see as you look out at the metalworking industry as a whole?

TA: I think additive manufacturing is the future for the metalworking industry. When you look at some of the designs that can come from an alloy 3D printing machine, it’s amazing. This will lead to a next level of innovation traditionally not capable with CNC technology.

What advice can you give customers looking for ERP solutions? What key factors should they consider?

TA: Domain knowledge is key. Try to align with someone who understands your business, and who can offer best practice knowledge built over years of experience gained specifically in your industry.

 

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