Is It Time for a New ERP? Part 1: Tackling Inventory and Cost Challenges

SAP S/4HANA Public Cloud for Manufacturing

Think about the parts you use in your manufacturing plant. 

How much do you spend on steering wheels annually? How about brake pads or tires? Do you have enough raw materials and intermediate parts in stock to meet demand? 

Do you know? 

These might seem like obvious questions, but thousands of businesses with outdated ERP systems – or no integrated ERP system at all – struggle to answer them. 

This lack of insight can cost millions each year when you factor in process inefficiencies, bottlenecks, excess stock and employees who aren’t being used to their full capacity. 


In part one of our three-part series, we’re looking at two signs it’s time to upgrade your ERP system: inaccurate inventory and high logistics and procurement costs. 


Too Much (or Too Little) Inventory 

Inventory can be a double-edged sword. Keep your stock too low, and you risk creating performance bottlenecks, losing sales and providing a negative customer experience. On the other hand, holding on to too much inventory ties up your capital, saddles you with storage challenges and makes it more difficult to innovate and adjust in real time. 

Accurate resource planning is critical to your profitability and competitiveness. Enter SAP S/4HANA Public Cloud for Manufacturing from ConvergentIS. Our cloud-based solution leverages reliable data to help you maintain the right level of inventory to avoid production bottlenecks and minimize storage costs. Near real-time material requirements planning (MRP) increases agility in your automotive manufacturing environment with production planning, scheduling and inventory control built for your needs and based on industry best practices. 

SAP S/4HANA Public Cloud for Manufacturing

High Logistics & Procurement Costs  

Lowering costs shouldn’t mean lowering quality. Unfortunately, businesses work without visibility into their spending year after year because they lack a “single source of truth” data model.

Even a single part – like steering wheels – can be listed under several different names and descriptions across data sources, making it nearly impossible to get a clear view of annual spending. Not only does this make budgeting and reporting difficult, but manufacturers miss opportunities to streamline buying processes or shop around for lower prices. 

ConvergentIS delivers a centralized ERP system that makes it easy to simplify logistics and procurement processes and control spend by optimizing inventory, consolidating shipments and finding areas of waste. SAP S/4HANA Public Cloud for Manufacturing offers powerful business insights that help you lower management and operational costs by creating uniformity across departments and integrating data from multiple sources.

Plus, a modern ERP system boosts productivity through process automation – always good news for your bottom line. 

Hit the Gas with SAP S/4HANA Public Cloud for Manufacturing  

Do these challenges sound painfully familiar? It’s time to upgrade to an ERP that supports your business needs and goals.

ConvergentIS works with discrete manufacturing organizations to optimize software user experience and mobilize technology to support the mobile user on the shop floor, using next-generation SAP solutions to improve the entire end-to-end business process. Our SAP S/4HANA Public Cloud for Manufacturing solution offers a long-term strategic approach to large migrations and total system overhauls with first-class delivery, implementation and integration.


Ready to power up your manufacturing plant?

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