Forging Ahead: Why Legacy ERPs Are Failing Modern Steel and Textile Mills

Problem with 'One Size Fits All' software

Many of the most well-known ERP systems in the world have been developed in the 1990s. They are inflexible and cumbersome. They possess the ‘one size fits all’ attitude.

When a modern steel plant or a manufacturing company dealing with large-scale production tries to implement these systems, they face serious obstacles. The heavy industry does not simply purchase a product and then sells it. It involves the procurement of raw material, subjecting the raw material to various stages of transformation (for example, smelting, forging, weaving, dying) and manufacturing new products with different SKU number and dynamic pricing according to the market prices of commodities.

The generic ERPs are incapable of capturing this transformation process. In order to solve the problem, the accountants of the factories are compelled to export the data from the ERP, do complex calculations in Excel sheets and then import the data back to ERP.

> Customizable Architecture of Isaii

Large-scale manufacturing necessitates the existence of a system which has been engineered to facilitate change rather than merely transactions. This is precisely the reason why the industrial giants in the region are embracing Isaii Integrated Business Management System.

Isaii Technologies have developed ERP with a unified native architecture makes ERP completely customizable to the requirements of a modern manufacturing plant:

• Multi-Stage Bill of Materials (BOM): Isaii ERP enables planners to develop dynamic multi-staged BOMs. When raw steel becomes 4% more expensive on a Tuesday, the system immediately spreads the additional costs across the manufacturing process and updates the suggested business-to-business quote in the Isaii AI CRM accordingly.

• Real-Time Scrap & Yield Analysis: Textile processing and metallurgy have a lot of waste. Isaii monitors raw materials input against finished goods output to provide yield percentages to the plant directors. For example, when one particular loom produces 3% more scrap than it normally does, the system sends the alert to the O&M module.

• Labor Costing: Since the Isaii HRMS has the same database architecture, labor costs (overtime, shift differentials) are calculated into COGS of each production run.

> Don’t Bend Your Business to Fit Poor Software

Your software must align with the intricate reality of your factory floor. With an agile system like ERP, you will have complete clarity financially and operationally.

Update your industrial power train. Leave behind the inflexible old systems that hold you back. Go to isaii.in for a thorough technical demonstration of the ERP system for heavy manufacturing.