3 Ways an ERP Cuts Costs

Author: Vincent Bull in: Implementations

January 5, 2024

3 Ways an ERP Cuts Costs

At the end of the week, there is only one way to improve your bottom line: Spend less than what you make. That simple equation comes in two shapes: Make more and/or spend less.

Easy stuff, or so you are led to believe.

When it comes to manufacturing, making more can always be summed up as ‘more sales’. On the other end, you need to find ways to cut your costs; And the truth is that finding savings that can actually affect your bottom line is not that simple.

Luckily, we live in an age where the cost to add automation, and move into Industry 4.0, is being reduce drastically. This is why one of the best ways to reduce your expenses is by adding an all-in-one manufacturing ERP. A single system that can plug into all your business units and all your tools comes with the potential to save you significant amounts of money in the everyday running of your business. New ERP systems, like OnRamp ERP, allow for a completely integrated overview and management of all aspects of your manufacturing plant, which allows you to capitalize on efficiencies and cut your costs.

Some of the more interesting ways in which an ERP will save you money can be seen with the following:

Cut Costs with Better Staff Scheduling

One of the largest sources of wasted revenue for businesses is inefficient scheduling of your workforce. The damages to your bottom line from this inefficiency hurts in two ways:

  • Overestimating the amount of manpower, you need for the week will cost you on lost productivity, since you have too many hands and not enough work
  • Under scheduling will hurt as you have to add costly overtime hours to meet production deadlines which might cost you potential sales

Since OnRamp ERP was built from the ground up by manufacturing and for manufacturers, we know capacity planning. We have spent countless hours and days with our partners to ensure that you can schedule your workforce with optimum efficiency. Since OnRamp ERP is a fully integrated system with a single database provided one source of truth, it can provide you with a complete overview of all upcoming workforce skill requirements and intelligently schedule shifts accordingly.

Manage your capacity the smart way, with shortages, excesses and percentages of capacity shown in easy to navigate visual representations.

Saving on Materials with Smarter Resource Management

As you know from Lean Methodology, inventory is a crucial waste, whether that entails too much stock or not enough. Both excess stock and understocked can affect your profits in many ways.

Having too much stock will leave you in a bind as you have:

  • Too much capital tied up in materials
  • Less warehouse space to process and organize your finished products
  • More damaged and lost goods

Being understocked can cause its own set of issues, such as:

  • Missed sales opportunities
  • Delays in delivering on current orders
  • Damages to your reputation with your customers
  • Added costs from urgent good shipments

With Onramp ERP, keeping the right inventory levels has never been easier. Our intelligent resource planning module analyses upcoming orders, calculates on hand inventory, and manages additional material requests to ensure you’re always able to meet demand. By providing a holistic view of your plant’s current stock and capacity, Onramp ERP gives you the tools you need to make smart predictions and always have what you need whilst maintaining lean inventory levels.

Another benefit of having the complete picture of your current and future stock levels is being able to rapidly identify any suspicious dips in inventory. Theft is rare in the manufacturing industry, but it does happen occasionally. Onramp ERP allows any missing stock to be identified and the source of the theft to be addressed before it costs you any more money.

When you maintain optimal stock levels, your money is free to work harder for you elsewhere and improve your bottom line. Likewise, plugging any inventory leaks before they make a serious impact in your revenue is just another way in which Onramp ERP saves you money in both the short term and long term.

Decreased Admin Costs

Administration is one of the painful realities of pretty much any business; a time-consuming necessity that can cost a lot in lost man hours. Stacks of invoices, orders, shipping labels and packing slips need to be catalogued and stored for future reference. This often takes at least one if not multiple people to keep up with on a daily basis, tying up your valuable employees with mindless paper pushing.

This is another area in which Onramp ERP shines. With just one system, you will have seamless communication between your different business units, like purchasing, shipping, inventory, and finance modules. This means that all your paperwork is automatically digitized and stored in a few clicks, including supplier invoices that are sent to you . You can search everything, everywhere so that any missing document, shipping label, or stock list takes just seconds to locate, instead of hours.

Once Onramp ERP takes over the daily business administration, your employees will be free to focus on making important decisions and adding value to your company. This can save you a lot of money with heightened employee productivity and leaner administration payrolls. Additionally, by going paperless you’ll not only be saving money in the long run but also doing your bit for the environment as well. It’s a win-win situation.

Administration costs can be a hidden expense that drains your manufacturing plant’s finances. By letting Onramp Solutions’ ERP handle the tedious day-to-day paperwork, your employees can focus on making important business decisions and increasing productivity.

You will save thousands in wages when it comes to tax time, as all reports are generated in seconds and no one needs to spend hours locating old paperwork.


At Onramp Solutions, we have built an ERP specifically for the manufacturing industry from the ground up using our decades of experience and in collaboration with our customers and partners to ensure we can help you in running your plants. By ensuring each module is perfectly optimized for the manufacturing process, you can manage all aspects of your process, from receiving stock to shipping out finished products.

If you’re ready to start saving every day, contact Onramp Solutions to speak with an ERP expert today!


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