Updated: May 24
As the Ethiopia shifts from the agrarian economy to the industrial and technological era, the manufacturing industry is seeing a tremendous boom. It's growth has been fueled by the increase of consumerism and the emergence of a middle-class with spending power
Why Manufacturing is big
Coming out of socialism, the economic growth was powered by trade and agricultural sales. With foreign companies setting up factories in and around the country, a huge transfer of knowledge has sipped through the population, encouraging local businesses to get on board of the manufacturing train.
As progress has been made throughout the years, the manufacturing sector has brought real economic growth. Encouraging, along the way, the production of substitute goods such as diapers, electrical equipment, bottled water etc.
Maximizing Operating Efficiency
With a widening manufacturing business, companies are realizing that there is more to it than just imputing raw materials and outputting finished goods. Running a factory requires extreme efficiency from tracking workers to building a complex set of bill of materials.
With those huge demands come gaps that explore the quality and efficiency of the products and the company. One of these gaps can be seen in the linkage between the production and the back offices. For instance, in many examples, Finance is not able to do the proper costing of products due to not being able to receive adequate information on the input materials. Thus, cost of products is determined with reports generated after the manufacturing process is done.
In a case like this, Finance become dependent on information that it should have access to in the first place. Holes like these create delays in reporting, inhibit growth plans and segregate departments.
Bringing everything together
An essential tool in the Sparta ERP is the Manufacturing module: here lies a set of features that provide control for the company as a whole. From Purchasing the materials needed for manufacturing to storing them in the inventory and then sending them for production. The module process every manufacturing order (MO) and establishes the Bill of Materials (BOM), initiating production. Blend that with the inventory management system to take care of all finished goods, and you will see that your production process is streamlined with your back-office operations.