In discrete manufacturing, efficiency, precision, and timely delivery are crucial. In job work, a manufacturer does a specific production process on behalf of another company. This can include machining a part, assembling a product, or finishing a product. A job work requires tremendous coordination across business facets of materials, labor, and costs. To achieve this, a sophisticated product is needed.
SAP Business One is the ideal solution for job work. It is an enterprise resource planning (ERP) system that allows businesses to run precise manufacturing for discrete manufacturers. Let’s explore this in detail.
SAP Business One for Job Work:
1. Understanding Job Work in Discrete Manufacturing: Job work involves receiving raw materials or semi-finished goods from a company, processing them as per the requested specifications, and returning them to the company. This requires;
i. Tracking materials owned by the customer
ii. Managing work orders and routing
iii. Recording labor and machine time
iv. Calculation of job-wise costs and profitability
Job work is fairly common in industries like engineering, electronics, and machine tools. SAP Business One handles all of this seamlessly.
2. Centralized Job Work Management: SAP Business One enables the creation and management of job orders seamlessly within a single platform. All the details, viz., customer instructions, materials issued, routing steps, quality checks, and delivery timelines, are recorded centrally. This ensures that all the teams are aligned and on the same page.
3. Real-time Material Tracking: A critical aspect of job work is tracking the material supplied by the customer. SAP B1’s inventory management module allows you to record the receipt of customer-owned goods, distinguish them from your inventory, and track their usage across work orders. This reduces mix-ups, material shortages, and disputes with the client.
4. Integrated Production Planning: SAP Business One comes with robust production planning. It supports material requirement planning (MRP), capacity planning, and machine scheduling. This allows discrete manufacturers to plan production better and reduce downtime.
5. Accurate Job Costing & Profitability Analysis: Profitability is of utmost importance in job work. Manufacturers need to be aware of the costing for each job in terms of materials, labor, and overhead. SAP Business One records;
i. Direct material consumption
ii. Machine and labor hours
iii. Overheads allocated per job
This allows for comparing estimated costs vs the actual costs and thus adjusting their process or pricing to enable enhanced profitability.
6. Quality Control & Compliance: Quality is non-negotiable in discrete manufacturing, and job work is no exception. SAP Business One allows setting up quality checkpoints at different stages of production. This allows for only high-quality products rolling out of the production line. Further, this also allows for compliance with the industry norms.
7. Improved Collaboration: All job work records are maintained in SAP B1. This allows manufacturers to share real-time updates with the client regarding progress, material usage, and estimated completion timeline. This transparency builds trust and strengthens long-term business relationships.
8. Seamless Documentation: Delivery challans, job work invoices, and e-way bills are maintained in SAP Business One for job work. SAP B1 automates these documents, reducing manual effort and minimizing errors. All transactions are stored for easy audits and reporting.
9. Scalability: Whether you are a small job shop or a large one, SAP Business One allows you to expand without limits. It is an ERP that supports additional operations and still performs just like day one. With SAP B1, you can focus on business expansion without worrying about whether your ERP will support it or not.
Closing Thoughts:
Job work is common in today’s world, where outsourcing is the most efficient way in manufacturing. With the right set of systems in place, discrete manufacturers can undertake any job work requirements with sufficient ease and expertise. SAP Business One turns out to be the perfect solution in this scenario.
Are you a discrete manufacturer looking to implement SAP Business One? SoftCore Solution has been providing customized and reliable SAP B1 ERP solutions for over 20+ years across all industries. With a bagful of addons and SAP expertise in over 16+ industry verticals and 10+ countries, they know what it takes to solve the business challenges with efficient ERP solutions. Charge your business with the modern ERP solution, SAP Business One from SoftCore Solutions. Book a live demo to experience the unparalleled possibilities for your business growth.
Frequently Asked Questions (FAQs):
1. Is it possible to track multiple job work orders simultaneously?
A. Of course. SAP Business One allows one to track multiple job tasks simultaneously for different organizations.
SAP Business One supports both the manufacturing models in the same setup. 3. Who can help implement SAP Business One for job work? A. Certified SAP Business One partners like SoftCore Solutions can help you implement SAP Business One for job work as per your requirements.
