Many manufacturing companies have invested large funds in production machines, automation, and Industry 4.0 technology. However, in practice, production delays, rising operational costs, and slow decision-making are still major challenges.

The question is: what is wrong?

The answer is simple but crucial: data and systems that operate independently.

Global Trend 2025: Smart Manufacturing Hasn't Reached Its Full Potential Due to Integration

Deloitte Survey 2025 towards more than 600 global manufacturing executives shows:

• 78% of companies allocate more than 20% of their improvement budget to smart manufacturing
  (data analytics, cloud, IoT, dan AI)
• However, system integration remains a major obstacle in realizing the benefits of the technology.

Another Deloitte study Regarding manufacturing supply chains, it is noted that operational disruptions ranging from delivery delays, material shortages, to transportation have had a negative impact of up to 13% on company profitability over the past 12–18 months.

This means that without an integrated system, technology investment risks becoming a cost center rather than a value driver.

Source Picture: Deloitte, 2025 

These numbers are not just statistics. They are a real reflection of the productivity crisis faced by the global manufacturing industry. Disconnected systems create data silos, increase manual workload, and hinder fast and accurate decision-making.

Indonesia's Specific Challenge: Production slows down because the system is not yet supportive
This phenomenon is concerning because it occurs when Indonesia's GDP per capita is only around US$2,000, much lower compared to South Korea (US$8,000) or Japan (US$18,000) when they experienced deindustrialization. This means that Indonesia is losing the opportunity for manufacturing growth prematurely.

The latest data shows a continuing trend: the contribution of the manufacturing sector fell to 19.8% in 2020, 19.25% in 2021, 18.34% in 2022, and 18.25% in the second quarter of 2023.

Indonesia, as one of the largest manufacturing powers in Southeast Asia, faces serious challenges in maintaining the manufacturing sector's contribution to the economy. The latest data shows that the manufacturing sector's contribution to GDP was recorded at 18.67% in 2023, and 18.98% in 2024¹.

Even more worrying, in September 2024, Purchasing Managers’ Index (PMI) Indonesia fell to 49.2 from 50.3 in the previous month, indicating a contraction in the manufacturing sector after several months of expansion. Figures below 50 indicate a decline in output, new orders, and employment levels in the manufacturing sector.

Specific Problems in Indonesia

According to a 2020 study by the ADB and the Ministry of Finance Among the 502 local companies consulted, financial constraints are perceived by most companies as the most significant barrier to adopting technology (55%), followed by a lack of skilled workers (40%), technical uncertainty (38%), resistance to change (37%), and digital infrastructure gaps (36%).

Some of the main problems that arise due to a disconnected system are:

• Difficulty Predicting Customer Demand: Without an advanced and integrated reporting system, many companies struggle to predict the products they will sell, resulting in products that do not meet market demand.
• Poor Inventory Control: Most companies in Indonesia are unable to implement supply management technology due to the high costs involved.
• Weak Interdepartmental Coordination: Data is spread across various systems without integration, creating information silos that prevent manufacturers from seeing the full picture of their operations.

Problem Anatomy: How a Disconnected System Destroys Productivity

1. Data Scattered in Many Places

Imagine a situation that often occurs in manufacturing companies:

• The production team uses one application 
• The purchasing team relies on Excel 
• The warehouse records stock manually 
• Finance uses its own accounting software 

When the sales team receives a large order, the information is not immediately shared with all teams. As a result, the process goes like this:

• Sales sent an email to the production team
• Check data in the spreadsheet then reply via WhatsApp
• Purchasing needs to be called to confirm the raw materials
• The warehouse is asked to check the stock manually
• Finance can only create an invoice after all the data has been confirmed

A process that should be completed in minutes turned into hours, even days.

2. Domino Effect: Small Mistakes Becoming Major Disasters

In a disconnected system, a single data input error can create a devastating chain reaction. When production data is not synchronized with inventory data, a company can experience:

• Running out of raw materials in the middle of production
• Excessive production that depletes the warehouse
• Delivery delays that damage reputation
• Emergency costs for sudden procurement

A case study from the electronics industry shows that smart sensor manufacturing often faces production delays due to miscommunication between the sales, production, and procurement departments. After switching to an integrated ERP system, they achieved a significant improvement in operational efficiency.

3. Many Costs That Go Unnoticed, But Unknowingly Cause Loss

A system that is directly disconnected impacts the company's profits by creating gaps that lead to revenue leakage, manifesting in various forms ranging from billing errors to lost sales opportunities.

These hidden costs include:

• Job Duplication: Different teams verify the same data
• High Maintenance Costs: Every system requires dedicated IT support
• Excessive Overtime: Employees have to work overtime to collect and clean data manually
• Lost Opportunity: Without real-time visibility, companies lose the opportunity for upselling and cross-selling

4. Separate systems make the company inefficient

The Indonesian government is currently promoting a transformation towards Industry 4.0 with a focus on five core industries: food and beverages, automotive, textiles and garments, electronics, and chemicals. However, ADB and Bappenas study shows that most companies in Indonesia have not been able to exploit the benefits of technology available in the market.

More fundamentally, without an integrated system, companies cannot take advantage of technologies such as:

• AI for predictive maintenance
• IoT for real-time monitoring
• Big Data Analytics for production optimization
• Machine Learning for demand forecasting

Era Integrated System Solutions with Neuron ERP

Facing the challenge of disconnected system complexities, Indonesian manufacturing requires solutions that not only address technical issues but are also tailored to the characteristics of the local business.

NEURON ERP is an integrated information system specifically designed for the needs of distribution, manufacturing, retail, and service companies in Indonesia.

The Distinguishing Advantage
1. Full Ownership of Source Code 
Unlike global ERPs that are difficult to customize because the source code and license are owned by the developers in their country of origin, NEURON ERP provides full ownership of the source code and license. This means:

• Full flexibility for customization according to your business needs
• You don't need to buy all the modules, just the ones you need
• Software is developed based on its functions and benefits, not on expensive 'all-in-one' packages
• Cost-effective because there is no reliance on foreign developers

2. Unlimited User & Free Client Access License (CAL) 
There are no additional fees for adding new users. Your company can grow without worrying about soaring license costs.

3. Support Multi-Branch & Remote Assistance 
Perfect for companies with operations in multiple locations. The NEURONWORKS support team is ready to assist remotely, saving time and costs.

4. AI RAG – Chatbot Cerdas 
The Retrieval Augmented Generation feature allows your employees to get instant answers about the system, without the need for repeated training or waiting for support.

5. Integrated Smart Communication 
Communication between departments becomes seamless, eliminating delays caused by missed emails or unread WhatsApp messages.

Comprehensive Module for End-to-End Operation

NEURON ERP offers a comprehensive solution that integrates all aspects of manufacturing operations, namely:

Master Data Management

• Company, Branch, Employee
• Item/Site with Unit Measure, Product Line, Warehouse, Location
• Address for Supplier, Customer, Salesperson
• Taxes with Tax Type, Tax Class, Tax Rate

Distribution & Procurement

• Purchase Requisition (PR, BOQ)
• Purchase Order, Purchase Return, Purchase Receipt
• Inventory Management dengan Inventory Request, Transfer, Inventory Issue

Sales & Order Management

• Sales Order, Shipment, Sales Return, Sales Order Gift
• Target & Achievement Tracking
• Incentive & Royalty Management

Manufacturing Excellence

• Product Structure dengan Simulated Picklist dan Where Used Report
• Work Center & Routing
• Work Order dengan Material Request, Component Issue, WO Receipt

Financial Integration

• AR Invoice (Invoice, Payment, Prepayment)
• AP Invoice (Invoice, Payment, Prepayment)
• Tax Invoice
• Cash Management (DR, DV, DZ, Cash In, Cash Out, Overbooking)
• General Ledger dengan Account, Cost Center, Balance of Account
• Financial Statement (GL Report, Trial Balance, Profit Loss)
• Multiple Currency Support
• Cost Management

HR Information System (HRIS)

• Basic Setup with Company, Employee Information, Work Structure
• Personal Information Management
• Time & Attendance Management with Working Schedule, Attendance, Leave Maintenance
• Payroll Calculation with Salary Configuration, Loan Management, THR, Payroll Report

e-Approval & Smart Report

• Multi-level approval untuk Purchase Requisition, Purchase Order, Disbursement, Inventory, dan Sales Order
• Smart Report untuk Sales Order, Sales, AR Outstanding, Cash In, Comparison, Target & Achievement, dan Inventory

Access Flexibility on Desktop, Web, and Mobile

NEURON ERP understands that your team works in various locations and situations:

• Desktop: Using LAN for fast and stable access in the office
• Web: Only requires a browser to access from anywhere
• Mobile: Accessible via smartphone for on-the-go management

Real-Time Transaction Data Integration
One of the main advantages of NEURON ERP is its ability to integrate transaction data in real-time. This means:

• No More Information Delays: When sales receive an order, the system immediately updates stock, production, and finance
• Operational Standardization: All departments work with the same SOP, reducing errors and miscommunication
• Data & Information Standardization: A single source of truth for all business decisions
• Effectiveness & Efficiency: Automating decision-making processes based on accurate data

Imagine this scenario with NEURON ERP:

1. Sales receives orders → system automatically checks stock and production capacity

• If stock is available → the system generates a delivery order and invoice
• If production is needed → automatic system creates work orders and material requests 
• Purchasing automatically receives notifications for the required raw materials 
• Finance immediately updates the cash flow projection 
• The management dashboard displays the real-time status of orders

All of this happened in a matter of seconds, not days.

Conclusion: Game-Changing Investment

Deep lanskap manufaktur In an increasingly competitive environment, companies can no longer rely on slow, disconnected systems that are prone to errors. The 2025 Deloitte survey shows that nearly two-thirds (65%) of respondents rank operational risk as the first or second priority requiring mitigation efforts in pursuing smart manufacturing initiatives, including business disruptions and losses due to changes or failed initiatives.

NEURON ERP changes this paradigm not with expensive and rigid global solutions, but with a local system that is flexible, affordable, and specifically designed for the DNA of Indonesian businesses.

From data trapped on digital islands to actionable real-time information. Manual processes that take days become automation in seconds. From hidden costs eating away at profits to measurable efficiency.

Don't let your business lose profit because of systems that aren't connected.

Schedule a free consultation with us to audit your system and discover efficiency opportunities that can be implemented right away.

Identify hidden risks and potential efficiencies based on the actual conditions of your company.

Contact Our Team:
📩 Email: marketing@neuronworks.co.id 
🌐 Website: neuronworks.co.id 
📞 WhatsApp: +62 811-2127-696