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The Benefits of ERP for Manufacturing Businesses

If you’re considering whether the investment in ERP is worth it, look to internal workflows and processes. Is your team dealing with inventory mismatches? Are there complaints about a lack of visibility into production and margins?

Running your manufacturing business on spreadsheets and disconnected accounting systems is the root of most of your operational tension. 

ERP (Enterprise Resource Planning) software is built to solve the cross-departmental disconnect, but the benefits of ERP for manufacturing businesses are only realized when it’s at the right stage of your business, and when you account for your entire tech stack.

In this guide, we’ll walk through the real benefits as a prescription to pain points. For some, an ERP will become a critical diagnosis. For some, an integrated accounting system is all you need. 

 

What Is a Manufacturing ERP System?

 

An ERP centralizes all your business operations into a single platform so all departments have a single source of truth. For large manufacturers, ERP takes operations beyond accounting to offer structure and flow between materials, people, and processes. 

 

Why ERP Matters in Manufacturing

 

Manufacturing comes with more complexities than other ERP use cases. There are layers of workflows, including the sourcing of materials, tracking WIP, fulfilling custom orders, and meeting delivery windows. Each step is interconnected and introduces a risk when handled manually. 

A purpose-built ERP system gives you:

  • Real-time visibility into every job or order
  • Automated processes that reduce delays and errors
  • A foundation for scalable, repeatable growth



Core Benefits of ERP for Manufacturing

 

All the moving parts of manufacturing work in tight sequences, and the more products, locations, and sales channels you add, the harder it is to manage with siloed tools. 

An ERP transforms the way your business runs. 

 

Increased Operational Efficiency

With increasing global pressure and mandates to lower headcount costs, operational leaders are having to evaluate areas for time savings. ERP systems streamline the expensive manual processes that slow down production and procurement, replacing spreadsheets with automated workflows. A well-configured ERP, when integrated properly, can update inventory levels, generate purchase orders, and handle invoicing. Your team gets to focus on production instead of paperwork. 

 

Better Production Planning and Scheduling

When all your business data is up to date, your teams can take real-time strategic action. ERPs update manufacturers with insight into production capacity, raw material availability, open sales orders, and more. This visibility means production times speed up and customer satisfaction increases. 

 

Real-Time Data and Reporting

When all your data lives in one place, reports can be generated automatically. ERPs provide live dashboards and customizable reports for functions across your business. The benefit of the report for manufacturers is deep insight into disruptions, trends, and operational inefficiencies. 



Stronger Supply Chain and Vendor Management

With built-in vendor management capabilities, ERPs provide the benefit of strategic decision making, the prevention of stockouts, and the ability to negotiate better terms. Some even enable automatic reordering, reducing delays and enhancing overall supply chain agility. 

 

Cost Control and Profitability

Because ERP software centralizes data on all yoru costs (materials, shipping, overhead), and makes it all visible in real time, you can track cost drivers on a daily basis. For example, if a raw material price spikes or your production times increase, your teams can make quick adjustments before they impact profit. You’re able to drive down the cost of labor with together budget control. 

 

Compliance and Traceability

For manufacturers working in regulated sectors, compliance isnt optional. ERP systems provide built-in quality management, lot tracking, audit trails, and documentation to help manufacturers stay compliant with industry regulations. For example, if a recall occurs, the data is ready and traceable from raw materials to finished goods. 

 

Scalability to Support Growth

When properly integrated, ERP systems help manufacturers expand product offerings to multiple locations and channels. When order data flows from channels to your ERP, you can take on more customers, larger orders, and new market opportunities without adding internal processes.

Note - this will only work if you have the budget to integrate. 

 

Improved Customer Satisfaction

When your operations are seamless, your customers notice. Buyers want to work with manufacturers and suppliers that make purchasing easy. 

 

ERP Recommendations for Manufacturers

 

Spire Systems

  • Why We Recommend It: Built for growing Canadian manufacturers and distributors
  • Who It’s For: Small to mid-sized manufacturers ready to move beyond QuickBooks
  • Strengths: Inventory, order management, accounting, low IT complexity
  • Watch For: Less robust for multi-site or advanced production environments
  • Integration Note: Often requires third-party tools to sync with ecommerce, order portals, or EDI systems

Connect Spire to your orders:

Spire + OrderEase Order Sources

Sage 300

  • Why We Recommend It: Long-standing ERP with deep financial functionality and solid operations support
  • Who It’s For: Mid-market manufacturers needing multi-entity financial management
  • Strengths: Flexible modules, strong reporting, multi-location capabilities
  • Watch For: Interface can feel outdated; it relies heavily on third-party vendors for customization and integration
  • Integration Note: Connecting Sage 300 to ecommerce, portals, and fulfillment systems often requires integration

Integrate Sage 300:

Sage 50 + Order Sources (1)

 

NetSuite

  • Why We Recommend It: Scalable cloud ERP with strong manufacturing, financials, and reporting
  • Who It’s For: Mid-sized to enterprise-level manufacturers with growth ambitions or channel complexity
  • Strengths: Advanced production planning, CRM, ecommerce, and financials—all in one cloud platform
  • Watch For: Higher implementation cost and longer onboarding
  • Integration Note: NetSuite is powerful but often needs outside help to integrate with systems like B2B portals or retailer EDI platforms

 

Discover our NetSuite integrations:
NetSuite Ecommerce Integrations


Where ERP Benefits Fall Short Without Integration

ERPs are the core units of your operations, but they aren’t designed to connect to the other systems and channels your sales rely on. That means that the benefits of ERPs stall at the factory floor. 

Common Gaps:

  • Manual re-entry of orders from ecommerce or retailer portals
  • Disconnected shipping, fulfillment, or warehouse tools
  • Delays in EDI compliance with major retailers

 

The Solution: Integration That Extends ERP

With ERP integrations, your operations are connected to B2B order portals, ecommerce platforms, Fulfillment software, and retailer EDI platforms. 

OrderEase, a B2B order management system, comes with preconfigured connections so your team doesn’t have to manage a single connection. 

 

The Benefits of ERP For Manufacturing Businesses is in Connection

ERPs help manufacturers scale smarter with control and speed ingrained into core operations. But to realize its full value, it must be integrated. 

If you’re outgrowing spreadsheets or entry-level accounting systems, now’s the time to explore ERP systems made for manufacturers and integrations that make them smarter.

 

Meet the author

Harmonie Poirier is Head of Marketing at OrderEase, a B2B Order Management System that helps suppliers automate orders across marketplaces, eCommerce, EDI, and ERP systems. She writes on order automation, digital supply chain strategies, and B2B eCommerce growth.

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