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