What Is Manufacturing ERP and How Does It Benefit Manufacturers?

Manufacturers have unique requirements specific to their industry. So, it makes sense they would need software that addresses those needs. Standard ERP has some manufacturing functionality, but manufacturers looking to expand their business, need something more.

What does manufacturing ERP do?

Manufacturing ERP is specifically designed for manufacturers to manage production and connect the shop floor with the rest of the business. It provides real-time visibility across the organization for improved productivity and decision-making. Manufacturing ERP delivers both business and manufacturing functionality such as production management, shop floor execution, advanced planning and scheduling, quality management, and more for a complete business management solution. It integrates departments with a single database for better collaboration and decision-making.

Manufacturing businesses often start with a stand-alone accounting system and then add software tools for specific functionality. This situation quickly becomes problematic since the systems don't communicate with one another. The result is duplicate entries, inefficiencies, and errors. Manufacturers need shop floor data available across the business. Manufacturing ERP manages manufacturing workflow and provides insight to production across departments. As a result, inventory levels can be efficiently maintained, customers receive better service, management can review KPIs, and the supply chain gets optimized.

With manufacturing ERP, manufacturers have insight into demand, business trends, and opportunities for more informed decisions.  It provides answers to critical business questions and allows for better strategic planning.

What are the key benefits of manufacturing ERP?

Manufacturing ERP can be a game-changer for manufacturers. It helps manage finances, track job costs, satisfy customer demand, and ensure on-time deliveries. Below are some key manufacturing ERP benefits.

1.     Balances demand, capacity, and constraints to generate achievable production schedules.

2.     Streamlines quality management throughout the supply chain to proactively address quality issues and ensure higher quality products.

3.     Integrates inventory and accounting transactions to keep inventory at optimal levels to reduce carrying costs, meet customer demand, and eliminate stock outages.

4.     Smooths production workflow to increase efficiencies, avert bottlenecks, and accelerate throughput.

5.     Provides deep insight into business performance and increases efficiencies for greater agility to better compete.

Why do manufacturers need ERP?

As manufacturers grow, they often operate on outdated solutions that are no longer supported. Spreadsheets get used for processes with multiple back and forth manual data entries. Their requirements become greater than the tools they have in place. This scenario causes manufacturers to look for an ERP system. But standard ERP lacks the functionality they need to handle things like production planning and scheduling, manufacturing execution, quality control, and supply chain management. Manufacturing ERP provides manufacturers with all of the business management functions like accounting, reporting, CRM, and purchasing, as well as strong manufacturing capabilities.

Cloud manufacturing ERP

Cloud manufacturing ERP is often the choice for businesses nowadays for a variety of reasons. It is hosted by the ERP vendor so there is no need for equipment purchases or IT resources. It is faster to implement, less costly to maintain, provides greater flexibility, and ensures data security. Users can access business data anytime, anywhere, and on any hand-held device. All that is required is an internet connection.


Growing manufacturers need modern manufacturing ERP software that can manage every aspect of their organization with insight into production processes. Learn more about manufacturing ERP, its robust functionality, and its many business benefits.

OptiProERP is a global provider of manufacturing ERP for small and midsize manufacturers. It’s a complete business management solution built on the market-leading platform, SAP Business One. Watch this product tour to learn how it can transform your shop floor and your entire manufacturing business.

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