To manage customer demands and rising costs, manufacturers are looking for new ways to improve workflow and stay competitive in the market. However, traditional methods are no longer sufficient to meet the complex global supply chain and economic uncertainty. That’s why investment in manufacturing ERP has become an important strategy for SMEs to overcome challenges such as shipping delays and stock shortages.
Moreover, the global ERP software market for manufacturing is projected to reach $147.7 billion by 2025, and 47% users are manufacturers. The interesting part is that it is the largest share of any industry. To improve manufacturing operations, it’s important to replace separate tools with a strong ERP software to improve business growth with efficiency.
In this blog, we will explore how an ERP can help your manufacturing business run smoothly and efficiently.
What is Manufacturing ERP?
An ERP (Enterprise Resource Planning) is a business management software that helps businesses manage daily operations on a single platform. Similarly, the manufacturing ERP system is specifically designed for manufacturing businesses to manage and automate their operations. It has specialized features to address the industry’s unique challenges, such as inventory management, production planning, order tracking, SHM, finance, CRM, and many others.
Let’s see how ERP benefits the manufacturing industry with its key features.
Key Features of Manufacturing ERP
Manufacturing businesses have unique processes and requirements for an ERP system tailored to their needs. However, an ERP system has manufacturing-focused functions that provide significant value to producers. Here are the key features of Manufacturing ERP.
1. Production Planning & Scheduling
Manufacturing ERP systems plan and schedule production by checking orders, available materials, and capacity. It makes the manufacturing area work smarter and smoother.
2. Manufacturing Process Workflows
Many manufacturing ERP solutions come with built-in workflows. It is designed for critical manufacturing processes, including quality management, change control, equipment maintenance, etc.
3. Inventory Management
Manufacturing ERP improves inventory control with features such as automatic reordering, stock level tracking, batch handling, materials planning, and demand forecasting.
4. Asset Management
ERP for manufacturing companies and distributors must also carefully manage items such as factory, equipment, and vehicle fleets. Moreover, manufacturing ERP systems use asset management to track the status, location, and history of a business’s most important assets.
You get the idea of what manufacturing ERP does. But not all ERPs are the same. Here are the main types on the basis of deployment that you should know.
Types of ERP for Manufacturing
One of the decisions manufacturers make is about which type of ERP system to use. There are three main types: cloud-based, on-premises, or a mix of both. Let’s break down each option.
1. Cloud-Based ERP
In cloud-based ERP software, businesses use the ERP system as a Software-as-a-Service (SaaS) architecture. However, a cloud ERP vendor installed all business data and processes all software functions through their cloud-based servers. The business pays a monthly subscription fee to the vendor for continued access to the software.
2. On-Premises ERP
The business installs and maintains the ERP software directly on its servers and hardware. However, it is an older method, but still widely used in many organizations and businesses. It gives the advantage of long-term investment and data storage in-house rather than a third-party system.
3. Hybrid ERP
This system combines the elements of both Cloud-based and on-premises software. In the hybrid ERP software, the system is managed by the company, and manufacturers get access through the internet. Unlike cloud-based ERP software, manufacturers may require third parties for maintenance and upgradation.
However, deployment strategies depend on businesses’ goals, scope, functionality, staff training needs, and integration requirements with existing systems. So manufacturers can choose any type according to their requirements.
How an ERP Solution Benefits the Manufacturing Industry
Do you know? Implementation of ERP software increases business efficiency by 23%. It helps manufacturers streamline their processes, reduce costs, and make data-driven decisions. Let’s have a look at the advantages of manufacturing ERP.
1. Automation
One of the significant benefits of ERP is automation. It reduces the cost and time required for labor-intensive business processes. However, manufacturing ERP software automates the day-to-day business operations such as data entry, filing, and maintaining quality control records.
2. Analytics
ERP for Manufacturing helps turn business data into useful insights for better decision-making. The data is taken from daily business operations, including manufacturing operations management.
3. Compliance
Compliance with the laws and regulations is essential for any business. Therefore, ERP for the manufacturing industry gives businesses the tools to automate, document, and ensure quality assurance to comply with their everyday manufacturing processes.
4. Compatibility
ERP software centralizes all key business tools on one platform. It reduces compatibility issues and eliminates the need to purchase different software apps to perform new tasks.
5. Data
Manufacturing ERP systems allow the consolidation of different types of business data into a single platform. With an ERP system, businesses bring together and manage everything from invoices and customer details to quality control data in one place.
Let’s see how you can grab the best ERP for a manufacturing business within your budget with custom software solutions.
How Much Manufacturing ERP Cost?
Investment in manufacturing ERP has become a strategy for businesses. The investment may have a wide range of pricing options, from zero to hundreds of dollars. However, any true cost analysis can require a detailed understanding of the manufacturer’s needs and goals.
Another important factor in calculating cost is how the ERP system is deployed. On-premises systems require the investment of hardware and software, along with the ongoing maintenance and upgradation costs. While cloud-based software has a lower initial cost, but requires a monthly and annual subscription.
Manufacturers should calculate the entire cost from implementation to maintenance and upgradation costs. Many ERP software providers give personalized consultation and a proposal to interested clients. It helps them understand the cost and the potential benefit of their product.
By combining the vendor information with internal analysis and estimation, manufacturers can set a realistic budget for the ERP software.
Manufacturing ERP That Delivers Real Results
If you are ready to upgrade your manufacturing business system, Sumato ERP is here. It is designed specifically for manufacturers that offer tailored features to bring clarity, efficiency, and control to their entire workflow. Whether you prefer a cloud-based, on-premises, or hybrid setup, Sumato ERP is the best solution that fits your business size, budget, and goals.
Let’s take your manufacturing business to the next level. Get in touch with our team today!
