In modern manufacturing, an Enterprise Resource Planning (ERP) system serves as a vital tool for the integration of various business functions, streamlining manufacturing processes and enhancing data visibility.

To bring you this article, we’ve partnered with ArcherPoint, an experienced implementation partner specializing in Microsoft Dynamics 365 Business Central who helps business stakeholders understand the role top ERP systems play in operations and the necessity of implementing them in manufacturing settings.

Once manufacturers understand these elements, they can make informed decisions to optimize their operations.

What Is a Manufacturing ERP System?

An ERP system is a centralized software platform that integrates a manufacturing company’s core business processes into a single, unified system. ERP systems enable companies of all sizes across multiple industries to customize and refine processes over time to better align with their goals and evolve with their KPIs. Integrating an ERP system can enhance manufacturing efficiency and provide real-time data access across various functions, including:

• Financials: Streamlines budgeting, forecasting and financial reporting
• Inventory management: Tracks stock levels, orders and deliveries
• Supply chain management: Optimizes procurement processes and vendor relations
• Production planning: Manages scheduling, capacity planning and workflows
• Quality control: Monitors standards and compliance throughout production
• Sales management: Handles sales orders, customer communications and forecasting
• Human resources: Manages employee data, payroll and performance evaluations

Using disparate systems, such as separate accounting software or inventory spreadsheets, can lead to inefficiencies due to data silos. These often hinder communication, create inconsistencies and complicate decision-making.

By consolidating processes within an ERP system and outsourcing its implementation and services to a single certified partner, such as ArcherPoint, manufacturers can enhance collaboration, improve accuracy and reduce costs to drive overall productivity.

6 Key Benefits of an ERP for Manufacturers

Implementing an ERP system presents numerous advantages for manufacturers, enhancing their operations through improved data visibility, efficiency and decision-making. The following core benefits make ERP systems indispensable in the manufacturing sector.

Enhanced Accuracy and Visibility

ERP systems provide real-time data access across all departments, empowering decision-makers with exact, up-to-date information. By enhancing accuracy and visibility, stakeholders can respond quickly to changes, communicate more efficiently between teams and improve overall coordination efforts, leading to more informed strategic planning.

Improved Efficiency

Automating manual tasks and streamlining workflows allows ERP systems to significantly reduce operational bottlenecks. By offering automated data entry, report generation and invoicing, the system frees employees to focus on higher-value activities. This targeted focus leads to faster production times and improved resource utilization.

According to ArcherPoint, “An ERP system can boost efficiency at every business level. Greater automation and information accessibility can help employees find and use data quickly, improving customer satisfaction and productivity. These processes are less time-intensive, which can reduce operating costs.”

Data-Driven Decisions

Manufacturers can leverage analytics to improve operational insights and forecasting with the centralized data capacity ERPs afford. Enhanced reporting tools enable managers to identify trends and analyze performance metrics, enabling them to make evidence-based decisions that align with their business objectives.

With an ERP system, businesses can plan material requirements based on demand forecasts to time inventory replenishment according to current and future demand and availability. It allows them to create accurate, full-featured demand forecasts segmented by item, plan requirements and available inventory.

Optimized Inventory

ERP systems help organizations to reduce carrying costs and stockouts by enabling better planning and inventory management. Appropriate stock level maintenance is made possible through real-time inventory visibility, leading to greater customer satisfaction and reduced waste levels.

ERP systems provide on-demand insights into potential sales and stock-out expectations. By leveraging built-in AI, companies can generate reliable inventory forecasts and replenishment structures.

Regulatory Compliance and Security

ERP systems simplify regulatory navigation by providing tracking and reporting tools that conform to industry standards. These facilitate easier auditing and compliance checking to protect the organization from potential legal issues.

Furthermore, ArcherPoint shares that “ERP software can help companies guard one of their most precious assets — data. It enables them to centralize their data, which further increases the level of protection. An ERP also replaces spreadsheets and other documents containing important data — when physical documents with private information are passed between employees, sensitive customer data may be compromised.”

Scalability

A robust ERP system also serves as a foundational tool that will grow with a business. As manufacturers expand, their ERP systems adapt to greater complexity and additional functionality, with cloud-based ERP systems enabling scalability and ensuring continued alignment with overall business goals.

ArcherPoint emphasizes the importance of running a cloud-based ERP system for business scalability. It explains, “Businesses can easily scale cloud ERP systems to accommodate growth. They can add users, modules, and functionality or adjust the subscription levels based on current needs. Scaling on-premise ERP systems often requires additional investment in hardware and software. Adding new functionalities or modules can also be time-consuming because of the need for installation and configuration.”

Do You Need an ERP System?

Recognizing when to implement an ERP system is crucial for organizations looking to overcome operational challenges, as several pain points and growth obstacles signal the need for a centralized solution. A manufacturer might need an ERP if it:

• Relies on spreadsheets: Teams that rely on dozens of spreadsheets to track critical information possess a higher chance of errors and inconsistencies.
• References outdated data: Inventory and production data that are consistently out of date can lead to poor decision-making and customer dissatisfaction.
• Uses fragmented sources: When answering simple business questions requires manually pulling data from multiple sources, it wastes valuable time and resources.
• Possesses software limitations: If current software can’t keep up with order volume or operational complexity, delays and inefficiencies can result.
• Lacks supply chain visibility: A lack of immediate access to the supply chain leads to delays and higher costs, hampering market demand response.
• Allocates resources inefficiently: Difficulty in tracking employee productivity or resource utilization can lead to ineffective operations and missed improvement opportunities.
• Experiences expansion difficulties: If an existing system fails to scale with business growth, it hampers effective organizational expansion.

Assessing and addressing these indicators can help manufacturers determine when to invest in an ERP system and which platform best suits their needs for optimized performance and scalability.

Methodology for Selecting the Best ERP Systems

The methodology ensures that the selected ERP systems meet the diverse needs of manufacturers while promoting operational efficiency and reliability.

Criteria	Description
Manufacturing-specific features	Evaluate the presence and effectiveness of features tailored for manufacturing processes, such as production planning, inventory management and quality control.
User reviews	Analyze feedback from users across various platforms to gauge real-world experiences, satisfaction levels and common challenges faced when using each ERP system.
Scalability options	Assess each system’s ability to grow with a business, including evaluating options for customization, additional modules and support for increased operational complexity.
Industry reputation	Consider the standing of each ERP provider within the manufacturing sector, including awards, partnerships and feedback from industry analysts.
Total Cost of Ownership (TCO)	Calculate the long-term TCO of implementing each ERP system, including initial purchase price, maintenance, upgrades and training costs, to ensure an understanding of the full investment necessary.

Which ERP System Is Best for Manufacturing Companies?

Review top-tier ERP solutions for manufacturers to help a business make an informed decision based on its specific needs.

1. Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is a comprehensive, all-in-one business management solution that seamlessly connects financials, sales, service and operations. Ideal for small- to midsize manufacturers upgrading from entry-level accounting software, it offers flexibility and scalability, providing a complete, user-friendly manufacturing solution.

With a certified ERP implementation partner, organizations can tailor Microsoft Dynamics 365 Business Central to meet their specific manufacturing needs. According to ArcherPoint experts and other industry specialists, Microsoft Dynamics 365 Business Central is the best ERP system for manufacturing companies due to its flexibility. It can eliminate visibility gaps, inadequate data accuracy and overly complex user experiences that render older systems obsolete.

Key Features

• Seamless integration with Microsoft tools
• Comprehensive financial and inventory management
• Tailored support from certified partners like ArcherPoint

2. Oracle NetSuite

Oracle NetSuite positions itself as the all-in-one cloud ERP for growing manufacturers. The platform allows businesses to scale efficiently, handling everything required from financial management to e-commerce operations. With its included robust functionalities, NetSuite serves as a dependable backbone for organizations seeking to streamline procurement, production and fulfillment processes on a single platform.

Key Features

• Unified platform for finance, CRM and e-commerce
• Customizable dashboards for real-time insights
• Substantial compliance and regulatory support

3. Epicor Kinetic

Epicor Kinetic is an established choice for manufacturers requiring deep functionality in complex, discrete environments. This system empowers users to manage production processes and engage in intricate supply chain operations, with a focus on delivering targeted manufacturing solutions. Epicor Kinetic enhances efficiency and ensures that production meets quality standards.

Key Features

• Advanced production scheduling tools
• In-depth supply chain management functionalities
• Quality control tracking integrated into workflows

4. SAP Cloud ERP

SAP Cloud ERP functions as an intelligent ERP solution for large, global enterprises, providing a versatile platform capable of handling complex operations and diverse business models. With advanced analytics and AI incorporation, SAP Cloud ERP enables companies to make data-driven decisions, driving innovation and efficiency across international markets.

Key Features

• Global compliance and localization capabilities
• Advanced analytics and machine learning features
• Seamless integration with other SAP solutions

5. Infor CloudSuite Industrial

Infor CloudSuite Industrial offers end-to-end capabilities for process and discrete manufacturing. This comprehensive platform supports organizations in managing their production life cycle from planning to execution. With industry-specific functionality, Infor CloudSuite Industrial can empower manufacturers across sectors to achieve scalable operational excellence.

Key Features

• Industry-specific modules for various manufacturing types
• Real-time visibility into operations
• AI-powered predictive analytics to enhance decision-making

6. Acumatica Cloud ERP

Acumatica Cloud ERP is notable for its flexible, consumption-based pricing model and modern interface. This solution works across a variety of manufacturing environments, making it easy for organizations to scale without incurring unnecessary costs. Acumatica Cloud ERP’s user-friendly design and device-friendly accessibility further enhance its operational agility.

Key Features

• Consumption-based pricing model for cost efficiency
• Modern, intuitive user interface
• Robust integration capabilities with existing software tools

Comparison of Top Manufacturing ERPs

The quick overview allows manufacturing professionals to efficiently compare the included ERP options by size, deployment and key strengths.

System Name	Manufacturer Size	Deployment	Key Strength
Microsoft Dynamics 365 Business Central	SMB	Cloud	Best for Microsoft platforms and integration
Oracle NetSuite	Mid-market	Cloud	Best for an all-in-one solution
Epicor Kinetic	Mid-market to enterprise	Cloud, on-premises	Best for complex manufacturing
SAP Cloud ERP	Enterprise	Cloud	Best for global operations
Infor CloudSuite Industrial	Mid-market to enterprise	Cloud	Best for end-to-end manufacturing
Acumatica Cloud ERP	SMB to mid-market	Cloud	Best for flexible pricing

Choosing the Right ERP Implementation Partner Is as Important as the Software

Selecting the optimal ERP software is only half the battle — successful implementation of the platform is essential for driving return on investment (ROI). Manufacturers must consider an effective implementation partner to ensure they derive optimal benefit from their ERP system.

An implementation partner is vital in several key areas — conducting thorough business process analysis to identify specific needs, customizing the software to align with operational goals, managing data migration to ensure a smooth transition and providing user training for the ERP’s effective utilization.

Greg Kaupp, CEO of Archerpoint, points out, “When one house is on fire, there’s no time to optimize processes. And when one fire’s out, we can always find another to fight.” With the right ERP implementation partner, businesses gain an ally capable of preventing many issues and minimizing the effects of existing challenges. This is achieved by optimizing procedures and streamlining manufacturing processes.

The services that ERP implementation partners provide enhance the overall experience and ensure that the chosen ERP system delivers maximum value. For these reasons, an informed choice of implementation partner is critical to a manufacturer’s success.

Making the Right ERP Investment

Investing in an ERP system is a foundational step for a manufacturer’s growth and efficiency. By aligning solutions with organizational goals and partnering with experts, manufacturers can enhance their operations and achieve long-term success in a seamless, productive way.