Get the real-time data you need with manufacturing software

ERP or enterprise resource planning software are applications developed for manufacturing purposes. Manufacturing companies use it to manage manufacturing processes from the procurement of materials up to the shipment of goods. Manufacturing ERP ensures that manufacturing companies can transform raw materials into finished goods at a minimal cost while maintaining quality control.

The manufacturing ERP software industry began in the 1960s when manufacturers began recording workflow processes on mainframe computers. With the ever-increasing demand for computerization, manufacturing ERP systems have become an integral part of business operations in any manufacturing organization. Key functionalities included in manufacturing ERP systems are sales and distribution, warehouse and inventory management, production planning and controlling, factory maintenance and manufacturing, and sourcing and procurement.

Material requirements planning (MRP I):

• Focus — Primarily focuses on managing and planning for the materials required in production.
• Scope — Limited to material inventory control and production scheduling.
• Functionality — Helps in determining what materials are needed, when they are needed, and how many are needed to meet production demands.
• Benefits — Reduces inventory costs, prevents shortages, and optimizes material purchasing.

Manufacturing resource planning (MRP II):

• Focus — Expands beyond materials to include other manufacturing resources.
• Scope — Encompasses material planning, capacity planning, and scheduling of various manufacturing resources.
• Functionality — Integrates material planning with other aspects of production, such as labor and machine capacity.
• Benefits — Enhances production efficiency, resource allocation, and overall coordination.

Enterprise resource planning (ERP):

• Focus — Provides a comprehensive view of all business processes beyond manufacturing.
• Scope — Covers not only manufacturing but also finance, HR, sales, and other aspects of the business.
• Functionality — Integrates and streamlines all core business functions into a single software system.
• Benefits — Offers end-to-end visibility and control across the entire organization, improving overall efficiency, decision-making, and collaboration.

In summary, MRP I focuses on material planning, MRP II extends to broader manufacturing resources, and ERP encompasses all aspects of an organization, making it the most comprehensive solution. The choice between them depends on the specific needs and scale of your business operations.

To learn more about the differences, you can read this comprehensive guide about MRP systems.

Manufacturing ERP software is an industry-specific software that manufacturing companies need to manage manufacturing processes and manufacturing resources such as machines, people, and materials. Manufacturing ERPs can be used in every step of the manufacturing process, from manufacturing planning (MRP) and manufacturing execution (MES) to manufacturing financials (AP/AR, CP, SCM).

ERP systems are focused on the horizontal business functions of a company, while manufacturing ERPs provide vertical capabilities by adding more specialized features like machine control and production tracking modules. For example, depending on the level of automation of its equipment, a manufacturing company may require automation feeder management capability from its supplier, which is not likely to be available from an industry-generic system.

ERP software allows manufacturing companies to streamline their internal operations and become more efficient and productive. If you want your manufacturing organization to grow, using a manufacturing ERP system will help you achieve that goal. While top management is making strategic decisions about the company’s future, middle managers are responsible for executing business processes on the shop floor that make achieving them possible.

Middle managers need live information at their fingertips to make informed decisions quickly and confidently as they monitor production activities within their department or work unit. This ensures consistency in complying with policies, rules, and regulations. It also helps identify areas of improvement, such as bottlenecks that may be slowing manufacturing down due to a lack of materials.

ERP manufacturing software enhances manufacturing productivity, increases manufacturing flexibility, and improves manufacturing efficiency. It allows companies to benefit from economies of scale by reducing costs by integrating the entire business process under one solution. It also makes information sharing easier among employees, eliminating duplication of efforts.

And finally, it provides an enterprise-wide view of operations that enables companies to make intelligent decisions that increase their productivity and profitability. Manufacturing ERP solutions can be configured based on your organization’s needs and integrated with other software applications. Therefore, you get a cohesive business system where all business processes work seamlessly together for maximum results.

Manufacturing ERP software brings manufacturing companies to the next level, allowing them to compete more effectively against larger manufacturing organizations. Using a manufacturing ERP system, you can increase your manufacturing flexibility by making changes quickly and easily without disrupting manufacturing processes. Better decision-making is made possible with manufacturing ERP as it provides real-time information about manufacturing operations, which means faster reaction time to ever-changing business conditions.

Lastly, manufacturing ERP systems help manufacturers achieve a high return on investment through centralized data storage and ease of integration with other business applications. Until recently, manufacturing ERPs were only accessible to larger manufacturers. Legacy software like Oracle ERP, Oracle ERP Cloud, and SAP S4HANA is no longer the only option, with more competitors available to cater to more modest budgets.

ERP systems typically come with several modules, including a manufacturing execution system module, manufacturing resource planning module, shop floor control module, enterprise manufacturing intelligence module, and master production scheduling module. Manufacturing ERP solutions also have various industry-specific modules that streamline processes relevant to our line of business, making it more efficient.