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What is ERP in Manufacturing?

Enterprise Resource Planning (ERP) software and systems used to plan, manage, and deliver particular features supporting manufacturing activities are referred to as manufacturing ERP. Modern manufacturing ERP systems provide a comprehensive business management platform for manufacturing organizations by being designed to seamlessly support and integrate into any business process. For example, the whole production process is managed by the Odoo ERP software, which also creates your bill of materials and automatically reorders materials when stock runs short. Your products’ traceability allows you to track them down to the lot number of each component. ERP software guarantees that your financials are precisely and automatically documented to measure cost and profitability because of its connection to sales and accounting.

Why is ERP Software Used in Manufacturing?

ERP is an essential tool for the manufacturing industry because it oversees and optimizes a variety of processes. It serves as a centralized resource for data analysis, replenishment strategy, and inventory tracking, enabling effective supply chain planning and management. By centralizing work order administration, scheduling, and ticketing, ERP software also makes maintenance more efficient while providing strong data tracking and analytics. Additionally, it makes purchasing, HR, quality assurance, and equipment performance tracking easier. Increased process visibility, departmental communication, centralized data gathering and analysis, improved process efficiency, and total cost savings are all benefits of implementing an ERP project. Additionally, ERP helps with improved decision-making in supply chain, maintenance, machine utilization, and procurement. All things considered, ERP provides a complete solution for the manufacturing industry, guaranteeing a more effective and efficient operation.

Benefits of ERP for Manufacturing Companies
(1) Adaptably automate and streamline corporate processes.

Your everyday business operations will be streamlined by a cloud manufacturing ERP system, which maintains real-time data in a single, centralized location with full visibility across all capabilities. It will be possible for end users to keep an eye on production statistics without needing help from a teammate. Business procedures will be automated by the ERP system, reducing reliance on manual labor. Your production process will run more quickly thanks to automation, which also reduces the chance of mistakes and increases profitability.

(2) Simple reporting and forecasting

Many manufacturers have experienced the nightmare of an unanticipated demand for a specific product. By producing sales and forecast data based on previous inventory transactions, an ERP system assists in preventing these circumstances. By doing this, the mess of extra inventory and the terrifying scenario of running out of stock are avoided.

Additionally, end users can generate their own reports independently of the IT department’s forecasting of future demand and material needs. Error risk is reduced and reading comprehension is enhanced in user-friendly modules.

(3) Improved judgment.

Any judgment that is made without solid facts is merely an educated guess. For up-to-date, real-time information, an ERP system will gather and organize all pertinent data into one central area. Enhanced understanding, awareness, and command will provide your manufacturing company with the assurance required to make reliable choices.

(4) Increased worker productivity through flexibility and mobility

End users can access data from desktops, laptops, tablets, and mobile devices, making the ERP market enormous. It gets better, though: users can access this data virtually anywhere, whether they’re working from home, in a warehouse, or on the go. Users with mobile-friendly ERP systems can access documents, make revisions, and approve them while they’re on the road.

(5) Improved productivity

Your manufacturing organization will save time and money because it can manage schedules, control sales processes, optimize financial operations, produce real-time data, lower data errors, promote timely communication between personnel, and make data easily accessible to all.

(6) Increased data security

Software engineers are always looking for security flaws due to the mounting requirement to secure and protect data. Exposure to data can harm your reputation and have disastrous financial effects. Modern ERP systems are always receiving new software updates, while security flaws in out-of-date legacy systems are not being continually monitored.

(7) Integration with supply chain.

Strong supply chain management tools are provided by integrated ERP systems to optimize material intake and outflow as well as distribution needs for centralized purchasing sites and multi-warehouse distribution networks..

(8) Quicker response to market conditions. 

The ERP system’s real-time data assists key decision makers in estimating, planning, adjusting, and reacting to the constantly shifting market. Regularly scheduled presentations of system-generated reports help to better grasp market demands and take advantage of consumer purchase patterns. With the help of these in-depth insights, your expanding manufacturing company will be able to anticipate events more accurately and seize new chances.

(9) Lower expenses.

Since automated, streamlined processes and real-time information replace laborious, manual operations, a contemporary ERP system will save overall operating expenses. Eventually, having precise inventory tracking will result in lower excess inventory and warehousing expenses.

(10) Superior customer relationships.

Consumers of today need prompt feedback on their purchases and delivery that arrive on schedule. Accurate production plans, inventory control, simplified scheduling, and coordination with distribution channels for on-time delivery are all made possible by an ERP system for your manufacturing company. Improve quality control, tighten your hold on inventory, and expedite delivery, and your consumers’ loyalty will undoubtedly rise.

When is a Manufacturing Company Ready for ERP?

An ERP system is required when sales or customer satisfaction declines. Staff members may become irritated with complex or antiquated IT systems, which make integration and customization challenging. Making the move to a centralized ERP system streamlines intricate IT processes and enables businesses to react quickly to changes.

For companies, proactive problem-solving is essential. ERP for industrial manufacturing is designed specifically to address the special requirements and difficulties faced by this sector of the economy, assisting businesses in streamlining their processes, increasing productivity, and making well-informed decisions.

Which ERP is Best for Manufacturing?

Odoo is one of the best ERP software for manufacturing now available in the market. Businesses can benefit from centralized management with Odoo ERP. Whether it’s work orders, inventory, or customer and account administration, Odoo ERP enables efficient control of every business operation and is the best ERP for manufacturing in India. Manufacturing firms may gain the speed, flexibility, and transparency required to propel business growth and success by leveraging Odoo ERP’s open-source methodology. ERP uses centralized technology to assist them in tracking and managing various processes, including finances. This helps departments communicate and work together more effectively, which helps firms manage their resources more effectively. But first, let’s examine the main issues facing the manufacturing sector before discussing how Odoo ERP can simplify management for businesses in this sector.

What are connected applications with manufacturing ERP?
ERP for Plastic Manufacturing: How Factory ERP Can Help Manage Unique Production Processes

The plastics manufacturing sector is constantly expanding, making efficient output control necessary. ERP for plastic manufacturing can assist in managing this process, minimizing losses, boosting output, and optimizing revenue. ERP software ensures smooth transitions between operations by covering design, production, accounting, estimating, and customer service management. Reduced design times, a smaller margin of error, precise pricing, shorter lead times, efficient production management scheduling, material consumption monitoring, tool management, and quality control are just a few advantages of ERP investment.

By incorporating technological capabilities and consumer needs into plans, design timelines can be shortened. ERP software may also assist in tracking tool lifespan, guaranteeing proper pricing, saving lead times, and lowering the margin of error. Quick service or retooling is made possible by the management of tooling processes made possible by ERP software. Another critical step in the production process is quality control. ERP software stores batch data and certifications digitally, making problem-solving and issue-tracing easier. Custom Manufacturing ERP Software also provides various benefits to help manage unique production processes.

Features of ERP Manufacturing
An ERP system comprises diverse modules tailored to address every facet of a business. These modules serve as the bedrock of an integrated and efficient business management system, enabling companies to optimize operations, enhance collaboration, and achieve sustained success through specialized solutions. Manufacturing Modules Any manufacturing ERP system must have manufacturing modules for manufacturers to plan their production schedule, guarantee the availability of machinery and raw materials, and monitor output versus projections. These modules collect data on both completed and work-in-progress goods to give a real-time picture of manufacturing activities.
Manufacturing Modules
In which all manufacturing industries ERP can be used?
ERP software can be used in all manufacturing industries which includes the following:
What is the manufacturing ERP Deployment Process?

The majority of ERP implementation in manufacturing in companies take the following actions:

Project Initiation:

Establishing the project’s physical framework, including choosing the steering committee, implementation team, project management software, and reporting systems to track advancements—or lack thereof. In this step, the project is also kicked started, introducing the implementation teams and creating and implementing the first project management plans

Baseline Training and Data Conversion:

This stage often entails providing the manufacturing company’s team with a foundational understanding of the ERP system so that, upon the arrival of the consultants, they may concentrate on process development rather than the program itself. Furthermore, the data conversion process starts. Businesses outline the locations of data, how to access it, and create a plan for cleaning, formatting, and transferring it to new systems.

Process Development and Testing:

In this phase, the two teams collaborate to develop new software processes that satisfy the demands and specifications of the manufacturing industry. These procedures undergo validity testing after they are developed.

Training and Piloting for End Users:

Following testing, end users receive training on the new procedures. An integrated test pilot is typically conducted after the end users have received the necessary training to verify the data, system configuration, and end users’ efficacy (e.g., whether additional training is required).

Going Live:

The process of moving open balances, open orders, and similar data from the old system to the new one is known as “cutover” or “go live.” The new ERP system will go live after it is completed.

ERP Manufacturing Implementation cost and duration?

ERP implementation is a crucial aspect of business transformation, and understanding the actual cost of the ERP implementation process is essential. The cost of implementing an ERP system depends on several factors, including the ERP license, number of users, type of industry, additional customizations, and infrastructure cost.
Licensing costs depend on the choice of software license, whether it be purchased outright or paid monthly subscription. ERP licenses can be temporary or perpetual, and maintenance agreements are priced as a percentage of the license. The number of users and the size of the company also affect the cost of implementing an ERP system.

The type of industry also plays a role in ERP software cost. For instance, a discrete manufacturing business may require extensive functionality, while an accounting firm may focus on budgets and finance. It is important to select the ERP that best meets your specific business requirements and choose the path towards implementation.

Additionally, the implementation of ERP requires significant organizational change to fit into the company’s silhouette. Only 23% of companies implement ERP with just a little or no customization done. The deployment option determines the infrastructure cost, which includes server costs, backup, storage, and IT system costs. Cloud ERP implementation offers lower overall costs due to cloud storage, fewer IT employees, and elimination of physical server cost. Some vendors lower the initial cost but increase the renewal cost, with an average renewal cost of 10% to 15% of the total software cost. Additionally, an additional fee may be charged for upgrades or other IT costs. Understanding these critical elements is crucial for successful ERP implementation and driving business transformation.

The amount of time needed to implement an ERP solution can range from two to twenty-four months, depending on the number of software services and/or modules that need to be implemented. The amount of customization that an ERP system requires, as well as the number of users, will also affect how long the implementation process takes. An ERP manufacturing consultant can give you a comprehensive idea about the cost and duration of an ERP implementation for your business.

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