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Manufacturing ERP 101

ERP software for manufacturing and distribution

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Welcome to Manufacturing ERP 101 where you can fast track your understanding of ERP and assess its value to the continued success of your business.

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Enterprise resource planning (ERP) was born from a joint effort between J.I. Case, the manufacturer of tractors and other construction machinery, and IBM. This partnership resulted in the initial material requirements planning or MRP software.

Don’t let the word ‘enterprise’ fool you. 21st century ERP is sized right and within reach of small and midsized businesses.

OptiProERP: 21st century ERP for small and midsize manufacturers and distributors.

How ERP Works

ERP is made up of different enterprise resource planning applications. The applications, sometimes called ERP modules, usually focus on a single business area. You can combine different modules to suit your business needs.

How ERP Systems Work
How ERP Systems Work

How ERP Works

ERP is made up of different enterprise resource planning applications. The applications, sometimes called ERP modules, usually focus on a single business area. You can combine different modules to suit your business needs.

Typical ERP Modules and What They Do

Business Intelligence Business Intelligence

Business Intelligence

Pre-delivered information views represent different aspects of your business performance. Use tailored reporting capabilities to analyze the data most relevant to your KPIs.

5 Signs You’re Ready for ERP

5 signs you’re ready for ERP

Benefits of Implementing an ERP System

Increased Productivity

Automate and optimize your core business processes, helping everyone in your organization accomplish more.

Operational Visibility

Get answers to critical business questions with operational visibility from a single system of record.

Act on insights, improve performance and share results with real-time business and financial reporting.

Reduce Risk

Predict and prevent risk with business visibility and control that ensure compliance with regulatory requirements.

Simplify IT

Give everyone an easier way to work and simplify IT with integrated ERP applications that run on a single database.

Enhance Agility

Rapidly identify and act on new opportunities. Claim your competitive edge with ready access to real-time, an agile organization and efficient operations.

Types of ERP Implementation

There are three different types of ERP deployment: cloud, on premise, and hybrid implementations. Choose the deployment that meets your business requirements.

Cloud

Cloud

Cloud delivers ERP applications over the internet and is commonly delivered as a Software as a Service (SaaS). Typically accessed by a web browser, the SaaS provider is responsible for all maintenance, updates, security and performance based on a monthly subscriber fee.

On Premise

On-premise

On-premise delivers ERP applications from your on-site data center. The business is responsible for the software licensing, application updates, security and IT staff costs. On-premise ERP requires an upfront capital investment plus ongoing system maintenance cost.

Hybrid

Hybrid

Run some of your ERP applications in the cloud and some on premise with hybrid ERP, also known as two-tier ERP.

What is Manufacturing Enterprise Resource Planning (ERP)?

Manufacturing ERP delivers industry-specific functionalities that streamline and automate plant floor processes. 21st century manufacturing ERP is built into the same database that runs business processes, creating a complete business management platform.

What is Manufacturing Enterprise Resource Planning (ERP)
What is Manufacturing Enterprise Resource Planning (ERP)

What is Manufacturing Enterprise Resource Planning (ERP)?

Manufacturing ERP delivers industry-specific functionalities that streamline and automate plant floor processes. 21st century manufacturing ERP is built into the same database that runs business processes, creating a complete business management platform.

Who Needs Manufacturing ERP?

Who Needs Manufacturing ERP?

Manufacturing ERP is for manufacturers. Sounds obvious. But here’s the difference. Manufacturers add value. They buy materials and make the raw materials into something else. Something of greater value than it was in its original state. The act of making is a complicated, multi-step process with complex variables that change constantly.

Manufacturers need industry-specific ERP to manage, automate, track, collaborate and connect every step in a dynamic manufacturing process, from receipt of a customer order to shipment of the order.

Manufacturers May Operate in One or More Modes:

  • Make to stock: Make products in anticipation of orders yet to come.
  • Make to order: Make products to fulfill orders received.
  • Engineer to order: Make a product that is designed, engineered and finished after an order has been received.
  • Customize to order: Customize standard orders to customer requirements or specifications.

Regardless of the mode, all manufacturers must manage complex and constantly changing processes. That’s why manufacturers of almost every size need manufacturing ERP.

Manufacturers May Operate in One or More Modes:

  • Make to stock: Make products in anticipation of orders yet to come.
  • Make to order: Make products to fulfill orders received.
  • Engineer to order: Make a product that is designed, engineered and finished after an order has been received.
  • Customize to order: Customize standard orders to customer requirements or specifications.

Regardless of the mode, all manufacturers must manage complex and constantly changing processes. That’s why manufacturers of almost every size need manufacturing ERP.

Typical Manufacturing ERP Applications

Is my Manufacturing Company Ready for a Manufacturing ERP?

As soon as a sales order comes in, a manufacturer is confronted with questions that demand answers, answers that manual processes and stand-alone programs cannot answer effectively.

  • What do I need to make?
  • When do I need to make it?
  • How do I make it?
  • What do I need to purchase to make it?
  • What resources do I need to have available to make it?
  • How can I make it efficiently?
  • Can I manage the costs of making it to turn a profit?
  • How do I ensure that what I make is at the required quality?

Did You Know

QuickBooks is used by more than 2 million small and midsize businesses worldwide. If daily business management processes and plant floor activities are taking too much time, you might be ready for manufacturing ERP with accounting functionality.

If you are asking questions like these and are not getting the answers you need, your business is ready for manufacturing ERP. Selecting the right manufacturing ERP partner is one of the most important business decisions you’ll ever make. Talk to ERP providers. Do your research. Get started- with this helpful and informative guide, The ERP Selection Roadmap

What will manufacturing-specific ERP do for my business?

Manufacturing-specific ERP delivers genuine and lasting value for small and midsize manufacturers. Not sure? Here are 7 reasons why manufacturing ERP matters to your continued success.

  • Track raw materials, allocate resources and plan out the production process.
  • Manage the manufacturing process more efficiently from start to finish, while tracking shop floor activities.
  • Schedule jobs based on raw materials in stock, by machine time and labor hours.
  • Manage daily finances, create custom reports and track job costing.
  • Monitor inventory of finished goods coming in and going out.
  • Receive, scan in and store products, knowing the location of each item within the warehouse.
  • Use quality control check points to ensure products meet customer specifications.

OptiProERP is Manufacturing Cloud ERP on the World-Class SAP Business One Platform

Run simple and compete in a digital world.

A Platform Play for OptiProERP with SAP Business One

OptiProERP chose SAP Business One, the #1 ERP platform for small and midsize businesses, for its ERP platform.

With SAP’s continuous platform innovation, we focused exclusively on innovating and developing our industry-specific manufacturing functionality.

This decision freed OptiProERP from the recurring cycle of platform updates that most ERP providers cannot keep current. Unlike SAP Business One, that invests more in research and development than all of the other ERP providers combined, OptiProERP could focus all of its resources into building advanced manufacturing functionality on a truly modern platform.

Instead of adding a layer of code on top of SAP Business One, OptiProERP is built into the DNA of SAP’s trusted ERP platform. The two perform as one because at the code level, they are one.

The result is a 21st century solution designed to help growing manufacturers gain full visibility and control of their business, reduce production costs, increase profit margins and leverage data to inform intelligent business decisions.

OptiProERP Manufacturing ERP Applications

Comprehensive functionality to optimize your engineering, manufacturing and business processes.

Production Management

Visibility into resources, materials and work instructions.

Planning Management

Map every resourced need to fulfill an order.

Advanced Scheduling

Schedule work efficiently, maximizing available capacity.

Shop Floor Execution

Captures and reports on shop floor activity.

Warehouse Management System

Real-time visibility into inventory status.

Scalable to support rapid growth

Automated quality control checks identify non-conformance.

Benefits of OptiProERP

See why manufacturers and distributors choose OptiProERP.

Xiris

Xiris eliminates siloed data and operational inefficiencies

“The advantages Xiris found with OptiProERP were that it had the strongest MRP module of those we evaluated, and had superior production scheduling. Its fully-featured CRM module was superior to Epicor and all the others.”

Maxim Fisun

Financial Controller

DACSA

DACSA manages the complexity of its growing business

“We are preparing ourselves on several fronts to grow in volume of sales, geographical areas, and to have more dynamism when producing. We want to bet on this growth with a solid foundation. That's why we went with OptiProERP.”

RENÉ HERNÁNDEZ

General Director

metalcloak

IMM moves into the 21st century

“We needed software that was actually a 21st century solution, software for the digital age that would help us as a manufacturing company.”

Mike Nanda

Owner and President

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See OptiProERP's best-of-breed solution in action

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