What is Manufacturing ERP?

An Introduction to Manufacturing ERP Software

line-subtitle-bl-1

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.

line-subtitle-26-1

At its most basic level, an ERP system connects core business processes such as procurement, manufacturing, supply chain, finance, CRM, Sales, HR, and more in one cohesive system.

However, intelligent ERP uses the latest technologies, such as IoT, machine learning, and AI, to embed business intelligence, gain real-time visibility, and deliver exceptional experiences across every aspect of a business.

21st century ERP systems are anything but basic. They use the latest technologies, such as machine learning and AI, to provide intelligence, visibility, and efficiency across every aspect of a business.

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

ERP Selection Guide in Today’s Digital World

Line
Line

How does ERP work?

ERP software is made up of different features to manage core business functions: Accounting & Financials, Sales, CRM, HR, Manufacturing, Supply Chain, Services, and more. Each of these features, sometimes called modules or applications, usually focus on a single business function. ERP integrates these processes into a single system to connect every aspect of a business.

Manufacturing ERP Demo

See ERP in Action

Discover how you can streamline your manufacturing business

How does ERP work?

Manufacturing ERP Demo

See ERP in Action

Discover how you can streamline your manufacturing business

ERP software is made up of different features to manage core business functions: Accounting & Financials, Sales, CRM, HR, Manufacturing, Supply Chain, Services, and more. Each of these features, sometimes called modules or applications, usually focus on a single business function. ERP integrates these processes into a single system to connect every aspect of a business.

Line

5 Signs You’re Ready for ERP

Most manufacturers start out investing in standalone tools to manage different operations – such as QuickBooks, a CRM tool, or MS Excel spreadsheets. Let’s have a look at the five signs that indicate if your business is ready for a leading-edge manufacturing ERP solution.

5 Signs You’re Ready for ERP

1. You’re spending too much time on mundane activities.

Are your employees slowed due to managing major business activities on multiple software applications? ERP integrates operations and data into one system for enhanced communication and greater efficiencies. Its automation and common interface helps to reduce redundancies, eliminate errors, and improve workflow.

2. You have unanswered business questions.

Is it tough for you to answer critical business questions such as revenue per product line or order details? It’s difficult to understand how your enterprise is performing with segregated systems. ERP provides real-time metrics and KPIs so you can easily and quickly achieve business insights.

3. You have difficulty controlling business processes.

Is it challenging for you to manage inventory, retain customers, or reduce operating costs? If so, it may be the result of inefficient business processes. An ERP system will help you gain control over your processes and put best practices in place so you can streamline operations, reduce costs, and improve customer service.

4. You have departments operating in silos.

When every department uses different software for managing processes, it leads to duplicate data entry and a breakdown in collaboration and communication. With an ERP system, data flows between departments to break down silos, so information only has to be entered once for greater accuracy and better decision-making.

5. You can’t easily identify or act on new opportunities.

When your organizational operations are not optimized, you spend too much time running your business and not enough time looking for new revenue sources. And, having disparate systems can make it challenging to recognize new opportunities or act on them due to inefficiencies. Modern ERP has advanced, intelligent capabilities so you can more easily identify and capitalize on ways to increase income.

Line

What are the Benefits of ERP?

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.

Real-time Reporting

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

Better business visibility

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.

Line

What are the Different Types of ERP Implementation?

There are three different types of ERP implementations: cloud, on-premise, and hybrid implementations.

Cloud ERP deployment

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 ERP deployment

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 ERP deployment

Hybrid

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

Line

What is Manufacturing ERP (Enterprise Resource Planning)?

Manufacturing ERP delivers manufacturing-specific functionalities that streamline and automate core business and manufacturing processes. Modern manufacturing ERPs are built into the same databases that run everyday business processes and applications, creating a complete business management platform.

What is Manufacturing ERP (Enterprise Resource Planning)?

Manufacturing ERP delivers manufacturing-specific functionalities that streamline and automate core business and manufacturing processes. Modern manufacturing ERPs are built into the same databases that run everyday business processes and applications, creating a complete business management platform.

Who Needs Manufacturing ERP?

Who Needs Manufacturing ERP?

Manufacturing ERP is software for manufacturing businesses of all sizes. Manufacturing businesses need ERP with industry-specific features and capabilities to manage, automate, track, collaborate, and connect every step of their dynamic manufacturing processes, from the receipt of a customer order to the shipment and delivery of the order.

Small Business ERP

ERP for small manufacturers eliminates the need for multiple tools and provides one system that works across the enterprise. It’s an end-to-end solution with best practice processes to manage business complexities. Many small businesses choose a modern cloud ERP system due to its faster deployment, lower ownership costs, anywhere access, increased security, and continuous upgrades.

Mid-Market ERP

ERP software for mid-market manufacturers offers built-in analytics, rapid deployment, and best practices for many different business processes to include financials, supply chain management, accounting, HR, and more. Modern ERP software provides growing businesses with the tools that will help them be more productive, agile, and competitive.

Enterprise ERP

Large manufacturers with global operations need a robust, leading-edge ERP with embedded AI, machine learning, and analytics. They require a platform that supports intelligent automation to transform processes. ERP systems can be deployed on-premise, in the cloud, or a hybrid scenario depending on the business need. It can be integrated with an existing database or preferably run on modern, powerful in-memory databases.

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.

Manufacturing Oprations Modes
Manufacturing Oprations Modes

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.

What are Common Manufacturing ERP Features?

Line

Is My Company Ready for 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

ERP Software Selection Guide

Download ERP Selection Roadmap

Get answers to all the queries above in The ERP Selection Roadmap

Ready to learn more about selecting the RIGHT ERP for your manufacturing or distribution business? Download our guide detailing six things you should consider when selecting a new ERP solution in today’s digital world.

Download Guide

Download ERP Selection Roadmap

Ready to learn more about selecting the RIGHT ERP for your manufacturing or distribution business? Download our guide detailing six things you should consider when selecting a new ERP solution in today’s digital world.

Download Guide
Line

Why is Manufacturing ERP Important for My Business?

Manufacturing-specific ERP delivers genuine and lasting value for small and midsize manufacturers. From managing your core business process, manufacturing processes, inventory levels, to managing your daily finances and accounting, manufacturing ERP offers many advantages over generic ERPs.

  • 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.
Line

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

Run simple and compete in a digital world.

Manufacturing Cloud ERP Benefits

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.

Line

What are OptiProERP's Manufacturing ERP Features?

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.

Line

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

Slider

Manufacturing ERP Resources

line-subtitle-26-1
Achieve Manufacturing Excellence with Cloud ERP: A Guide for Small and Midsize Manufacturers

Guide

Achieve Manufacturing Excellence with Cloud ERP: A Guide for Small and Midsize Manufacturers

View more
ERP Guides

ERP Guides

60-Second ERP Guides

View more
ERP Selection Roadmap White Paper

Guide

A Roadmap for ERP Selection in Today’s Digital World

View more

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

line-subtitle-bl-1