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What is Manufacturing ERP?

An Introduction to Manufacturing ERP Software

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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: A Roadmap for ERP Selection in Today’s Digital World

How does ERP work?

ERP 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.

How ERP Systems Work
How ERP Systems Work

How does ERP work?

ERP 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.

5 Signs You’re Ready for ERP

5 signs you’re ready for ERP

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.

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.

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

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 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 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.

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?

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

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.

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.

What are OptiProERP's Manufacturing ERP Features?

Production Management

Visibility into resources, materials and work instructions.

Advanced Production Planning

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.

Manufacturing ERP Resources

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What is Manufacturing ERP?

Blog

What is Manufacturing ERP?

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ERP Guides

ERP Guides

60-Second ERP Guides

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ERP Selection Roadmap White Paper

White Paper

A Roadmap for ERP Selection in Today’s Digital World

View more

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