Skip to main content

Manufacturing ERP Software & Solutions: A Complete Guide

Software Development

Picking the best ERP for the manufacturing industry might sound like an intimidating proposal. Above all, Enterprise Resource Planning (ERP) software can be complex and challenging, and there are numerous crucial considerations for manufacturing companies to deliberate as a part of the ERP software solutions selection process. According to kbresearch, the global ERP software market size is anticipated to reach $70.3 billion by the year 2025, increasing at a market growth rate of 10.5% CAGR.

Global ERP software market Share

Source: kbvresearch

However, The ERP software market size is predicted to exceed USD 136.1 billion by 2032, and it is expected to reach a CAGR of 10.5% from 2023 to 2032 onwards due to the Rapid Acceptance of Cloud Services and Mobile Application development.

This blog will be set out as a guide to provide you with all the details you must be aware of ERP for manufacturing companies, commencing with a general overview. Then, we’ll plunge into the key advantages of manufacturing ERP software and the most crucial features stemming from those benefits, predominantly for companies in the manufacturing industry. Lastly, we’ll provide some tips to begin with the progression of selecting the right ERP system for your company that caters to your business-specific requirements.

What is Manufacturing ERP (Enterprise Resource Planning)?

Manufacturing ERP denotes Enterprise Resource Planning (ERP) software and systems utilized for planning, managing, and delivering specific functionalities that support manufacturers and manufacturing business operations. Modern manufacturing ERP systems are intended to adaptably support and integrate into any business process, forming a whole business management platform for manufacturing companies.

What is ERP for Manufacturing Companies?

Manufacturing companies have numerous unique business processes and business management needs that are noticeably diverse from those of other industries. Material requirements planning, manufacturing operations, and raw materials supply chain management all familiarize an additional complexity measure to the software systems implemented by companies in the manufacturing industry.

Simply put, ERP for manufacturing serves as a solution that deals with the industry’s complexity. Enterprise resource planning software comes with a single, all-inclusive way of managing financial accounting, purchasing, sales, material requirements planning (MRP), supply chain logistics, labor and production processes, manufacturing equipment, human resources, and more.

Due to everything being interlocked within an ERP software system, you can get a fortune of information at your fingertips, offering you better control over the efficiency and productivity of your manufacturing business.

When you obtain a shipment of raw materials, for instance, information related to the cost, quantity, and origin of those items moves directly to your inventory management system. Later, when you build subassemblies or finished goods via those raw materials, your manufacturing ERP software can turn up the costs, combining them with labor costs and machine time, besides producing your finished product’s accurate cost. It ultimately gives you much better control over the profitability of your manufacturing business.

Revolutionize your manufacturing efficiency with

Progatix's custom ERP software solutions today!

Let's Connect

How is ERP in Manufacturing Different from Other Industries?

There are numerous ERP software systems available in the market. Comparatively, few of them can truly cater to the requirements of manufacturing companies, though. A number of vendors make claims about managing manufacturing business processes, but only a few do it well. Details are significant, so it’s necessary to comprehend the differences between “plain vanilla ERP software” and robust manufacturing ERP solutions.

Here are a few key highlights differentiating an ERP system for the manufacturing industry from those manufactured for general-purpose usage.


First and foremost, ERP for manufacturing businesses involves adaptable functionality for production. This normally integrates the types of features listed, material requirements planning (MRP), and job costing, which is replicated elsewhere all over the system. For instance, the ERP system must allow for the production of bills of material (BOMs) and subassemblies. It should also track labor and machine time, scrap, raw materials inputs, and more. Some manufacturing ERP solutions are carefully planned with process manufacturing in mind, whereas others are superior in distinct manufacturing, involving make-to-order and make-to-stock. The best ERP for the manufacturing industry can perform all of these things well.

Material Requirements Planning

MRP refers to the calculation of your future requirements based on actual orders and predicted volume. On-time delivery often centers upon owning the right raw materials to hand, but it can be expensive to have too much inventory sitting on the shelf and unemployed. MRP aids you in optimizing inventory levels, certifying that your manufacturing business has the raw materials that it actually requires without needlessly blocking too much working capital.


One of the major complaints we hear from manufacturing industry executives is that there is a shortfall in visibility as to which jobs are gainful and which are not. The best manufacturing industry ERP solutions include labor, raw materials, machine time, and tussle into an overall calculation of cost for each production course. This eventually helps manufacturing companies to function far more successfully than they otherwise could.

Advanced Inventory Management

Although numerous businesses manage some kind of inventory, manufacturing companies have some equitably unique requirements. Quality inspections, for instance, play a crucial role in accepting raw materials along with emancipating finished goods after production. The best ERP for the manufacturing industry can manage the complexities related to quality inspections, raw materials to be refunded to suppliers, and more. Advanced inventory management helps manufacturing companies keep track of the setting and cost of work in progress (WIP).


One of the most complex and challenging business processes for manufacturing companies comprises scheduling and engaging with the people and apparatuses required to get the job done. ERP systems in manufacturing companies offer an easier way of optimizing resources, ensuring every job gets done professionally and is delivered to the customer on time.

Regulatory Compliance

Manufacturing ERP software can also aid with legal and regulatory compliances. In highly regulated industries, i.e., pharmaceuticals or food and beverage, for instance, manufacturing companies must mark each product with a lot number. They must be capable of tracing the batch from which raw materials are initiated and perform FDA product recollections if required. that’s why you need a pharma software development for easy regulatory compliances. Similarly, aerospace and defense manufacturing are contingent on significant government oversight. Serialization is indispensably important, and federal cyber security regulations reside rigorous controls on manufacturing ERP systems worked by government contractors. The best manufacturing industry ERP software holds the ability to manage all of these business processes for you.

Top Features of ERP in the Manufacturing Industry

To maximize the advantages you get from your manufacturing ERP software, look for some of the key features before implementing one:


As distinguished formerly, MRP is all about having the right raw materials on hand at the right time. By observing the pending orders and predicted sales, MRP estimates the magnitude of finished goods required and then seizes those down into their essential parts based on BOMs and obligatory subassemblies. Next, MRP looks at the lead times for each of the obligatory inputs and suggests purchases to be made to cater to those needs. As companies struggle to run spare manufacturing operations, optimization of inventory levels is important. MRP helps to attain that without cooperating with the accessibility of necessary raw materials.

Shop Floor Automation

Manufacturing control systems have progressed in recent years while offering higher levels of efficiency in manufacturing operations. By manufacturing ERP software integration with machinery and controls, you can gain better transparency into what is working well and what is not. Mobile applications outspread your manufacturing ERP system’s reach to make significant operational information directly accessible to employees over the production line.

Supply Chain Management (SCM)

As global supply chains experience stress, effective management of arriving products is more significant than ever. The best manufacturing ERP solutions help you with vendors’ management and evaluation while providing online portals to manage vendor inquiries and collaboration.

Service Management

A number of manufacturing companies are offering their post-sales service assistance to offer field service or depot repair. Frequently, this establishes a new revenue stream for manufacturing companies as many are aiming more on service-based business models.

Serial & Lot/Batch Tracking

As acclaimed beforehand, several industries need manufacturers to track serial numbers, lot numbers, and batches. If your company depends on these features, be certain you choose a manufacturing ERP system that can provide backup for those requirements.

Business Intellectual

ERP for the manufacturing industry offers you clear and improved data transparency, involving real-time information about profitability, costs, and expenses as they happen. Better decisions begin with good, timely information.

Elevate your manufacturing prowess with

Progatix's bespoke ERP development services today!.

Let's Connect

How Can ERP Systems Advantage Manufacturing Companies?

There are a number of valuable operational and financial advantages to owning a modern, integrated manufacturing ERP system at full spectrum. The most distinguished advantages of ERP for manufacturing companies comprise of:

Automate and streamline business processes with adaptability

An ERP system helps streamline all of your routine business processes by sustaining real-time data in one centralized location with complete visibility over all functionalities. End-users will have the capability to monitor production stats without the help of an additional team member.

The ERP system automates business processes to reduce dependence on manual processes. This automation accelerates your production process, reduces the possibility of errors, and increases profitability.

Easy forecasting and reporting

Numerous manufacturers face the dismay of an unpredicted request for a precise item. An ERP system helps evade these situations by making predictions and sales reports based on past inventory transactions. This evades the excess inventory chaos and the dismay of an out-of-stock situation.

Also, end-users can track their own reports without depending on the IT team to forecast future requests and material needs. User-friendly modules are easy to read and eradicate the risk of error.

Improved decision making

Any choice lacking reliable data is a guess, not a decision. An ERP system will gather and sort every piece of important data into a single location in real-time with up-to-date information. Improved insight, transparency, and control will provide your manufacturing business with the required assurance to make reliable choices.

Greater employee efficiency with mobility and flexibility

The ERP market is vast, and end-users can access data using mobile phones, tablets, laptops, and desktops. But it can get better. What if users can access this data from nearly anywhere, whether they’re on the move, working from home, or in the warehouse? Mobile-friendly ERP systems can make it possible by empowering users to access documents and make edits and approvals while on the go.

Improved productivity

With the capability to manage schedules, simplify financial operations, supervise sales processes, assemble real-time data, decrease data errors, ensure prompt communication among employees, and make data easily available to all, your manufacturing business is approved as time and cost-effective.

Enhanced data security

With the growing pressure towards data security and protection, software developers are persistently examining security issues. Data exposure can create catastrophic financial aftermaths and cause harm to your reputation. While new software enhancements are continuously being made in modern ERP systems, outmoded legacy systems are not being enthusiastically tested for security gaps.

Integration with the supply chain

Integrated ERP systems offer robust supply chain management resources that optimize the invasion and depletion of material and distribution needs for centralized purchasing locations and multi-warehouse distribution mediums.

Faster response to market conditions

Real-time data offered by the ERP system aids key decision-makers in estimating, planning, adjusting, and responding to everlasting market changes. System-created reports are offered on a regular rhythm to help with the comprehension of market needs and turn to account for consumer purchasing trends. These comprehensive insights will decrease prediction errors and exploit on new possibilities for your progressing manufacturing business.

Reduced costs

A modern ERP system reduces overall operational costs by switching manual and time-consuming processes with automated, simplified, and smooth processes and real-time information. Eventually, this way, you will observe depleted excess inventory and warehousing costs with the capability to track inventory precisely.

Superior customer relationships

Today’s consumers anticipate instant feedback over their purchases and on-time deliveries. An ERP system can offer your manufacturing business correct production plans, inventory control, simplified scheduling, and direction with distribution channels for on-time delivery. Include rapid delivery, better quality control, and a sturdier grip on inventory, and your customers are sure to upsurge their reliability.

Experience a custom SaaS solution to streamline your entire manufacturing business.

Connect with Progatix!

Let's Connect

Avatar for Amna Shahid

Amna Shahid, a technical content writer, is an expert in simplifying intricate notions and composing captivating narratives to participate and convey technical information efficiently. With a devotion to brilliance in this dynamic technical writing field, Amna is open to collaborating and new possibilities in this succeeding tech realm.
Avatar for Amna Shahid


Reviewed By
Progatix, a well-known software development company, has been delivering innovative digital consultancy services & custom software solutions encouraging business growth since 2003. Our remarkable solutions involve strategic digital consultancy, legacy system migration, DevOps, and stellar testing services.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Recent Items

Advancing Business Productivity with AI in Software Development

AI in software development is changing every aspect of development. While many companies contest to compress AI-supported features, the potential... Continue reading →

Payroll Management System: A Comprehensive Guide

If you are running a business, you must own a team of employees for whom you have to deal with... Continue reading →

Software Product Development: A Complete Guide

Nowadays, software products have become an integral part of our reality; it is tough to envision any of our regular activities... Continue reading →

How to Start a Software Business

The software industry has been leading technological advancements for years now, with big companies such as Apple and Microsoft positioning... Continue reading →

Meta Quest 3 VS Apple Vision Pro: Which one Is Better, And For What?

Virtual reality is quite a diverse space compared to a few years back. There are a number of great VR... Continue reading →
Get Free Consultationicon icon