ERP Selection Guide for the Manufacturing Industry

Manufacturing industry ERP management system

Enterprise Resource Planning (ERP) software is an integrated suite of applications designed to help businesses manage their various business functions. These functions include:

  • Finance
  • Human Resources
  • Sales
  • Manufacturing

A wide range of different ERP systems is tailored for various industries and business sizes. This is because different businesses have different requirements that need to be met. To achieve this flexibility, ERP systems use customizable models which can be added to their base software to have advanced manufacturing functionality.

ERP Selection Criteria for the Manufacturing Industry

The manufacturing industry needs a tailored solution that, when properly implemented, will help them keep up with rapid industry changes and increasing demands. The manufacturing industry needs to consider the following ERP selection criteria:

1. Software Set Up for Your Production Type

Depending on your company’s production type, you may need specialized functions to map processes. Ensure you carefully analyze your ERP choices to include all the necessary features for your business strategies. Common ERP features the manufacturing industry needs to include:

  • Bill of Materials or Consignment Stock
  • Inventory Management & Planning
  • Purchasing & Supply Chain Management
  • Production Management
  • Production Reporting & Analytics

2. Software That Accommodates Detailed/Advanced Planning

Highly efficient production control is required for the increasing complexity of order networks, rush orders, and a growing number of variants. To reduce make-ready times, avoid delivery bottlenecks, and make the most of personnel and machines, specialized software is needed. 

An integrated APS module (Advanced Planning & Scheduling) is essential in the ERP selection process. This module automatically adjusts order sequences considering real-time data from every department.

3. Software That Can Handle Your Logistics Requirements

You must consider the logistic requirements of your distribution company when selecting an ERP system. An ERP system that integrates all aspects of the supply chain and reflects just-in-time concepts can meet customer demands for uncompromising customer orientation, quick lead times, and on-time delivery.

4. Software That Manages the Full Product Life Cycle

Product Lifecycle Management should be integrated with your ERP software to get the best results for both systems. This integration allows you to plan your resources on the best data available to manage your time and resources better. Some other benefits of PLM-ERP integrations include:

  • Increased alignment of departments
  • Improved product quality
  • Faster data syncing
  • Improved decision-making

5. Software That Transforms Your Data Into Usable Insights

Actionable insights give companies a significant competitive advantage, and business intelligence integrations should be a top priority for manufacturing companies looking for effective ERP software solutions. These tools should be able to filter, evaluate and process your collected data. 

Look for an ERP system that offers:

  • State-of-the-art dashboards
  • Custom reports
  • User-friendly interfaces

6. Software That Grows With You

To make a future-oriented ERP selection, the software must easily scale and adapt to your company’s growth. Multisite ERP systems can communicate in multiple languages and calculate in different currencies. They also allow for the consolidation of group accounting. All sites have access to centrally managed information, including master data, inventory, orders, and production schedules, in real-time.

7. The Software Makes Your Production Mobile

Mobile apps allow for the management of ERP processes across almost all business units. Manufacturing companies can also use mobile apps to manage their purchasing, warehouse, and sales processes. This allows them to have a consistent mobile strategy. ERP for manufacturing should support innovative shop floor applications and industrial scanner solutions.

Steps for Selecting an ERP System

Sifting through the numerous ERP options can be daunting but worthwhile when considering the money and time saved by having the right software from the get-go. Here is our quick 10-step guide to choosing the best manufacturing ERP software for your company:

STEP 1: Identify problems to be solved and business requirements

STEP 2: Get buy-in from executive management and stakeholders

STEP 3: Consider the resiliency of your ERP options to ensure future-proofing

STEP 4: Enquire about mobile access functionality

STEP 5: Ensure the system is easy to use

STEP 6: Ask about ERP implementation costs and choose your deployment option wisely

STEP 7: Verify the training and support options from vendors

STEP 8: Choose a supplier that is a partner and not just a software vendor

Manufacturing ERP solutions are essential for companies to compete in a highly competitive market. Panni has extensive industry experience in discrete and process manufacturing and can help you streamline your business processes. Contact us today for more information about our SAGE X3 ERP solutions.

Transforming businesses since 2009

For over a decade, Panni has helped companies transform their businesses to lead, innovate and be profitable. With the right combination of technology and experienced developers and consultants, we help companies with Change Management to achieve the organizational objectives. We believe in long-term relationships with our clients and provide top-notch support with fast turnaround times.

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