ERP for manufacturing:
end-to-end solution overview

ERP for manufacturing: end-to-end solution overview

September 19, 2023

Konstantin Pilkevich
by Konstantin Pilkevich, Head of Itransition's ERP Center of Excellence
Manufacturing ERP supports manufacturing companies in managing critical business aspects, from production to payroll, by aggregating and visualizing all the information required to run business operations, identify inefficiencies, and spot optimization opportunities.

With over 25 years in enterprise software engineering, Itransition helps manufacturing companies automate manual processes and streamline digital transformation with a full range of ERP services.

About Itransition

10+ years in ERP services

50+ completed projects of different scales across industries

Hands-on expertise in delivering out-of-the-box, custom, and hybrid ERP solutions

An Odoo Silver Partner

A NetSuite Solution Provider

Client spotlight

Software suite for a kitchen manufacturer

21%

sales increase

Itransition helped the customer drive digital transformation by delivering software solutions to transform their back-office workflows and pioneer VR-based customer engagement.

ERP system maintenance for LISI Aerospace

Smooth workflows

Cut TCO costs

Itransition’s team complemented the core ERP solution with custom bolt-on modules to reconcile functionality gaps and reduce system support costs.

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When you need ERP for manufacturing

With a tailored enterprise resource planning solution, Itransition helps you address multiple concerns, including:

  • Time-consuming management and control of core business processes (inventory, production schedules, procurement) via disjoint software apps.
  • Multiple inefficiencies and issues, rooting from the lack of visibility into manufacturing operations and business performance.
  • Ineffective business decisions and departments operating in silos as a result of data inconsistency and communication bottlenecks.
  • Unproductiveness of your current software applications due to the lack of functionality to support existing business processes, absence of vendor support, knowledge gap, or poor user experience.
  • Inability to spot and act on new revenue opportunities due to manual workflows and lack of time.
  • Failure to meet regulatory requirements due to slow and error-prone manual data entry and aggregation.

Generic ERP vs manufacturing ERP

When choosing the best ERP fit for your company, you should decide whether to go for a generic business management ERP platform (sometimes referred to as a tier-one ERP system) or choose an ERP for manufacturing (tier-two ERP software). The main differences between the two are as follows:

Purpose
Addresses specific needs of process and discrete manufacturing companies.
Implementation
Requires help from a software vendor or a partner
Licensing fee
Higher
Customization
Pricey and limited
Functional modules
All modules that are typical of generic solution plus the ones covering the needs of manufacturing business:
  • Production planning and management
  • Quality management
  • Recipe and formula management
  • Inventory and supply chain management
  • Procurement management
  • Order management
Best for
Manufacturing companies with particular business needs that otherwise would require a lot of customization with generic ERP systems
Considerations
Vendor lock-ins

Key manufacturing ERP features

Production planning

Generating achievable production plans and schedules to fulfill sales orders by tracking and maintaining optimal stock levels and balancing demand, capacity, and constraints.
    • Bill of materials
    • Production planning and forecasting
    • Operational capacity planning
    • Finite and rough cut capacity planning
    • Make-to-order and make-to-stock planning
    • Master production scheduling
    • Procurement scheduling
    • Production process scheduling
    • Purchase, assembly, and manufacturing orders creation
    • Job costing
    • Inventory control and shop floor control
    • Demand forecasting
    • What-if production scenarios, interactive scheduling

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    Manufacturing ERP solutions for your sector

    The manufacturing industry encompasses a wide range of categories. Recognizing the need for tailored manufacturing ERP systems, Itransition architectures and delivers custom ERP modules and solutions tailored to the specifics of your business.

    Food & beverages
    Clothing & footwear
    Textile
    Wood & paper products
    Industrial machinery & equipment
    Aerospace & defense
    Rubber & plastics
    Electronics & high tech
    Furniture & fixtures
    Steel
    Chemicals
    Cosmetics
    Pharma- ceuticals
    Automotive

    Manufacturing ERP: an adoption guide

    Key integrations

    Integrations extend the ERP functionality, increase collaboration between different teams, eliminate duplicate data entry, and build cross-functional efficiency. We set up custom integration solutions or use ready-to-use connectors to integrate the ERP software with your current technology environment, including:

    Key integrations

    Manufacturing execution system

    Enterprise asset management

    Computerized maintenance management system

    Finance and accounting software

    Customer relationship management software

    BI and analytics

    Manufacturing execution system

    Integrating manufacturing floor data with other information, such as customer demand or actual inventory levels, helps manufacturers be more responsive to customer demand, make instant production adjustments, and facilitate just-in-time deliveries.

    Enterprise asset management

    Tracking and measuring asset performance helps plan procurement and replacement activities, accurately allocate physical assets to production activities, and devise effective asset management strategies for overall equipment.

    Computerized maintenance management system

    Streamlining equipment maintenance activities, generating accurate equipment maintenance schedules, and calculating overall equipment effectiveness could maximize equipment lifespan and manufacturing productivity.

    Finance & accounting software

    Consolidating accurate financial and operational data helps better manage daily finances, make data-driven decisions, track job costs, and increase the accuracy of financial forecasts.

    Customer relationship management software

    CRM integration adds visibility to material, production, and shipping costs and allows quick and accurate estimations. It automatically converts customer requests into work orders, tracks them, and communicates their statuses.

    BI & analytics

    Business intelligence modules facilitate reporting and analytics capabilities company-wide, querying multidimensional data across the department for real-time decisions, alerts, and notifications.

    Looking for ERP consultancy to drive your manufacturing business?

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    Best manufacturing ERP platforms

    Here, we shortlist in alphabetical order the best ERP software platforms for small businesses, mid-sized manufacturers and enterprises seeking industry-specific functionality.

    Core features
    • Manufacturing process, repair orders, and bill of materials management
    • Production planning
    • Inventory and supply chain management
    • Quality control
    • Reporting
    • Mobile application
    • Ecommerce
    Customization
    • Intuitive native module integration
    • Third-party integrations and customization only via code modification
    Pricing
    • Per user + per adapted module or extension
    Deployment
    • SaaS
    • PaaS
    • On-premises

    Build a comprehensive ERP solution with Itransition

    ERP consulting

    ERP consulting

    We help manufacturing companies choose the optimal tech stack for their ERP project and introduce ERP solutions within the scope of their time and budget requriements.

    ERP implementation

    We implement platform-based ERP and build custom ERP solutions by following a step-by-step process that includes business needs analysis, full-scale solution deployment, and after-launch support.

    Manufacturing ERP implementation roadmap

    1

    Business analysis

    Discovery of business processes
    Infrastructure analysis
    Requirements definition
    ERP solution scoping

    2

    Design

    ERP conceptualization
    Architecture design
    Integration scope definition
    Tech stack selection

    3

    Project planning

    Project timeframes and key steps outline
    Project deliverables definition
    Resource planning
    Change management assessment and planning
    Budget planning

    4

    Development/Customization

    ERP software configuration
    ERP software customization
    Custom ERP development
    Platform integration

    5

    Quality assurance

    Functional testing
    Performance testing
    Usability testing
    Compatibility testing

    6

    Deployment

    ERP software deployment to production
    Data migration
    End-user training
    Admin training

    7

    After-launch support

    Platform infrastructure and users support
    Performance issues management
    Data flows fine-tuning
    Technology upgrades on request

    Benefits of using ERP systems for manufacturing

    Increased visibility into business processes

    Accurate and timely data on core business processes accumulated in a central database allows all authorized parties to access and collaborate efficiently.

    Eliminated communication bottlenecks

    Open communication channels, data transparency, and role-based homepages break down communication barriers. It helps to eliminate redundant work, address inefficiencies, and foster cross-functional collaboration.

    Streamlined data analysis

    Structured company-wide data reporting and analytics capabilities enable effective data-driven decision-making.

    Risk mitigation

    A comprehensive overview of all business processes helps detect loopholes, predict and proactively address risks and ensure full compliance with regulatory requirements.

    Maximized resource & equipment utilization

    Managing your product cycle with automated production scheduling and IoT-enabled real-time visibility into available resources and inventory reduces equipment idle time.

    Lean manufacturing

    Monitoring current and upcoming production orders, automated inventory tracking and simplified purchase orders help ensure timely fulfillment of customer orders and reduce production cycles.