Manufacturing Businesses Can Use ERPs for Decision-Making

3 Mins read
  • Manufacturing ERP systems can be incredibly useful for manufacturing businesses trying to succeed in 2021.

Are you running a manufacturing business? There are a lot of variables to consider. You might have wondered if this was a good time to get into the industrial manufacturing industry, because there are both great opportunities and challenges in 2021.

Fortunately, there are a lot of things that you can do to make your manufacturing business more successful. One of these suggestions is investing in the right software.

Using Manufacturing ERP Systems to Make Your Manufacturing Business More Successful

There are a lot of things that you have to bear in mind when you are running a manufacturing business. There are a lot of mistakes that manufacturers have to avoid. Fortunately, the right technology can help immensely.

Manufacturing Enterprise Resource Planning (ERP) systems are among the most important tools companies use to manage and improve their operations. But what exactly is a manufacturing ERP system, and what do they do? A manufacturing ERP system is a software application that helps companies manage their manufacturing processes. It can provide a single, unified view of the entire production process, from raw materials to finished products. It can also help companies track inventory, schedule production tasks, and manage other aspects of the manufacturing process. The following are several factors that help in decision making about manufacturing ERP:

Ability To Handle Discrete and Batch-Oriented Manufacturing Operations

ERP systems vary in their ability to handle discrete and batch-oriented manufacturing operations. A continuous flow of products is a more suitable environment for a process plant, while a discrete job shop scenario works better on a computerized system.

Ability To Handle Just in Time Concept

This refers to delivering raw materials or components or even finished goods just before they are required for production line operations, thus reducing storage needs. ERP systems, for example, MCA Connect Manufacturing ERP, should support this demand-driven approach by forecasting accurately from real-time data input from product sales information, customer orders, and supplier transactions.

Inventory Management

In any business operation, there has to be accurate control over inventories. A good ERP system would support a variety of inventory management methods such as ABC analysis, First In First Out (FIFO), and Time Lapse. This will enable an organization to maintain optimum inventory levels so that there is no shortage or overstocking at any point.

Data Availability

E-commerce or e-procurement based businesses or retail stores can work without ERP software for stock-keeping purposes. Still, other business units like production planning may need accurate data on hand in real-time. So, the source should be reliable and provide accurate information to the business application, which supports operational decision making.

User Involvement

While designing an end-to-end solution, it is important to involve the users using the software. They need to be aware of the system and its capabilities to make the best use. The users should understand how their specific job roles would be enhanced with the new system.


An ERP implementation project is a long-term investment, and like every other investment, there is a need to evaluate it properly before making a decision. A detailed cost-benefit analysis should be done to ascertain whether the envisaged benefits from deploying an ERP system are likely to outweigh the costs associated with it.


There is always some risk associated with any decision, which also holds for implementing an ERP system. Risk assessment needs to be done by evaluating business processes and the overall impact of the software package on them.


An ERP system is an end-to-end solution capable of managing all aspects of business operations and requires careful planning and execution. A company must ensure that they select a package that integrates other systems used in their networking environment to avoid double data entry, redundancy, etc.

While all of these factors are important, not every manufacturing ERP system will have all of them. Choosing a system that fits your company’s specific needs is important. If you are unsure which factors are most important for your business, consult with a software vendor or an ERP consultant. They can help you find the system that is best suited for your needs.

Manufacturing ERP Can Do a Lot to Help Manufacturing Businesses Succeed

There are a lot of things that manufacturers need to do to thrive. A great ERP system can work wonders if they invest in it wisely.

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About author
Ryan Kh is a big data and analytic expert, marketing digital products on Amazon's Envato. He is not just passionate about latest buzz and tech stuff but in fact he's totally into it. Follow Ryan’s daily posts on Catalyst For Business.
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