ERP for manufacturing

ERP for manufacturing

Manufacturing companies operate in an environment where planning, stock and quality must be constantly aligned. As the organisation grows, it becomes increasingly difficult to maintain this overview.

ERP software is therefore indispensable for the modern manufacturing company. An ERP system brings all processes together in a single system, ensuring that everyone works with the same, up-to-date information.

On this page, you can read about what ERP actually means for manufacturing companies, which features make a difference, and how to choose a system that suits your organisation.

These ERP suppliers specialise in manufacturing:

Grensloos / ESi IT Solutions B.V.KoombaDCBOIsah Business SoftwareCegekaSAP9Altitudes Nederland B.V.Amista Nederland BVdigifiersAiden Netherlands BVThe RMO CompanyOdooMagic Software Benelux3BM IT-SolutionsExactdear digitalBlisss Software B.V.Bouwmakers BVWolters Kluwer Belgium NVDrydock ERPLean-Interactions BVBA12GuideECI Software Solutions Belgium BVAardugAfasLogres Business Solutions B.V.TheValueChain NVOracle netsuitePantheon AutomatiseringNTT DATA Business Solutions B.V.Cadran ConsultancyDigiMedioVisma CASHSageDelaware Consulting B.V.TogetrBlack Snow B.V.Clearis BVAxians Business SolutionsOracleProdware Nederland B.V.CegekaOffimac NVEqeep Benelux B.V.Huss B.V.Steltix Nederland BVMicrosoft Dynamics 365InforSmart Value B.V.Fellowmind Netherlands B.V.ETS InformaticsDTNEXT B.V.

Why manufacturing companies choose ERP

A shortage of raw materials, a machine breaking down or a supplier delivering late: manufacturing companies face these issues on a daily basis. The result: inaccurate stock levels, a schedule that lags behind events and a customer waiting for their order.

An ERP system tackles these challenges systematically. For manufacturing companies, this means a single centralised system that links procurement, planning, the shop floor, stock and finance, with everyone working with the same real-time data.

Manufacturing companies also have specific requirements for an ERP system. A generic system is not enough: the ERP must be tailored to the needs of the manufacturing company. Some systems are designed for process manufacturing, whilst other suppliers specialise in discrete manufacturing.

A good ERP system for manufacturing takes this into account and scales with the complexity of your operations.

Twee medewerkers in een fabriek

The 8 most important ERP modules for manufacturing companies

As manufacturing companies deal with raw materials, semi-finished products, finished products, machinery and lead times, a standard ERP system is often insufficient. An ERP system for manufacturing companies therefore usually includes the following modules.

When choosing an ERP system, pay close attention to scalability: a scalable system grows with your business, for example when you purchase new machinery or start manufacturing new products.

Material Requirements Planning (MRP)

Automatically calculates which materials are required, when they need to be purchased and what needs to be produced, based on stock levels, bills of materials and outstanding orders

Production planning and work order management

Create production orders, monitor capacity and track progress per order

Bill of materials and recipe management

Record and manage product compositions, recipes, variants and versions

Quality Management and Traceability

Record inspections, document rejections, follow up on non-conformities and trace batch or serial numbers

Stock Management

Gain real-time insight into raw materials, semi-finished products and finished goods.

Purchasing and supplier management

Manage purchase orders, lead times, delivery reliability and supplier performance.

Costing

Compare expected and actual production costs per product, order or production line.

Maintenance management

Plan preventive and corrective maintenance of machinery to minimise production downtime.

The key benefits of ERP for manufacturing companies

ERP software gives manufacturing companies control over their processes and the resources they use during production. Specifically, these are the key benefits:

  • Reduced production downtime and shorter lead times, as materials, capacity and bottlenecks are visible in real time
  • Lower stockholding costs through more accurate procurement and planning
  • Better quality assurance thanks to structured record-keeping
  • Greater insight into production costs, margins and profitability per order or product
  • Less manual work and fewer administrative errors
  • Greater delivery reliability for customers thanks to fewer disruptions in the process

The risks of choosing software too hastily

Implementing ERP software is a major investment. If you choose too hastily, you’ll be stuck for years with software that doesn’t fit your work processes: a difficult implementation that runs over time, staff who avoid the new system, and customisations that quickly double the initial price.

For manufacturing companies, ERP goes to the heart of the core business process. A system that fails to adequately support production planning, materials management or work orders will directly impact your day-to-day production.

These are the most common mistakes made during the ERP selection process:

  • Failing to compare enough ERP suppliers
  • Making a choice based on an impressive demo, a well-known name or time pressure
  • Paying insufficient attention to sector-specific functions such as MRP or integration with machinery and CAD systems
  • Underestimating the total cost of the project (implementation, training, licences and management)
  • Involving staff too late or not enough in the decision-making process

A good, well-considered choice therefore starts with an honest analysis of what your organisation needs – not just now, but also in three to five years’ time.

Comparing production software

There is a wide range of ERP systems available, with countless suppliers, each with their own area of expertise. The right choice depends on your production method, company size and business processes. Do you need help with this search? Using our selection tool, we map out your software requirements based on a series of questions. This enables us to make a targeted selection of the most suitable suppliers.

Twee fabrieksarbeiders achter een laptop

Frequently asked questions

Here you’ll find the most frequently asked questions about ERP Guide and how we work

How long does an ERP implementation in manufacturing take?
A simple implementation can easily take three to six months, whilst more complex projects can take over a year
When does a manufacturing company need ERP?
As soon as you lose track of stock, planning or production costs, or when you’re growing and your current working methods are no longer scalable, it’s time to make the move to ERP.
Can an ERP system help to reduce production errors?
Yes. Because everyone works from the same information, there are fewer errors caused by miscommunication or duplicate data entry. Traceability and quality control also become much simpler.
How much does an ERP system for manufacturing companies cost?

The costs depend on the size of your business, the number of users and the features you require. In addition to licence fees, implementation, training and maintenance also factor into the cost.

Manufacturing ERP is often more expensive than a standard implementation due to customisation and integrations with machinery or production processes: the link to the shop floor makes the process more complex. As this varies greatly depending on the production method, machinery and supplier, we have deliberately chosen not to quote a fixed amount here: our free selection tool will provide you with a price estimate tailored to your specific situation.

Can’t find your question here? Please feel free to contact us.

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Find the most suitable software suppliers

Compare ERP software

Choose your sector

Why this matters in your ERP selection: When making your selection, it is important to take your sector into account. A system must perfectly align with your business processes. These processes differ per industry. For example, a wholesale company operates differently from a construction company and therefore requires different functionalities.
Marc
Mark Sanders
Software Expert

What type of manufacturing are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to take different types of manufacturing into account. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.

Marc
Mark Sanders
Software Expert

How are your production orders planned?

Why this matters in your ERP selection:

In stock-driven production processes, items are manufactured based on sales forecasts. You want to keep inventory as low as possible without running into delivery problems. You then need ERP software that monitors stock levels and helps with reliable forecasting. Is your production customer-order-driven? Then orders must be taken into production quickly. The ERP must also take any customer specifications into account.

Marc
Mark Sanders
Software Expert

What does your production process look like?

Why this matters in your ERP selection:

In discrete manufacturing, you need an ERP with strong capabilities for building bills of materials. If you only do assembly, you are in luck: this typically requires less complexity from ERP systems. For (semi) process industries, these systems are not suitable. Here, the software must be able to handle formulas and recipes (ratios, mixing, etc.). Finally, project-based production is a completely different discipline and requires strong project management functionalities.

Marc
Mark Sanders
Software Expert

What production volumes do you work with?

Why this matters in your ERP selection:

In unit production, items are produced one by one (weighing, artisan products, etc.). In this case, ERP software must be able to accommodate many customer specifications. When products are made in multiple quantities at once, we refer to batch or series production. Due to the larger runs, inventory management functionalities are important. In continuous production, the production process is kept running as much as possible. As a result, ERP software must excel at calculating optimal capacity utilisation.

Marc
Mark Sanders
Software Expert

What type of trade are you specialised in?

Why this matters in your ERP selection: When selecting an ERP, it is important to consider what type of trading company you are. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.
Marc
Mark Sanders
Software Expert

Do you have a webshop that needs to be integrated?

How many physical stores with point-of-sale do you have?

Do you also import goods?

Do you also export goods?

What type of customers do you supply to?

Why this matters in your ERP selection:

Even among ERP systems for trading companies, there are major differences. How you answer the above questions determines which solutions are more or less suitable. If you import or export goods, you may for example need to deal with customs formalities. Do you supply to consumers? Then different legal regulations apply that you need to take into account.

Marc
Mark Sanders
Software Expert

What type of retailer are you?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what types of products you sell. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.

Marc
Mark Sanders
Software Expert

How many physical points of sale do you have?

What type of customers do you supply to?

Do you also import goods?

Do you also export goods?

Why this matters in your ERP selection:

Even among ERP systems for retailers, there are major differences. How you answer the questions determines which solutions are more or less suitable. If you import or export goods, you may for example need to deal with customs formalities. Do you supply to consumers? Then different legal regulations apply that you need to take into account.

Marc
Mark Sanders
Software Expert

What type of service provider are you?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what services you provide. Each sector has its own specific requirements for an ERP. For example, if you organise events, the correspondence with suppliers and staff scheduling must be well organised. Do you provide consultancy and invoice by the hour? In that case, a good time tracking system is essential.

Marc
Mark Sanders
Software Expert

Is time tracking important to you?

Do you work with hourly rates and/or fixed rates?

Is HRM an important part of your business?

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you mostly supply to businesses or consumers?

Why this matters in your ERP selection:

Even when it is clear what type of services you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of logistics services do you offer?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of logistics services you provide. Each sector has its own specific requirements for an ERP. Do you specialise in sea freight? Then a connection with Portbase may be important. Do you specialise in road transport? Then trip planning and route planning are important.

Marc
Mark Sanders
Software Expert

Do you organise loads in the following way?

Groupage / Part loads (LTL)
Groupage/part loads consolidated at a hub for multiple clients
FTL
Full loads for multiple clients
Dedicated Logistics
Transport for a single client
Why this matters in your ERP selection:

You will be using an ERP system, among other things, to track goods to be transported. Naturally, the ERP system must properly understand how you work and for whom you are transporting. Therefore, indicate how you organise your loads so this can be taken into account in the ERP selection.

Marc
Mark Sanders
Software Expert

Do you have your own fleet?

Do goods need to be transported under refrigeration?

Do you import goods?

Do you also export goods?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. When importing or exporting, you will need to deal with customs formalities. The ERP system must be able to support you by providing the right data and documents. Do you have a fleet? Then it needs to be maintained and depreciated correctly. Do goods need to be transported under refrigeration? Then you need functionality for temperature monitoring and control.

Marc
Mark Sanders
Software Expert

Government and NGOs

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of government services you provide. Each sector has its own specific requirements for an ERP. Let us know what activities you carry out, and we will find vendors with the right references and experience in that specific area.

Marc
Mark Sanders
Software Expert

Do you work on a project basis?

Do you want a membership administration?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Does the ERP system need to be available on mobile?

Why this matters in your ERP selection:

Even now that it is clear what type of government role you fulfil, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of healthcare are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of care you provide. The processes in a hospital differ greatly from an organisation involved in nursing or social services. Therefore, each branch of healthcare has its own specific requirements for an ERP.

Marc
Mark Sanders
Software Expert

Do you want to use the ERP system for client registration as well?

Does your organisation offer overnight stays?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Do you provide care on location?

Why this matters in your ERP selection:

Even now that it is clear what type of care you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of construction are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider the construction activities you specialise in. Each sector has its own specific requirements for an ERP. Property developers need very complex functionalities for risk management and (financially) monitoring the budget and progress. Civil engineering companies are characterised by the frequent need for a maintenance and certification module for the deployment of heavy equipment.

Marc
Mark Sanders
Software Expert

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you often work with many different parties?

Does your organisation manage real estate?

Why this matters in your ERP selection:

Even now that it is clear what type of construction company you are, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you carry out a lot of maintenance work?

Do you also want to be able to schedule assets?

Do you want time tracking for your employees?

Why this matters in your ERP selection:

Even now that it is clear what type of construction company you are, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of education do you provide?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider the type of education you specialise in. Each sector has its own specific requirements for an ERP. Corporate training is more commercial than other forms of education, which may make CRM functions more important. In regular education, the ERP must handle the tracking of students (student tracking system).

Marc
Mark Sanders
Software Expert

Do your customers have a membership with you?

Do you also want to use the system for student registration?

Do you also want to use the system for HRM?

Why this matters in your ERP selection:

Even now that it is clear what type of education you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you also teach remotely?

Do you work with timetables and location planning?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Why this matters in your ERP selection:

Even now that it is clear what type of education you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Are you an installation company or a service company?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you want the ERP system to be ready for IoT (Internet of Things)?

Do you want an integration with key suppliers?

Do you also carry out maintenance work?

Do work orders need to be entered on mobile devices?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Does the system need to be accessible offline?

Do you need to be able to monitor machines remotely?

Do you also work on a project basis?

Do you need to register refrigerants?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you carry out maintenance regularly?

Do you work with Service Level Agreements?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Do you work on a project basis?

Do you want to record hours in the system?

Why this matters in your ERP selection:

There are many ERP systems that specifically target the rental sector. Answer the above questions to determine which vendors are more or less suitable. If you regularly maintain your assets, it is important to choose an ERP system with maintenance planning functionalities. Do you work on a project basis? Then project administration functions give you insight into the revenues, costs and margins of one or more projects.

Marc
Mark Sanders
Software Expert

Can you provide a brief description of your business activities?

Why this matters in your ERP selection:

To keep the selection tool manageable, we have chosen which sectors are listed by default. There is a chance your sector was not included in the overview. You can still use the selection tool. Provide a precise description of your business activities. The more you share, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Does the ERP system need to be available on mobile?

Does the ERP system need to be available offline?

Is time tracking important to you?

Do you work with hourly rates and/or fixed rates?

Why this matters in your ERP selection:

Since you did not select a standard sector earlier in the selection tool, we cannot ask industry-specific questions. However, by answering these questions you can still make your ERP search more specific. The questions are independent of your sector and help determine which ERP software suits you best. The more information you provide, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Is HRM an important part of your business?

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you mostly supply to businesses or consumers?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Why this matters in your ERP selection:

Since you did not select a standard sector earlier in the selection tool, we cannot ask industry-specific questions. However, by answering these questions you can still make your ERP search more specific. The questions are independent of your sector and help determine which ERP software suits you best. The more information you provide, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Does your organisation have multiple locations?

How many warehouses do you have?

Do you work with multi-currency?

Do you operate internationally?

Is the head office located in the United Kingdom?

Do you have any specific requirements we should take into account? (Optional)

Why this matters in your ERP selection:

Although these questions are not about activities within the company, the answers are of great importance. Most vendors use this information to determine whether they can meet the requirements of your implementation. For example, some vendors cannot handle international implementations or work exclusively with a single currency.

Marc
Mark Sanders
Software Expert

Enter the number of employees

Why this matters in your ERP selection: When making your selection, it is important to know how many employees there are and how many people will be using the software. As a general rule: the larger the organisation, the more complex the implementation. This is not only because all users need to be trained, but also because decision-making often differs compared to smaller companies. With larger businesses, the vendor must be better able to handle longer communication lines and implementation timelines.
Marc
Mark Sanders
Software Expert

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