Manufacturing ERP (Enterprise Resource Planning) systems are the backbone of modern manufacturing operations, helping businesses streamline processes, reduce costs, and enhance productivity. With digital transformation accelerating, choosing the right ERP solution is more critical than ever.
In this guide, we’ll cover everything you need to know about Manufacturing ERP, including its key benefits, top solutions, implementation strategies, and future trends.
What is a Manufacturing ERP?
A Manufacturing ERP is a specialized software solution designed to manage and automate various aspects of your manufacturing operations, from supply chain and production planning to inventory and financials. Unlike generic ERP systems, Manufacturing ERP solutions cater specifically to the unique needs of manufacturing companies, offering industry-specific modules and features.
Key Functions of a Manufacturing ERP
Production Planning & Scheduling: Optimizing production workflows for efficiency, reducing lead times, and ensuring on-time deliveries.
Inventory & Supply Chain Management: Managing raw materials, work-in-progress (WIP), and finished goods inventory while integrating with suppliers and logistics.
Quality Control & Compliance: Tracking production defects, maintaining ISO/FDA compliance, and ensuring quality assurance at every stage.
Financial Management & Costing: Automating accounting processes, tracking costs per product, and forecasting financial performance.
Integration with Smart Manufacturing: Leveraging AI-driven automation, IoT devices, and predictive analytics to optimize operations.
Sales & Order Management: Managing customer orders, tracking shipments, and integrating with eCommerce platforms.
Analytics & Reporting: Generating real-time analytics dashboards for data-driven decision-making.
Benefits of a Manufacturing ERP System
Implementing a Manufacturing ERP system provides plenty of advantages that will enhance your overall efficiency, scalability, and profitability.
1. Enhanced Productivity
A Manufacturing ERP eliminates manual data entry, automates repetitive tasks, and optimizes production workflows, allowing your employees to focus on value-added activities. This leads to increased efficiency and reduced operational downtime.
2. Real-Time Data Access & Improved Decision Making
ERP systems provide real-time insights into inventory, production status, and financials. Executives and managers can make data-driven decisions based on accurate, up-to-date reports and analytics.
3. Cost Reduction & Waste Minimization
By optimizing material usage, reducing inventory carrying costs, and improving procurement strategies, ERP systems help minimize waste and reduce overall operational expenses.
4. Streamlined Supply Chain Management
ERP systems enable seamless integration with suppliers and distributors, improving coordination, reducing lead times, and ensuring smooth production cycles. This results in improved customer satisfaction and on-time deliveries.
5. Scalability & Business Growth
ERP solutions are scalable, allowing manufacturers to expand their operations without disrupting existing workflows. As the business grows, ERP systems can accommodate increased production volumes and additional operational complexity.
6. Improved Customer Satisfaction
With real-time order tracking, automated scheduling, and accurate demand forecasting, ERP systems ensure that customer orders are fulfilled on time, enhancing overall customer satisfaction and retention.
Why Do Manufacturers Need ERP?
Manufacturing ERP systems help businesses overcome common challenges such as:
Reducing Production Delays: Enhancing visibility into supply chain and production schedules, preventing bottlenecks.
Lowering Operational Costs: Automating repetitive tasks, optimizing material usage, and minimizing waste.
Ensuring Regulatory Compliance: Meeting industry standards like ISO 9001, FDA, OSHA, and GMP regulations.
Improving Decision-Making: Providing executives with data-driven insights, predictive analytics, and real-time reports.
Scaling Business Operations: Allowing manufacturers to expand capacity and operations without overcomplicating workflows.
Top Manufacturing ERP Solutions
For more detailed information on these comparisons, read my previous blog on the Top Cloud Manufacturing ERP systems.
ERP System
Best For
Pricing
Business Central
Small to mid-sized manufacturers seeking seamless integration with Microsoft products, a user-friendly interface, and a licensing model based on user counts
Large manufacturing businesses (250 or more employees) in need of more complex capabilities, and/or you have staff with NetSuite experience and want to leverage that
$$$
Acumatica
Manufacturers that require unlimited user access, prefer a consumption-based pricing model, and desire a high degree of customization
Not publicly available
SAP Business One
Manufacturers that prioritize robust financial and inventory management in a more traditional ERP setup
$$$$
Odoo
A small manufacturing company (less than 20 ERP users and under 100 employees) that wants a cheap open source ERP
Selecting the right ERP deployment model is crucial for you as a manufacturer. It impacts cost, scalability, and system control. There are three primary deployment options: Cloud-Based ERP, On-Premise ERP, and Hybrid ERP.
Cloud-Based ERP Systems
Cloud ERP operates on a software-as-a-service (SaaS) model, where the system is hosted and maintained by a third-party provider. This eliminates the need for manufacturers to invest in expensive on-site infrastructure and dedicated IT teams for system maintenance. With cloud ERP, businesses benefit from lower upfront costs, automatic updates, enhanced security, and remote accessibility. Since updates are rolled out seamlessly by the provider, manufacturers can always stay on the latest version without additional expenses.
On-premise ERP systems are installed and operated on hardware and servers owned by the manufacturer. This traditional deployment method comes with significant costs and complexities. Manufacturers opting for on-premise ERP must invest in dedicated IT teams, expensive hardware, and ongoing maintenance. Additionally, system updates and upgrades can be disruptive and costly.
Hybrid ERP Systems
Hybrid ERP combines elements of both cloud and on-premise deployment, offering a flexible approach to manufacturers who need both control and scalability. In a hybrid model, core business operations and critical data can remain on-premise while other functionalities, such as analytics and customer management, leverage cloud-based automation. This model allows businesses to gradually transition to the cloud without abandoning their legacy systems.
Which Type of Manufacturing ERP is Right For Your Business?
Manufacturing ERP solutions come in many forms—ranging from industry-specific platforms to broader systems with customizable features. Selecting the right ERP isn’t just about picking software; it’s about aligning technology with your business strategy, operational needs, and growth goals.
The best way to determine which ERP is right for your manufacturing business is to:
Define Your Needs: Identify key challenges in your production process, supply chain, and overall operations that ERP should help solve.
Research Industry-Specific Solutions: Some ERPs are built for discrete or process manufacturing, while others cater to job shops or engineer-to-order (ETO) businesses.
Evaluate Deployment Options: Cloud ERP offers scalability and lower upfront costs, while on-premises systems provide greater control over data and customization.
Assess Integration Capabilities: Ensure your chosen ERP can work seamlessly with existing tools like QuickBooks, CAD/PLM software, and CRM platforms.
Compare Vendors & Expertise: Look for ERP providers with proven experience in your sector to ensure a smoother implementation and better long-term support.
Key questions to guide your decision:
What operational bottlenecks should the system help eliminate?
Are you prioritizing cloud advantages like cost-efficiency and accessibility?
Does the vendor specialize in your type of manufacturing?
Will the ERP integrate smoothly with your current tech stack?
By taking a structured approach to ERP selection, you can invest in a solution that drives efficiency, improves decision-making, and supports future growth of your business.
Is Business Central the Best ERP for Manufacturing?
At Sabre Limited, we sell Business Central to manufacturers so obviously I am a little biased. That being said, I choose to sell Business Central because I truly believe it is the best ERP for small to medium-sized manufacturing companies.
Here’s why:
Scalability: Business Central can grow with your company, whether you’re a small job shop or a complex make-to-order manufacturer.
Flexibility: It offers core manufacturing features out of the box but can be extended with apps and integrations for even more advanced functionality.
Cloud-Based Efficiency: Unlike many legacy ERP systems, Business Central is a modern, cloud-based solution, reducing IT costs and improving accessibility.
Microsoft Ecosystem: Seamless integration with Microsoft tools like Copilot, Power BI, Teams, and Excel makes it a great fit for manufacturers already using Microsoft products.
Cost-Effective: Compared to other manufacturing ERPs, Business Central often provides a more affordable and flexible solution.
No ERP is perfect for every company. That’s why working with a Value-Added Reseller (VAR) that truly understands your industry—and their product inside and out—is a game-changer.
At Sabre, we specialize in manufacturing ERP because that’s what we know best. I won’t sell Business Central to retailers or accounting firms because I don’t know their industries. Without that expertise, implementations take longer, and the solution might not be the best fit.
But when it comes to manufacturing? In my humble opinion, Business Central is the best ERP out there.
Our Customers Love Business Central
“Business Central has given us a 30% increase in productivity across all departments which is amazing. It’s a much more efficient system, and we no longer spend time trying to organize the work or search for information, we can just get the work done.“
Katherine Silver, President at Bearing Bronze
“Sabre’s team is very responsive—they have excellent customer service. I believe Sabre Limited would do an outstanding job for any manufacturing company. They’re highly skilled at implementation, have knowledgeable staff, and offer a fantastic product.”
Daniel Engelberg, General Manager at Albany Packaging Inc.
See what our other customers have to say! Read testimonials from manufacturers who have successfully implemented Business Central with Sabre.
Conclusion
Manufacturing ERP systems are a critical investment for modern manufacturers looking to enhance efficiency, reduce costs, and scale their operations. With the rapid advancements in digital transformation, selecting the right ERP solution has never been more important. By understanding key ERP functions, benefits, and deployment models, manufacturers can make informed decisions that align with their specific business needs.
At Sabre Limited, we believe that Business Central is the best ERP for small to mid-sized manufacturing companies, offering scalability, flexibility, and seamless integration with Microsoft’s ecosystem. However, no ERP is one-size-fits-all, which is why working with an experienced partner who understands your industry is essential.
If you’re considering an ERP for your manufacturing business, take the time to assess your operational challenges, research industry-specific solutions, and compare vendors carefully. The right ERP can transform your manufacturing operations, providing real-time insights, automating workflows, and positioning your company for long-term success.
Need help determining if Business Central is the right fit? Contact us today for expert guidance on implementing a manufacturing ERP tailored to your business.
Rob Jolliffe
Robert has been a Dynamics 365 Business Central consultant since 2008 and a general manufacturing consultant for over 25 years. He is a graduate of the University of Toronto mechanical engineering program where he focused on production engineering. In addition to a deep knowledge of Manufacturing Robert holds a Microsoft Systems Engineer designation and is much less of an expert in Networking and IT infrastructure than he thinks, but is still pretty good. He also has applied his engineering skills to learning programming, and is warned frequently by the professional developers who work for him that he is pretty good, but don't write any code for customers without letting them check it.
