7 Jan, 2021

Why Deploy An ERP System In Manufacturing Industry

Any product you buy is manufactured somewhere in the world. Although service industries are gaining more focus, manufacturing is still considered a key component in any growing economy. An Enterprise Resource Planning software is inevitable for the manufacturing industry in the long run and this blog discusses why.

ERP for Manufacturing

One of the main issues the manufacturing industry hassles with is improving productivity. An ERP system is capable of improving the overall efficiency, reducing costs, and improving productivity by integrating all major business processes into a single platform. 

Also, many manufacturing companies have trouble sharing production-related data with employees and external entities. A shared database is necessary for the effective functioning of an enterprise. ERPs are capable of bridging these communication gaps between departments and other vendors and distributors.

A generic ERP system is capable of providing the following benefits and more:

Inventory management

Production Scheduling

Financial Management

Operations Management

Fixed Asset Management

Customer Relationship Management

Order Management

• Materials Requirement planning

• Quality Assurance control

Is ERP Necessary for Manufacturing?

An ERP system can seamlessly reveal various gaps in your system. Regulate your fund flow, streamlining your operations, and provide a single version of the truth about what is really happening in your business. 

Here are a few pointers to understand how an ERP system can improve the manufacturing business:

1. Data management comes easy with an ERP system that can act as a centralized hub for all your operational and financial information.

2. ERP lets you have 360-degree visibility over your supply chain operations like warehouse management, transportation, and inventory.

3. Various manufacturing methods like - Make-to-stock, Make-to-order, just-in-time, etc are also supported in ERP systems.

4. Advanced ERP systems like Oracle Netsuite offer a flawless mechanism to manage businesses across the world. Having a comprehensive view of all your locations will help improve visibility into the organization.

5. Offers and discounts based on real-time data is another major advantage of having an ERP system. Also, some ERPs help in material planning to reduce wastage and time delay.

6. Have a complete view of your production cycle - efficiently manage all manufacturing processes from start to finish.

7. Streamline operations by allotting jobs on the basis of machine and labor availability.

8. Monitor inventory levels by scanning and storing products, improving accessibility of items within the warehouse. ERPs also ensure the quality of finished products by using checkpoints.

How to Determine the Right Time for Implementing ERP?

Sometimes businesses never even realize their growth is stunted unless it is too late. Here is a quick checklist to understand the pain points in your business.

• If your business is struggling to manage all your disparate data sources. Consider getting an ERP system for maintaining the integrity of all your data. 

• Existing legacy systems that are ruining your IT budget with updations and repairs. Move over to a Cloud ERP system and eliminate unwanted maintenance costs and updations.

• Diminished customer experience because of the lack of an effective customer management system. 

• The ability to scale according to the needs of the business is key for a rapidly growing organization. A cloud-enabled ERP system is perfectly capable of such a transition in a cost-effective manner.

Reasons to Choose ERP

Read more to get a comprehensive idea about the various benefits of ERP in manufacturing.

1. Manufacturing - The key purpose of any ERP system is to improve operational efficiency and improve ROI. In order to make this happen in the manufacturing industry, the company has to monitor the various processes involved in the manufacturing environment like product planning, product forecast, and maintaining product quality.

Automation is another core feature of ERP systems that helps the business in activities like planning, scheduling, and delivery. Generally, automation results in improved time management and reduced downtimes. Several ERP systems also have in-built quality control features and end-to-end audit processes.

2. Operations - Managing your supply chain is necessary to have a quick overview of the entire production process. This involves handling your product flows right from production to fulfillment to returns and refunds. This positively impacts customer satisfaction as they will have a general idea about the availability, pricing, and delivery. By effectively managing your supply chain activities, it is possible to reduce costs and fight competition.

3. Inventory Management - Inventory management is a core process in the manufacturing business. ERPs can help organize inventory and give reports on warehouse functioning and inventory level. This reduces wastage, and help cut unwanted expenses.

4. Procurement - Another major component in the manufacturing business is the procurement process. Procurement involves processes like quotations, supplier information, purchase requests, and more. ERPs help collaborates with all involved parties like suppliers, contractors, and other internal departments who directly interact with these external entities.

The above-discussed points generally correspond to generic ERP’s. Look into Oracle Netsuite - a cloud-based global ERP system with customizable dashboards, best-in-class architecture, and seamless integration.

How Netsuite ERP Helps Manufacturing Industry?

Here we will look into some of the unique features that Netsuite provides the manufacturing business


Netsuite allows seamless integration with applications like CAD and thus improves product design and Bill Of Materials management. Costing is made more efficient in Netsuite by embedding LIFO, FIFO, and other costing strategies.


Case management, warranties, and other customer service needs can be streamlined and managed through Netsuite easily. By automating case management, it is possible to prioritize support tickets based on customer email addresses. Escalation can be set up based on customizable parameters and priority.


Netsuite allows highly customizable dashboards that reveal various functionalities like accounts payable, accounts receivable, and reports. A comprehensive view of various income statements and balance sheet are available to compare side by side. Taxes, invoice creations, and finance charges can be auto-generated.


Manufacturing companies often have online and offline sales portals.  Netsuite can help in both B2B and B2C order placements. Order management can be enhanced by streamlining all processes right from order placement to fulfillment processes.


It is possible to analyze various data points like search engines, websites, and other marketing insights to drive real-time decisions. Key performance indicators (KPIs)  improve productivity as it allows users to get an overview of various business processes.

Sales and Marketing

Managing Opportunities, sales quotes, and other discounts can be done in Netsuite effortlessly. It is also possible to create email campaigns and effectively convert potential leads into customers. Netsuite provides the ability to access various key data like sales orders and calendars through its mobile platform. 

Order Management

Netsuite provides an in-depth understanding of the entire order management process.  This includes orders, shipping, and other trends that impact order management. It is also possible in Netsuite to drill-down to the last detail with just a couple of clicks.

Supply chain Management

Netsuite boasts seamless supply chain management with advanced resource planning. Improved demand planning helps in understanding inventory levels through scrutinizing historical data, trends, and seasonal differences.  Netsuite reveals data trends like key spending and SCM metrics for better business visibility.

If you are interested in learning more about how Netsuite will fit into your manufacturing business. Read our dedicated blog NetSuite ERP for Manufacturing Companies And if you are planning to get a quick demo, contact Jobin & Jismi for an exclusive demo and quote.