4 Advantages of ERP Software for Manufacturing


According to Allied Research Market’s ERP Software Market Report, the global enterprise resource planning (ERP) software market is expected to amass more than $41 billion by 2020. The report’s co-author Akshay Ghone explains that this gain is because of a movement from on-premise deployment to cloud-enabled technology.

“Cloud ERP software considerably reduces the investments required in alternative IT resources and offers greater flexibility,” Ghone says. “Thus, customers are shifting from on-premise to cloud ERP.”

With a boom in ERP software accessibility, certain industries are experiencing significant benefits from adoption. Manufacturing is one such vertical that is using ERP for back-office operations and financial business functions. By design, ERP has multiple software modules—each focused on a single business area—that can be customized for a company’s unique process requirements.

Manufacturing is a competitive industry that must manage process complexity within an environment of ongoing change. Here are four reasons why ERP software provides remarkable benefits for all manufacturers.

Boost process efficiency

ERP streamlines business processes from sourcing to shipping in one centralized location. This automated foundation allows complete data visibility for all functions, including production orders and bill of materials, version management, sales and inventory forecasting, supply planning, demand forecasting, and capacity planning. ERP also aligns typically siloed departments by allowing teams to monitor progress throughout the production process and update each other as needed; for example, the designing team can immediately notify the purchasing and finance departments when it requires additional raw materials.

Improve business profitability

Automation by ERP allows a company to reduce its dependence on manual and time-consuming processes. It also increases worker productivity, resulting in lower labor costs and fewer errors. And accurate supply tracking and production planning integration help to curtail operational expenses from excess inventory and warehousing costs. Combined, these productivity improvements and expense reductions create a significantly more profitable manufacturing business.

Increase transparency for improved decision making

Additional savings—among other benefits—are realized through greater business transparency. Using real-time data analysis and system-generated reports, ERP empowers a manufacturing organization to better anticipate, plan for, and adjust to changing market requirements. These detailed insights and key performance metrics provide visibility into each department and business process, helping manufacturers optimize daily operations in the short term and meet their goals for the long term. ERP users enjoy rapid visibility into work-in-process, support for order-by-order workflow, and the ability to implement additional functionality as business needs become more complex.

Reap customer rewards

The perks of ERP extend beyond the business to a manufacturer’s customers, too. And a customer’s number one priority is to receive products in a timely manner. ERP enables manufacturers to meet and exceed their metrics for on-time delivery through accurate production planning, enhanced inventory control, streamlined process scheduling, and coordination of distribution channels. Additionally, ERP ensures users can make accurate promises to customers, respond quickly to last-minute requests, and take advantage of new opportunities to help their businesses stay ahead of the competition.


Manufacturers deserve a best-in-class ERP solution that is streamlined, productive, transparent, and customer-focused. ERP software from Microsoft is a modern, scalable solution to run key back-office operations and financial business processes. Microsoft Gold-certified ERP software provider BroadPoint, Inc. offers Microsoft's Dynamics 365 Business Central, Dynamics NAV, Dynamics GP, and Serenic Navigator. Interested in learning more about the best ERP solution for your manufacturing business? Contact BroadPoint today to sign up for a free, no obligation consultation.


Zach Volpicelli