We found interesting analysis on enterprise resource planning (ERP) systems and their manufacturing capabilities made by the Forbes magazine. Here is the extract of the article.

Forbes defines an enterprise resource planning (ERP) system as a solution that offers features any company can use to integrate all of its functions and technologies, then collaborate across the company for greater efficiency and visibility. A manufacturing ERP further enables manufacturers to integrate manufacturing-specific systems, gaining a holistic view of manufacturing operations, and then collaborate with internal teams, suppliers, warehouses, customers and subsidiaries.

With so many ERP solutions on the market–all with varying feature sets and pricing–it can be difficult to determine which is the best fit for your unique manufacturing needs. To help users find the best manufacturing ERP, Forbes evaluated dozens of the top systems based on costs and fees, functionality, specializations, ease of use, customer support and more.

Forbes listed the Best Manufacturing ERP of 2022:

1. Microsoft Dynamics 365 Business Central: Best (Overall) Affordable Solution for Midsized Businesses

2. SAP Business One Professional: Best for Sustainable-Minded Small Manufacturers

3. SYSPRO: Best Scalable Manufacturing ERP for Growing Businesses

4. QT9: Best for Manufacturers That Produce Highly Regulated Products

5. Epicor Prophet 21 ERP: Best for Product Distribution

6. Oracle NetSuite OneWorld: Best for Global Midsized Manufacturers

7. Acumatica: Best for Modern-Technology Employment in Small Business Manufacturing

Summary: Best Manufacturing ERP by Forbes

9 Benefits of a Manufacturing ERP

According to Forbes, the most benefits of a manufacturing ERP are often realized when companies purchase solutions catered to their individual needs. However, in general, ERPs can help manufacturers protect their cash flow, optimize operations, forecast which decisions will advance company goals, efficiently manage inventory, create supply chain visibility and warehouse efficiencies, enact positive customer experiences and close high-quality sales.

Here is a closer look at each of these manufacturing ERP benefits:

1. Protect Your Cash Flow

A manufacturing ERP frees up cash by assisting with inventory-level management and prompt follow-up on accounts receivable. Its inventory stock parameters ensure unnecessary inventory isn’t stuck in storage. In doing so, it keeps your cash from being tied up in excess storage costs. A manufacturing ERP also links sales and receivables, offering visibility into which customers have paid. Prompt follow-up ensures cash isn’t held up in billing.

2. Optimize Your Manufacturing Operations

A manufacturing ERP integrates all your resource planning systems, giving you a 360-degree view of your resources, employees, contacts, processes and goals. As you connect your internal and external teams and processes, you gain visibility into where needs are not being met so you can resolve them before bottlenecks arise. This holistic view also reveals trends, downturns and challenges so you can employ quick resolutions or continuous improvements.

3. Forecast Smart Decision-Making

There are endless possibilities regarding how a manufacturing ERP’s forecasting capabilities can benefit your business. You can, for example, analyze the market to identify trends or factors that may impact how much product you can move post-production. This ensures that you don’t produce more than you can sell, thereby losing money. You can also forecast expenses against revenue to ensure you can adequately cover them.

4. Easily Manage Your Inventory

A manufacturing ERP helps you to manage inventory. For example, it helps to manage replenishment by defining your needs and putting in processes and automations to meet them. It also allows you to track where your inventory is in real time while maintaining a database of suppliers you can turn to when inventory is needed, complete with your purchase history for easy reordering.

5. Gain Real-Time Visibility Into Your Supply Chain

In addition to being able to connect all your internal teams, you can also connect all locations that participate in your supply chain. For example, you can connect your warehouses, subsidiaries and suppliers. In doing so, you can streamline your supply chain process and ensure that all materials arrive when and where they are needed just in time to be put to use without incurring unnecessary overhead costs, such as storage costs.

6. Create Efficiency and Cost Savings in Your Warehouse

When it comes to managing a warehouse, time is money. Too much time dealing with inefficient or unorganized warehouse processes means you have to pay employees for your chaos, instead of their talents. An ERP can help to ensure paid time is not wasted via automations. For example, you can integrate it with your automated machinery, then use it to print labels and barcodes, know when your stock is running low and order bin replenishments.

7. Create Winning Customer Experiences

Manufacturers are in the business of selling what they produce. Creating a winning customer experience helps them sell more now and in the future. An ERP can unify all your sales touchpoints to help you create a consistently great experience no matter how customers engage with your brand. For example, it can also help you pinpoint the customers who are most at risk for switching loyalties so you can win their hearts anew. It can also help to create a worthwhile customer experience by telling you how low you can drop your pricing while still protecting your profit margins.

8. Create Efficiencies via Automations

A manufacturing ERP can help you automate report generation, alerts that tell you how to keep your production and distribution process on track, and resource and task assignments. Because it unifies all your essential operational systems, it is easy to view where automations are helpful, then automate interdepartmental tasks. In this way, you create efficiencies via company-wide collaboration.

9. Create Sales Efficiency To Close High-Quality Sales

As the manufacturing ERP connects your sales and manufacturing teams, you can better close sales with high customer satisfaction. Your sales team, for example, can know what items you have in stock to ensure what they’re selling is what they can deliver, then process payments directly from your ERP. You can also efficiently process orders to ensure on-time delivery via automated carrier label printing and seamless carrier communication.

Source, more info: Best Manufacturing ERP – Forbes Advisor.

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