An ERP isn’t just part of your tech stack — it’s the beating heart of your manufacturing operations. The right ERP pulses through every function, from inventory and production scheduling to accounts payable, unifying your processes into one seamless system.
That’s why choosing the right ERP software can be a tough decision. With so many options on the market, how do you know which ERP is the right fit for you?
Not all ERPs are created equal — especially when it comes to the unique demands of the manufacturing industry, like managing supply chains, handling large inventories, and maintaining supplier relationships. Let’s explore the best ERP software for manufacturing, including the pros, the cons, and who can benefit from each.
What is an ERP Software in Manufacturing?
Enterprise Resource Planning (ERP) software helps manufacturers streamline and automate their different functions, including production, procurement, inventory, and finances. ERPs bring all these areas together into a single platform, providing real-time data visibility into your cash flow.
Best ERP Software for Manufacturing
SAP S/4HANA
SAP S/4HANA is one of the most popular ERP solutions for large manufacturing businesses. Known for its scalability and customization, SAP offers modules for everything from material requirements planning (MRP) to advanced supply chain management.
Its real-time analytics capabilities are also a major selling point, allowing companies to respond quickly to changing conditions on the factory floor or in the supply chain.
Pros:
- Highly customizable
- Real-time data and analytics
- Scalable for large enterprises
- Expensive
- Difficult to implement
Best for: Large manufacturers with complex needs and a large budget.
Oracle NetSuite
Oracle NetSuite is a cloud-based ERP solution that caters to growing mid-sized manufacturers. It offers comprehensive modules for manufacturing, procurement, and inventory management.
One of NetSuite’s key selling points is its user-friendly interface, which makes it easy to onboard teams. And, being cloud-based, it supports remote access and flexibility, so your team can manage operations whether they’re in the office or on the job site.
Pros:
- Cloud-based, enabling remote access
- Intuitive user interface
- Excellent for growing businesses
- May not have the variety of features needed for large enterprises
- Subscription costs can add up
Best for: Mid-sized manufacturers looking for flexibility and scalability.
Microsoft Dynamics 365
Microsoft Dynamics 365 is a robust ERP solution that blends an ERP with the power of CRM (customer relationship management) capabilities. This makes it perfect for manufacturers looking for a solution that both manages production and helps stay on top of customer relationships.
Dynamics 365 is also known for its seamless integration with other Microsoft products, like Office 365 and Teams, making it easy for team members to onboard and adapt.
Pros:
- Combines ERP and CRM capabilities
- Easy integration with Microsoft tools
- Modular approach allows for scalability
- May require extensive customization
- Not the most budget-friendly option
Best for: Manufacturers who want a combined ERP and CRM solution and are already using Microsoft products.
SyteLine
Specifically designed for manufacturers, Infor CloudSuite Industrial — more commonly known as SyteLine — is built to support complex manufacturing processes. It offers tools for production management, supply chain planning, and even AP automation.
SyteLine’s industry-specific design helps it stand out in terms of ease of use and functionality for production-heavy manufacturing companies.
- Manufacturing-focused modules
- Good for handling complex production processes
- Customizable workflows
- Can be pricey for smaller companies
- Implementation can take time
Best for: Manufacturers with complex, production-focused needs.
Epicor ERP
Epicor also focuses on manufacturing businesses — particularly those in the automotive, aerospace, and industrial machinery sectors. It offers strong tools for material planning, scheduling, and financial management. Epicor’s adaptability and scalability make it a solid option for both mid-sized and larger manufacturers.
- Industry-specific solutions
- Strong material planning tools
- Scalable
- Can be difficult to customize
- Complex for smaller operations
Best for: Manufacturers in specific industries, such as aerospace or automotive.
How to Choose the Best ERP for Your Manufacturing Business
With so many options, how do you know which ERP software is right for your business? Here are a few things to consider when making your decision:
1. Business Size
No matter how large or small your business is, there’s an ERP system to meet your unique needs. Large companies with multiple locations and complex production lines will benefit from ERP systems that can handle large volumes of data and offer advanced analytics, like SAP S/4HANA or Oracle NetSuite.
Small and mid-sized manufacturers, on the other hand, may find more value in cloud-based solutions that offer scalability without the high cost and complexity, like Microsoft Dynamics 365 or SyteLine.
2. Industry-Specific Features
Manufacturers have unique needs, from managing bill of materials to overseeing multi-site operations. ERP systems like SyteLine and Epicor are designed with these industry-specific requirements in mind.
If your business operates in a niche area of manufacturing, like aerospace or automotive, choosing an ERP with modules tailored to your industry can save you time and money on customization.
3. Customization vs. Out-of-the-Box Solutions
Some ERPs (like SAP) are highly customizable, allowing you to tailor the system to your exact needs. But this level of customization can be expensive and time-consuming.
If your business can operate effectively with more out-of-the-box features, consider more universal options, like Oracle NetSuite or Microsoft Dynamics 365.
4. Cost
ERP software is a big investment, so it’s important to choose an option that works with your budget. While larger manufacturers may be able to handle the cost of a more expensive or complex system, smaller companies should look at more cost-effective options, like cloud-based ERPs that offer subscription models and lower upfront costs.
5. Scalability
As your business grows, your ERP system should grow with it. That’s why you want to look for an ERP solution that can easily scale alongside you. Cloud-based systems are great for growing businesses, because they allow for easy scaling without the need for heavy infrastructure investment.
6. Ease of Use
The best ERP software is the one that your team will actually use. But a system that’s difficult to navigate or hard to use can lead to low adoption rates — defeating the purpose of implementing an ERP in the first place. Look for a solution with an user-friendly interface and comprehensive onboarding resources, especially if your team has limited ERP experience.
Take the Next Step
An ERP is more than just software — it’s an investment in the future of your business. That’s why choosing the best ERP software for manufacturing isn’t a decision to be taken lightly. The right system can overhaul your operations by improving efficiency and helping you stay competitive in the competitive manufacturing market.
By considering things like the size of your business, your industry’s specific needs, and your budget, you can find an ERP solution that meets your requirements and supports your company’s growth.