The Evolution of ERP Software in Manufacturing

Diane Harvey
Updated on
In this article, we are looking at the evolution of ERP software in manufacturing. You may know that ERP software has been around for decades, but did you know it was developed for financial and accounting purposes? It’s true.

The first ERP software was not initially designed for manufacturing or any other industry, and it took time for the systems to catch up with evolving needs.

ERP has evolved over the years to become more specialized and now there are many options available that were designed specifically for manufacturing.

1- Traditional ERP 

Manufacturing ERP software was originally based on financial accounting systems designed for the service industry.

The main reason manufacturing companies chose to use this technology was to access more powerful financial reporting and analysis tools than their legacy system could provide.

However, manufacturing companies soon found that ad hoc customisation of an off-the-shelf finance package required expensive programming resources for each modification and often resulted in unsupported or undocumented code that made future upgrades difficult or impossible.

In other cases, a manufacturer may have chosen an ERP solution from a well-known software provider but purchased only the accounting functionality, leaving out features such as production scheduling and inventory management.

Since many of these organisations had used homegrown systems or simple spreadsheets to manage their operations up until that time, they often struggled to find ways to make the new system work smoothly with their existing business processes.

Newer generations of ERP software in manufacturing are much more accommodating of traditional manufacturing practices and needs during implementation, so these issues rarely arise today.

2- Modern ERP Software

You can see that the evolution of ERP software in manufacturing has brought many benefits. These modern systems include functions that are specific to manufacturing, such as:

Shop floor control

This function allows you to track your workers’ performance and productivity directly on the shop floor.

It lets you keep an eye on what your workers are doing in real time and make adjustments as necessary so that you can better meet deadlines and improve quality.

If a machine goes down unexpectedly, for example, you can see it instantly and make changes to your schedule so that other machines can pick up the slack until the broken one is fixed

Integration with CAD (computer-aided design) systems

You can integrate your ERP software in manufacturing system with your CAD software so that you can automatically upload designs into the system without having to re-enter them. That lets you streamline your processes and eliminate errors.

Production scheduling

Production scheduling software helps manufacturers plan the production process in a way that reduces costs, improves quality and minimizes risk.

With production scheduling software, manufacturers can schedule work in real-time and make adjustments based on line capacity, resource availability and other factors.

Quality management

Product quality is critical to a manufacturer’s success. Quality management systems help manufacturers monitor product quality throughout the production process and correct issues before they become widespread.

Integration with manufacturing equipment and instruments

ERP software in manufacturing often incorporate MES (manufacturing execution system) functionality to allow for integration with the factory floor.

This allows manufacturers to monitor production equipment in real-time and gain insight into how to improve the overall manufacturing process.

Integration with warehouse management systems

Many modern ERP software in manufacturing also incorporate warehouse management system (WMS) functionality, which allows manufacturers to manage inventory across multiple locations from a single source of information.

Real time analytics

Modern ERP systems enable manufacturers to analyse data across departments in real-time, allowing for better business decisions that ultimately result in improved performance and profitability.

3- Next Generation ERP software in manufacturing

The three most important developments in next-generation manufacturing ERP software? Cloud technology, artificial intelligence, and the Internet of Things.

Cloud computing has made it possible for us to move past the traditional on-premise installations of enterprise resource planning (ERP) systems and embrace an entirely new way of doing business.

Now that cloud ERP is universally accessible, manufacturers can realize its benefits without having to make any significant investment in infrastructure.

Another technology that has been around almost as long as computers is artificial intelligence (AI).

It’s only recently, however, that we’ve seen AI start to be applied more broadly within ERP and other software solutions. AI will help manufacturers automate tasks and manage operations with unprecedented efficiency and accuracy.

Last, but certainly not least, is the Internet of Things (IoT).

IoT refers to all the connected devices that make up our modern world—and there are a lot of them!

The incredible amount of data generated by these devices will help manufacturers automate processes and manage operations with unprecedented efficiency and accuracy.

Modern ERP software solutions have been designed specifically with manufacturing in mind, with capabilities that allow you to optimize your processes and automate your core operations.

ERP software in manufacturing is designed with industry in mind. It helps you better manage your processes, ensuring that inventory is used effectively, products are delivered on time, and customers are satisfied.

Inventory management is one of the most important features of modern ERP software. It allows you to track how much product you have and how long before it expires. This can help reduce waste, which saves money and ensures that customers receive the right products at all times.

Modern ERP solutions also allow companies to control their inventory costs by having their own data on how much product is in stock at any time and how long before products expire.

In other words, it’s easy for a company to control its inventory costs by having its own data on how much product is in stock at any time and how long before products expire.

So, there you have it!

The manufacturing industry is evolving at a rapid rate, and ERP software is helping manufacturers keep up with the changes.

ERP in manufacturing has evolved over the years to become more specialised and now there are many features available that were designed specifically for manufacturing.

These solutions will support your company’s growth by helping to reduce costs and provide you with accurate product data.

The benefits of using ERP software in manufacturing are numerous, so explore all of your options and find the solution that works best for you!

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