As small manufacturing businesses grow and become more complex, it becomes increasingly difficult to manage all aspects of the operation manually.
This is where Enterprise Resource Planning (ERP) software comes in, providing a suite of integrated applications to help streamline and automate processes.
However, finding the right ERP software for a small manufacturing business can be a daunting task. In this article, we’ll explore the key features to consider when choosing ERP software for a small manufacturing business and highlight some of the best options available.
Key Features of ERP Software for Small Manufacturing Business

Production Planning and Scheduling
The heart of any manufacturing business is production planning and scheduling. ERP software should provide tools to help manufacturers optimize production schedules, manage materials, and minimize downtime. This includes features like:
- Material requirements planning (MRP) to ensure that the necessary raw materials are available for production
- Capacity planning to ensure that machines and personnel are available when needed
- Real-time monitoring of production processes to identify bottlenecks and delays
- Automated scheduling to optimize production based on available resources
Inventory Management
Effective inventory management is critical for small manufacturing businesses. ERP software should provide real-time visibility into inventory levels, including raw materials, work-in-progress, and finished goods. This allows manufacturers to avoid stockouts, minimize excess inventory, and reduce carrying costs. Key inventory management features to look for include:
- Real-time inventory tracking and reporting
- Automated inventory replenishment based on demand
- Support for multiple warehouses and locations
- Barcode scanning for fast and accurate inventory tracking
Supply Chain Management
ERP software can also help small manufacturing businesses manage their supply chain, from purchasing raw materials to delivering finished products to customers. Key supply chain management features to look for include:
- Vendor management to track supplier performance and ensure timely delivery of materials
- Purchase order management to automate the purchasing process and reduce errors
- Shipping and logistics management to optimize delivery schedules and reduce costs
- Customer relationship management to track orders, invoices, and customer interactions
Financial Management
ERP software should also provide robust financial management tools to help small manufacturing businesses stay on top of their finances. This includes features like:
- Accounts payable and receivable management to track payments and invoices
- General ledger accounting to manage budgets and financial statements
- Tax management to automate tax calculations and reporting
- Cost accounting to track expenses and margins
Best ERP Software for Small Manufacturing Business
NetSuite
NetSuite is a cloud-based ERP solution that provides a full suite of integrated applications, including financial management, inventory management, production planning, and supply chain management. NetSuite is ideal for small manufacturing businesses that need an all-in-one solution that can grow with them as they expand. Some key features of NetSuite include:
- Real-time inventory tracking and reporting
- Automated production scheduling and planning
- Supply chain management with vendor and purchase order management
- Financial management with accounting, invoicing, and tax management
Acumatica
Acumatica is a cloud-based ERP solution that provides a flexible, customizable platform for small manufacturing businesses. Acumatica is particularly well-suited for businesses with complex supply chains or manufacturing processes that require a high degree of customization. Some key features of Acumatica include:
- Real-time inventory tracking with barcode scanning
- Production planning and scheduling with MRP and capacity planning
- Supply chain management with purchase order and vendor management
- Financial management with accounts payable and receivable, general ledger accounting, and tax management
IQMS
IQMS is an all-in-one ERP software designed specifically for small manufacturing businesses. IQMS provides a comprehensive suite of integrated applications, including production planning, inventory management, supply chain
Certainly, here is the continuation of the article about “ERP software for small manufacturing business.”
Benefits of using ERP software for small manufacturing businesses
Implementing ERP software for small manufacturing businesses can have several benefits. Here are some of the advantages:
1. Improved inventory management
One of the most significant advantages of using ERP software is better inventory management. With the help of an ERP system, small manufacturing businesses can track their inventory levels in real-time and ensure that they have enough stock to fulfill their orders. This can help reduce inventory carrying costs and prevent stockouts.
2. Streamlined production processes
ERP software can help small manufacturing businesses streamline their production processes by automating repetitive tasks, such as data entry, and reducing the risk of errors. This can help increase production efficiency and reduce lead times, allowing businesses to deliver products to customers faster.
3. Increased visibility into business operations
ERP software can provide small manufacturing businesses with increased visibility into their business operations. With real-time access to data, businesses can monitor their performance and make informed decisions based on accurate and up-to-date information. This can help businesses identify areas for improvement and optimize their processes to reduce costs and increase profitability.
4. Improved collaboration
ERP software can improve collaboration between departments by providing employees with access to the same information and ensuring that everyone is on the same page. This can help reduce communication errors and improve productivity.
5. Better customer service
ERP software can help small manufacturing businesses provide better customer service by providing them with real-time access to customer information. This can help businesses respond to customer inquiries more quickly and accurately and provide personalized service to their customers.
How to choose the right ERP software for small manufacturing businesses
Choosing the right ERP software for small manufacturing businesses can be a daunting task. Here are some factors to consider when selecting an ERP system:
1. Industry-specific functionality
When selecting an ERP system, it is important to choose one that has industry-specific functionality. This means that the software is designed to meet the unique needs of small manufacturing businesses, such as managing inventory, tracking production schedules, and generating bills of materials.
2. Scalability
Small manufacturing businesses should choose an ERP system that can grow with their business. The software should be scalable and flexible enough to accommodate an increase in production volume and the addition of new products.
3. Integration capabilities
ERP software should be able to integrate with other business systems, such as accounting and customer relationship management software. This can help ensure that all data is accurate and up-to-date and that business processes are streamlined.
4. User-friendliness
Small manufacturing businesses should choose an ERP system that is user-friendly and easy to navigate. This can help reduce training time and ensure that employees can quickly learn how to use the software.
5. Cost
Cost is always an important consideration when selecting an ERP system. Small manufacturing businesses should choose a system that is within their budget and provides the features they need to run their business effectively.
Conclusion
ERP software can be a game-changer for small manufacturing businesses. With the help of an ERP system, businesses can streamline their processes, improve collaboration between departments, and provide better customer service.
When selecting an ERP system, small manufacturing businesses should consider industry-specific functionality, scalability, integration capabilities, user-friendliness, and cost. By choosing the right ERP software, small manufacturing businesses can optimize their operations, reduce costs, and increase profitability.