Manufacturing ERP Software Vs Generic ERP: What’s The Difference?

ERP systems, when properly implemented, introduce a host of benefits. Manufacturing businesses, in particular, can expect increased operational efficiency, improved visibility, and sustainable growth. However, each of these advantages can only be unlocked when manufacturers get the right ERP for their business.

One of the most common mistakes they make is believing that every (or any) ERP system can support the management of core manufacturing operations. The truth is, generic ERP only provides a broad set of functionalities that match templatized processes industries follow at large. They struggle to keep up with the slightest of variations. So for manufacturers with specialized processes, generic tools are not the best choice.

Meanwhile, modular ERP systems are purpose-built to handle complex production processes. Just like ERPion does, the most customizable ERP that Ontario manufacturers use. In today’s blog, we will highlight how custom systems differ from generic tools and which one businesses should get.

What Is A Generic ERP System?

A generic ERP system is a simple tool designed to support the processes of a broad range of manufacturing sectors. They only feature core functional modules, which include:

• Customer management 
• Inventory tracking 
• Finance management 
• Reporting and analytics
• Supply management

While they can seem a good starting point for most businesses, manufacturers should bear in mind that generic systems are built around standardized processes only. That means they might not be able to handle the demands of businesses with complex manufacturing operations.

What Is Manufacturing ERP Software?

Manufacturing ERP software is a dedicated tool designed to fulfil the requirements of production-focused businesses. In addition to the features of traditional ERP, they offer a host of extra functionalities, which include:

• Shop floor management 
• Production planning 
• Work order management 
• BOM management 
• Tracking quality control 
• Production scheduling 
• Custom approval routing, etc.

These features allow manufacturers greater control over complex operations from a single, easy-to-control platform. They also improve visibility across the entire production process.

What Are The Differences Between Generic & Dedicated Manufacturing ERP Software?

Generic and dedicated manufacturing ERP software are as different from each other as chalk and cheese. While the former works for manufacturing businesses with simple operations, the latter accommodates the increasing demands of growing organizations.

Production management

The key difference between generic and manufacturing ERP software lies in their production management capabilities. While generic software supports inventory and order management, it lacks the capacity to support custom or unique workflows. On the other hand, manufacturing ERP offers detailed functionality that extends to cover production scheduling, work order management, machine utilization, resource allocation, and more.

Operational flexibility

Identical workflows are mostly unheard of when it comes to manufacturing businesses. Most of them follow custom production methods, unique workflows, make-to-order processes, contract manufacturing, and multi-stage production cycles, which generic ERP was not built to handle. Modular ERP gives manufacturers the flexibility to configure workflows as they like, thus ensuring software’s processes match their operational realities.

Extra functionalities

The feature set of generic ERP is quite rigid and limited. It often lacks support for BOMs, inventory complexity, and quality control and traceability that modular systems provide. Highly configurable, tailored ERP provides visibility into and control over every single manufacturing process, thereby eliminating the need for manual overrides and human errors.

Which ERP System Is Better?

As for which ERP is better, the answer to this question depends entirely on the operational requirements of a business.

For example, generic ERP is suitable for businesses with:

• Straightforward operations 
• Limited manufacturing activities 
• Simple production planning 
• Basic inventory requirements

On the flipside, manufacturing ERP software is better for businesses with:

• Complex production processes
• Multi-stage inventory tracking requirements 
• Priority quality control and capacity planning demands
• Long-term scalability goals

If manufacturing complexity lies at the heart of the business, manufacturing ERP software guarantees better return on investment.

Conclusion

Generic ERP is most certainly valuable for businesses with simple manufacturing operations. It fits into their budget and functionality requirements. However, for growing organizations, generic systems can be a limiting factor. They need modular systems such as ERPion – a tried and tested manufacturing ERP that Ontario businesses rely on. Not only does it resolve the unique challenges businesses struggle with, but it also improves visibility, quality control, and data reliability, among others. Contact us to learn how ERPion can help manufacturers reduce costs and scale confidently.

FAQs

Can a generic ERP system be customized for manufacturing?

While generic ERP can be customized, such customizations are often very expensive and complicated to implement.

Does manufacturing ERP software support multiple production facilities?

Yes. In fact, centralized support for multi-plant production operations is one of the hallmark features of modular manufacturing ERP.

How does manufacturing ERP improve forecasting?

Manufacturing ERP combines data from different departments, including inventory, sales, and production, to generate accurate demand and resource forecasts.