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Manufacturing ERP Software Modules | Benefits of ERP in the Manufacturing Industry

Manufacturing process is the heart of any Country’s economy and makes a difference to its GDP and growth. It generates products that could be exported and gives a boost to local economy. It generates an employment and grows social economy. Even USA wants to be number one in manufacturing industry by 2020 surpassing China. So there is specific need of an ERP for Manufacturing process as the manufacturing has become complex with multi location, multi product lines, multi vendors with customer deliveries in short period. Question is, what modules are contained in a Manufacturing ERP?

Manufacturing ERP

ERP Software for Manufacturing Industry

There are major 2 types of Manufacturing process.

  1. Process manufacturing – Why this model is good?
    1. This uses formulations or Recipes for the Finished Goods reporting. So technically once the Finished Good is reported, we cant take it back to RM stages.
    2. You can have complex BOM with multiple levels.
    3. Very less reporting of individual process.
    4. Less subcontracting / outsourcing options.
  2. Discrete manufacturing – This will have the Bill of Materials with assemblies, manufacturing, subcontracting etc.
    1. It is quite possible to handle multi level BOMs and its complex assembly and manufacturing process.
    2. One of the major advantage is some process can be outsourced to any other subcontractor without affecting the quality.

Today’s most of the business follow Discrete manufacturing process with BOM, its configuration etc. has many customers from Discrete manufacturing like

  1. LED Lights manufactures
  2. OEM Auto component suppliers
  3. Motors manufacturing units
  4. Forging and extrusion business
  5. Large Machine Manufacturers
  6. Subcontractors
  7. Project based deliveries etc.

Manufacturing ERP contains the following modules to begin with.

Below details gives an idea on the modules that are part of Manufacturing ERP’s.

  1. Bills of Materials (BOM) and basic product setups.
  2. Manufacturing module– if you are manufacturer of a product then you need these modules. Manufacturing basically covers three segments in any factories.
    1. In-house production –Bill of Materials, Finished Goods receipts, Work Orders etc.
    2. Subcontracting Operations – manage your subcontracting operation and track your inventory.
    3. Jobwork – One of the biggest issue with Jobwork operation is managing customer materials and how much its consumed. AcTouch.mfg handles it very efficiently.
  3. Inventory Control and Stock management– Optimise the Inventory process and controls. Manage Raw Materials, Consumables, Finished goods, Tools and Dies etc. Inventory control is the heart of the ERP as it drives the costing too.
  4. Quality – Quality is an important subject to handle in ERP for manufacturing. Typically Quality Checking happens at multiple levels in business like during Receipt of materials, FG reporting, production stages etc. Many times, goods are received at Inspection location and only after their clearance the stock goes to Stores.
  5. Sales and Invoices – Handles Sales Orders, Invoices and Sales Returns. These are integrated transactions and helps to manage Inventory and Customer receipts.
  6. Purchase and Goods Receipts – Procure the materials based on Purchase indents and PO. Once the materials come to store, pay the money based on the goods received.
  7. Payments and Receipts – All the payments towards Suppliers, Service providers, expenses and Customer receipts and other incomes are booked here.
  8. General Ledgers – All the transactions that are originated from Inventory Transactions, Goods Receipts or Shipment / Invoicing, Financial transactions have an impact on Financials. These transactions are consolidated to generate Balance sheet, Profit and Loss sheet etc.
  9. Financial control and reports – All the reports like Cash-flow reports, Financial Ratios, Debtor Creditor reports etc. need to be checked regularly.
  10. GST / Taxes – Purchase Receipt (Goods receipts) or Invoicing, Payment and Receipt have an impact on the taxes as we have to either Pay taxes or collect and Pay taxes to govt. Many times, we can pay the net amount based on the tax collections.

Manufacturing ERP Systems for Small and Medium Enterprises.

Benefits of ERP in the Manufacturing Industry.

Why, Manufacturing ERP is good for businesses?

  1. Good for Single site or Multi site Manufacturing Business (multiple geographic locations)
  2. Reduces Manufacturing cost significantly by tracking the cost by ABC method. (Activity Based Costing)
  3. Improves inventory management process. Helps to identify the bottleneck in managing Inventory and avoid it
  4. Optimum sales tracking and management. Sales Quotes helps to manage the business easily.
  5. All the modules are integrated together and it helps to generate a accurate and faster revenue details.
  6. Seamless and automated Accounting and financial statements.
  7. Gain real-time visibility and key metrics
  8. Reduces manufacturing bottlenecks and inventory problems.

Fix your product demo at your convenience.

More information, click here

  1. Check here the’s ERP Features

  2. How to implement an ERP Software that’s easy and quick to do?

  3. Problems that are faced by an ERP implementation

Call us at +91 90360 12094 or email us at for more details.

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AcTouch Technologies is a start up company based in Singapore with its development centre at Bangalore, India. We focus on SMEs with our cloud ERP solutions. Today many SMEs of USD 100K to 10 Million are depending on us Company Founders have Management and Engineering degrees from prestigious colleges like INSEAD Business School France, NUS Singapore, BITS Pilani etc. Prior to starting this company, Founders have worked for 20+ years in large MNCs & Indian IT Big companies (Infosys Technologies, Misys, Thomson Reuters etc) and managed multi-million dollars of Software business heading APAC Regions.