ERP vs MES: Which One Can Meet Your Manufacturing Needs?

ERP vs MRP vs MES

Manufacturers will generally think laterally when it comes to their material planning - opting for the more traditional MRP. But, with the current wave of digitalisation, they'll need new ways to optimise their plant-managing process. So, between MRP, MES and ERP, what does the ideal production manufacturing software look like?

MRP

Historically, MRP (Material Requirements Planning) has been the software solution to aid manufacturers in making more precise calculations regarding the materials they need (and in what quantities) on the shop floor. Over time, MRP became MRP II and evolved to include detailed capacity planning, scheduling, shop floor control, and forecast comparison with real-time data that you can analyse to achieve greater operational efficiency. Since the advancement of ERP software in the 1990s and its greater increment in capabilities, MRP has slowly been taking a backseat.

ERP

Traditionally, Microsoft Dynamics 365 and other ERP systems are associated with top-floor management - they are more commonly known for managing office-based activities, order processing, invoicing, and customer relationship management.
They’re not often thought capable of supporting the manufacturing side of a business. Or, at least, this is the misconception that people have. But, in fact, manufacturing ERP solutions have all the functions of an MES and more, managing the whole organisation - top-floor and shop-floor.

MES

In many ways, an MES (Manufacturing Execution System) is regarded with more reverence than ERP software, at least in the circles of less modernised manufacturing technicians. Like ERP software, an MES monitors, tracks, and manages various cogs of the manufacturing shop floor - acting as the overseer of raw materials and goods assembly.

What can manufacturing ERP software solutions bring to the table?

The forecast for the future of the manufacturing market indicates digital transformation is desperately needed. If you want to see profit and productivity, a system as efficient as ERP software is required.

Risk Mitigation

With the ability to track materials across your shop floor and top floor with crystal clarity, ERP manufacturing software solutions have the dexterity for data collection needed to see the greatest ROI. Manufacturing ERP can bridge the gap between the business and manufacturing worlds, unifying all aspects of the brand by automating operations to reduce human error. ERP software monitors compliance regularly (and through a single system) to ensure the assembly line and offices are adhering to regulations, thereby counteracting risk potentials.

Command Your Inventory With Authority

With ERP software, the fundamental questions of equipment maintenance, next steps, production locations, and inventory will be answered. Plant workers and shipping can be scheduled, and you can get insight into raw materials to allocate resources appropriately to cut down costs. ERP for manufacturing can be a very reliable workhouse to purchase, plan, monitor, and manage stocks within the assembly line that are in the highest demand.

CX Optimization

Thanks to accurate forecasting, better production planning and control, consistent efficiency, and better decision-making, the best ERP for manufacturers such as Syscom ERP8 lets manufacturers be punctual with their delivery dates, doubling down on customer satisfaction as a bonus.

Team Collaboration

By allowing your entire team, from the shop floor to the top floor, to work from one centralised database, everyone is on the same page and open collaboration is encouraged. Sharing information, transparency, and reporting on financial KPIs enables management to make better decisions. With the many add-on modules available, ERP solutions for manufacturing are capable of amazing things.

Naveen Poonian, CEO of iBASEt, said: “This lack of digital maturity is slowing manufacturers down, leading to increased errors, and making it increasingly difficult to attract the next generation of talent. All of this adds up to a loss of trade, a dip in company performance, and leadership positions coming under threat. This will continue to be the biggest barrier to industry productivity in the years to come.”

It’s becoming clear that, unless shop floor technicians can find a system that can speak their language, the industry will be facing issues.

So, how can ERP software help?

Investing in a manufacturing ERP system is no small matter. Therefore, it is crucial that decision-makers remain informed about the needs of their industry and get the most out of what they are spending. That way you can reap the benefits of increased efficiency, an enterprise-wide view of your entire company, and a leap in customer service. By streamlining and interlinking your operations, an ERP system can simplify complex procedures and bring the manufacturing industry into the modern age.

Syscom have over 40 years of experience working in the manufacturing industry

Syscom enables manufacturers to take control of their production process at every stage to ensure a cost-effective and optimised approach. We have supplied ERP software solutions and support to bespoke and complex manufacturers. 

If it sounds like ERP software from Syscom could be suited to your manufacturing setup and you'd like to discuss it further, get in touch with us today on 01384 400 600, email info@syscom.plc.uk or submit a contact form below.