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An Introduction to Enterprise Resource Planning for Manufacturing Industry

February 3, 2023 by
An Introduction to Enterprise Resource Planning for Manufacturing Industry

The manufacturing process is making end products from core raw materials having complex operations, like managing raw materials, machinery and Maintenance, Human resources, and at last the end product stock.

To manage the entire process smoothly manufacturing business requires an dedicated Manufacturing ERP System that manages all tasks by coordinating every aspect.

Choosing a perfect software can be complex as the market is full of ERP solutions. So, opting for the right ERP must be smart as it must manage the complexity of production, plan manufacturing orders, track work orders, and more. Odoo is one of them, being an open source it can be customized and integrated with your business requirements having a budget-oriented implementation cost.

When is a Manufacturing Company Ready for ERP?

Manufacturing ERP Software is designed to manage manufacturing operations. When existing business processes and systems are inadequate for manufacturing management, manufacturers should consider ERP software if:

  • No longer function or function inefficiency (throttling/bottlenecking)

  • Insufficient and inaccurate data affecting your company's performance

  • It is taking too long to find the right information

  • Regular mismanagement in inventory, sales & customer satisfaction

  • Currently, there are no security requirements to mitigate risk

  • Disruption in Integration of Operations & Locations

  • Difficulty in analyzing organization workflows

  • Cost controlling issues

  • Ensuring Optimum Utilization of Resources

Benefits of using Manufacturing ERP System

An integrated manufacturing ERP system provides many operational and financial benefits, both at the micro and large scales. ERP has several notable benefits for manufacturing companies, such as:-

  • Minimizing redundancy and automating processes to increase the effectiveness

  • Optimizing manufacturing operations for enhanced productivity

  • ERP software gathers data across all business processes in digital formats.

  • Improving the entire manufacturing process from the supply chain, and transportation, to  inventory management

  • Mitigating risk and increasing confidence around compliance

  • Providing better service to customers 

  • Capturing real-time reports and data for operations that you can quickly access

  • ERP Centralizes all information by integrating departments for enhanced visibility and communication providing easy access anytime from anywhere. 

  • Gaining the capability to acclimatize when faced with changes or dislocations in the business terrain

In fact, Manufacturing ERP systems streamline operations and enhance quality while enabling manufacturers to increase revenue and grow their business.

How Odoo ERP is critical for Manufacturing Industries.

With the growth of manufacturing companies, management operations have become more dispersed. Odoo ERP for the manufacturing business is a CCS (centralized control system) that runs business conditioning, easily maintaining every aspect from material sourcing, purchasing, account, invoice, and other mortal operations for the manufacturing business.

Odoo ERP offers multiple modules for managing the business effectively. All modules are integrated with each other to regulate & smooth the entire data.

Manufacturing industries face numerous challenges like any other assiduity. With Odoo Manufacturing, you can overcome these challenges to manage your business workflow.


1. Smooth Integration of manufacturing operations, and Locations

Some large manufacturing companies are located globally and work on different ERP systems. As a result, data is kept in silos, and information is not properly flowed between departments and locations. Companies can’t implement standard processes across the organization.

So, Odoo being open-source software assists businesses by coordinating important processes of manufacturing organization such as planning, production, purchasing, inventory, sales, marketing, finance, human resources, and gathering data from various departments, locations, and business verticals. Also, it helps in organizing data and sales analysis and improves better communication across multiple departments. 

2. Organizing inventory management

Manufacturing organizations must ensure optimum inventory levels to ensure continuous product production. ERP software, however, allows manufacturers to monitor inventory in production lines, warehouses at different locations, in transit, etc. in real time. The purpose of the inventory is to store raw materials and finished goods in a manufacturing business. Managing multiple warehouses and stock transfers can be done with Odoo ERP. 

You will have real-time, accurate knowledge of inventory & items in stock across an organization. Odoo ERP Software also provides a variety of inventory management reports to understand trends and take corrective measures to ensure that manufacturers can maintain/regulate optimum inventory,  reduce inventory-related costs, and improve profits.

3. Enhanced production planning and scheduling

Production planning plays a vital role as it creates an efficient process for production according to the customer and organizational needs. It optimizes both customer-dependent processes like- on-time delivery and customer-independent processes, such as production cycle time. 

Odoo assists with the combination of procurement exercises for unrefined substance obtainment. Also, it helps to plan the production calendar, and capacity scheduling and also helps with delivery date calculation according to our production plans.

4. Operations Management 

The assembling Manufacturing business with a ton of machines and gear the board requires far-reaching upkeep for the executives. Odoo ERP empowers the client to coordinate machine upkeep with assembling. This supports the client to utilize forestalling and remedial upkeep systems to deal with a wide range of upkeep exercises. In addition to that, it also allows the management of scrap and disposal strategies along with automated time tracking of manufacturing a unit product.

5. Improved financial management: 

ERP systems can integrate and automate many of the key financial processes in a manufacturing organization, such as accounting, budgeting, and reporting. This can help manufacturers gain a better understanding of their financial performance, and can enable them to make more informed decisions about how to allocate resources and invest in growth.


6. Better supply chain management 

ERP systems can provide visibility into the entire supply chain, from raw material suppliers to finished goods distributors. This can help manufacturers identify bottlenecks and inefficiencies in their supply chain, and can enable them to make better-informed decisions about how to optimize their production processes.

7. Reporting & Forecasting

For better strategic decisions, the business needs to analyze reports to contemplate the paydown of significant debt, restructuring of debt or ownership, raising of capital, or the ability to take advantage of future growth opportunities on the horizon.

Such analyses are significant for organizations in creating the ability to see revenue earned based on the percent complete on work in progress on a timely basis. This helps businesses to examine and forecast to make an initial investment in a product launch and to build a team to deliver a product.

8. Ensure customer support

Customer satisfaction decides the outcome of a business. Odoo with proper product life cycle management and quality management is certain to win customer satisfaction. This ERP solution also provides contact management, quotations, and order management.


Are you in need of software to simplify your business operations? We have lots of ready software with us.

Serpent Consulting Services Pvt. Ltd is Odoo Gold Partner providing various Odooservices in more than 175+ countries. Our services include OdooTraining, OdooSupport, Odoo Migration, Odoo Customization, Odoo Implementation, Odoo Integration, Odoo Development, and offshore.

How can Odoo fit into your business? To know more, check our Demo Videos on our YouTube Channel