Why is ERPNext a Great Choice for Manufacturing Businesses?

· 10 min read


Are you fed up managing manual sheets, data and hectic production management processes? Get ERPNext: an open source cloud-based ERP software solution to streamline your business at one centralized platform and move ahead towards productivity and increased revenue stream today!


Manufacturing businesses over the years have witnessed remarkable growth and transformation, magnetizing a major hike in the economy of the global business world.

The next question that comes to mind is, How?

And the answer is ERPNext Manufacturing Software implementation.

In this era of technical advancement, ERPNext manufacturing software has come up as a driving force for manufacturing businesses worldwide that have been struggling hard to manage their business operations. Keeping a fast pace to drive efficiency by supreme optimization of inventory, supply chain, CRM, warehouse management, quality analysis, delivery, HR, accounting and payroll, ERPNext has been offering an all-in-one solution to locate and plan all functions in one place.

The smart manufacturing market is expected to grow to US $365.22 Billion by 2028.

In this article, let’s discuss all ERPNext manufacturing software, its utility, implementation and its role in overall challenges that come in the way to increase efficiency and production.

Overview of ERPNext Manufacturing Software

ERPNext is an innovative open-source cloud ERP software that comes up with almost everything you need to run your business. This ERP software covers various modules such as inventory management, sales, purchasing, accounting, project management, manufacturing, CRM, HR, and payroll modules to streamline your business operations.

Acting as a central hub, ERPNext manufacturing software connects various industrial processes, departments and data to bring out seamless collaboration and efficiency across the organization.

Giving a clear window of how your business is running, manufacturing ERPNext software implementation has proven to be a boon for the growing industries worldwide.

The user-friendly interface, unique features, and easy and fast implementation are some key highlights of ERPNext, making it the best ERP for manufacturing industries.

Let’s come to know, “Why is ERPNext a great choice for manufacturing businesses?”

1. Customization

The ERPNext system’s open-source feature provides enterprises unparalleled flexibility and endless customization possibilities. All businesses have particular requirements, and ERPNext can be customized to cater to their needs. This feature ensures that companies have ERPNext for manufacturing industry solutions that fulfil their requirements rather than trying to fit their processes into the software.

Every business type has a different work model than the other. Fields which can be customized with ERPNext manufacturing software implementation are:

  • Master Data: With ERPNext manufacturing software, you can customize the master data fields such as description, item codes, product names, pricing details and unit of measure. It ensures the fact that your system is properly aligned with unique product categories.
  • Bill of Material (BOM): ERPNext allows manufacturing businesses to customize the bill of materials and add additional attributes to capture product-related information easily.
  • Work Order: Fields related to creating work orders, allocation and tracking can be easily customized with ERPNext to match the workflow and capture additional job-related instructions.
  • Production Planning: With ERPNext, businesses can customize production planning fields like product lead times and Master Production Schedules (MPS).
  • Inventory Management: Field related to stock movement, inventory tracking can be customized with ERPNext to capture the additional inventory-related data.
  • Quality Control: Manufacturers can define their specific quality standards, test parameters and inspection criteria based on the quality assurance processes.
  • Vendor and Supplier Management: With ERPNext implementation, fields related to vendor information, pricing, lead time and performance metrics can be customized per the business requirements.
  • User Interface: ERPNext allows manufacturing businesses to customize the user interface to match the design and branding preferences.

2. Production Planning

ERPNext plays a vital role in effective production planning and scheduling for manufacturing businesses to optimize work operations and ensure customer expectations. Providing a comprehensive set of features and tools, ERPNext manufacturing software implementation enables the manufacturing industries to create production schedules, track work-in-progress, and adjust production requirements based on changing demand. It includes:

  • Bill of Materials (BOM): It allows manufacturers to specify each product's raw materials, resources and components. It ensures efficient and accurate resource planning.
  • Capacity Planning: With real-time insight into production resources like labour and machinery, ERPNext effectively assists in capacity planning. It helps to align the production schedules with available capacity to prevent underutilization and overloading.
  • Master Production Schedule (MPF): It is a comprehensive plan outlining all production activities in a specific period, enabling the manufacturers to determine inventory levels, sales forecasts and resource availability.
  • Work Order Management: With ERPNext, manufacturers can plan work orders, outlining the tasks, quantities, and timelines required to complete the production process.
  • Lead Time Management: The ERPNext software for the manufacturing industry helps to manage lead times for the components and raw materials, determining the production timeframes and supplier lead times.
  • Real-time Visibility: The ERPNext software for manufacturing business allows the manufacturers to discover the production progress, resource availability and work orders.
  • Integration with Inventory and Sales: With ERPNext, you can easily integrate production planning with sales and inventory operations. When a sales order gets received, the system automatically generates work orders and updates inventory parameters accordingly.

3. Data-driven Insights

The ERPNext Manufacturing Software uses data-driven analytics in different domains allowing organizations to analyze their business performance and highlight areas for improvement. Advanced analytics assist in capacity planning, demand forecasting, business intelligence, and sales and operation planning.

  • Real-time Analytics: With ERPNext implementation, manufacturing industries can access up-to-date information on inventory, sales, production and other key metrics.
  • Customizable Dashboards: Manufacturers will be offered customizable dashboards to observe KPIs and performance metrics for all departments. It helps in visualizing the critical data and identifying major issues or trends.
  • Sales and Inventory Analysis: With ERPNext, industrialists can easily identify the top-selling products, sales trends and customer preferences.
  • Cost Analysis: This insight helps evaluate each production order's price structure.
  • Supplier Performance Analysis: It provides data on supplier performance like delivery, accuracy, pricing and lead time. With this, manufacturers can optimize procurement processes and evaluate supplier relationships.
  • Production Efficiency Analysis: It helps to optimize production processes and discover the areas of improvement, along with tracking resource allocation and production cycle.

4. Traceability

Traceability is another crucial aspect of the manufacturing business, especially in the aerospace, food, and pharmaceutical industries. This feature of ERPNext for manufacturing businesses enables users with complete traceability from raw materials to end products and allows tracking of each component’s origin and location. Tracking a product at every stage of stock movement is necessary for effective inventory management.

Production traceability keeps track of each component, from manufacturing processes to the successful delivery of the product. It also enables you to isolate expired or near-to-expire products to utilize resources properly. The users can monitor the whole production process to the inventory distribution process using serial numbers and lots.

5. Quality Control

In today’s business environment, quality control is a significant aspect of ensuring operational efficiency. Implementing technology that aligns with an organization’s business strategy can help drive the business forward. Quality control in ERP systems implementation is associated with testing and rectifying errors.

An acceptance criteria value is set for material in the quality inspection template. ERPNext will fetch this template to compare the reading value of material which needs to be checked. It will only be accepted if this material qualifies for the criteria. Maintaining order quality is important to increase revenue, reduce costs, and improve productivity. ERPNext also helps to speed up the reporting cycles, provide insights into numbers, and manage budgets, records, and financial statements.

6. Integration with Other Businesses

ERPNext comes with seamless integration features. It can be easily integrated with other existing business processes. This open-source cloud ERP software is quite adaptable, and you can switch from one to the other whenever you want. ERPNext has a host of in-built integration, so your business can be integrated with existing apps like Razorpay, Slack, Google, Paypal, Shopify, etc. This feature makes it a versatile, robust solution designed for power and simplicity.

This integration feature of Manufacturing ERPNext software ensures that all business operations are linked, providing you with a complete overview of your system. ERPNext integrates a wide range of ERP modules and functionalities into a single platform.

7. Cost-Effectiveness

A significant benefit of ERPNext is cost savings and affordability. Being a free and 100% open-source ERP system implies that businesses can avoid high licensing costs, reducing overall costs. With ERPNext, organizations can allocate their resources more efficiently, utilizing funds for other important areas like innovation and expansion.

ERPNext can eliminate the cost burden which is associated with traditional ERP systems. Unlike other open-source that may require additional plugins or modules at extra cost, ERPNext provides a complete package without any hidden cost.

8. Real-time Inventory Management

ERPNext offers an efficient solution to manufacturing businesses to optimize inventory processes, enhance productivity and reduce costs. The real-time inventory management solution includes the following:

  • Real-time stock updates of goods or products in received, produced and sold category
  • Inventory control and planning to prevent overproduction and minimize excess inventory
  • Batch and serial number tracking to maintain quality and compliance
  • Work order management with resource allocation and reducing delay in production
  • JIT inventory management for reducing inventory levels
  • Demand forecasting to anticipate customer needs and to prevent stocks for the efficient use of resources
  • Real-time evaluation of COGS (Cost of Goods Sold) to get insight into inventory-related expenses and profitability
  • Set up alerts and notifications for low stock levels, critical inventory events and expiring batches.
  • Vendor management to maintain accurate information about lead times, suppliers and procurement costs.
  • Conclusion

    Continuous growth and sustainability are the aims of every manufacturing business for which ERPNext has become a driving factor. Being an all-in-one business management solution, ERPNext covers all areas of a supply chain, from manufacturing to distribution, CRM to financials, and HR to inventory management.

    If you want to grow your manufacturing business with ERPNext, contact NestorBird for a free consultation today!

    How can NestorBird help with ERPNext implementation?

    NestorBird is a frappe-certified company that offers the best ERP solutions to cater to specific business needs. We have a certified team of expert ERP developers, consultants, and a support team who find the solution that best fits your needs and budget.

    If you are looking for ERP solutions, reach us at or Call/SMS/Whatsapp at +91-9878990102 to book a free ERPNext manufacturing Demo today!

    Frequently Asked Questions (FAQ’s)

    Being an open-source ERPNext does not require a hefty license fee. It is 100% free.

    ERPNext reduces lead times by streamlining the quoting and engineering process and increasing overall efficiency.

    ERPNext is the world’s best 100% open-source ERP system for manufacturing, retail, education, food and wholesale business. Its customization feature allows companies to get tailored ERP solutions according to their work models.

    ERPNext, Oracle NetSuite, Oracle, SAP, Epicor, Acumatica, Sage, IFS Cloud, Odoo, and Infor Cloudsuite are among the top ERP software vendors.



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