54 Essential Criteria for Choosing a Manufacturing ERP System
Are you having trouble choosing a suitable ERP manufacturing management and accounting system to run your business? Amidst countless products with similar features, it can be confusing to sort out what’s important and what’s not. Don’t worry, we’re here to help.
Investing in an ERP system is not just a technology decision, but a strategic one that can affect your company for many years to come. An effective manufacturing ERP system will be the “heart” of your business, helping you automate processes, optimize resources, and make smarter decisions.
Let’s dive deeper into the most critical features a manufacturing ERP system should have, so you can confidently choose the best solution and take your business to the next level.
Manufacturing ERP Functionality Comparison Table
Use the table below to compare the features and benefits of manufacturing system vendors.
Download the Manufacturing Management System Evaluation Checklist
| Category | Feature | Detailed Description | Priority |
| Productivity | Intuitive Interface | Easy to learn and use. | Must-Have |
| True Universal Availability | Access to the system from any device, anytime, anywhere to facilitate staff working on the road with customers and suppliers, and at home. | Must-Have | |
| Multi-language Support | Allows you to work in the language that best fits you. Print documents (like invoices) in your customer’s language. | Should Have | |
| Multi-currency Support | Work in any currency and convert as needed. | Should Have | |
| Workflow Automation | Automate business processes, approvals, and notifications. | Should Have | |
| Wiki’s | Share information and company documents among any combination of teams, departments, and external users. | Nice to Have | |
| Document Management | Make documents accessible to all key personnel. | Should Have | |
| Single Database | A single version of the truth. No need to maintain integrations between applications. | Must-Have | |
| Better, quicker decisions and fewer mistakes | Comprehensive reporting to make informed decisions without the guesswork. | Must-Have | |
| Functionality | Multi-entity Management | Support multi-company, multi-warehouse, and international companies, including financial consolidations, intercompany eliminations, and reconciliations. | Must-Have |
| Financial Management | Support standard accounting functions, including General Ledger, Accounts Payable, Accounts Receivable, Cash Management, Tax management, and more. | Must-Have | |
| Quote-to-Cash Cycle | Create quotes, convert to sales order, check inventory availability, perform credit check, manufacture, pick, ship, invoice, and collect payment. | Must-Have | |
| Product Structure Control | Gain control of bills of material (BOM), routings, engineering changes with rules-based product configuration and manufacturing estimating. Multiple levels of BOM for both engineering and costed views of the entire product structure. | Must-Have | |
| Production Planning | Create a master production schedule (MPS) from Rough-Cut Capacity Planning (RCCP) that plans production based on actual and forecasted orders. Schedule against finite capacity constraints with forward and backward scheduling methods to allow flexibility. | Must-Have | |
| Material Requirements Planning (MRP) | Use MRP to create work orders and purchase orders based on the MPS. Track completions, work in process (WIP) and scrap. Eliminate reporting by backflushing labor or material when reporting the production quantity completed. | Must-Have | |
| Inventory Management | Manage inventory, plan and manage movement of goods through distribution network, and control customer and transfer orders. Use multiple locations with lot and serial number tracking. Expired items are automatically removed from available inventory. | Must-Have | |
| Automated Transactions | Automate routine tasks of pick, pack, and ship with hands-free operations. | Should Have | |
| Industry Support | Support industry requirements on a single platform with embedded field service, project accounting, manufacturing, connected commerce storefronts, and native point of sale applications. | Should Have | |
| Product Costing | Track costs, including material, labor, overhead, and outside operations. Analyze and report actual versus expected costs with variances. Use standard, average, specific (actual), or first-in-first-out costing valuation methods. Post costs to the general ledger. | Must-Have | |
| Mixed-mode Manufacturing Support | Support specific industries including make to stock (MTS), make to order (MTO), engineer to order (ETO), job shop, project-centric, repetitive and batch process. Or a combination of them. | Should Have | |
| Procure-to-Pay Cycle | Create requisitions, obtain approvals, convert to purchase order, receive inventory, receive invoice, match and pay. | Must-Have | |
| Extensive Marketplace | Access connected applications for extended functionality to meet your unique business needs, such as barcoding, electronic data interchange, shipping, advanced warehousing, or inventory optimization. | Nice to Have | |
| Integrated Business Intelligence | Go beyond spreadsheets and use integrated BI to understand what the financial and customer data is really telling you, so you can make informed, actionable decisions. | Should Have | |
| CRM combined with ERP | Share a single database between ERP and CRM – no need to synchronize two databases with the same information. | Nice to Have | |
| Technology | True Cloud | All functionality is accessible through the internet using a standard browser without the need for any software installation on the user’s device. No additional software licensing required. | Must-Have |
| Responsive Design | View and interact with every page of the application on any device with a minimum of resizing, panning, or scrolling. | Must-Have | |
| User Interface | Modern look and feel. Customize screens and dashboards. Easy access to tasks with minimal clicks and intuitive workflow. | Should Have | |
| Customizable and Flexible | Ability to modify and customize business logic to meet your company’s unique requirements. | Should Have | |
| Customization using Industry Standard Tools | Perform customizations using industry standard tools and programming languages without requiring the use of proprietary languages or compilers. | Should Have | |
| Full Relational Database | All system data stored in a relational SQL database. Query data for reporting, BI, financial statements, audits, and more. | Must-Have | |
| Database Export | Access and export relational versions of all data for reporting, backup, and transfer. | Should Have | |
| Upgrade on your Schedule | Ability to plan upgrades at dates and times that are convenient to you and your company – not the ERP vendor. | Nice to Have | |
| Capable of moving to the cloud when you are ready | The product should support both on-premise and cloud deployments, and let you switch deployment models if and when you are ready. | Nice to Have | |
| Value | Low Total Cost of Ownership (TCO) | Reduce the total cost of ownership over the foreseeable lifetime of the product (at a minimum 3-5 years), including licensing, support, hardware, upgrade, and hosting costs. | Must-Have |
| Scale as you Grow | Ability to accommodate heavier volumes, more resources, and more users as your business grows. Pay only for what you use. Add more resources when you need them. | Must-Have | |
| Flexible Licensing Options | Offers subscription or perpetual licensing (depreciable capital expense versus an ongoing operating expense). | Nice to Have | |
| Multiple Deployment Options | Deployment methods allow on-premise in your facility, private cloud of your choice, or our public cloud using Amazon Web Services (AWS). | Nice to Have | |
| Preserve Capital for other business initiatives | Cloud deployments reduce the need for initial cash outlay for hardware and software purchases. | Nice to Have | |
| Charged by resources used, not by user | Vendor charges for the resources used, not by user count, making the benefits of ERP available to all employees, customers and suppliers. | Nice to Have | |
| Risk | Predictable Monthly Costs | Not vulnerable to spikes in IT costs. Standardizing on a platform allows you to predict your monthly cost for the system. | Should Have |
| Deploy Quickly | Eliminate time delay and risk of unplanned costs by deploying quickly with a cloud solution. | Should Have | |
| Leverage Global Technology Leaders | Ability to utilize the resources of cloud hosting leaders (Amazon, Microsoft, and IBM) for their fast response and uptime. | Must-Have | |
| Knowledge of your Industry | Reduce risk by using a software vendor with the solutions and knowledge for your specific industry. | Should Have | |
| Customer References | Cites customer successes using their software in your industry. | Nice to Have | |
| Best-in-class Security at no additional cost | Support platform, web, and computer security leveraging expertise at hosting providers. | Must-Have | |
| Data in the Cloud | Data on your servers are vulnerable to attack. | Should Have | |
| Backup and Disaster Recovery | Cloud deployment lowers costs for backup, failover, and disaster recovery. | Must-Have | |
| Simpler integration with other web apps | Utilize web capabilities to integrate with other web-based business applications. | Should Have | |
| Vendor handles updates and upgrades | Eliminate risk of missing an upgrade with a cloud solution. | Should Have |
Are you having trouble choosing a suitable ERP manufacturing management and accounting system to run your business? Amidst countless products with similar features, it can be confusing to sort out what’s important and what’s not. Don’t worry, we’re here to help.
Investing in an ERP system is not just a technology decision, but a strategic one that can affect your company for many years to come. An effective manufacturing ERP system will be the “heart” of your business, helping you automate processes, optimize resources, and make smarter decisions.
Let’s dive deeper into the most critical features a manufacturing ERP system should have, so you can confidently choose the best solution and take your business to the next level.
⚙️ Manufacturing ERP Functionality Comparison Chart
Use the table below to compare the features and benefits of manufacturing system vendors.
Download the Manufacturing Management System Evaluation Checklist
| Category | Feature | Detailed Description | Priority |
| Productivity | Intuitive Interface | Easy to learn and use. | Must-Have |
| True Universal Availability | Access to the system from any device, anytime, anywhere to facilitate staff working on the road with customers and suppliers, and at home. | Must-Have | |
| Multi-language Support | Allows you to work in the language that best fits you. Print documents (like invoices) in your customer’s language. | Should Have | |
| Multi-currency Support | Work in any currency and convert as needed. | Should Have | |
| Workflow Automation | Automate business processes, approvals, and notifications. | Should Have | |
| Wiki’s | Share information and company documents among any combination of teams, departments, and external users. | Nice to Have | |
| Document Management | Make documents accessible to all key personnel. | Should Have | |
| Single Database | A single version of the truth. No need to maintain integrations between applications. | Must-Have | |
| Better, quicker decisions and fewer mistakes | Comprehensive reporting to make informed decisions without the guesswork. | Must-Have | |
| Functionality | Multi-entity Management | Support multi-company, multi-warehouse, and international companies, including financial consolidations, intercompany eliminations, and reconciliations. | Must-Have |
| Financial Management | Support standard accounting functions, including General Ledger, Accounts Payable, Accounts Receivable, Cash Management, Tax management, and more. | Must-Have | |
| Quote-to-Cash Cycle | Create quotes, convert to sales order, check inventory availability, perform credit check, manufacture, pick, ship, invoice, and collect payment. | Must-Have | |
| Product Structure Control | Gain control of bills of material (BOM), routings, engineering changes with rules-based product configuration and manufacturing estimating. Multiple levels of BOM for both engineering and costed views of the entire product structure. | Must-Have | |
| Production Planning | Create a master production schedule (MPS) from Rough-Cut Capacity Planning (RCCP) that plans production based on actual and forecasted orders. Schedule against finite capacity constraints with forward and backward scheduling methods to allow flexibility. | Must-Have | |
| Material Requirements Planning (MRP) | Use MRP to create work orders and purchase orders based on the MPS. Track completions, work in process (WIP) and scrap. Eliminate reporting by backflushing labor or material when reporting the production quantity completed. | Must-Have | |
| Inventory Management | Manage inventory, plan and manage movement of goods through distribution network, and control customer and transfer orders. Use multiple locations with lot and serial number tracking. Expired items are automatically removed from available inventory. | Must-Have | |
| Automated Transactions | Automate routine tasks of pick, pack, and ship with hands-free operations. | Should Have | |
| Industry Support | Support industry requirements on a single platform with embedded field service, project accounting, manufacturing, connected commerce storefronts, and native point of sale applications. | Should Have | |
| Product Costing | Track costs, including material, labor, overhead, and outside operations. Analyze and report actual versus expected costs with variances. Use standard, average, specific (actual), or first-in-first-out costing valuation methods. Post costs to the general ledger. | Must-Have | |
| Mixed-mode Manufacturing Support | Support specific industries including make to stock (MTS), make to order (MTO), engineer to order (ETO), job shop, project-centric, repetitive and batch process. Or a combination of them. | Should Have | |
| Procure-to-Pay Cycle | Create requisitions, obtain approvals, convert to purchase order, receive inventory, receive invoice, match and pay. | Must-Have | |
| Extensive Marketplace | Access connected applications for extended functionality to meet your unique business needs, such as barcoding, electronic data interchange, shipping, advanced warehousing, or inventory optimization. | Nice to Have | |
| Integrated Business Intelligence | Go beyond spreadsheets and use integrated BI to understand what the financial and customer data is really telling you, so you can make informed, actionable decisions. | Should Have | |
| CRM combined with ERP | Share a single database between ERP and CRM – no need to synchronize two databases with the same information. | Nice to Have | |
| Technology | True Cloud | All functionality is accessible through the internet using a standard browser without the need for any software installation on the user’s device. No additional software licensing required. | Must-Have |
| Responsive Design | View and interact with every page of the application on any device with a minimum of resizing, panning, or scrolling. | Must-Have | |
| User Interface | Modern look and feel. Customize screens and dashboards. Easy access to tasks with minimal clicks and intuitive workflow. | Should Have | |
| Customizable and Flexible | Ability to modify and customize business logic to meet your company’s unique requirements. | Should Have | |
| Customization using Industry Standard Tools | Perform customizations using industry standard tools and programming languages without requiring the use of proprietary languages or compilers. | Should Have | |
| Full Relational Database | All system data stored in a relational SQL database. Query data for reporting, BI, financial statements, audits, and more. | Must-Have | |
| Database Export | Access and export relational versions of all data for reporting, backup, and transfer. | Should Have | |
| Upgrade on your Schedule | Ability to plan upgrades at dates and times that are convenient to you and your company – not the ERP vendor. | Nice to Have | |
| Capable of moving to the cloud when you are ready | The product should support both on-premise and cloud deployments, and let you switch deployment models if and when you are ready. | Nice to Have | |
| Value | Low Total Cost of Ownership (TCO) | Reduce the total cost of ownership over the foreseeable lifetime of the product (at a minimum 3-5 years), including licensing, support, hardware, upgrade, and hosting costs. | Must-Have |
| Scale as you Grow | Ability to accommodate heavier volumes, more resources, and more users as your business grows. Pay only for what you use. Add more resources when you need them. | Must-Have | |
| Flexible Licensing Options | Offers subscription or perpetual licensing (depreciable capital expense versus an ongoing operating expense). | Nice to Have | |
| Multiple Deployment Options | Deployment methods allow on-premise in your facility, private cloud of your choice, or our public cloud using Amazon Web Services (AWS). | Nice to Have | |
| Preserve Capital for other business initiatives | Cloud deployments reduce the need for initial cash outlay for hardware and software purchases. | Nice to Have | |
| Charged by resources used, not by user | Vendor charges for the resources used, not by user count, making the benefits of ERP available to all employees, customers and suppliers. | Nice to Have | |
| Risk | Predictable Monthly Costs | Not vulnerable to spikes in IT costs. Standardizing on a platform allows you to predict your monthly cost for the system. | Should Have |
| Deploy Quickly | Eliminate time delay and risk of unplanned costs by deploying quickly with a cloud solution. | Should Have | |
| Leverage Global Technology Leaders | Ability to utilize the resources of cloud hosting leaders (Amazon, Microsoft, and IBM) for their fast response and uptime. | Must-Have | |
| Knowledge of your Industry | Reduce risk by using a software vendor with the solutions and knowledge for your specific industry. | Should Have | |
| Customer References | Cites customer successes using their software in your industry. | Nice to Have | |
| Best-in-class Security at no additional cost | Support platform, web, and computer security leveraging expertise at hosting providers. | Must-Have | |
| Data in the Cloud | Data on your servers are vulnerable to attack. | Should Have | |
| Backup and Disaster Recovery | Cloud deployment lowers costs for backup, failover, and disaster recovery. | Must-Have | |
| Simpler integration with other web apps | Utilize web capabilities to integrate with other web-based business applications. | Should Have | |
| Vendor handles updates and upgrades | Eliminate risk of missing an upgrade with a cloud solution. | Should Have |
❓ Frequently Asked Questions about Manufacturing ERP
Q: What is a manufacturing ERP system?
A: A manufacturing ERP (Enterprise Resource Planning) system is an integrated management software that helps manufacturing businesses manage their entire processes from planning, purchasing, production, inventory, sales, to finance and accounting. The goal is to optimize operations, improve efficiency, and reduce costs.
Q: Why do manufacturing businesses need ERP?
A: Manufacturing businesses need ERP to standardize and automate processes, improve decision-making based on real-time data, manage inventory effectively, control production costs, and enhance competitiveness. It helps integrate information from various departments into a single system.
Q: What makes Acumatica Cloud ERP stand out?
A: Acumatica Cloud ERP stands out with its high flexibility, multi-industry support (make-to-order, make-to-stock, etc.), integrated CRM, and a pricing model based on resource usage rather than user count. The system is built on a True Cloud platform, ensuring global availability and superior security.
Q: How do I choose the right ERP system?
A: To choose the right ERP system, you need to evaluate it based on five key criteria: Productivity, Functionality, Technology, Value, and Risk. Clearly define your business’s specific needs, compare vendors, and look for a solution that can scale with your company’s growth.