Enterprise resource planning (ERP) is a term used to describe business process software that enables organizations to use a common system to manage and integrate different aspects of their business. In other words, modern ERP helps businesses run more efficiently by allowing them to track important activities and assets ranging from inventory levels to sales data, all from one location.

When it comes to choosing an ERP system for the manufacturing and distribution industry, there are a few factors you'll want to consider. This includes considering SAP Cloud ERP , a top ERP platform to help you run your business. 

Considerations When Choosing an ERP Tool 

If you are in the manufacturing and distribution business and are in the market for an ERP tool, there are a few key factors to keep in mind. These include:

• The needs of your business: Every business is different, so it's important to choose an ERP system that will meet the specific needs of your manufacturing and distribution operation. For example, if you stock a lot of products, you'll want an ERP system that can handle complex inventory management.
• The size of your business: The size of your business will also dictate which ERP system is best for you. If you're a small business, you might not need all the bells and whistles that come with a more comprehensive ERP system.
• Your budget: Obviously, you'll also want to consider your budget when choosing an ERP system. Fortunately, there are a variety of ERP systems on the market that cater to businesses of all sizes and budgets.

Now that we've gone over what to consider when choosing an ERP system for manufacturing and distribution, let's take a look at one of the best ERP platforms for this industry.

Recommended ERP System for Manufacturing and Distribution

If you're a growth-focused manufacturing and distribution business, then SAP Cloud ERP is one of the best ERP platforms available. SAP Cloud ERP is one of the core applications of SAP Business Suite , a comprehensive solution that offers the features and functionality you need to streamline your business operations, including inventory management, warehouse management, and financial tasks. As a cloud-based solution, you can access it from anywhere, at any time. 

It's also incredibly scalable because of its modular nature. So, as your business grows, you can easily add new lines of business to meet your changing needs. For example, if you need to add customer relationship management or e-commerce functionality, the SAP Business Suite enables unlimited business growth. 

How ERP Helps a Manufacturing and Distribution Business

The benefits of using an ERP system in your manufacturing and distribution business far outweigh the costs. There is a price tag that comes with installing an ERP system, of course, and you'll need to train your employees on how to use it to get the most out of your investment.

Some of the benefits of using ERP in manufacturing and distribution businesses include:

• Improved communication and collaboration: ERP systems improve communication and collaboration between different departments within your organization. For example, if there's a change in inventory levels, everyone from the warehouse manager to the sales team will be able to see the change in real time.
• Increased efficiency and productivity: ERP systems can help increase efficiency and productivity within your organization by automating many of the tasks that are typically done manually, such as data entry and order processing.
• Better decision making: With all of your data in one place, you'll be able to make more informed decisions about your business. For example, you'll be able to see which products are selling well and which ones aren't, so you can make adjustments accordingly.
• Reduced costs: Perhaps one of the biggest benefits of using ERP is that it can reduce costs because it can help eliminate duplicate data entry, prevent inventory mismanagement, and improve supplier relations.

Final Thoughts

Clearly, there are many factors to consider when choosing an ERP system for your manufacturing and distribution business. However, if you take the time to do your research properly, you'll be sure to find an ERP system that's a perfect fit for your organization. 

If you're not sure where to start, then SAP Cloud ERP is a great option. Make sure to read our posts on how to ensure successful ERP implementation in a midsize business and recover from failed ERP implementation before deploying an ERP system in your company.