8 Critical ERP Selection Criteria for Every Manufacturer

8 Critical ERP Selection Criteria for Every Manufacturer

An ERP system is a software solution that enables companies to achieve their goals. Once you implement an ERP into your business, it becomes the core of your organisation, and thus choosing the right one is of  paramount importance. In this article, we are going to illustrate how you, as an entrepreneur can opt for the right ERP software for your business.

But firstly…

Gauge Your Business Requirements

From its challenges to its needs, get a clear understanding of your business. Try to gather insights on your company from every resource possible. You must talk to your production team, sales manager, executive management, and suppliers, especially. Allow them to share their concerns and opinions. Once you have recorded everyone’s issues and views, sequence them. Come to an agreement with all teams as to which requirements are indispensable.

Now that you know what’s absolutely essential, you can move on to note down things that are not mandatory but are most likely to benefit the business. Post this, you can create another list that contains features that are merely “good to have”. Take these three lists to the same people who shared their apprehensions and inputs. Ensure that everyone agrees with the list. If not, have more discussions and update your requirements.

Now, let’s get into the specifics of the ERP selection criteria.

Caters to Production Needs

Companies perform different types of production, thus you must ensure that your ERP software delivers functionalities that support your manufacturing processes. So, do not miss out on ascertaining that the software offers features like managing bills of material, quality control, effective distribution, and more.


Suppliers of the automotive industry have high regards for ERP software. By integrating the supply chain and your company’s inventory strategy, ERP software can help satisfy demands such as short lead times, on-time deliveries, and uncompromising customer experience.

Should Master the Flood of Data

Today, we have a huge amount of data at our disposal, and it’s only increasing with time. The right ERP will make this flood of information manageable and perceivable for you in order to gain profitable insights such as critical figures, trends and more. Thus, small and mid-sized manufacturing businesses too can gain a competitive edge in the

The Growth of ERP

While you are in the selection stage, you need to ensure that your ERP is scalable. In case it is not, you might incur exorbitant costs while building new teams, setting up new offices, or growing abroad. Go for an ERP solution that has multi-lingual and multi-currency features. It must facilitate consolidated group accounting and should be accepted in different countries.

Open Architecture

Your ERP system must offer an open interface with stable connectors. This will allow your employees to share/exchange data amongst the team or with customers and suppliers. It further eliminates working in silos and spurs a collaborative environment.

A Mobile Solution

With technical innovations, ERPs to has evolved into being a mobile solution now. It allows you to access important pieces of information on the go. Today, we need a mobile strategy for manufacturing processes as well, and thus it should be equipped with scanner solutions as well as be adaptive to the innovative shop floor management.


This type of ERP is especially beneficial for small and mid-sized companies. A cloud-based ERP system demands lesser cost by eliminating the need for building technical infrastructure. Unlike on-premise ERPs, a cloud-based tool is controlled by the ERP provider.
So, as a manufacturer, you do not have to worry about backups, maintenance, or updates.

The Vendor Should be Your Partner

It is crucial to ensure that you are installing an ERP solution from the right provider. They should treat the entire deal as a partnership instead of a sale. The vendor must be in a position where they understand your company and thus have the ability to offer the right advice. Same goes for you, help them understand your business, so they can configure a tool that can help you streamline processes, reduce costs, increase sales, and therefore scale the business.

At SourcePro, we offer a customisable ERP solution, which becomes the
fundamental tool of your organisation. Contact us and let’s schedule a meeting where you can share your challenges, and we will demonstrate how the New Horizon can help you conquer them.

× How can I help you?