ERP vs MES: Which One Can Meet Your Manufacturing Needs?

ERP vs MRP vs MES

Manufacturers will generally think laterally when it comes to their material planning - opting for the more traditional MRP. But, with the current wave of digitalisation, they'll need new ways to optimise their plant-managing process. So, between MRP, MES and ERP, what does the ideal production manufacturing software look like?

MRP

Historically, MRP (Material Requirements Planning) has been the software solution to aid manufacturers in making more precise calculations regarding the materials they need (and in what quantities) on the shop floor. Over time, MRP became MRP II and evolved to include detailed capacity planning, scheduling, shop floor control, and forecast comparison with real-time data that you can analyse to achieve greater operational efficiency. Since the advancement of ERP software in the 1990s and its greater increment in capabilities, MRP has slowly been taking a backseat.

ERP

Traditionally, Microsoft Dynamics 365, Business Central and other ERP systems are associated with top-floor management - they are historically for managing office-based activities, order processing, invoicing, and customer relationship management.
They’re not often thought capable of supporting the manufacturing side of a business. Or, at least, this is the misconception that people have. But, in fact, modern manufacturing ERP solutions can provide many of the capabilities traditionally associated with MES, while also managing wider business operations across the organisation – connecting the top floor with the shop floor.

MES

In many ways, an MES (Manufacturing Execution System) is regarded with more reverence than ERP software, at least in the circles of less modernised manufacturing technicians. Like ERP software, an MES monitors, tracks, and manages various cogs of the manufacturing shop floor - acting as the overseer of raw materials and goods assembly.

What can manufacturing ERP software solutions bring to the table?

The forecast for the future of the manufacturing market indicates digital transformation is desperately needed. If you want to see profit and productivity, a system as efficient as ERP software is required.

Risk Mitigation

With the ability to track materials across your shop floor and top floor with crystal clarity, ERP manufacturing software solutions have the dexterity for data collection needed to see the greatest ROI. Manufacturing ERP can bridge the gap between the business and manufacturing worlds, unifying all aspects of the brand by automating operations to reduce human error. ERP software monitors compliance regularly (and through a single system) to ensure the assembly line and offices are adhering to regulations, thereby counteracting risk potentials.

Command Your Inventory With Authority

With ERP software, the fundamental questions of equipment maintenance, next steps, production locations, and inventory will be answered. Plant workers and shipping can be scheduled, and you can get insight into raw materials to allocate resources appropriately to cut down costs. ERP for manufacturing can be a very reliable workhouse to purchase, plan, monitor, and manage stocks within the assembly line that are in the highest demand.

CX Optimization

Thanks to accurate forecasting, better production planning and control, consistent efficiency, and better decision-making, the best ERP for manufacturers such as Syscom ERP8 lets manufacturers be punctual with their delivery dates, doubling down on customer satisfaction as a bonus.

Team Collaboration

By allowing your entire team, from the shop floor to the top floor, to work from one centralised database, everyone is on the same page and open collaboration is encouraged. Sharing information, transparency, and reporting on financial KPIs enables management to make better decisions. With the many add-on modules available, ERP solutions for manufacturing are capable of amazing things.

AI-Powered Insights and Automation

Modern ERP solutions are increasingly combining centralised business data with AI to help manufacturers work more efficiently and make better-informed decisions.
AI can analyse large volumes of operational data to identify trends, highlight potential issues and provide insights that may otherwise be difficult or time-consuming to uncover.

For manufacturers, this can support areas such as demand forecasting, inventory and resource planning, production scheduling and supply chain management. AI-powered automation can also reduce the time employees spend on repetitive administrative tasks, allowing teams to focus their attention on higher-value activities.

The advantage of combining AI with ERP is the breadth of data available. Rather than analysing one isolated part of the manufacturing operation, an integrated ERP system can bring together information from areas such as production, finance, purchasing, inventory and sales, creating a stronger data foundation for intelligent insights and decision-making.

Naveen Poonian, CEO of iBASEt, said: “This lack of digital maturity is slowing manufacturers down, leading to increased errors, and making it increasingly difficult to attract the next generation of talent. All of this adds up to a loss of trade, a dip in company performance, and leadership positions coming under threat. This will continue to be the biggest barrier to industry productivity in the years to come.”

It’s becoming clear that, unless shop floor technicians can find a system that can speak their language, the industry will be facing issues.

AI in Manufacturing Software

Artificial intelligence is also becoming an increasingly important part of manufacturing technology. AI and machine learning can help manufacturers analyse operational data, identify patterns, improve forecasting and move from reactive decision-making towards more predictive processes. 

As ERP and MES technologies continue to evolve, understanding how AI fits into these systems is becoming another important consideration when choosing manufacturing software. 
 

Can MES use AI? 

Modern MES solutions are increasingly incorporating AI and machine learning capabilities to help manufacturers gain greater value from shop-floor data. 

Rather than simply recording what is happening during production, AI can help identify patterns and anomalies within manufacturing data, support predictive maintenance and quality processes, and provide insights that allow manufacturers to respond to potential problems sooner. 

However, the capabilities available will depend on the individual MES platform and how effectively it connects with other manufacturing and business systems. 
 

AI and ERP 

AI is also becoming increasingly integrated into modern ERP solutions, helping businesses turn the large volumes of data held within their systems into useful insights and actions. 

For manufacturers, AI-enabled ERP can support areas such as demand forecasting, inventory and resource planning, production scheduling and supply chain management. AI can also help automate repetitive administrative processes and surface trends or potential issues that may otherwise be difficult to identify. 

One of the key benefits of AI within an integrated ERP environment is the breadth of data available. By connecting information from production with areas such as finance, purchasing, inventory and sales, manufacturers can use AI to gain insights across the wider organisation rather than viewing individual processes in isolation. 

AI in Manufacturing: Transforming The Industry

So, how can ERP software help?

Investing in a manufacturing ERP system is no small matter. But by doing so, you can reap the benefits of increased efficiency, an enterprise-wide view of your entire company, and improvements in customer service.

AI will play an increasingly important role in this next stage of manufacturing digitalisation. From intelligent automation and forecasting to predictive maintenance and data analysis, manufacturers now have opportunities to use the information generated across their operations much more effectively. 

Choosing ERP technology that provides accurate, connected and accessible data can therefore help manufacturers not only improve today's processes but also create a foundation for growth.

Syscom have over 40 years of experience working in the manufacturing industry

Syscom enables manufacturers to take control of their production process at every stage to ensure a cost-effective and optimised approach. We have supplied ERP software solutions and support to bespoke and complex manufacturers. 

If it sounds like ERP software from Syscom could be suited to your manufacturing setup and you'd like to discuss it further, get in touch with us today on 01384 400 600, email info@syscom.plc.uk or submit a contact form below.