Why Every Manufacturer Needs an ERP System in 2022

Every manufacturer is in constant pursuit of efficiency. But eventually, they reach a point where spreadsheets aren’t enough to manage their business processes. That’s why more companies are turning to Enterprise Resource Planning systems (ERP systems). 

ERP systems allow you to manage and automate your supply chain, operations, and finances from one easy-to-access central point. In other words, they help you avoid spending effort on low-value activities so you can continue to scale your business. 

One of the reasons ERP systems are in more demand than ever is because of the nationwide labor shortage. Since the pandemic hit, more than 1.4 million jobs have been lost. Even though the majority of those positions have been refilled, about 500,000 remain open.

In this blog, we’ll cover what an ERP system is, why it's essential for every manufacturing business in 2022, and how it can help you improve your efficiency even if your shop floor is low on staff.

What is an Enterprise Resource Planning System?

Many organizations struggle to streamline production because they have to juggle multiple business processes at the same time. An Enterprise Resource Planning system is a business management solution that integrates an entire company’s departments and functions into a single platform

With real-time insights at your fingertips, it gives you complete visibility into your business and actionable insights that help you drive optimal performance. 

There are many great ERP options out there but at Software InsITe we use Microsoft Dynamics 365

For manufacturers and distributors, Dynamics 365 can play a crucial role in managing your supply chain as well as other business-critical processes such as:

  • Finances and accounting
  • Sales and service management
  • Human resources
  • Manufacturing
  • Reporting and analytics

A modern ERP solution improves your security and privacy, sustainability, and most importantly, it builds better efficiency. But one of the reasons Dynamics 365 is our ERP system of choice, is because it integrates so well with other Microsoft applications and the Power Platform

With the entire suite of software at your disposal, you also get the business intelligence you need to increase accuracy, speed up production, and make smarter decisions.

Why do You Need an ERP System for Manufacturing?

If you work in manufacturing and struggle with outdated systems that create a divide between the shop floor to the top floor, then you should consider using an ERP system.

In fact, almost 95% of companies said they noticed a significant business process improvement after implementing an ERP system.

That’s because having real-time access to operational and business data helps you:

  • Optimize processes
  • Create a single source of truth
  • Improve business agility
  • Gain a competitive advantage
  • Support your current workforce

An ERP system is for everyone in your organization. It won’t replace your team (or solve the issue of a nationwide labor shortage) but it fosters greater collaboration and information sharing, helping them work more efficiently. Especially, if your company supports a hybrid work environment where a portion of your team works remotely.

And because most ERP systems work in the cloud, it scales as your business grows. 

But implementing a new ERP system isn’t something that happens overnight — it’s a process. 

So at Software InsITe, we came up with seven signs to help you figure out if your business is ready for a modern ERP system:

  1. You don’t know what’s profitable and what’s not inside your business
  2. You have to manually aggregate data from multiple sources
  3. Your processes are so cumbersome they don’t support rapid turnaround
  4. Your data doesn’t let you properly forecast
  5. Your talent crunch means you need to automate
  6. You’re spending too much running your business and not enough time planning for the future
  7. You’re ready to scale and take your business to the next level

If any or all of these sound familiar, an ERP solution could be the most important addition to your business you can make in 2022.

Software InsITe: Your ERP Solutions Provider

The proper ERP implementation can be a costly and time-consuming effort when you rely solely on in-house staff. 

Instead of spreading your team too thin, look to the experts at Software InsITe for an error-free partnership.

From the top floor to the shop floor and beyond, the Software InsITe team has been delivering flexible, integrated solutions that maximize productivity for manufacturers and distributors for more than 70 years. 

Our expert team of integration and manufacturing process consultants and application engineers will help your business take advantage of an intelligent ERP solution. Contact us today to begin a conversation and a one-on-one ERP consultation unique to your company’s needs.


InsITe helps businesses and manufacturing companies get the most out of current and emerging technologies with a customized IT approach to maximize growth, efficiency, insights, and productivity. InsITe is not a typical IT company selling products for short-term, short-sighted fixes. We invest in long-term solutions for a company’s growth by taking the time to learn its products, process, and business goals before bringing tech into the conversation. In this way, we become much like our Clients’ very own internal IT department with familiar faces who understand the business. 

If you have any questions about this post please leave a comment. We read and respond to all comments. Or better yet, give us a call and ask to talk directly to our Founder and CEO Mike Schipper 616-383-9000. 

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