You’re here for a reason: your manufacturing operations are suffering. Whether it’s an outdated system holding you back or relying on spreadsheets and gut feelings, it isn’t cutting it anymore. It’s time for an upgrade, and we’re here to help you get started.

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Modern manufacturing systems are packed with tech that can do a lot more than automating workflows. Let’s break down the manufacturing ERP features you should demand from potential vendors.

Manufacturing ERP Features Checklist

Here’s what you’ll get from this post:

• A handy checklist to ensure you don’t miss any essentials.
• A free manufacturing software requirements template to get started.
• Tips from ERP experts to get the most out of your requirements-gathering process.

Key Features

We’ve analyzed standard manufacturing ERP features and compiled them into this checklist. You can use this guide as a template for deciding what your business needs from its next system.

We’ve onboarded over 100,000 users into our software selection platform. This has given us a wealth of insights into their usage patterns based on industry, company size and user persona. By leveraging this data, we’ve identified key features you should consider to minimize the risk of selecting the wrong software.

Our goal is to empower you to benefit from the collective experience of your peers who’ve embarked on the same journey before you.

Create a custom manufacturing ERP features list to find the right fit for your business needs.

Though not exhaustive, this list will examine vital features many companies look for in a manufacturing ERP solution.

Get our Manufacturing ERP Software Requirements Template

1. Bill of Materials (BOM) and Routing

BOMs give you a detailed list of all the components and materials needed for production, while routing provides a step-by-step guide for the manufacturing process.

An effective BOM and routing system ensures accurate costing, efficient production planning and minimal material waste. Without it, you’re essentially building a house without a blueprint.

In essence, a BOM is your product’s DNA, detailing every component and its quantity. When you combine that with routing, you’ve got a clear roadmap to bring your product to life.

You can also:

• List all parts and sub-assemblies needed for a finished product, showing parent-child relationships.
• Track material costs accurately for budgeting and financial planning.
• Get the details of the exact steps needed for production.
• Identify the required resources (labor, machines, materials) for each step.

Cetec ERP lets you create BOMs and easily expand suv-assembly BOMs. Source

2. Computer-Aided Design (CAD) & Computer-Aided Manufacturing (CAM) Management

Ever wish your design and manufacturing teams spoke the same language?

Consider CAD and CAM management as your translator. CAD creates your product designs digitally (no expensive physical prototypes), and CAM turns those designs into production instructions (think turning, machining, milling, threading, drilling and more).

Miscommunications between design and production can be a nightmare, leading to costly rework and delays. CAD CAM tools bridge that gap, minimizing risks.

If your company thrives on rapid prototyping and frequent design changes, like in the aerospace or automotive industries, CAD CAM features are your new best friends.

Test digital models in a virtual atmosphere to better understand what works.

What to expect with this module:

• Integrate design data with manufacturing processes.
• Support product development and production processes.
• Automate designs into production plans.
• Accommodate design changes, ensuring the latest versions are always in sync with production requirements.

SYSPRO is a stand-alone or integrated CAD tool. Source

• 3D Design & Modeling
• Commenting & Redlining
• Design Library
• Design simulation
• Programming Automation
• Public or Private Design Sharing

3. Engineering Change Control

Products evolve, and chaos ensues when changes aren’t managed effectively.

Engineering change control (ECC) manages and tracks product design changes. It also documents all modifications before implementation.

Imagine unauthorized or poorly documented changes slipping into your production — sounds like a recipe for quality issues and compliance headaches, right?

ECC keeps everything consistent and compliant, which is essential in industries with complex products and frequent updates, like electronics or medical devices.

Here’s what you can expect from this module:

• Approve product designs and modifications.
• Manage change requests and order status.
• Facilitate transition through the manufacturing process.
• Ensure your BOMs and routing are always up-to-date with the latest tweaks.
• Implement audit logs to gain change histories with usernames, dates and timestamps.

Check engineering change requests and change orders in Acumatica. Source

• Approval Workflow Management
• Audit Trail of All the Changes and Revisions
• ECC Security
• Engineering Change Orders
• Engineering Change Requests
• Group Similar Change Request
• Reverse Action Done on Engineering Changes
• Simulate the Results of a Change
• View Engineering Change Order Status

Get our Manufacturing ERP Software Requirements Template

4. Inventory Management

Inventory is the lifeblood of manufacturing. Too much of it ties up capital; too little grinds production to a halt. Effective inventory management is about striking the perfect balance, offering several benefits.

If your company operates in a just-in-time (JIT) manufacturing environment, a robust inventory management system isn’t just a nice-to-have — it’s a must.

Inventory management tools can:

• Get instant updates on your stock levels and materials.
• Keep your inventory in check to avoid costly shortages or overstocking.
• Track how long your goods have left before they expire.
• Control controls raw materials, work-in-progress and finished goods.
• Set alerts for when ingredients run low.

NetSuite’s inventory management dashboard. Source

5. Manufacturing Execution System (MES)

Manufacturing ERP features, like MES, are your ticket to a paperless, hassle-free world. Capture consent for dispensing, business process control, reverse dispensing, specific quality outcomes and other events.

Manage navigation flows to complete signatures and support custom approvers and signature rules. Specify users, tasks, signer numbers and hierarchies.

Tired of the slowdowns and errors that come with manual paperwork? MES systems bring production visibility and control to the table.

If your company is in a high-volume, continuous production industry like pharmaceuticals or food and beverage, you’ll definitely want this module in your toolkit to:

• Print and scan barcodes for stock items, gauge controls, time, attendance, locations and more.
• Apply barcode labels to packages and master units with automatic label data creations for products, customers and destinations.
• Oversee and control the production floor.
• Collect real-time data on production performance and quality.

Integrate MES into SAP. Source

Kankana Kalita, Research Analyst at SelectHub, highlights several key factors to consider when selecting and implementing an MES:

Define your MES goals—efficiency, traceability, or cost reduction. Ensure it meets core needs, integrates with existing systems like ERP and offers flexibility for future growth.

Kankana KalitaResearch Analyst, SelectHub

Kalita also highlights the importance of a user-friendly interface, phased implementation to reduce disruptions and careful cost evaluation to guarantee ROI. Data security and compliance are critical, especially in regulated industries, along with vendor support and reputation, to ensure a smooth rollout.

Get our Manufacturing ERP Software Requirements Template

6. Mobile Capabilities

Manufacturing moves fast, and having information at your fingertips is a must. That’s where mobile capabilities come into play, pushing your manufacturing software beyond the office and onto the shop floor.

This means you and your team can access critical manufacturing data and control systems from mobile devices, keeping everyone connected and responsive, even when they’re not at their desks.

Managing dispersed teams or multiple sites? Mobile capabilities aren’t just a convenience, they’re a game-changer:

• Check in on production from anywhere. Whether you’re at a coffee shop or halfway around the globe, your data is always within reach.
• Capture up-to-the-minute stats on production performance and quality, making sure nothing falls through the cracks.
• Fix problems without the need to be on the shop floor.

7. Platform Capabilities

Craft customer fields for numerous manufacturing modules.

Activate internationalization and localization customizations, including languages, fonts, symbols, number formatting, date and time formatting, and more.

Search all application databases with one search to detect all records.

A preview of close monitoring. Source

• Custom Fields
• Globalization Support
• Global Search
• Notifications

8. Product Configuration

According to a recent Fictiv Report, companies increasingly turn to technology to streamline product development. 78% are actively exploring solutions. Yet, the challenge remains that 94% still hit roadblocks in innovating new products.

Product configuration empowers you to offer a vast array of options without operational overload. By automating the process of creating customized products, you can improve customer satisfaction, increase sales and reduce errors.

• Customize products based on customer specifications.
• Use configuring models to support fulfillment and customer satisfaction.

Customization can be tricky and error-prone. These tools ensure that customer specifications are met precisely and efficiently.

This function is especially crucial in custom manufacturing and engineer-to-order (ETO) industries, where personalized products are the standard and getting it right is everything.

Acumatica’s product configuration. Source

Get our Manufacturing ERP Software Requirements Template

9. Production Planning

A lot of the folks we speak to grapple with three common challenges:

• Overgrown spreadsheets that are no longer efficient.
• Manual processes that cry out for automation,
• Programs that simply can’t keep up with a company’s growth or integrate seamlessly with other systems.

If that sounds familiar, production planning can help. Get MRP calculations, forecasting analysis and automated workflows that are always in sync with your center capacity, master production scheduling and other available resources.

Manufacturing is a high-stakes game. Unforeseen demand spikes or equipment failures can throw even the best-laid plans into disarray.

Production planning helps you align resources, anticipate demand and manage work capacity to avoid chaos.

This ability is particularly crucial if you’re in industries with seasonal and demand-driven production, like fashion and consumer electronics.

You’ll find these core functionalities in this module:

• Integrate planning, scheduling and control.
• Get insights into inventory, schedules and resource utilization.
• Manage raw materials and labor effectively.

Visibility ERP’s production planning dashboard.

10. Production Scheduling

Once you have a plan, you need a schedule. Production scheduling allocates the right resources, from machinery to manpower, to meet production targets.

It establishes individual finished goods or stock-keeping units (SKUs), allowing you to set priorities and handle resources swiftly.

Production scheduling tools prevent bottlenecks and ensure a continuous production flow, keeping everything on track and running smoothly.

If you’re dealing with complex, multi-step production processes like those in the automotive or heavy machinery industries, production scheduling tools are a must-have.

This module lets you to:

• Optimize the use of materials, labor and equipment.
• Enable quick updates to schedules based on demand changes and disruptions.
• Provide insights into production progress and generate charts for performance monitoring.

11. Quality Management

Quality isn’t just a department; it’s a company-wide commitment. Implementing a system with built-in quality frameworks helps you implement and maintain standards throughout the production process.

• Define quality standards.
• Set workflows to approve products.
• Rely on frameworks to detect defects and take corrective actions.

You’ll want a system that not only helps you spot defects but also fix and prevent them. Look for features that allow you to:

• Analyze Root Causes: Figure out why something went wrong.
• Implement Corrective Actions: Fix the issue and stop it from happening again.
• Conduct Product Inspections: Give your products a full-body check-up to catch any sneak attacks.

Consistent product quality is critical to avoid defects and returns, which can damage a company’s reputation. This is especially important in regulated industries like pharmaceuticals and aerospace.

• Advanced Product Quality Planning (ABQP)
• Corrective and Preventive Actions (CAPA)
• Create Custom Quality Status Options
• Define & Track Feasibility Tests
• Failure Mode and Effects Analysis (FMEA)
• Inspection Plan Management
• Material Review Board
• Production Part Approval Process (PPAP)
• Supplier Quality Management
• Track Rework and Additional Activities for Maintaining Quality Levels

Get our Manufacturing ERP Software Requirements Template

12. Recipe and Formula Management

Recipe and formula management track all the secret ingredients and steps that go into your products.

Ever made a batch that was almost perfect? With this function, you can replay the whole process and figure out exactly what went right (or wrong).

Formula and recipe management is your golden ticket to quality and compliance.

Here’s what you can do:

• Manufacturing systems with recipe management let you customize recipes and break down complex products into simpler steps.
• It can predict how long everything will take.
• It knows about waste and side products. So, next time you need to tweak your formula or scale up production, you’re covered.

Kalita highlights some essential factors to improve production efficiency:

Ensure the system supports regulatory compliance (e.g., FDA, HACCP) and provides version control to track changes in formulations. A centralized, secure repository is key for maintaining accurate, consistent data, and built-in validation rules help avoid errors.

Kankana KalitaResearch Analyst, SelectHub

Kalita also stresses the importance of integration capabilities with ERP and MES systems for real-time data flow, as well as features like supplier management, collaboration tools and mobile access for remote monitoring.

13. Reports and Dashboards

Gain pre-set, user-specific dashboards to monitor late customer orders, manufacturing orders, items below reorder points, in-progress manufacturing orders and more. Export reports and dashboards as PDFs, CSVs, XLSXs and other files.

Use role-based dashboards to monitor all workflows. You can track leads, opportunities, inventory utilization, service issues, expenses and other data trends. Monitor all KPIs and catch bottlenecks before they escalate into major problems.

An example of a manufacturing dashboard. Source

• Customizable Dashboards
• Customizable Reports
• Document Management
• Exporting Reports and Dashboards
• Pre-Defined Dashboards
• Pre-Defined Reports
• Role-Based Dashboards

14. Shop Floor Control

You know that sinking feeling when a crucial order is behind schedule? Or when you realize you’ve got a mountain of unexpected rework? These are common manufacturing headaches.

Shop floor control provides the oversight needed to keep production running smoothly. From work order management to labor tracking, this module offers real-time visibility and control over your operations.

• Fine-tune how much material you use.
• Compare your plans to reality.
• Keep tabs on where your workstations are and how much your labor is costing.

With shop floor control, you can spot problems before they become disasters and keep things moving smoothly.

• Adjust Raw Material Usage
• Compare Resources Allocated vs Actually Used Per Workstation
• Define Flow Between Workstations
• Different Views of the Shop Floor for Employees & Managers
• Group Work Centers
• Manage Availability of Workstations
• Track Direct and Indirect Labor Cost
• Track the Quality of the Ingredients or Intermediates
• Track Workstations and Work Centers
• Work Center Dispatch List

15. Warehouse Management

Your warehouse is the final frontier before your products reach customers. How well it operates can make or break order fulfillment.

Consider how well your chosen system can manage storage, picking, packing and shipping.

Automating inventory tracking and order fulfillment reduces errors and improves operational speed, which is vital for large-scale distribution centers and eCommerce fulfillment.

Consider a WMS if you’re facing the following problems:

• Space Constraints: Stop wasting precious square footage. A WMS helps you optimize storage by considering product size, weight and popularity.
• Order Fulfillment Delays: Watch your pick and pack times plummet with features like batch picking and automated task assignments.
• Error-Prone Manual Tasks: Say goodbye to manual paperwork. Generate shipping labels, packing slips and other documents with ease.
• Disconnected Inventory: Know exactly what you have, where it is and when you need to reorder.
• Uncoordinated Warehouse Operations: Manage stock transfers, assign labor and track performance metrics.

Zebra Technologies faced similar challenges, worsened by supply chain disruptions during the COVID-19 pandemic. They struggled with disparate systems and inefficient manual processes. Implementing Oracle SCM helped:

• Increase Forecast Accuracy: Nearly doubled forecast accuracy, improving delivery timelines.
• Automate Orders: Saved 20,000 hours annually by automating 90% of orders.
• Achieve Cost Savings: Reduced freight costs by $2 million on a single order through better transportation management.
• Enhance Employee Experience: Simplified workflows to reduce stress and improve work-life balance.
• Reduce IT Costs: Consolidated systems, lowering maintenance and IT expenses.

Get our Manufacturing ERP Software Requirements Template

16. Work in Process (WIP)

Work in progress is the inventory that’s still in production. Without tight control, it can pile up, draining cash and slowing down production.

So, when should you consider WIP management tools? If you’re nodding your head to any of these, it may be time to invest:

• If you’re constantly firefighting and rushing to meet deadlines.
• If your current approach or existing system can’t figure out where things are in the production process.
• You’re always battling higher storage costs, wasted materials and overtime pay.
• Your customers complain about late deliveries and quality issues.

How WIP management tools help:

• Get much-needed visibility into the production flow.
• Identify production bottlenecks.
• Ensure on-time delivery and prevent costly delays.

• Compare Waste & Scrap vs. Actuals for WIP
• Manage Wip Transfers Between Separate Locations
• Trace WIP Backward & Forward
• Track Supplier’s WIP
• Track WIP
• WIP From One Production Cycle To Other Cycles

17. Work Order Management

Now, let’s talk shop. Work order management helps you manufacture the right products in the right quantities and on time.

By automating work order creation, scheduling and tracking, you can streamline production and improve efficiency.

Poorly managed work orders can cause delays and resource conflicts. These systems organize tasks, allocate resources effectively and track progress, making them indispensable for maintenance, repair and overhaul (MRO) operations.

• If your production schedule is in flux, work order management tools that allow mass updates and cancellations are essential.
• Whether it’s maintenance, repairs, or internal projects, work orders can keep everyone aligned and accountable.
• Without real-time insights into order status and resource utilization, it’s tough to make informed decisions.

• Approval Process To Cancel Work Orders
• Create Unplanned Work Orders
• Define & Track Internal Work Orders
• Mass Change or Update Work Orders
• Merge & Split Work Orders
• Real-Time Updates
• Stop & Re-Open Work Orders
• View Material Availability Status for Work Orders
• Work Order Creation

When it comes to important manufacturing ERP features, those are the heavy hitters. But the fun doesn’t stop there. If you want a clean implementation, you should also have a firm grasp on your functional requirements.

Let’s step away from concrete features and talk about how to identify the pain points these tools need to solve.

Get our Manufacturing ERP Software Requirements Template

Why Is Requirements Gathering Important for Manufacturing Software Selection?

If you want a successful implementation, you have to gather your unique requirements. The process ensures that all your functional, technical and compliance needs are met, which leads to long-term success.

Kalita emphasizes:

A structured and granular set of requirements allows for defining and scoping techno-functional needs. It also enables the assignment of multi-level priorities and weightage to each requirement or group of requirements.

Kankana KalitaResearch Analyst, SelectHub

By gathering detailed requirements, companies can confirm that the software includes the necessary features to support various departments—production, logistics, finance—and processes like inventory management, production planning and quality control.

Kalita adds:

The process also helps prioritize features critical to the business, ensuring you don’t overspend on unnecessary functionality.

Kankana KalitaResearch Analyst, SelectHub

A comprehensive approach to requirements gathering helps evaluate how well the software meets essential compliance and regulatory standards, reducing the risk of costly customizations post-implementation. It also fosters collaboration and buy-in by involving key stakeholders from different business areas.

Given that manufacturing operations often involve custom processes and workflows, not all software will fit your exact needs. Therefore, a thorough requirements-gathering exercise becomes the foundation for shortlisting and evaluating the right software solutions.

Don’t forget that integration is key. Manufacturing software must interact seamlessly with existing systems such as CRM, financial software, HRMS and eCommerce. Clearly outlining these integration needs ensures you choose software that provides efficient and cost-effective solutions.

Try asking some internal questions. Your teams know what your current system is missing and what they need to succeed.

How To Evaluate Manufacturing Software

Let’s talk about the headache of choosing the right manufacturing software. We get it; it’s a jungle out there.

Even Gartner agrees — their recent report found that finding the right tech was the biggest challenge manufacturers face when planning new software investments.

Ranking manufacturing ERP features depends on several critical factors, including:

• Industry-Specific Needs
• Company Size
• Cost Considerations
• Training and Support
• Vendor Reputation
• Integration Capabilities
• Scalability and Future-Proofing

We suggest tailoring your evaluation criteria. You need more than a generic checklist. Craft evaluation criteria that align with your specific needs and priorities.

If that sounds overwhelming, don’t worry. We’ve done the homework, and we’re here to help.

Get our Manufacturing ERP Software Requirements Template

Case Study: ATS Diesel

Founded in 1993, ATS Diesel specializes in high-performance diesel parts for trucks and Jeeps. Despite their industry expertise, they struggled to find software to support their exact needs across manufacturing, inventory management, and ERP. Seeking a partner with deep knowledge of manufacturing software, ATS Diesel turned to us for guidance.

Their Challenges

ATS Diesel needed a manufacturing software solution to handle:

• Custom Production: Manage complex BOMs, manufacturing routings and inventory tracking.
• Operational Efficiency: Link inventory with work and sales orders.
• Scalability: Support custom workflows and future growth.

Our Solution

We guided ATS Diesel through a step-by-step process to simplify their software selection:

• Requirements Gathering: Over two months, we collaborated with ATS Diesel to gather business-wide input and create a detailed requirements template.
• Vendor Scoring and Shortlist: Vendors were scored from 0 (not supported) to 100 (fully supported). Using our Decision Platform, an initial pool of ten vendors was narrowed down to five, then two.
• Product Demos and Final Selection: Targeted demos with two finalists confirmed how well each solution met ATS Diesel’s needs. NetSuite emerged as the top choice for its alignment with ATS Diesel’s production and business processes.
• Customization and Integration: To ensure a seamless fit, ATS Diesel customized the solution with a Product Data Management (PDM) extension and integrated third-party BOM features.

Results

Following an eight-month implementation, ATS Diesel went live with NetSuite. The benefits included:

• Increased Efficiency: Improved visibility into inventory, sales orders and financials.
• Boosted Sales Performance: Enhanced order management led to stronger online sales.
• Performance Tracking: Enabled clear KPIs for employee performance, inventory accuracy, and operational optimization.

Impact

From requirements building to contract negotiation, our expertise provided ATS Diesel with a simplified, collaborative selection experience. The outcome was a solution that perfectly fit their needs, saved time and delivered the best terms for their unique manufacturing goals.

Get ATS Diesel Case Study

FAQs

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Next Steps

Now that you’re ready to map your manufacturing ERP features out, it’s time to zero in on solutions that align with your goals.

Our requirements template will help you prioritize the features and modules that matter most so you can effortlessly identify the software that’s a perfect fit.

What’s at the top of your must-have list? Share your thoughts in the comments—we’d love to hear what’s driving your search!

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