Operating a manufacturing plant requires more than just being in the business of manufacturing goods. You need to keep all of your departments (purchasing department, warehouse department, production department, accounting department, and shipping department) operating smoothly together at all times. If there is a breakdown in the operational synchronization, you will lose profit without ever realizing it.
Most factory owners know something is wrong long before they act on it. They see the delays. They get the calls. They sit through the meetings where nobody has a straight answer. Yet they keep pushing forward, hoping the problem fixes itself.
It rarely does.
If your factory is showing any of these five signs, it is time to seriously consider investing in a manufacturing ERP system.
Sign 1: Your Teams Are Working From Different Data
Ask your store manager how much raw material is available. Then ask your production head the same question. If you get two different answers, you have a data problem.
Most manufacturing plants that are still using spreadsheets, manual logs, and/or WhatsApp messages to cross reference the activities of various departments experience similar issues. Each of the manufacturing plants that I have reviewed has kept their own records and no one ever really knows which ones are correct until something happens (stop production, delay shipping of an order, or miss their delivery commitment).
A manufacturing ERP system brings all departments onto a single platform. When a goods receipt is logged in the warehouse, the production team sees it immediately . There is no lag, no miscommunication, and no duplicate entries.
Sign 2: Month-End Closing Takes More Than a Few Days
If your accounts team spends 8 to 12 days every month just reconciling production data with billing records, something is structurally broken in your process .
Manual data entry from production registers, purchase invoices, and dispatch records creates layers of errors that are tedious to fix. By the time everything balances, a new month has already begun.
With the right ERP in place, production entries flow directly into accounts. GRNs create purchase entries automatically. Dispatch triggers invoice generation. Month-end closing that used to take 10+ days can come down to 2.
Sign 3: You Cannot Answer Basic Operational Questions Without Calling Someone
Can you answer these questions right now, without picking up the phone?
- How much finished goods stock is ready for dispatch?
- Which raw material is below reorder level right now?
- What is the current production efficiency by shift?
- How much cash is locked in slow-moving inventory?
If the answer is no, your factory is being managed reactively rather than proactively. A good ERP gives owners and plant heads real-time dashboards that answer these questions instantly — no calls, no waiting, no manual reports.
Sign 4: Production Stoppages Due to Stock Miscommunication Are Becoming Routine
This is a costly sign that many factory owners accept as normal. It is not.
When the store system shows a material as available but the production floor finds it missing, the assembly line stops. Every idle hour on the production floor is a direct loss — labour, overhead, and opportunity cost.
A manufacturing ERP prevents this by maintaining real-time stock updates across all locations. Auto-reorder alerts trigger purchase requests before a shortage occurs. The production team plans based on what is actually available, not what the last spreadsheet said.
Sign 5: You Are Losing Money on Dispatch Without Knowing Why
Weight disputes with transporters. Invoices that do not match actual dispatched quantities. Packing material consumed beyond what was budgeted. These are quiet profit leaks that add up significantly over a year.
Factories dealing with these issues are usually relying on manual weighbridge entries, handwritten lorry receipts, and offline billing. There is no automated link between what leaves the warehouse and what gets billed.
When a manufacturing ERP is connected to the weighbridge and dispatch module, every truck movement is recorded with tare weight, gross weight, and net weight. The invoice is auto-generated from this data. Disputes drop. Payment cycles get faster.
What to Do If You Recognise These Signs
The good news is that these are solved problems. Factories of all sizes — from 20-person units to multi-plant operations — have fixed exactly these issues with the right ERP implementation.
When evaluating your options, look for a solution that fits your specific workflow rather than a generic package . A custom erp software designed around your industry — whether that is textiles, chemicals, food processing, or auto components — will always outperform a one-size-fits-all system . Generic tools force your team to adjust. A custom system adjusts to your team.
Also consider how the system handles integration. Your ERP should connect your purchase, production, warehouse, dispatch, and accounts into one flow — not just digitize each department separately.
About Arobit
Arobit Business Solutions is a manufacturing software development company with 13+ years of experience building ERP systems for production facilities across India and internationally. From apparel mills and chemical plants to wheat processors and leather exporters, Arobit has implemented ERP systems across 40+ manufacturing units.
Manufacturing ERP systems provide the complete source of production cycle resources including purchase/vender, multi-location inventory management, production planning, weighbridges, broker settlements and automatic financial closing. If your factory has any or all of these issues, contacting a team with experience solving these issues is a good first step.
Frequently Asked Questions
Q1. Is a manufacturing ERP suitable for small factories with fewer than 50 employees?
Yes, and small factories often see the fastest return on investment. Manual process costs are proportionally higher in smaller operations, meaning the savings from automation and accuracy show up quickly. Even basic modules — inventory, purchase, and billing — can significantly reduce daily errors and save hours of admin work per week.
Q2. How long does it typically take to implement a manufacturing ERP?
The conversion time typically varies from 3-4 months for implementation at a single facility while months for multi-facility plants depending upon the complexity of work-flow, as well as how much modification you will need before being ready to go live. The timeline will be dictated by many factors such as degree of modification desired or how fast your staff/teams can acclimate to the new process.
Q3. Can a manufacturing ERP integrate with our existing accounting software like Tally?
Yes. The majority of ERP systems (enterprise resource planning) for manufacturing are built to supplement existing accounting packages (like Tally), not replace them. The ERP will manage data for production, inventory, and operations while automatically sending financial records for posting to your accounting package thereby eliminating double posting of data and providing your accounting team with accurate, current figures.
