ResourcesManufacturing ERP requirements & features
Apr. 02, 2025
ERP

Manufacturing ERP requirements & features

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In today's economy where supply chains shift quickly, compliance pressure keeps rising, and plant operations are increasingly digitized, the gap between “generic” ERP systems that only log transactions and those that actively support production performance is getting wider.

The ERP platform you use needs to reflect how your production environment works, how your teams operate, and your customers' expectations for delivery, traceability, and responsiveness.

The goal of this article is to walk through the must-have ERP requirements for manufacturers- those core features, compliance needs, and integration capabilities that turn ERP from an accounting tool into an operational system of record.

How ERP requirements differ in the manufacturing industry

ERP requirements in manufacturing differ from other industries because the system coordinates physical production, inventory movement, labor tracking, and material consumption, often in real time.

Unlike retail or services, where ERP may focus more heavily on financials or CRM, manufacturing demands deeper support for planning logic, shop floor execution, quality assurance, and compliance documentation.

Each production model- discrete, process, or ETO, requires different operational structures, costing models, scheduling rules, and inventory behaviors, and ERP systems used in these environments must be able to handle variability, multi-stage workflows, and machine-level visibility without relying on disconnected spreadsheets or bolt-on systems.

Data has to move cleanly between planning, procurement, production, and finance.

Manufacturing ERP systems distinguish themselves through specialized functionality for production control, inventory movement, quality assurance, and regulatory compliance.

6 core manufacturing ERP requirements

These are the base capabilities every manufacturing ERP system should include. If any of these are missing or underdeveloped, it's likely the system will create more operational friction than solutions.

Bill of materials (BOM) management

The system should support version control, alternates, phantom items, and engineering revisions – along with the ability to link BOMs to routings and production orders.

For manufacturers dealing with frequent design changes, the ERP must provide audit trails and change tracking tied to effective dates and open jobs. BOM structures need to align with costing logic, material requirements planning, and product lifecycle data.

Production planning and scheduling

The ERP must support capacity scheduling, backward and forward planning, and simulate production runs based on resource constraints.

It should allow planners to allocate work centers, prioritize orders, handle exceptions, and adjust dynamically as demand or supply changes, while integrating planning with inventory, labor, and machine availability data so that production schedules are realistic and executable.

Inventory and warehouse management

Inventory visibility (by location, lot, serial number, and status) is paramount.
The manufacturing ERP should support automatic replenishment triggers, barcode scanning, bin-level tracking, and material staging for production.

It also needs to manage WIP inventory, consignment stock, and inbound/outbound logistics.

This module should work hand in hand with planning and finance to ensure accuracy in costing and MRP.

Shop floor control and automation

Shop floor data collection through terminals, mobile devices, or IoT sensors must feed directly into the ERP to update job status, record material usage, track downtime, and monitor performance metrics.

The system should support real-time reporting of job progress, labor hours, scrap, and deviations and integration with machine-level data for automated updates and exception alerts.

Quality control and assurance

Quality processes must be embedded in production workflows –
the ERP should support the granular management of inspection plans, non-conformance reports (NCRs), corrective actions, and hold/release logic.

It should support traceability down to the component level and link quality records to jobs, vendors, and finished goods.

Cost management and financial integration

The system has to support multiple costing methods (standard, actual, and average) to adhere to different manufacturing environments, and be able to roll up labor, material, overhead, and subcontracting costs into finished goods valuation.

It should track variances and provide visibility into cost drivers through interoperability with finance data and ensure that inventory, production, and procurement costs flow cleanly into general ledger, budgeting, and reporting systems.

Compliance and regulatory requirements

Whether the focus is on product safety, environmental regulations, traceability, or QA- the ERP system must enforce controls at the system level. Manual tracking or after-the-fact documentation introduces risk, delays audits, and reduces the reliability of the underlying data.

The compliance features that should be included in ERP software are those that allow processes to be executed in full alignment with regulatory obligations without relying on manual overview.

Industry-specific compliance

The ERP must support vertical-specific compliance frameworks out of the box.

This includes GMP and FDA requirements in pharmaceutical manufacturing, REACH and GHS documentation in chemical production, ISO 9001 and AS9100 standards in industrial and aerospace sectors, safety compliance such as HACCP or FSMA in food and beverage, or IPC & RoHS for electronics manufacturing, and sometimes ISO 13485 if you're producing components for medical devices.

That support should extend to actual process enforcement (and not just documentation) through controlled access, electronic signatures, validated workflows, change control, etc.

Traceability and audit trails

The system must enable full forward and backward traceability from raw materials and components to finished goods and last-mile delivery.

Every material movement, quality check, status update, and process deviation must be logged in the system with automated timestamping and user identification.

The ERP must be able to generate a complete audit trail at the batch, lot, or serial level on demand, with supporting documentation tied to specific transactions, to streamline external audits and recalls, and support internal root-cause analysis and process validation.

Environmental and safety standards

ERP systems must support compliance with environmental and occupational safety regulations through structured data capture and reporting.

This includes tracking hazardous material handling, equipment maintenance schedules, emissions, waste disposal, and safety inspections. Data must be linked to specific processes and transactions to allow real-time monitoring and regulatory reporting.

This includes tracking hazardous material handling, equipment maintenance schedules, emissions, waste disposal, and safety inspections. Data must be linked to specific processes and transactions to allow real-time monitoring and regulatory reporting.

Technology and integration requirements

Manufacturing environments largely depend on multiple interconnected systems throughout the organizational tach stack infrastructure.

As the central operational business software, the ERP platform is expected to be able to easily connect separate functions to create a hub for real-time coordination across multiple apps, technologies, and business units.

CRM, SCM, and PLM systems

The ERP must offer APIs, middleware, or native connectors that allow it to integrate directly with external CRM, SCM, and PLM platforms, with minimal dependency on custom development.

PLM integration ensures engineering changes are reflected in BOMs and routings without manual re-entry, SCM connectivity allows real-time collaboration with suppliers and visibility into lead times, and coordination of inbound logistics.

CRM integration ensures that customer requirements like configurable products or delivery schedules flow smoothly through production and fulfillment workflows.

Cloud-based accessibility

Manufacturing companies with multiple production sites or scattered logistics hubs require centralized control without sacrificing local flexibility. This can be difficult to achieve with traditional on-premise systems, which often require duplicated infrastructure and high administrative costs.

Cloud ERP deployment offers a scalable framework that allows users across regions or units to access the same system securely (with role-based permissions, audit control, and governance around data residency), and access real time data from anywhere.

Mobile accessibility

Shop floor personnel, warehouse staff, quality inspectors, field service technicians, and even supervisors increasingly rely on mobile devices to input and retrieve data in real time.

This includes support for barcode scanning, job tracking, approvals, inventory transfers, and issue reporting all through mobile apps or browser-based interfaces with offline capabilities where needed.

Device management, authentication, and user permissions must all be governed centrally to maintain control and ensure data integrity.

IoT, AI, and machine learning capabilities

As manufacturing environments adopt Industry 4.0 technologies, ERP must serve as both a data center and a decision support engine.

Integration with IoT devices requires structured input channels and real-time processing, whether for machine status, environmental monitoring, or production telemetry.

The system should enable pattern recognition, exception alerts, and rule-based automation based on real operational data. For this to work, the ERP must support event-driven architecture, high-volume data ingestion, and customizable response logic.

Real-time dashboards

The ERP should offer configurable dashboards that show up-to-date metrics across production, quality, inventory, procurement, and financial performance and allow users to drill down from the KPIs level to the underlying “line level” numbers.

Schedule a no-obligation call with one of our experts to get expert advice on how Priority can help streamline your operations.

Customization requirements

Even within the same industry, no two manufacturing environments are exactly alike.

The way you handle scheduling, quality, or costing in one plant may be entirely different in another, and the ERP system needs to reflect that without turning into a custom development project.

The ERP should enable the flexibility that allows it to be customized for different manufacturing sectors without compromising stability or upgradeability.

Modular architecture

You should be able to add functionalities on based on what the business needs at the moment.

That means deploying modules in a phased manner, rolling out advanced or additional capabilities when the operation is ready- not forcing them in from the beginning. This also keeps the rollout focused, and helps avoid touching stable processes just to introduce new ones.

Multi-location and multi-plant support

If you're managing multiple facilities, the system needs to support local variation without breaking enterprise control.

That could mean plant-specific routings, localized compliance rules, or separate approval workflows. But those differences should still feed into a common data model, so you're not running disconnected operations under the same brand.

User roles and permission management

People should only see and change what they're responsible for. The ERP should allow you to configure roles that map your teams structure without relying on workarounds or over-permissioned accounts. That includes field-level control, approval chains, and audit visibility.

It's one of those areas that only becomes noticeable when it goes wrong but when it's done right, the system runs cleaner and accountability is built in by design.

How Priority Software can help

Priority ERP is built to meet all the core requirements manufacturers depend on real-time production control, inventory visibility, quality management, costing accuracy, and compliance enforcement.

The platform offers native standard manufacturing features, with the flexibility to adapt to different production models and plant structures.

With embedded analytics, native mobile capabilities, and a cloud-ready architecture, Priority gives manufacturers the tools to run efficient, traceable, and scalable operations without compromising on control or quality.

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See how Priority works for you


Frequently Asked Questions

Manufacturing ERP Requirements & Features

What are the core requirements for a manufacturing ERP system?

The core requirements for a manufacturing ERP system include bill of materials (BOM) management, production planning and scheduling, inventory and warehouse management, shop floor control and automation, quality control and assurance, and cost management with financial integration. These features ensure real-time production control, inventory visibility, quality management, and compliance enforcement. [Source]

How does Priority ERP support bill of materials (BOM) management?

Priority ERP supports BOM management with version control, alternates, phantom items, engineering revisions, and the ability to link BOMs to routings and production orders. It also provides audit trails and change tracking tied to effective dates and open jobs, aligning BOM structures with costing logic and product lifecycle data. [Source]

What production planning and scheduling features are available in Priority ERP?

Priority ERP offers capacity scheduling, backward and forward planning, simulation of production runs based on resource constraints, and dynamic adjustment of schedules as demand or supply changes. It integrates planning with inventory, labor, and machine availability data to ensure realistic and executable production schedules. [Source]

How does Priority ERP handle inventory and warehouse management?

Priority ERP provides inventory visibility by location, lot, serial number, and status. It supports automatic replenishment triggers, barcode scanning, bin-level tracking, material staging, WIP inventory, consignment stock, and inbound/outbound logistics. The module integrates with planning and finance for accurate costing and MRP. [Source]

What shop floor control and automation capabilities does Priority ERP offer?

Priority ERP enables shop floor data collection via terminals, mobile devices, or IoT sensors, updating job status, recording material usage, tracking downtime, and monitoring performance metrics in real time. It supports job progress reporting, labor hours, scrap, deviations, and integrates with machine-level data for automated updates and alerts. [Source]

How does Priority ERP support quality control and assurance?

Priority ERP embeds quality processes in production workflows, supporting inspection plans, non-conformance reports (NCRs), corrective actions, and hold/release logic. It enables traceability down to the component level and links quality records to jobs, vendors, and finished goods. [Source]

What cost management and financial integration features are included?

Priority ERP supports multiple costing methods (standard, actual, average), rolls up labor, material, overhead, and subcontracting costs, tracks variances, and provides visibility into cost drivers. It ensures that inventory, production, and procurement costs flow into general ledger, budgeting, and reporting systems. [Source]

How does Priority ERP address compliance and regulatory requirements?

Priority ERP enforces compliance controls at the system level, supporting industry-specific frameworks such as GMP, FDA, REACH, GHS, ISO 9001, AS9100, HACCP, FSMA, IPC, RoHS, and ISO 13485. It provides process enforcement through controlled access, electronic signatures, validated workflows, and change control. [Source]

What traceability and audit trail features are available?

Priority ERP enables full forward and backward traceability from raw materials to finished goods and delivery. Every material movement, quality check, and process deviation is logged with automated timestamping and user identification, supporting batch, lot, or serial-level audit trails. [Source]

How does Priority ERP support environmental and safety standards?

Priority ERP supports compliance with environmental and occupational safety regulations by tracking hazardous material handling, equipment maintenance, emissions, waste disposal, and safety inspections. Data is linked to processes and transactions for real-time monitoring and regulatory reporting. [Source]

What technology and integration requirements does Priority ERP meet?

Priority ERP offers APIs, middleware, and native connectors for integration with CRM, SCM, and PLM systems. It supports cloud-based accessibility, mobile access, IoT, AI, machine learning, and real-time dashboards for centralized, scalable, and flexible operations. [Source]

How does Priority ERP enable mobile accessibility?

Priority ERP supports mobile access for shop floor personnel, warehouse staff, quality inspectors, and field service technicians. It enables barcode scanning, job tracking, approvals, inventory transfers, and issue reporting via mobile apps or browser-based interfaces, with centralized device management and authentication. [Source]

What customization options does Priority ERP provide for manufacturers?

Priority ERP offers modular architecture, allowing businesses to add functionalities as needed. It supports multi-location and multi-plant operations, plant-specific routings, localized compliance rules, and configurable user roles and permissions for tailored workflows and accountability. [Source]

How does Priority ERP support multi-location and multi-plant operations?

Priority ERP enables plant-specific routings, localized compliance rules, and separate approval workflows, while maintaining a common data model for enterprise-wide control and visibility. This ensures connected operations across all facilities. [Source]

What user roles and permission management features are available?

Priority ERP allows configuration of user roles that map to team structures, with field-level control, approval chains, and audit visibility. This ensures users only access what they are responsible for, enhancing security and accountability. [Source]

How does Priority ERP help manufacturers adapt to changing requirements?

Priority ERP's modular and flexible architecture allows manufacturers to deploy new modules or capabilities as needed, without disrupting stable processes. This adaptability supports continuous improvement and innovation. [Source]

What analytics and dashboard capabilities does Priority ERP offer?

Priority ERP provides configurable dashboards with real-time metrics across production, quality, inventory, procurement, and financial performance. Users can drill down from KPIs to detailed line-level data for actionable insights. [Source]

How does Priority ERP support Industry 4.0 technologies?

Priority ERP integrates with IoT devices, supports AI and machine learning for pattern recognition, exception alerts, and rule-based automation. It enables event-driven architecture, high-volume data ingestion, and customizable response logic for advanced manufacturing environments. [Source]

Features & Capabilities

What features does Priority Software offer for manufacturing companies?

Priority Software offers a comprehensive cloud-based ERP platform with features such as production control, inventory management, quality assurance, compliance enforcement, advanced analytics, automation, and modular customization. It supports real-time data access, mobile capabilities, and integration with other business systems. [Source]

Does Priority Software support no-code customizations?

Yes, Priority Software allows businesses to adjust field names, screen layouts, and workflows without IT support, enabling rapid adaptation to changing business needs. [Source]

What analytics and reporting tools are available in Priority Software?

Priority Software provides hundreds of pre-defined reports and no-code reporting tools, enabling users to generate actionable insights and make informed decisions. [Source]

Does Priority Software offer automation features?

Yes, Priority Software includes built-in workflows and AI recommendations to automate repetitive tasks, reduce manual errors, and improve operational efficiency. [Source]

What integration options are available with Priority Software?

Priority Software offers over 150 plug & play connectors, unlimited connectivity through APIs, embedded integrations, ODBC drivers, RESTful API, and file integration via SFTP. It integrates with leading platforms such as SAP, Webhotelier, Ving Card, and more. [Source]

Does Priority Software provide an open API?

Yes, Priority Software provides an Open API that enables seamless integration with third-party applications, allowing businesses to tailor their systems to specific operational needs. [Source]

Is technical documentation available for Priority ERP?

Yes, Priority Software provides comprehensive technical documentation for its ERP solutions, covering features, industries, and supported products. [Source]

What industries does Priority Software serve?

Priority Software serves a wide range of industries, including manufacturing, retail, hospitality, healthcare, pharmaceuticals, automotive, technology, and more. [Source]

How does Priority Software support compliance in regulated industries?

Priority Software supports compliance with industry-specific regulations such as FDA, GMP, ISO, REACH, GHS, HACCP, FSMA, IPC, RoHS, and ISO 13485, providing process enforcement, audit trails, and documentation to meet regulatory obligations. [Source]

Use Cases & Benefits

What problems does Priority Software solve for manufacturers?

Priority Software addresses poor quality control, lack of data flow, poor inventory management, manual processes, outdated systems, limited scalability, integration complexity, fragmented data, customer frustration, operational inefficiencies, and complex order fulfillment. [Source]

Who can benefit from using Priority Software?

Manufacturers of all sizes, including those in discrete, process, and engineer-to-order (ETO) environments, as well as companies in retail, hospitality, healthcare, and other industries, can benefit from Priority Software's scalable and flexible solutions. [Source]

How does Priority Software help with quality control and traceability?

Priority Software provides real-time traceability and visibility across products and processes, enabling rapid identification of issues, reducing recalls, and driving customer loyalty and revenue. [Source]

How does Priority Software improve operational efficiency?

Priority Software automates workflows, centralizes data, and provides actionable analytics, reducing manual processes and enabling employees to focus on higher-value tasks, leading to better resource utilization and increased revenue. [Source]

How does Priority Software help with inventory management?

Priority Software optimizes inventory levels, improves forecasting, demand planning, and supply chain efficiency, resulting in happier customers and increased revenue. [Source]

How does Priority Software address integration complexity?

Priority Software's modular all-in-one solution eliminates the need for complex integrations, ensuring seamless workflows across operations and customer engagement. [Source]

How does Priority Software help companies transition from outdated systems?

Priority Software replaces outdated systems and spreadsheets with a centralized ERP, streamlining operations, reducing risk, and empowering better decisions. [Source]

What customer success stories are available for Priority Software?

Priority Software has helped companies like Solara Adjustable Patio Covers, Arkal Automotive, Dejavoo, Nautilus Designs, TOA Hotel & Spa, Dunlop Systems and Components, Global Brands Gallery, and Cowtown Retail Chain achieve measurable improvements in workflows, growth, data accuracy, and customer satisfaction. [Case Studies]

What feedback have customers given about Priority Software's ease of use?

Customers have praised Priority Software for its intuitive interface and user-friendly design. For example, Allan Dyson of Merley Paper Converters highlighted the system's ease of use, and Tomer Lebel of Cyberint noted that Priority is much easier and simpler to operate compared to other ERP solutions. Priority ERP has a rating of approximately 4.1/5 on G2. [Source]

Competition & Comparison

How does Priority ERP compare to Microsoft Dynamics 365?

Microsoft Dynamics 365 requires heavy customization for industry needs and is not built for highly regulated industries. Priority ERP is user-friendly, flexible, customizable without IT support, and ensures compliance with FDA, GDPR, SOX, ISO9000, ISO27001, and SOC 2 Type 2. [Source]

How does Priority ERP compare to SAP Business One?

SAP Business One is powerful but complex, expensive, and lacks multi-company capabilities. Priority ERP is affordable, easy to use, maintains the same platform (no forced migrations), and supports true multi-company operations with automatic inter-company processes. [Source]

How does Priority ERP compare to Acumatica?

Acumatica focuses on cloud ERP but lacks industry-specific features and has a steep learning curve. Priority ERP offers industry-tailored solutions, a native scalable WMS, ease of use, and flexible quarterly commitments with no lock-in. [Source]

How does Priority ERP compare to NetSuite?

NetSuite is a strong cloud ERP but is expensive and enforces contract lock-in. Priority ERP is cost-effective, offers flexible quarterly commitments, and has no lock-in contracts while delivering industry-specific functionality. [Source]

How does Priority ERP compare to Odoo?

Odoo is open-source but has scalability limits, performance issues, and high implementation failure rates. Priority ERP provides structured implementation, scalability, proven methodologies, experienced partners, and quick user adoption. [Source]

How does Priority ERP compare to Sage X3?

Sage focuses on accounting, not full ERP, and customizations require coding. Priority ERP integrates accounting with analytics, automation, and industry features, supporting no-code customizations for apps, portals, workflows, and automation. [Source]

How does Priority ERP compare to Microsoft Business Central?

Business Central requires heavy coding for industry features and lacks specialized functionality for industries like manufacturing. Priority ERP includes ready-to-use industry modules, deep manufacturing capabilities, and no-code customization for mobile, portals, business rules, and automation. [Source]

Support & Implementation

What professional and implementation services does Priority Software offer?

Priority Software provides professional and implementation services to ensure smooth onboarding and optimal utilization of its software solutions. [Source]

Is customer support available for Priority Software users?

Yes, Priority Software offers customer support and resources, including documentation, product tours, webinars, and a dedicated support portal. [Source]

Product Information

What is Priority Software?

Priority Software is a leading provider of scalable, agile, and open cloud-based business management solutions, serving over 75,000 companies across 70 countries. It offers ERP, retail management, hospitality management, and school management solutions. [Source]

Who are some of Priority Software's customers?

Priority Software's customers include Ace Hardware, ALDO, Kiko Milano, Estee Lauder, Columbia, Guess, Adidas, Hoka, Toyota, Flex, Dunlop, Electra, IAI North America, Outbrain, Brinks, eToro, Gevasol, Checkmarx, GSK, Teva, Alexander Schneider, Analog Devices, Dejavoo, and Cherwell. [Source]