Small Manufacturing ERP Software Solutions: Which System Is Best for Your Business?
Suppose you are a small to mid-size manufacturing company looking to implement a cloud-based ERP system or upgrade from your current system. In that case, it’s important to analyze your organizational needs before deciding.
While it might seem simple, picking ERP software solutions that your team is comfortable with and that address your unique needs in inventory management, regulatory compliance, health and safety, formula management, and scalability can be challenging.
In this blog post, we will compare three cloud-based ERP systems and highlight their benefits and drawbacks. We hope that you will gain insight into which system best suits your business as you move on to implementation.
Why Small Manufacturing Businesses Need ERP
While every manufacturing business is unique, there are some common challenges clients discuss with us when implementing a cloud-based ERP system, including:
1. Inefficient Processes
If you aren’t utilizing scalable ERP solutions, you might be stuck completing manual processes or using outdated systems and tools. This can lead to errors, delays, and service interruptions as outdated software systems are often no longer supported.
ERP Solution: Automates workflows, streamlines production planning, and integrates data across departments.
2. Inventory Management
Managing inventory on an old system manually is time-consuming and tedious. This can lead to difficulties maintaining optimal stock levels and result in shortages, excess inventory, and costly errors.
ERP Solution: Provides real-time visibility and demand forecasting tools to optimize inventory.
3. Cost Control
Controlling costs is top of mind for any business, and manufacturers are no different. Without a new ERP system, managing production costs can be challenging. You will also lack insight into expense drivers, cost savings, and cash flow.
ERP Solution: Tracks costs at granular levels, enabling informed decisions to reduce waste and improve margins.
4. Compliance and Quality Management
If you don’t have an ERP system or are using one that might be considered outdated, staying up to date with compliance and quality standards can be tough. You’ll often have to assign workers to those tasks who could focus their efforts on more value-added work with a cloud system. Your business will also be more prone to quality errors, which leads to costly returns and recalls.
ERP Solution: Monitors compliance, manages documentation, and integrates quality control processes.
5. Scalability
Scaling your system up and down can be complicated if done manually, as assessing everything becomes tougher with fewer insights into your day-to-day processes. Additionally, any scaling you do will almost surely lead to operational disruptions, which can be significant and costly.
ERP Solution: Offers modular features that scale with business needs, supporting future growth.
6. Customer Expectations
As technology advances, customer expectations rise. They want the right product and it to be delivered on time. For manufacturers, this is extremely important as the intricacies of putting a product together—be it equipment, chemicals, or devices—must be done quickly and accurately.
ERP Solution: Automates a lot of the processes people have to go through when producing something, enhancing production agility and providing accurate delivery times.
By addressing these pain points, a robust ERP system boosts efficiency, reduces costs, and enhances competitiveness.
Leading Small Manufacturing ERP Software Solutions for 2025
Several options for small manufacturing businesses are looking to implement a new ERP system. In this section, we will provide you with insights into three options, highlighting their features and functionalities, pricing, and pros and cons. At Stoneridge, we've deployed Dynamics 365 Business Central ERP solutions for several manufacturing companies in multiple industries, including:
- Chemical manufacturing
- Food and beverage manufacturing
- Cosmetic manufacturing
- Medical device manufacturing
- Pharmaceutical manufacturing
- And more
Dynamics 365 Business Central – Powered by YAVEON ProBatch
Stoneridge Software is a Microsoft inner-circle partner. We employ a team of experts in various Microsoft specialties who can help you implement Dynamics 365 and take advantage of the integration with YAVEON ProBatch.
Between the two solutions, Business Central is a strong cloud-based ERP solution that all small manufacturers can use.
Features and Functionalities
- Tailored for process manufacturing: Provides specialized tools for managing formulas and batches, ensuring consistency and quality in production processes.
- Compliance tracking and quality assurance: Built-in features to manage regulatory requirements and conduct quality checks, reducing the risk of non-compliance.
- Integration with Microsoft tools: Works seamlessly with Microsoft Office and Power BI, enabling advanced reporting and easy collaboration across departments.
- Scalability and customization: Offers flexible options to grow with the business, with numerous add-ons and customizations available to meet specific needs.
Cost Effectiveness
- Flexible licensing options allow businesses to choose plans based on their needs, but extensive customizations or add-ons can increase overall costs.
- Scalable pricing allows businesses to pay only for the users and features they need
User Friendliness
- Features a familiar Microsoft interface, making it easier for teams already using Microsoft products to adapt quickly.
- Moderate learning curve for new users, supported by extensive documentation and training resources.
Pros
- Strong focus on manufacturing needs, offering tools tailored for batch management, health and safety, inventory, and financial processes.
- Cloud infrastructure supports work on mobile devices while maintaining functionality
- Advanced reporting and integration with the larger Microsoft ecosystem (including Microsoft 365 apps and the Power Platform), and over 6000 apps on AppSource to streamline decision-making and operations.
Cons
- Relies on third-party customizations for some niche requirements.
- Ongoing subscription costs for add-ons can make it expensive over time.
NetSuite
NetSuite ERP is a cloud-based ERP solution that features processes that streamline and manage core business processes like financials, inventory, order management, and procurement.
Features and Functionalities
- Cloud-native platform: Provides a foundation for financial management, inventory tracking, and operational management.
- Add-ons for manufacturing: Industry-specific modules are available for regulatory compliance and process manufacturing.
- Real-time analytics: Offers real-time visibility into operations with customizable dashboards and advanced reporting tools.
Cost-Effectiveness
- Operates on a subscription-based pricing model, costs increase with the number of users and added functionalities.
User-Friendliness
- Features an interface that is easy to navigate.
- Supported by a strong network of partners and a wealth of online resources for training and onboarding.
Pros
- Fully cloud-based, ensuring accessibility from anywhere and scalability for growing businesses.
- Offers a wide range of financial and operational management features.
Cons
- Requires add-ons for specialized manufacturing workflows, increasing costs.
- Limited out-of-the-box functionality for complex chemical manufacturing needs.
Acumatica
Acumatica similarly is a cloud-based system that focuses on streamlining and optimizing processes in financial management, distribution, customer management, and manufacturing.
Features and Functionalities
- Modular design: Allows companies to choose and tailor functionalities specific to manufacturing and distribution processes.
- Advanced inventory and lot tracking: Helps ensure compliance and manage inventory.
- Open API framework: Facilitates integrations with third-party systems and tools.
Cost-Effectiveness
- Flexible pricing model based on computing resources rather than user count.
User-Friendliness
- Designed with a clean interface and easy navigation.
- Supported by an active community and extensive training materials for implementation.
Pros
- Offers some flexibility and cost-efficiency, especially for companies with numerous users.
- Customizable to meet the unique needs of chemical manufacturers.
Cons
- Initial setup and configuration can require significant time and effort.
- Lacks some advanced compliance management tools out of the box.
How to Choose the Right ERP for Your Small Manufacturing Business
While all three systems make strong cases for being your ERP system, ultimately the decision will come down to what is most important to you and your team.
In a series of blogs, Sabre Limited owner Rob Jolliffe compared and contrasted Dynamics 365 Business Central with both NetSuite and Acumatica.
Business Central vs NetSuite
Here is a side-by-side comparison of Jolliffe’s findings for Business Central and NetSuite:
Key Observations
- Scalability: NetSuite is often better suited for businesses with complex, multi-national operations, while Business Central caters to smaller organizations that prioritize affordability and integration within the Microsoft ecosystem.
- Note: If you are interested in Dynamics 365's capabilities but think Business Central might be too small, you can contact Stoneridge and inquire about Dynamics 365 Finance and Supply Chain Management, Microsoft’s enterprise ERP solution.
- Cost and accessibility: Business Central offers more predictable pricing, ideal for businesses on a tighter budget. NetSuite, though more expensive, provides a higher degree of scalability.
- Customization vs. simplicity: Business Central excels in ease of use and familiarity for Microsoft users, whereas NetSuite is highly customizable but may require more technical expertise during implementation.
Business Central vs Acumatica
Here is a chart summarizing Jollife’s article comparing Business Central and Acumatica:
Key Observations
- Integration & familiarity: Business Central excels in ease of use for companies already invested in the Microsoft ecosystem. Acumatica stands out for open integrations and industry-specific customizations.
- Pricing: Business Central offers clear subscription-based pricing, while Acumatica has variable costs influenced by deployment and user roles.
- Manufacturing: Acumatica is slightly better for specialized manufacturing processes, while Business Central's Premium license efficiently covers most manufacturing needs.
Both platforms are highly regarded, appearing on most top ERP lists due to their robust capabilities and adaptability. The choice between them depends on your business's specific needs, existing systems, and growth plans.
As mentioned earlier, the choice you make will depend on several factors. We recommend reviewing your current operations to identify areas for improvement, examining your budget, and talking with your team members to determine which system will work best for your organization.
Stoneridge Is Your Dynamics 365 Implementation Partner
No matter which solution you choose, finding the right implementation partner is perhaps the most important part of the process. You need a team of experts who are knowledgeable in both your current system and the one you plan on upgrading to. Stoneridge experts can also help you analyze your current processes, assess your cloud preparedness, train your team on how to use your new system and support you through the entire process and post-implementation.
If Dynamics 365 is on your radar, Stoneridge is here to help you optimize it to increase your business's efficiency and profitability.
Get in touch with us to learn more.
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