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Benefits of ERP Software for Electronics Manufacturing

Electronics manufacturing is a high-tech industry with highly competitive demands that require constant scrutiny and adaptability from its leading executives. Having ERP software for electronics manufacturing is vital to remain competitive and profitable within the fast-paced landscape.

A recent study has shown that manufacturers typically see healthy ROIs from their ERP software. This is only applicable when it’s implemented properly by a qualified ERP software provider, and the goals for software usage are clearly defined.

In that study, the top three areas identified where ERP software yields strong ROIs in the manufacturing industry include:

  • business cost savings
  • improved performance metrics
  • increased efficiencies in transacting business

In this article, we’ll explore what ERP software is, how it can benefit your electronics manufacturing business, and include helpful tips on choosing the right ERP for your unique industry.

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What is an ERP Software?

An ERP software is a comprehensive software application that integrates all facets of a company’s business operations into a unified system. It typically includes modules for financial accounting, human resources, manufacturing, sales and marketing, and project management.

ERP software is used in many industries, including retail, healthcare, manufacturing, and government. They are designed to streamline business processes and improve efficiencies by providing real-time visibility into all aspects of a company’s operations.

ERP software can be deployed as on-premise software, cloud-based software, or a hybrid of the two. On-premise ERP is installed on a company’s own servers, while the ERP vendor hosts cloud-based ERP systems.

ERP Solutions & Goals for the Electronics Manufacturing Sector

While all manufacturing companies can likely benefit from a well-qualified ERP system, not all ERPs are suitable for those in the electronics manufacturing sector. Reviewing and testing an ERP to prove it’s tailored to your electronics company’s needs is essential for a successful purchase.

The right ERP system for electronics manufacturers should be well suited to address the unique needs of a short-cycle industry. Some of these needs include:

  • support short life cycle production,
  • easily allow for continual new product introductions,
  • and have robust critical component planning capability.

When the above-listed features and others we address later are prioritized in an ERP request for proposal, the decision-makers can be confident they are getting a software solution that will facilitate success in their industry.

How Can an ERP Software Benefit Your Electronics Manufacturing Business?

There are many ways ERP software can be relied upon for your electronics manufacturing business. Some of the most notable benefits include:

1. Improved visibility into all aspects of your business

An ERP software gives you real-time visibility into all facets of your business, from financial accounting and human resources to manufacturing and sales. This improved visibility can help you make better decisions about your business and improve your overall efficiency.

2. Streamlined business processes:

ERP software is designed to streamline business processes by providing a single, unified system for all your business operations. This can help save time and money by eliminating the need for duplicate data entry and manual processes.

3. Improved customer service:

An ERP system can help you improve your customer service by providing up-to-date information about your products, pending work orders, and inventory levels. This can help you avoid out-of-stocks and backorders.

Why is an ERP Software for Electronics Manufacturing Vital?

Electronics manufacturing is an industry where it is vital to have ERP software as part of its planning and business processes. Here are some key reasons:

Short Life Cycle Support

An ERP software for electronics manufacturing must support short product lifecycles. The time from order entry to product shipment can be as little as a few days in this industry. The ability to quickly adapt to changing manufacturing processes is essential to success.

Integrate with New Product Introductions

Continual new product introductions are the norm in electronics manufacturing. An ERP must be flexible enough to support multiple product lines and configurations and bring products to market faster.

Component Traceability

Due to compliance and quality assurance, the full traceability of components and products is essential in the electronics manufacturing industry. Tracking each asset and product through the entire manufacturing operations is critical.


Costing and margin pressure are constant in electronics manufacturing. An ERP for electronics manufacturing must provide accurate costing information and the ability to perform a “what if” scenario analysis in the event of a global supply chain disruption or market shift.

Manufacturing Simulation

In electronics manufacturing, manufacturing simulations are often used to verify process capabilities before production. The ability to quickly set up and run simulations are essential.

Implementation and Planning Support

Implementation planning and execution are critical success factors in any ERP project. In the electronics manufacturing industry, the implementation team must understand the unique business processes.

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How to Select an ERP for Electronics Manufacturing

Several ERP software in the market claim to be tailored for the electronics manufacturing industry. However, not all of them deliver on their promises which can lead to failure.

To avoid adverse outcomes and help you choose the best ERP system for your electronic manufacturing business, we’ve put together a list of the key considerations:

  • Project functionality: Choose a system that can support short life cycle production, continual new product introductions, and traceability of components and products is essential.
  • Costing and manufacturing simulations: Your ERP must have a solid ability to determine the cost of products and run simulations accurately.
  • Implementation planning: There must be a deep understanding of the unique business processes and support from your service provider to ensure successful implementation.