When your small business starts taking leaps and your day-to-day operations and their interdependence increases…

What’s the first software you’ll likely to rely on for managing everything?

An ERP (Enterprise Resource Planning) Software, right?

No matter the size of your business, an ERP is essential!

In the past, these systems were custom-built for each company based on their specific needs.

Today, however, there are pre-packaged Manufacturing ERP Software’s are available as software products or SaaS.

If you search online, you’ll find so many options that choosing the right one for your business can become quite overwhelming!

There are ERP giants like -Microsoft Dynamics 365, SAP, and Oracle, as well as smaller players such as Acumatica, Intacct, and QAD.

Choosing any of these can free you from the manual management of day-to-day operations, allowing you to focus on what truly matters… Focus on Growing your business!

However, each platform comes with its own pricing and features, making them better suited to specific manufacturing business types and needs.

Let’s break them down and find the right fit for you!

Choosing the right ERP software is critical for small manufacturing companies looking to streamline operations, improve efficiency, and support growth.

Below is a detailed breakdown of the most top ERP Systems, specifically tailored for small manufacturers, highlighting their key features, strengths, and suitability for various business needs.

1. Microsoft Dynamics 365 Business Central

Why it’s great for small manufacturers :

• • Scalable and Modular – Ideal for small businesses, allowing you to start with essential functionalities and expand over time.
  • Strong Integration – Seamlessly integrates with the Microsoft ecosystem, including Office 365, Power BI, and Teams.
  • Customizable – Adaptable workflows and reports to suit manufacturing needs.
  • Cloud-Based – Provides real-time data access, allowing flexibility in managing your business.

Key Features :

• • Inventory and supply chain management
  • Financial management and accounting
  • Sales and customer relationship management
  • Production planning and scheduling
  • Compliance management

Pricing :

• • Essentials Plan – $70 per user/month
  • Premium Plan – $100 per user/month
  • Team Member License – $8 per user/month (for basic functionality access)

Best For :

Small manufacturers who are looking for an affordable, scalable, and customizable ERP with strong integration with Microsoft Ecosystem.

2. Odoo ERP

Why it’s great for small manufacturers :

• • Open-Source Flexibility – Customizable and adaptable for specific business needs, making it highly affordable.
  • Modular Approach – Pay only for the modules you need, such as manufacturing, inventory, and CRM.
  • User-Friendly – Intuitive and easy to use, even for businesses without a large IT department.

Key Features :

• • Manufacturing process automation
  • Inventory and warehouse management
  • Financial management
  • Sales and CRM integration
  • Real-time collaboration tools

Pricing :

• • Free for one app (such as CRM or invoicing)
  • Paid Plans – Starts at $31 per user/month for additional apps
  • Implementation and hosting costs vary based on customization.

Best For :

Manufacturers looking for an affordable, flexible, and highly customizable ERP solution.

PS – it’s new in the market and yet to prove its worth!

3. Acumatica ERP

Why it’s great for small manufacturers :

• • Flexible Pricing Model – Acumatica charges based on resources used, not per user, making it affordable for growing businesses.
  • Cloud-Based – Accessible from anywhere, providing real-time data and flexibility.
  • Tailored for Manufacturing – Includes built-in tools for managing production, inventory, and supply chain processes.

Key Features :

• • Manufacturing management (BOMs, MRP, and production orders)
  • Inventory control and distribution management
  • Financial management
  • Order and supply chain management
  • Customizable workflows

Pricing :

• • Resource-based pricing – Starts around $1,000 per month, with additional costs based on usage.

Best For :

Manufacturers seeking a flexible cloud-based ERP with resource-based pricing, making it cost-effective for businesses that want to avoid high per-user fees.

4. Fishbowl Manufacturing

Why it’s great for small manufacturers :

• • Focused on Inventory and Manufacturing – Designed specifically for manufacturing and inventory management, making it ideal for small businesses.
  • Integration with QuickBooks – Seamless integration with QuickBooks for businesses already using it for financial management.
  • Cost-Effective – One of the more affordable ERP solutions tailored for small manufacturers.

Key Features :

• • Inventory and warehouse management
  • Work order and production management
  • Order processing and shipping
  • Supply chain management
  • Barcoding and scanning capabilities

Pricing :

• • One-time license fee – Starts around $4,395 (for 1 user, with optional add-ons).
  • Additional users – Costs around $895 per user.

Best For :

Small manufacturers who want a cost-effective ERP focused on inventory and production with QuickBooks integration.

5. Katana ERP

Why it’s great for small manufacturers :

• • Specifically for Manufacturing – Designed with small manufacturers in mind, offering production planning and inventory control.
  • Real-Time Data – Provides real-time insights into production, inventory, and order fulfillment.
  • Affordable Pricing – Competitive pricing makes it accessible for small businesses.

Key Features :

• • Production scheduling and planning
  • Inventory management
  • Order tracking and fulfillment
  • Integration with e-commerce platforms like Shopify and WooCommerce
  • Visual dashboard for real-time updates

Pricing :

• • Essential Plan – Starts at $129 per month (for up to 500 orders)
  • Pro Plan – $349 per month (for more advanced features and higher order volumes)

Best For :

Small manufacturers that need a simple, cost-effective ERP solution focused on production and inventory management.

6. DELMIAWorks (formerly IQMS)

Why it’s great for small manufacturers :

• • Manufacturing-Focused – Provides features specifically designed for manufacturing, including MRP and production tracking.
  • Cloud and On-Premises Options – Flexibility in deployment based on your business needs.
  • Affordable for Small Businesses – Tailored for small manufacturers with scalable pricing.

Key Features :

• • Manufacturing resource planning (MRP)
  • Inventory and supply chain management
  • Production scheduling and shop floor control
  • Quality control and compliance tracking
  • Financial management and reporting

Pricing :

• • Starts around $500 per user/month, but pricing depends on the number of users and modules required.

Best For :

Small manufacturers that require a manufacturing-centric ERP with flexible deployment options and a focus on production tracking.

So, what’s the best ERP for manufacturers, especially the smaller players?

Since you are reading this line – we know that you have read all the options!

Now we would like to suggest you one of them!

Yes!

But before we write that down,

Please understand that they are all good – but one of them has been used by many small and even large enterprises to handle their operational needs!

And has proven its worth for a long time!

So, our biased choice is – Microsoft Dynamics 365 Business Central

Now you may ask why only this?

Keep reading as we can give you enough reasons!

👉 1. MS Dynamics 365 is that ERP which is tested by time and by many companies worldwide.

👉 2. It has been thoroughly tested over time, undergone multiple updates, and consistently delivered reliable performance throughout the years.

👉 3. It is much cheaper and has many pricing options as compared to other – which is best for small manufacturers. 

👉 4. It gets easily integrated with Microsoft Ecosystem that most companies use for different purposes. 

👉 5. Can be customized based on the need – and as your business grows!

Your ERP usually goes through a lot of customization because the needs get evolved and it is hard to survive with those ERPs that have limited customization capabilities.

People do have myths that these customizations are costly or takes too long to develop, but here are some truths demystified about the challenges of Custom ERP Application Development.

👉 6. It is easy to find IT talent for MS Dynamics 365 – the ones who can integrate this system for you and enhance and customize it based on needs.

IT talent for other ERPs mentioned above are not too hard to find – but much less in number for sure.

👉 7. The most important one!

Tried and tested by us – as small Custom Software Development Company, we are using it to manage all our internal operations and data.

So, this one is like – Covrize Approved!

We have tried to curate the precise information and jotted down the best ERP software’s for the manufacturing industry.

But at the end of the day – we would like to request you to please consult some ERP development experts – tell them your requirement and then choose the one that they suggest and seems like a viable option.

Because the one ERP that you will choose in the beginning is going to be there with you until the subscription ends…

Either you like it or not!

So, it’s better to take your time and evaluate all your options.

And we hope you choose the best one – because we know how important it is to focus more on the business than get in constant trouble with the software!