Discrete ERP software manages most operational and back-office activities of manufacturing companies that produce distinct or individually separated products. Discrete ERP systems are used to plan, manage, and track production activities as well as other related processes such as inventory management, sales, purchasing, or accounting. By using discrete ERP software, manufacturers can identify what needs to be produced based on demand, what raw materials are required for production, and how to create and implement production plans. In addition, discrete ERP tools help manufacturers monitor the quality of the products and deliver them to customers.
Due to its broad scope, discrete ERP software can be used by all departments of a manufacturing company, but it is critical for the production team. For optimal results, discrete ERP solutions should be used by accountants to manage financial transactions, by purchasing managers for fulfillment, or by warehouse managers to manage the inventory of raw materials and finished goods.
Discrete ERP software can be delivered as a standalone solution or as a package combining multiple solutions. Many vendors also provide a core package and additional modules that can be bought separately. This type of software needs to integrate with other enterprise software such as CRM all-in-one software, supply chain suites, PLM software, and HR management suites.
To qualify for inclusion in the Discrete ERP category, a product must:
- Provide robust accounting features or tight integration with accounting software
- Include features to create and manage multiple types of bills of materials
- Create and consolidate purchase orders for raw materials and finished products
- Capture sales orders from customers and match them with product availability
- Manage inventory or raw materials and finished products in multiple locations
- Identify and allocate the equipment and human resources needed for production
- Create and implement production plans depending on demand and capacity
- Monitor quality standards for products during production and warehouse storage
- Provide features to ship products to customers or distributors and track returns
- Track production and administrative costs per department or activity
- Include financial reporting and dashboards as well as financial statements
