The Ultimate Guide to Manufacturing Software

Every day, manufacturers like you face important decisions. Should you order more raw materials now or wait until next week? Can your current workforce handle the spike in orders coming next month? Where exactly is that critical component your customer is asking about?

Answering these day-to-day questions correctly drives profitability and customer satisfaction. And the manufacturers who consistently make smart choices have one thing in common: They use the right software for their needs. Modern manufacturing software provides the insights you need to make confident decisions and grow your business. Let’s review the types of manufacturing software solutions available, how to find a good match, and implementation tips and tricks.

Manufacturing software is a digital platform that helps you manage, control, and optimize your processes, from raw materials to finished goods. Comprehensive manufacturing software connects all your business operations through integrated modules, giving you visibility into everything happening in your facility, from inventory levels and machine performance to quality metrics and delivery schedules.

The definition of manufacturing software has evolved dramatically over the past few decades. What started as basic computer programs for tracking parts and schedules has grown into sophisticated platforms that use artificial intelligence (AI) and automation to predict equipment failures, optimize production schedules, and reorder materials. You can now automate processes that once required hours of manual work and get insights that were impossible to gather with paper-based systems.

The best manufacturing software systems can improve multiple areas of your business, creating a positive cycle where better data leads to smarter decisions and improved results.

• Accurate forecasting: Predicting demand becomes much more reliable when you base decisions on real data rather than gut feelings. You can forecast future needs using historical sales patterns, seasonal trends, and current market conditions.
• Better inventory management: Managing stock levels gets easier when you have complete visibility into all of your materials. Manufacturing software tracks every component from receipt to shipment, helping you maintain optimal stock levels without tying up excess capital in unused materials.
• Improved labor and equipment utilization: Understanding how your resources are actually being used reveals opportunities for improvement. Real-time monitoring shows you exactly where your people and machines are most productive, helping you identify bottlenecks before they impact production and reduce downtime.
• Dynamic purchase order management: Automating your purchasing decisions saves time and prevents stockouts. Manufacturing software can automatically generate purchase orders when inventory hits predetermined levels and adjust quantities based on current production schedules and forecasted demand.
• Reduced waste: Catching problems early in your production process saves both materials and money. Manufacturing process software helps you spot quality issues, inefficiencies, and material usage problems before they turn into expensive waste.
• Optimized processes overall: Connecting data from all your departments reveals the bigger picture of your operations. Integrated information helps you spot inefficiencies you might have missed and implement improvements that boost productivity across your entire facility.

The variety of software in manufacturing that’s available today reflects how much technology has advanced in recent years. As artificial intelligence and cloud computing continue to evolve, manufacturers now have access to specialized tools that can handle everything from customer relationships to production monitoring, each designed to solve specific operational challenges.

Customer Relationship Management (CRM)

CRM software helps you track every interaction with your prospects and customers from first contact through ongoing support. It stores contact information, sales history, communication records, and service requests in one central location where your entire team can access it. Nearly every manufacturer needs CRM software, but especially those who sell directly to customers or manage complex B2B relationships that involve multiple touchpoints and long sales cycles.

Material Requirements Planning (MRP)

MRP software calculates exactly what materials you need, when you need them, and in what quantities based on your production schedule and current inventory levels. It takes your sales orders and breaks them down into component requirements, then compares those needs against what you have on hand to generate purchase and production orders. Any manufacturer who builds products from multiple components—especially those with complex assemblies or variable demand—benefits from MRP functionality.

Bills of Materials (BOM)

BOM software manages the complete list of components, parts, and raw materials needed to manufacture each product. It maintains detailed specifications, quantities, and assembly instructions for every item in your production process. BOM software becomes essential when you manufacture products with multiple variations or when engineering changes happen frequently, because it ensures everyone is working from the same up-to-date information.

Manufacturing Inventory Software

Manufacturing inventory software gives you oversight into what you have in stock, where it's located, and how it's moving through your facility. It tracks raw materials, work-in-progress, and finished goods while monitoring usage patterns and automatically triggering reorders when levels get low. Manufacturers who struggle with stockouts, excess inventory, or simply want better control over their investment in materials find this software invaluable.

Overall Equipment Effectiveness (OEE)

OEE software measures how effectively your equipment is running by tracking availability, performance, and quality metrics. It calculates a percentage score that shows you exactly how much productive time you're getting from each machine compared to its theoretical maximum. This type of software is especially valuable for manufacturers with expensive equipment, where even small improvements in efficiency can deliver substantial cost savings.

Master Production Schedule (MPS)

MPS software creates a detailed production plan for what you'll produce, when you'll produce it, and in what quantities based on customer demand and available capacity. It balances customer requirements against your production capabilities to create realistic schedules that your team can actually execute. Manufacturers with multiple product lines, seasonal demand patterns, or capacity constraints rely on MPS software to keep production flowing smoothly.

Manufacturing Execution Systems (MES)

MES software connects your planning activities with your shop floor operations by providing production tracking, work order management, and performance monitoring. It tells operators what to build next, tracks progress against schedules, and captures data about quality, materials usage, and labor time. Companies with complex production processes, strict quality requirements, or multiple production lines find the most value in this type of manufacturing process management software.

Quality Management Systems (QMS)

Quality management software helps you maintain consistent product quality by standardizing inspection processes, tracking defects, and managing corrective actions. It documents quality procedures, stores test results, and generates reports that prove compliance with industry standards and customer requirements. QMS is important for manufacturers in regulated industries or those who need to maintain strict quality certifications.

Warehouse Management Systems (WMS)

WMS software optimizes how you receive, store, pick, and ship materials and products by directing warehouse activities and tracking inventory movement. It tells workers where to put incoming materials, which items to pick for orders, and the most efficient routes through the warehouse. Manufacturers with large warehouses, high-volume shipping, or complex inventory requirements see the biggest improvements from warehouse management software.

Enterprise Resource Planning (ERP)

ERP software integrates all these different functions into one comprehensive platform that manages your entire business from accounting and sales to production and shipping. Rather than using separate software for each function, ERP gives you a single source of truth where information flows automatically between departments. Manufacturers who want to eliminate data silos, reduce manual data entry, and get a complete view of their operations choose ERP solutions that include the specific modules they need.

Before you start evaluating different options, you need to determine exactly what your business needs from manufacturing software. Taking time upfront to define your requirements helps you choose a solution that not only solves your current challenges but also supports your long-term growth plans. Here’s what to consider.

On-Premise vs. Cloud-Based Manufacturing Software

On-premise manufacturing software runs on servers located at your facility, giving you complete control over your data and customization options. This approach often appeals to manufacturers with strict security requirements or those who want to modify their software extensively. However, on-premise solutions typically require larger upfront investments for hardware and ongoing IT staff to maintain and update the software.

Cloud-based manufacturing software runs on the provider's servers. You typically access it through your web browser, eliminating the need for expensive hardware purchases and dedicated IT staff. Your software provider handles all maintenance, updates, and security, so you always have access to the latest features without additional work from your team.

Cloud manufacturing software also offers better disaster recovery because your data is backed up automatically and you can access it from anywhere with an internet connection. Most manufacturers today choose cloud-based solutions because they're faster to implement, more cost-effective, and easier to scale as your business grows.

Determining What You Need

Before you can choose the right manufacturing software, you need to clearly define what your business actually needs it to do. Follow these steps:

• Start by identifying your biggest operational pain points, whether that's inventory management, production scheduling, quality control, or customer relationship management.
• Next, consider how these challenges connect to each other. Manufacturing software works best when different functions share information seamlessly.
• Think about your future plans—if you're expecting growth, new product lines, or additional locations, factor those needs into your evaluation.
• Finally, involve key people from different departments in this process. They'll be the ones using the software daily and can provide valuable insights about what functionality matters most.

Top Features to Look For in Manufacturing Software

Once you've determined what functionality you need, evaluate potential software solutions based on the features that will make your investment successful long-term. Look for these key characteristics that set the best manufacturing software systems apart:

• Industry-specific: Choose software specifically designed for manufacturers, like DELMIAWorks, rather than generic business software. Industry-specific solutions include built-in processes, terminology, and functionality that manufacturers actually use, which means faster implementation and better results.
• Compatible with current systems: Your new manufacturing software should integrate smoothly with the systems you're already using, such as accounting software, CAD programs, or customer portals. Proper integration prevents data silos and reduces the manual work needed to maintain different systems.
• Scalable: It's perfectly fine to start with the modules you need most right now. Just make sure that as your business grows, you can seamlessly add additional functionality, users, or locations without having to replace your entire software platform.
• Real-time data: Modern manufacturing moves too fast for yesterday's reports. Look for manufacturing software that gives you real-time visibility into inventory levels, production status, quality metrics, and other key performance indicators so you can make decisions based on current information.
• Automation: The best manufacturing software automates routine tasks like generating purchase orders, updating inventory records, and creating production schedules. This reduces manual errors and frees up your team to focus on higher-value activities.
• Provider reputation and history: Choose a software provider with a proven track record of serving manufacturers successfully and a commitment to ongoing innovation and support. Research their customer reviews, ask for trials or examples of manufacturing software, and find out how long they've been in business to make sure they can support you long-term.

Implementing manufacturing software can present challenges, but working with an experienced provider who understands manufacturers' needs makes the process much smoother. The most successful implementations happen when you anticipate these common obstacles and plan strategies to address them.

Challenge #1: Compatibility

One of the biggest concerns manufacturers face is how new software will work with their existing systems. Some manufacturers worry about the "rip-and-replace" approach where they have to change all their software simultaneously, which can disrupt operations and create training challenges. Others want to know if they can integrate new manufacturing software with their current accounting system, customer database, or other business applications they rely on.

To solve this, choose software that offers flexible integration options and work with a provider who has experience connecting different systems. Look for solutions that can either integrate with your existing software or provide a migration path that lets you move data and processes gradually rather than all at once.

Challenge #2: Complexity

Software complexity varies depending on which solution you choose and how many different vendors you need to work with to get all the functionality you need. Managing multiple software providers, different user interfaces, and separate databases creates unnecessary complications that can slow down implementation. The complexity multiplies when you have to coordinate between multiple vendors.

It’s best to select a single provider that offers all the manufacturing software modules you need under one platform, which simplifies training, support, and data management. Also, create a dedicated implementation team with representatives from each department who can oversee the rollout, make decisions quickly, and communicate changes to their teams.

Challenge #3: Stakeholder Buy-In

Getting support for new manufacturing software can be challenging when executives worry about costs and disruption to current operations, or employees resist changing familiar processes. Some team members may feel overwhelmed by the prospect of learning new software, especially if they're comfortable with current procedures. Resistance often increases when people don't understand how the new software will make their jobs easier or help the company succeed.

Start by clearly communicating the benefits of the new software to both leadership and employees, showing how it will solve current problems and create new opportunities. Invest in comprehensive training that gives people confidence in using the new software, and consider appointing software champions in each department who can provide peer-to-peer support during the transition.

Challenge #4: Prioritization

There’s no getting around it: Manufacturing software implementations can involve dozens of different tasks, from data migration and system configuration to employee training and process redesign. Without clear priorities, you might find yourself working on less important features before completing critical functionality, extending timelines and frustrating your stakeholders.

To prevent this, create a detailed implementation roadmap that breaks the project into phases, starting with the most critical functionality. Work with your software provider to identify which modules and features should be implemented first, and establish clear milestones that let you measure progress and celebrate wins along the way.

Challenge #5: Organizational Silos

There are two types of silos that affect implementation: Data silos happen when the various software you use doesn't communicate with other systems, creating information gaps that slow decision-making and increase errors. Communication silos between departments can be just as problematic, especially when teams don't understand how their work affects other areas of the business or resist sharing information.

The best manufacturing software systems break down data silos by giving everyone access to the same information across all departments. You can also establish regular meetings between department leaders during implementation to identify potential conflicts early and create processes that encourage collaboration.

Challenge #6: Navigating Unexpected Issues

Even with careful planning, unexpected problems can always arise during software implementation. Data that doesn't transfer correctly, integrations that don't work as expected, system outages that disrupt operations, key employees leaving during the implementation, and business priorities changing mid-project are all likely scenarios. These issues become more serious when you don't have backup plans in place or when your software provider isn't responsive.

Your manufacturing software provider should work with you to develop contingency plans for various scenarios before implementation begins, including data backup procedures, alternative workflows, and escalation processes. Choose a provider with a strong support team and a track record of helping customers through implementation challenges, so you have expert help available when unexpected problems arise.

The right software can transform your manufacturing operations by giving you better visibility, improved efficiency, and the tools you need to compete and grow, but finding the right partner is essential. DELMIAWorks offers some of the best manufacturing software examples in every category, from specialized modules for inventory management and quality control to comprehensive ERP software that manages your entire business from one integrated platform.

DELMIAWorks’ Manufacturing ERP gives you a complete view of your manufacturing organization with real-time information flowing seamlessly between fully integrated modules. You get everything from customer relationship management and material requirements planning to warehouse management and financial reporting, all working together to give you the insights and control you need to succeed.