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ERP,  Guest Bloggers

Which industries benefit the most from ERP software?

ERP software usage worldwide is on the rise. The market itself is forecasted to grow to $78.40 billion by the time 2028 rolls around.

So, what drives companies to implement ERP platforms? According to a report by Allied Market Research, companies turn to these systems to integrate a wide array of processes. This allows them to conduct tasks related to product planning and development, manufacturing, sales and distribution, and more, all from a single interface. 

Specific industries, like automotive, construction, electronics and technology, fashion and apparel, and aerospace and defense are just a few among the many sectors that make use of ERP applications. They have complex processes that require granular control, especially when it comes to parts, equipment, and regulations. They also have unique pain points that only ERP software can help them resolve. 

With that being said, here are the top industries that could benefit the most from using ERP software:

Automotive Manufacturing 

Automotive companies have complex manufacturing and distribution processes that require an intricate balance of human touch and machine automation. Take, for example, the electric car manufacturer, Tesla. At times, they have been hounded by production woes wherein they could not keep up with customer demand or meet their own set deadlines. 

While the aforementioned company had its own unique problems, production delays are something that other auto manufacturers have in common. These issues are something that enterprise resource planning software can help resolve. 

An ERP solution enables auto companies to create a complete catalog of vehicles and their parts. Each piece is documented comprehensively in the system, from their rules and uses, to their quantity in the inventory. With this, automotive manufacturers know exactly which nuts and bolts go where and they can ensure they do not run out of any stock. 


The construction industry deals with a lot of building materials, tools, and large equipment. Companies in this sector also have to contend with cost control while making sure they achieve the required quality by a given deadline. 

An industry-specific ERP can assist construction businesses in coordinating with suppliers for their material requirements. The same goes for the equipment they need to ably build their projects.ERP software connects a company with its vendors to ensure that they can get the components and machinery they need during the construction duration.

Additionally, an ERP solution enables companies to streamline their workflows with automation capabilities, eliminating redundant processes, such as tiresome paperwork. As a result, employees can focus on critical tasks instead. 

Electronics & Technology

The electronics and technology industry has exacting standards for the items they produce. To that end, businesses in that sector can enjoy the benefits of ERP, including the ability to manage workflows. Companies can make certain that every product meets quality standards and compliance requirements. They can do so easily as an ERP platform can support multiple work processes. 

ERP software can also provide assistance when it comes to reducing the time-to-market for products. By taking full control of the production process through an ERP, an electronics and technology manufacturer can make the entire assembly line more efficient. This means that they would be able to remove unnecessary processes as well as automating certain actions. 

By automating parts of the workflow, workers on the floor have more time to focus on tasks that require their full attention. This results in a reduction in overtime work, which means cutting down expenses in one area. 

You can also consider integrating your ERP system with scheduling platforms to streamline how you manage employee schedules. Here’s a comparison of employee scheduling software tools to choose from.

Fashion & Apparel 

In a real-life example of the benefits of implementing an ERP system, an international handbag maker revolutionized their company procedures. Using a robust platform, they streamlined their backend processes by connecting departments. This removed silos so each business unit could operate with the same set of information.

Upon implementing the ERP solution, said handbag producer also spent less time crunching numbers and checking and rechecking them. They no longer have to deal with inaccurate inventory counts because those can be performed seamlessly – and only once!

Other brands in the fashion and apparel industry can enjoy the same benefits as well. In fact, an ERP has more to offer to companies in this area. For example, businesses can streamline their transactions even when they do business in multiple currencies. This means charging clients and distributors the right amount to avoid conflict. 

What’s more, an ERP solution can aid fashion companies in keeping clean accounts. This means that they can keep track of the movements of the money in and out of the organization accurately. This way, businesses can prevent financial problems that could be detrimental to their operations. 

Aerospace & Defense

An Accenture Consulting study finds that 53% of aerospace and defense companies said that they implement digital technologies to enhance their time-to-market. What’s more, those organizations said these innovations allow them to identify areas where they can reduce operational costs. Meanwhile, 50% of the executives surveyed said that they use technologies for innovating products and services.

50% of survey responses point toward using ERP for innovations.

This is not a surprise, as businesses in the aerospace and defense sector are quick to adopt advanced technologies as doing so allows them to capture more opportunities, such as contracts from the government. 

Enhanced logistics is also possible with the right ERP platform. Among the ERP use cases available for aerospace and defense is that of Air21. The logistics company was able to keep up with customer demands and reached 100% shipment accuracy with the help of an ERP software. 

Other companies in this industry can also experience augmented processes. An ERP, particularly one configured for aerospace and defense needs, can keep up with their production. On top of that, it can aid them in complying with strict regulations, thereby allowing them to attract more contracts from governments and other official bodies. 

Shopping around for an ERP

As mentioned at the beginning of this article, the ERP software market is ever-growing. This means that there are more users and the number of vendors is also increasing. Choosing the right ERP that offers the best set of tools and features for your business, and does not break the bank, is not always simple.

There are many things you have to factor in as part of your decision-making process: integration capabilities, reporting and insights, flexibility, and user-friendliness. Using these criteria, you can intelligently choose your ERP partner, no matter what industry you are in.

About the author

Louie Andre is a B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. He is no stranger to small business hiccups and drama, having been involved in a few internet startups himself. Prior to his for-profit ventures, he had managed corporate communications for a Kansas City-based Children’s International unit.

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