The manufacturing industry is facing real pressure. Supply chains are strained, energy costs are unpredictable, and skilled labour is in short supply. Manufacturers are expected to do more with less and do it quickly.
In this environment many are turning to ERP systems for manufacturing as a way to respond and build long-term resilience. But this shift is about more than new software. It reflects a wider change in how the industry thinks about agility, data and business continuity.
This is digital transformation manufacturing in action. Let’s break down what that looks like and explore real examples of how ERP is making a difference on the ground.
A new era for ERP in manufacturing
Manufacturers have relied on ERP systems for years to manage essentials like inventory, procurement, finance and HR. But today’s systems are doing much more.
Modern ERP platforms like SAP S/4HANA are becoming the digital backbone of manufacturing. They connect the shop floor to the boardroom in real time and support better decisions at every level of the business.
This shift is being driven by tools like machine learning, predictive analytics, IoT and cloud. When configured with the right strategy, ERP systems for manufacturing move beyond admin and become central to digital manufacturing transformation.
Why ERP systems matter now
Manufacturers used to operate reactively. You waited for a breakdown then fixed it. You spotted a cost spike after quarter end, then looked into it. In today’s environment that approach is no longer enough.
With modern ERP systems for manufacturing, businesses can:
- Monitor live production performance
- Automate predictive maintenance
- React to supplier disruption in hours, not weeks
- Simulate scenarios to reduce risk
- Optimise everything from energy usage to resource allocation
This goes beyond efficiency. It gives manufacturers a clear competitive edge and plays a central role in digital manufacturing transformation.
Real world digital transformation examples in manufacturing
A global manufacturing client, Hisense, approached us with ERP systems running in isolation across multiple countries. Each location operated on its own, with little integration and limited visibility.
The result? A supply chain full of blind spots. Manual rekeying was common and teams were stuck in constant firefighting mode just to meet just in time delivery demands.
Warehouse operations added another layer of complexity:
- Goods from Japan arrived by sea with a minimum six week lead time
- Poland’s site used an in factory conveyor belt
- France and Sweden relied on third party logistics providers
- Missed delivery windows triggered significant customer penalties
Although they were able to meet delivery SLAs, the effort and cost of doing so were unsustainable.
We implemented SAP Extended Warehouse Management (EWM), a solution designed for flexible, automated control of stock and warehouse operations.
The solution enabled real-time tracking using ODET compliant labelling, handheld support for workers and site specific process customisation.
The solution introduced:
- Optimised warehouse movements and reduced truck dwell times
- System guided picking operations with visual dashboards
- Full batch and serial traceability for compliance and recalls
- Perpetual inventory that eliminated the need for biannual production stoppages
- Improved stock accuracy, space utilisation and customer responsiveness
This is a prime example of ERP systems for manufacturing delivering real, measurable results. What was once fragmented is now unified. What was once reactive is now smart, visual and efficient.
The role of ERP in the digital manufacturing roadmap
ERP sits at the core of any digital manufacturing transformation. It’s what brings the wider strategy to life.
At Birchman, we often start by helping clients define their target operating model. That means getting clear on how they want the business to work in the future, across people, processes and technology.
ERP then acts as the enabler. It connects teams around shared goals and provides leaders the visibility to shift from reactive decisions to long term planning.
But for ERP to play that role the approach can’t be purely technical. It has to be a business led transformation with clear outcomes, strong ownership and change managed from the start.
Common pitfalls and how to avoid them
Not every ERP journey goes to plan. Some manufacturers stall midway. Others end up with overbuilt systems that don’t get used properly. So what separates success from frustration?
Here are some pragmatic lessons we’ve learned from 20+ years of ERP transformation:
- Start with business value: It’s easy to get caught up in system features. But the focus should be on outcomes. Whether that’s cutting costs, improving flexibility or raising service levels. Let those goals shape the roadmap.
- Avoid the ‘lift and shift’ trap: Bringing old processes into a new system without change wastes the opportunity. Use the move to simplify, standardise and improve how your business runs.
- Don’t go it alone: The right partner brings expertise, industry insight, and the ability to challenge assumptions.
The Birchman approach: ERP with a pragmatic edge
At Birchman, we’ve led ERP transformations in some of the most complex and specialised manufacturing environments like automotive, mining and logistics. While we bring deep SAP expertise, we’re also known for our pragmatic approach.
We don’t do one size fits all. At Birchman, we help you define a tailored digital manufacturing transformation that works for your size, complexity, and goals. And we walk with you every step of the way, from shaping the business case to delivering outcomes that stick.
Final thoughts: don’t just digitise. Transform.
Digital transformation in manufacturing is about building smarter, more agile businesses that can thrive in a changing world.
ERP systems are at the heart of that shift, and when implemented with clarity and purpose, they offer the ability to adapt, grow and lead.
If you’re rethinking how your business runs don’t just digitise what you already have. Let’s talk about how to transform it and get real results from the ground up.
