4 years ago

Project-based ERP systems require precise project management to maximize profitability of each project. While product-based businesses generally utilize an ERP suite, companies that manufacture for specific projects can utilize a project-based ERP system to better understand essential business processes.

A project-based ERP system can utilize data from a product-based ERP system when necessary. For example, if a project-based ERP system provides equipment rental services, the system might need to order supplies and equipment using data from the product-based ERP system.

What is Project-Based ERP?

A project-based ERP system focuses on a specific project or a set of related projects and the related operations that specific projects require, such as materials management or equipment management. Companies often use a project-based ERP system when they are manufacturing for a specific project and not to manufacture for a specific product. That way, you get the data appropriate to the project, rather than creating lines in your ERP to track this data in your ERP. It’s the same as saying, “There is no free lunch.”

Benefits of an ERP for Project Management

One of the biggest advantages that come with an ERP for product-based businesses is the amount of data produced. It is very helpful to be able to see all possible data related to all aspects of your business. A project-based ERP system can also help you understand supplies required, manufacturing needs, and equipment needs.

One of the key benefits of an ERP system is the ability to better forecast and understand business operations. You can track projects, organize vendors, and define project requirements, along with areas for cost savings. Also, you can leverage the forecast information you develop within your project-based ERP system across other aspects of your business.

An ERP for project-based businesses can help you identify the costs associated with projects and execute projects. Having a unified system can be a benefit in terms of cost and resources. An ERP can also help you understand issues related to regulatory compliance during a project. A project-based ERP system can help you solve issues with documentation by having access to project-related documents when you need them.

The truth about ERP for Project Management

An ERP system can be a great asset for project-based business, but only if a company understands what an ERP can and cannot do and only if the company gets the appropriate software. It makes sense to utilize an ERP for project management. The question that remains is: Which ERP is right for you?

Picking the right ERP for Project Management

An ERP system is only as good as the software it runs on. You need to customize and configure an ERP to fit your company’s needs. An ERP can be frustrating to use if all the necessary data is missing, outdated, and/or inaccessible. Companies need software that automatically updates and keeps all information current. Companies should look for an ERP that provides full data, including the reporting and management data they need.

Full data means you don’t have to manually enter data in different places across an ERP. You need software that can tie your manufacturing warehouse to your accounting software. Also, an ERP should provide a simple method to analyze data.


Most companies choose to implement ERP software over a two- to three-year period to make it as affordable as possible. What most companies don’t realize is that it is possible to implement a project-based ERP system within those two-to-three years. The ROI for these companies dramatically increases because they are able to start using the software sooner.

A product-based ERP system may not be a good choice for an equipment-based business because of the short life cycle of the products. It is really hard for a Product-ERP to track the material management of the equipment. There is no cost savings for purchasing a single-purpose ERP system. The reason is that a single-purpose ERP system only covers a limited business process.

One of the best advantages of an ERP system is that it can help you understand the intricacies of your business and provide you with a competitive advantage. By having all the data and relevant data in one place, you can analyze data quickly.

ERP for Project Management is not Outdated

Manufacturing for a specific product but distancing yourself from the production isn’t necessarily a bad idea. Projects demand a lot of attention and resources to get them completed. Using an ERP for project-based business can help you successfully manage that project and all the associated tasks. Project-based ERP systems can help companies reduce the costs and complexities associated with projects and better meet the needs of customers.

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