Small and Medium businesses, especially, in the manufacturing industry are an integral part of the rising economy. However, most small and medium Manufacturing Businesses struggle with operational visibility and timely decision-making.

This snowballs into creating a vicious cycle of increased expenditure, reduced production efficiency and decreasing employee productivity. That’s why manufacturing businesses in India or elsewhere need a robust, comprehensive and affordable business management system to combat these challenges.

Streamlining business processes and increasing efficiency largely depend upon an easy-to-use Enterprise Resource Planning (ERP) solution in place. Small and medium manufacturers can now breathe easy as SAP Business One for SMEs helps streamline business processes, gain greater control and increase visibility of day-to-day activities in your business.

In this article, we share with you eight ways SAP Business One can upgrade your manufacturing processes tailored just for your industry.

Which Modules does SAP Business One for SMB Manufacturers offer?

Administration | Financials | CRM | Sales – AR | Purchasing – AP | Inventory | Resources | Production | MRP | Service Project Management | Reports

You can know more on why SAP Business One is a great solution for SMBs

1. Increased supply-chain visibility

Supply chain visibility is a crucial aspect of sticking to production deadlines affecting timely delivery. Streamline and manage your warehouses
  • Optimize production processes
  • Make sales functions more efficient
  • Easily maintain and track financial accounting data
  • Real-time accurate business insights through reporting
How you can enhance it
At VC ERP, we have developed the Xtreme Manufacturing Add-On ideal for manufacturers in any industry. The main function of this add-on is routing, measuring machine-wise production and operator-wise production. It provides real-time Insights between the planned production and actual production making the whole manufacturing process more real-time.

2. Connect sales with inventory and reduce bottlenecks

Streamline your sales process by linking it to real-time inventory data with SAP Business One.
  • Real-time inventory visibility to check ready-stock availability
  • Track warehouse-wise stock transfer
  • Manage your stock levels
  • Receive notification on ordered items
  • Eliminate manual records of the stock level
  • Prevent overlap from repetitive orders
How you can enhance it
VC ERP Consulting Pvt. Ltd. has come up with Inventory Count App for SAP Business One which keeps track of all the inventory and maintains a compiled data of all the inventory across locations. This App is directly tailored for the tracking missed inventory counts.

3. Streamlined production with Material Requirement Planning (MRP) functionality

Streamline production processes using MRP functionality inbuilt SAP Business One for SMB.
  • Sustain production plan for multi-level production process
  • Eliminate manual production scheduling with organized process
  • Create a precise picture of your production and supply-chain
  • Specify timelines and data sources to be considered in planning
  • Make recommendations regarding your resources requirements
Moreover, you can add resource information to requirements planning to establish machine capacity by capturing real-time data from bill of materials, inventory data, scheduled production and purchase orders or from actual and forecasted orders.

How you can enhance it
Yes, you can further enhance this amazing capability in SAP Business One. At. VC ERP Consulting Pvt. Ltd. we have created the Xtreme C-BOM add-on solution which highlights all the versions of Bill of Materials, BOM that are designed till date so that you can keep a track and gain insights from past BOM for reference. In SAP Business One when you create two BOMs the previous BOM is erased from the memory. This add-on captures all the changes that are made in all the BOM making it easy to compare past data and gain Insights.

4. Minimized wastage of materials

Using SAP Business One, you can optimize costs, resulting into increased process efficiency all while ensuring there minimum wastage of materials. Use BOMs for production, sales and include resources in all BOM types.
  • Integrate your purchase order with Bill Of Materials (BOM)
  • Ensure that all the materials are correctly allocated
  • Check the status of wastage
A resource can be an equipment or a specific set of instructions enabling you to record the capacity of inventory levels. Create and release production orders after your BOMs are defined. After this, available materials will be automatically added to your work orders enabling you to allocate raw materials minimizing wastage of materials with proper planning.

How you can enhance it
The Xtreme C-BOM add-on solution works great here as well. This add-on captures all the changes that are made in all the BOM; therefore it prevents any wastage of materials that can be prevented. This way it carefully and easily optimizes your entire production process and expenditure.

5. Streamlined shop-floor assistance

Before SAP Business One came into the market, workers would rely on hard-bound sheets of pre-defined instructions while manufacturing products on the shop-floor. This system proved to be very inefficient and so rigid that systems could not be easily transferred from one shop-floor to another. Thanks to the rise of comprehensive SAP Business One solution, you can now
  • Give instructions to workers through a centralized system
  • Share detailed instructions and guidelines across different teams
  • Update the required changes in real-time
Reduce the time required to develop, build and release new products by seamlessly sharing business information making the production process consistent. Automation and artificial intelligence in the manufacturing industry are already further enhancing centralized systems for managing shop floor activities in the near future.

How you can enhance it
The Xtreme Manufacturing Add-On, the Shopfloor add-on greatly assists here to streamline all your Shopfloor processes and monitor tasks.

6. Monitor accuracy of raw materials by implementing barcode scanning

The barcode scanning feature built-in within SAP Business One is revolutionary.
  • Achieve business efficiency
  • Increase cost savings across the supply-chain
  • Track and monitor items through unique label for each item
By implementing barcode scanning every item in the inventory will have a unique label through which it can be scanned at various points and the data associated with the particular inventory item can also be recalled very easily with the help of a single scan.

7. Powerful and interactive Real-time data management

SAP Analytics Cloud solution powered by SAP HANA database technology running on SAP BTP, now also available for SAP Business One (since 2023), provides a powerful interactive analysis reporting suite consisting of enterprise search, SAP HANA model management, real-time dashboards, excel reports, interactive analysis and more.

It comes equipped with the pre-delivered representation of your data helping all the managers and employees to access data using common business terms making the reporting of your organization sleek and smooth.

How VC ERP enhances it
VC ERP Consulting Pvt. Ltd. has come up with the Xtreme Auto-Batch Manage add-on designed to automate the process of batch numbers. No need to manually type batch numbers at the time of dispatch of shipments. Simply add the pattern of the serial number and let the add-on do the rest. Reduce human error as the batch numbers are automatically added making the task of the employees easier.

8. Seamless Quality Control for Manufacturing

Quality control has become an integral function in every Industry whether it is manufacturing or Food & Beverages it has become very essential to stick to the quality standards.

How VC ERP enhances it
SAP Business One does not have any specific functionality of Quality control so VC ERP has come up with a standard Add-One Application namely Xtreme Quality control Add-On. This Add-On generates Individual stage QC reports in consolidated and individual format as per the requirement so employees can track and get real time data and can function effectively.

Xtreme Smart Alerts Add-On is the extension of the Automatic feature that SAP Business One already has. This Add-On is designed in such a way that it sends customized alerts to its users via mobile devices when they are not connected to their systems. The main idea to develop this Add-On is to provide information to the users regardless of their physical availability of time and place.

In fact, the CEO of a Small and Medium Business can thrive using SAP Business One with greater control over his daily operations – all while enjoying the flexibility of making this ERP solution more extensible.

To conclude:
SAP Business One not only optimizes end-to-end manufacturing cycle right from procurement to customer delivery, it also makes your manufacturing tasks much easier. VC ERP Consulting Pvt. Ltd. has successfully implemented 250+ SAP Projects since 2001. We are a 200+ Consultants strong team with demonstrated experience across 15+ Industrial Verticals.

Get in touch with expert SAP Business One consultants and advisors at VC ERP Consulting for free consultation.

Call us + 91 99789 60138 (India), call +91 79 48998911 (India), Whatsapp +254 111229970 (Kenya), +1 469 915 6026 (North America) or drop an email at