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ERP for Electronics Manufacturing Industry

An extensive solution designed to fit the needs of modern-day electronics manufacturers and optimize their operations with business-critical features.

Indian Electronics Manufacturing Industry Outlook

Indian electronics manufacturing industry is worth $155 Billion in size. It is the 6th largest export commodity group as of 2023. According to a report by Invest India, India’s export of electronics products is expected to reach $120 Billion by FY-2026. 

There are various factors contributing to the growth of the electronics manufacturing industry in India. The Government of India has launched various schemes and incentives to promote the production and export of manufacturing products. Make in India, Production Linked Incentives Schemes, and Schemes for Electronics Systems Manufacturing are some of the popular examples.

What is ERP for Electronics Manufacturing ?

ERP for Electronics Manufacturing Industry is a mainstay software technology specifically designed for the electronics manufacturing industry that facilitates a platform for intuitive tracking, monitoring, and instituting by the best industry practices while assisting with various business functions such as production planning and scheduling, shop floor management, quality control, and assessment, bill of material management, supplier relationship management, and financial reporting.

ERP software facilitates a degree of interoperability that was otherwise difficult to achieve with numerous traditional spreadsheets scattered across different departments. ERP for electronics manufacturers acts as a transparent, unified system of information management that stores a large volume of data in a central place so that decision-makers can access up-to-the-minute business insights and make strongly data-backed decisions.

Key Challenges Faced by the Electronics Manufacturing Industry


Disruptive Innovations

Technology is changing the electronics industry at an astonishing pace. Electronics manufacturers have to stay competitive and at the forefront of technological innovation, market trends, and customer expectations. Otherwise, they risk becoming obsolete and out of the business.

Industry Rivalry

A modern-day manufacturing business faces intense competition from both local and global companies. Small & mid-sized companies often struggle to compete with powerful multi-national companies that have more capital, resources, and market dominance.


Regulatory Complexations

The electronics manufacturing industry has to adhere to complex regulatory standards such as complex international standards, lengthy and bureaucratic approvals, and inconsistent taxation policies. With limited resources, they often risk becoming non-compliant, leading to fines, and penalties.

Demand Fluctuations

Electronics manufacturers operate under intense pressure for faster adoption of changing market trends and conditions. They have to predict demand volatility and sudden changes in demand. Such disruptions may require rapid shifts in production, marketing strategies, and financial budgets.


Skilled Labor Shortage

Manufacturers often face skilled labor shortages which can pose immediate consequences such as increased human errors, decreased product quality, and poor customer support. Ultimately, it can lead to irreparable damage to the brand’s reputation and loss in sales & profitability.

Distinct Features of ERP for Electronics Manufacturing

Demand Forecasting

ERP provides powerful capabilities to plan production and forecast demands by analyzing historical data, seasonal spikes, and market trends. With accurate demand forecasting, your business can avoid Stock-outs and Excessive Stocks, and stay ahead of the competitors.

Analytical ToolsManufacturing ERP can convert long, complex data into intuitive charts, reports, and customized dashboards. Businesses can track performance using Key Performance Indicators (KPIs), and optimize their strategies for higher leads.

Logistics ManagementERP provides a holistic view of the logistics and transportation operations, and integration with modern technologies such as the Internet of Things (IoT). With access to real-time visibility, businesses benefit from proactive decision-making and effectively tackle logistics issues.

Sales ManagementAn ERP system builds an extensive record of sales transactions and automates various processes from order placement to invoice generation. With a robust Sales Management System, businesses can make better use of their distribution channels and adopt smart strategies to find cross-sales opportunities, enhance customer satisfaction, and increase sales.

Multi-tiered Orders ManagementManufacturing ERP solutions help manufacturers break down the bulk orders received from wholesalers or retailers by urgency, transit time, and quantity. This helps earlier delivery of some products required by urgency and normal delivery of others. It also includes Accounts Receivable Automation that streamlines payment processing.

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Advantages of Adopting ERP for Electronics Industry

Accurate Production Planning

With electronics ERP, manufacturers can control the manufacturing, from the production planning, and quality assessment to the movement of finished goods. They can check raw material availability with the Procurement Management System, track vendor performance, and manage ingredients & formulas.

Defects Identification

Quality control is one of the crucial ERP modules in electronics manufacturing software. ERP for the electronics industry assists with quality inspection, the identification of defects and non-conformances, maintaining consistency throughout the entire production, and taking corrective measures.

Obtain Cost-efficiency

One of the other benefits of ERP is cost efficiency. Electronics ERP brings down the cost of production by automating repetitive tasks, accurately forecasting raw material requirements, resource planning and optimization, reducing waste, and tracking the origin of defects.

Become Agile

ERP implementation converts highly complex data into intuitive charts and reports. BI tools in ERP provide actionable insights, business intelligence, and data analytics that enable decision-makers to gain quick insights and make highly informed decisions to capitalize on new market opportunities.

Optimize Inventory

An ERP system for electronics manufacturing is equipped with game-changing features such as an Inventory Management System. It assists with various inventory-specific operations such as inventory management & forecasting, tracking inventory items, supply chain, and monitoring stock movements.


Web-based ERP is also known as Cloud ERP. It offers the following benefits over On-premise ERP:

  • It doesn’t require regular maintenance or upgrade, as the same is handled by the ERP Vendor.

  • It doesn’t require upgrading hardware infrastructure which saves a lot of costs

  • It allows small & mid-businesses to pay small recurring fees rather than one-time hefty payment

  • It facilitates organization-wide availability of data, no matter the user’s location or device

  • It is easy to deploy without needing to invest in human talent

There are several important criteria that you should consider while choosing a Cloud Electronics ERP system:

  • Make a comprehensive list of business requirements and group them based on their priorities (must-have features, nice-to-have features)

  • Check the functional requirements of your company (such as specific currencies you deal with, and the local taxation system)

  • Allocate a budget for ERP deployment and make sure that your ERP systems align with it

  • Check whether the ERP provides the modules and capabilities your business requires (for example, if you aim to enhance the supply chain, it should include Supply Chain Management Tools)

  • Check whether your ERP systems offer a common dataset (such as XML or CSV) for seamless data transfer with legacy systems

  • Make sure that your ERP is customizable to meet the unique requirements of your company and lower redundancy

  • Check the experience of your vendor in your industry niche to determine whether he understands your unique industry needs

  • Check the type of training programs offered by your vendor (such as online training, or in-person training)

Traditionally, electronics manufacturing businesses have used multiple software such as CRM, HRM, MRP, and Accounting Software. The usage of multiple software affected their operational excellence and integrating data across multiple software was a difficult task. Thanks to ERP, it facilitates inter-departmental collaboration and provides access to accurate and real-time information to everyone, no matter their department, device, or OS.

ERP for Electronics Manufacturing is a significant investment for electronics manufacturers. It empowers them to streamline the procurement & inventory management process, limit the manufacturing cost, and provide end-to-end traceability throughout the manufacturing process. The improved traceability translates into higher quality electronics products and better compliance. Electronics manufacturing ERP software also provides powerful resource planning, inventory management & planning, and forecasting tools to avoid running into Out-of-Stock and Excess Stock.

Manufacturing Software is useful for various stakeholders, especially the following businesses:

  • Manufacturers of electronic products such as televisions, washing machines, washing machines, and laptops, regardless of their operational size

  • Contract Manufacturers who engage in the actual production of electronic items on behalf of other large companies

  • Original Equipment Manufacturers who outsource the actual manufacturing process to the Contract Manufacturers

  • Quality Compliance Team that oversees the product quality and regulatory requirements and ensures they meet the industry standards

  • Sales Team that requires visibility in the order status of electronic products to ensure on-time order delivery and higher customer satisfaction

ERP for Electronics Manufacturing enriches the decision-making power of electronics manufacturing companies in multiple ways. It provides access to integrated information collected from multiple sources. Best ERP software in India provides a holistic view of manufacturing business operations across all departments such as manufacturing, sales, HR, and finance. It converts large, complex data into intuitive charts and reports, and provides actionable insights for timely, and informed decision-making.

Moreover, ERP for electrical and electronics manufacturing provides access to powerful analytical and forecasting features that let your company accurately plan demand availability. It aids the procurement process by tracking and recording the vendor performance, and the quality of the raw materials obtained. This helps identify deficiencies in the production process and meet the higher quality standards set by the regulatory bodies and industry.

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