Manufacturing companies often struggle to find an ERP that truly fits their needs. Generic systems may cover basics, but they rarely address the complexities in production planning, shop floor control, and supply chain management. That’s why many leaders evaluating what is the best ERP system for manufacturing are turning to flexible, customizable platforms. Among these, Open Source ERP for manufacturing stands out — offering the freedom to adapt the system around unique workflows while keeping costs manageable. In this blog, we’ll explore why manufacturers should consider open source and how the right partner can deliver a solution that scales with growth.
An ERP for manufacturing is software designed to manage and connect all the core activities of a manufacturing business, such as planning, production, inventory, and delivery. Unlike general purpose ERP systems, it can either be a specialized module within a broader ERP or a dedicated solution built for production focussed needs.
You may also hear it referred to as a Manufacturing Execution and Planning System (MEPS). Both terms describe the same goal: coordinating materials, machinery, people, and processes so production runs reliably and efficiently. “ERP” emphasizes cross-department integration, while “MEPS” highlights its direct role on the shop floor and in planning.
A manufacturing ERP (or MEPS) also integrates with related functions—procurement, warehousing, logistics, order management, product information management, and more—ensuring information flows seamlessly across the organization. In short, it’s designed to handle the unique complexity of manufacturing operations, not just generic business workflows.
To understand why manufacturing ERPs (or MEPS) matter in practice, let’s look at the core functions they perform on the shop floor and across the supply chain.
Manufacturing ERPs (sometimes called MEPS) are more than just software modules — they’re the backbone that connects the shop floor to the rest of the business. The real value comes when technical functions directly support business outcomes. Below, we map the core functions of a manufacturing ERP to the strategic value they create, so you can see how each capability translates into measurable impact.
|
ERP Function |
What It Does |
Business Value |
|
Production Planning (BOM, routing, resources, calendars, MRP, work orders) |
Plans and schedules production with real-time visibility into materials, machines, and people. |
On-time order fulfillment, fewer bottlenecks, reliable delivery commitments. |
|
Production Cost Management |
Tracks and calculates material, labor, and overhead costs across production runs. |
Identifies waste, controls expenses, improves profitability. |
|
Procurement & Supplier Management |
Automates purchasing, vendor contracts, and supplier performance tracking. |
Stronger supplier partnerships, fewer material shortages, more resilient supply chains. |
|
Quality Management |
Defines inspections, captures defects, enforces compliance workflows. |
Consistent product quality, easier audits, lower risk of recalls. |
|
Inventory & Warehouse Management |
Provides real-time control of raw, WIP, and finished goods inventory with lot/batch tracking. |
Lower carrying costs, reduced stockouts, more efficient warehouse operations. |
|
Shop-Floor Control |
Monitors machine utilization, labor tracking, and job progress in real time. |
Higher throughput, early detection of issues, improved OEE (Overall Equipment Effectiveness). |
Knowing what ERP does, the next step is deciding which type of ERP best suits your business model: proprietary or open source. Both approaches have their own strengths and trade-offs. The table below compares the two across key dimensions to help manufacturers evaluate which path best fits their operations.
|
Aspect |
Proprietary ERP |
Open-Source ERP |
|
Implementation Speed |
Ready-to-use out of the box with prebuilt modules. |
Requires configuration and tailoring to workflows; depends on partner expertise. |
|
Flexibility |
Limited by vendor roadmap and available customizations. |
High flexibility — systems can be customized to unique manufacturing needs. |
|
Cost Structure |
High upfront license fees + recurring subscription/maintenance costs. |
Lower licensing cost (free) but requires investment in implementation and support. |
|
Vendor Lock-In |
Strong — tied to vendor’s pricing, roadmap, and update cycle. |
Low — community-driven with freedom to adapt and extend. |
|
Fit for Complex Manufacturing |
May need costly customizations or third-party add-ons to support multi-level BOMs, routing, or MES integrations. |
Designed to be extended — easier to handle complex workflows and integrate with shop-floor systems. |
|
Support & Updates |
Centralized vendor support, predictable release cycles. |
Community-driven with updates, plus support from specialized implementation partners. |
Takeaway:
When manufacturers choose open-source ERP, they quickly discover a few well-known platforms in the market. Each has its own strengths, limitations, and ideal use cases. Here are three of the most recognized options:
Odoo is one of the most widely adopted open-source ERPs, known for its large app ecosystem and user-friendly interface. It’s especially popular among small to mid-sized businesses looking for a quick start with prebuilt modules for accounting, CRM, inventory, and basic manufacturing.
ERPNext is built on the Frappe framework, which makes it both an ERP system and a platform for extensions. It offers modules for HR, finance, inventory, and manufacturing, and is popular among startups and small to mid-sized manufacturers that want a clean interface and relatively easy setup.
Apache OFBiz, backed by the Apache Software Foundation, is both a mature ERP system and a development framework. Unlike application-first platforms such as Odoo, or SMB-focused frameworks like ERPNext, Apache OFBiz is built for enterprise-grade manufacturing complexity. Its architecture enables manufacturers to design custom processes, extend data models, and integrate deeply with enterprise and shop-floor systems — without being limited by prebuilt module constraints.
In short: Odoo is quick and light, ERPNext is flexible for SMBs, and Apache OFBiz is enterprise-ready.
Of the open-source ERP platforms available, Apache OFBiz™ provides the depth and adaptability required for enterprise-grade manufacturing. It delivers not just a mature ERP system but also a flexible framework for extending processes, integration capabilities with other enterprise systems, and supporting long-term innovation.
Here are the key differentiators that make Apache OFBiz stand out:
Result: ERP that fits your processes, not the other way around.
Result: Future-proof growth without replatforming.
Choosing the right implementation partner is crucial to fully unlock Apache OFBiz’s potential in manufacturing. At HotWax Systems, we bring:
Backed by years of experience of implementing and customizing Apache OFBiz for industries like aerospace, automotive, FMCG, and apparel, HotWax System delivers ERP solutions that are not just functional — but tailored for real-world shop-floor execution.
To accelerate and enhance Apache OFBiz for modern manufacturing needs, HotWax Systems developed HotWax Accelerator — an advanced, ready-to-use application built on top of Apache OFBiz. HotWax Accelerator provides powerful building blocks tailored for Manufacturing Execution and Planning Systems (MEPS), delivering a comprehensive ERP solution for manufacturing industries.
Key features of HotWax Accelerator include:
For manufacturers, the question isn’t whether to use ERP — it’s which ERP can truly handle the complexity of production planning, shop-floor control, and supply-chain coordination. Open-source platforms stand out because they offer the flexibility and freedom to adapt, without the limits of vendor lock-in.
Among open-source options, Apache OFBiz™ is uniquely equipped to support enterprise-grade manufacturing. It combines the depth of a mature ERP with the adaptability of a development framework — making it ideal for businesses that need more than prebuilt modules.
But technology alone isn’t enough. The right implementation partner determines whether ERP becomes a growth driver or a stalled project. That’s where HotWax Systems comes in: with deep OFBiz expertise, a manufacturing-first approach, and long-term partnership, we help manufacturers translate ERP potential into real-world results.
And with the HotWax Accelerator, we make ERP even more powerful — delivering a modern user experience, built-in search and analytics, seamless integrations, and a foundation ready for Industry 4.0.
If you’re exploring the best open-source ERP for manufacturing, the path forward is clear: Apache OFBiz + HotWax Systems. Together, we deliver the flexibility of open source, the strength of enterprise-grade ERP, and the speed of a proven accelerator — so your ERP evolves as fast as your business.
Connect with our experts today to explore how we can help transform your operations with a tailored, future-ready ERP.