Scaling manufacturing always puts the business model to the test. When a company reaches a new level, it faces a paradox: the more orders it receives, the harder it is to control them. Ultimately, at a certain stage, “manual control” and dozens of Excel spreadsheets become the main barrier to growth.
In this article, we will examine how the right ERP becomes the foundation for production growth through components such as transparency, speed, and predictability.
What does scaling mean in manufacturing?
In pursuit of market domination, most owners fail to notice the first “cracks” in their processes. What seemed like a minor issue at the outset can turn the production process into a disaster when scaled up.
When you have five orders a day, a mistake in one of them can be considered an inconvenience. If you have 500 orders, it is a significant loss. Scalability in manufacturing without a system acts as an amplifier, revealing bottlenecks and multiplying chaos.
How do these problems manifest themselves in practice? Let's look at a few common examples:
- A delay in the delivery of a single part costing $10 halts the assembly line of a product worth $10,000. You overpay for urgent delivery or pay penalties for late delivery.
- The sales manager promised the customer shipment on Thursday, not knowing that the machine was in for maintenance. The result was a loss of loyalty that is difficult to measure in monetary terms.
- Without accurate accounting, inventory bloats. You buy what you already have but “lost” on the shelves, spending working capital that could have gone to marketing.
In general, the automation of business processes in manufacturing or other niches has tangible consequences. Statistics show:
- According to McKinsey & Company estimates, up to 30% of employees' working time is currently spent on routine and repetitive tasks that could be automated by 2030 thanks to the development of generative artificial intelligence.
This means that even now, a significant portion of time in companies is spent on operations that technology can perform faster, more accurately, and without human error. This is especially critical for manufacturing, as automation frees up resources from manual data entry, table reconciliation, and report preparation, allowing them to focus on process optimization and business scaling.
- According to another study by McKinsey & Company, up to 70% of business transformation projects fail to achieve their goals precisely because of the mismatch between processes and the technologies chosen.
For more information on why production scaling doesn't work and how ERP helps to change that, read our article.
We recommend to read Why Manufacturing Scaling Fails and How ERP Drives Sustainable Growth?
How to choose the right ERP? Strategies for scaling manufacturing operations
The choice of ERP determines the foundation for your production for the next 5-10 years. The digital transformation of an industrial enterprise is an essential component on the path to scaling or global expansion. Let's consider the main conditions that are worth paying attention to.
Industry Fit
ERP should understand your scaling production processes without costly modifications. Evaluate whether the system supports:
- Specifications (BOM) – multi-level product assemblies and components.
- Routing – a sequence of operations for each machine.
- Quality control – built-in checkpoints at each stage of production.
The program is designed with industry specifics in mind, allowing you to quickly launch processes without additional configuration.
Scalability
ERP should grow along with the company: if you have 10 users today, the system should work smoothly with 200 or more. The following criteria are important for increasing production volumes through ERP:
- Modularity – the ability to start with basic modules (Production, Warehouse) and connect additional ones (E-commerce, HR, Quality) without reinstalling the system.
- Cloud flexibility – quickly add server capacity when expanding to new branches or countries.
Integration with the current ecosystem
ERP does not exist in isolation. It must be combined with other tools, namely:
- CAD/PLM for automatic import of design documentation.
- Banking services and PRRO for automating payments and tax reporting.
- IIoT (Internet of Things) for reading data directly from equipment sensors.
Intuitive and UX (User Experience)
ERP works effectively when it has a simple and intuitive interface.
- Mobility to manage the system at any time and from any device.
- ERP requires a minimum number of clicks to move materials or complete a document.
Total cost of ownership (TCO)
The license price only covers part of the costs. Estimate the total costs for 3 years, including:
- The cost of implementation and staff training.
- The cost of support and regular updates.
- The cost of customization for unique processes.
Tip: Choose a system where 80% of processes are already implemented in standard functionality (for example, Odoo). Optimizing production capacity will reduce the time and cost of future refinements and make scaling faster and cheaper.
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How to scale production processes in manufacturing in Odoo?
Odoo ERP is tailored to the needs of manufacturing companies. It is a manufacturing scalability solution that helps control business and supply chain management for manufacturing, creating a platform for controlled scaling tomorrow. What capabilities does the platform offer?
- All departments work based on a single set of data, which eliminates duplication and errors. The team always has up-to-date information.
Example: a sales manager can instantly see the status of an order and can accurately inform the customer about delivery times.
- Odoo allows you to build schedules based on actual capacity, track bottlenecks, and adjust plans in real time.
Example: if one line is overloaded, the system will suggest how to redistribute resources among other work centers.
- The system helps document work processes, standardize operations, and ensure consistency between teams.
Example: A new operator on the production line can immediately see how to perform tasks according to the standard, without lengthy instructions.
- Odoo automates manual data entry and automatically updates information between modules.
Example: changes in an order automatically update the production schedule, warehouse inventory, and accounting calculations.
- The system tracks costs, project profitability, and production progress, providing managers with tools for quick and accurate decisions.
Example: An order profitability report helps identify which customers and products are most profitable.
- Odoo allows you to start with basic features and add modules as your business grows, without the need for expensive implementation of a large system right away.
If your company is looking to grow, ERP is one of the smartest steps you can take to ensure stable and manageable scalability in manufacturing.
Find out more about How to Implement Odoo ERP for Efficient Drone Production? A Step-by-Step Guide
Examples of Odoo implementation in manufacturing
Brave technics
After implementing a comprehensive ERP system, the Brave technics team reached a whole new level of management. Odoo ensured complete transparency of business processes, quick access to critical information, accurate resource accounting, and systematic control of production and finances. The team works more productively, makes informed decisions in real time, and focuses on the strategic development of the company.
Read the full description in the case study Scaling production with Odoo and comprehensive accounting in a single system.
Odoo Enterprise implementation case
The implementation of Odoo has significantly improved the manageability and transparency of the drone manufacturer's business by creating a single integrated platform for all operational activities. The company now has access to comprehensive real-time analytics, inventory and cost control, the ability to flexibly scale production, and quickly adapt its product line.
Read the full description in the case study Odoo's transformation of operational management — from chaotic processes to complete control
Instead of conclusions: a guide to production growth due to ERP
Production scalability means working systematically. To prevent ERP implementation from becoming a never-ending process, start with these six steps:
- Describe your current processes to identify 3–5 critical areas where you lose the most time or money (e.g., inventory accounting or cost calculation). You don't need to automate everything at once.
- Form an implementation team and assign responsible persons from key departments. They need to know exactly what “pain points” the system will address.
- Choose a platform. Give preference to flexible systems that allow for gradual growth. Start with basic modules (MRP, Inventory, Sales) and add complex tools (IoT, AI forecasting) once the base is up and running.
- Before transferring data to the new system, clean up the data and organize the product catalog, warehouse inventory, and customer database.
- The success of ERP depends 70% on the integrator's experience, so choose your partner carefully. Look for a team that understands the specifics of Ukrainian manufacturing and has experience with real implementations in your niche.
- Start with one line or one workshop to identify errors and train staff without stopping the entire enterprise.
Don't wait until the cracks in your processes become critical. If you feel that Excel is no longer coping and chaos is hindering growth, now is the best time for an audit.