Comparisons·Oct 23, 2026· 6 min read

ERP for Small Manufacturers: What Do You Actually Need?

The eight capabilities a small manufacturer needs, what can wait, and how Katana, MRPeasy, inFlow, Fishbowl, Odoo and others cover them.

By A S M Lutful Kabir

ERP for Small Manufacturers: What Do You Actually Need?

This post is for the owner of a small manufacturer (a machine shop, a fabricator, a maker of components or equipment, somewhere between 5 and 100 people) who is being sold "manufacturing ERP" and cannot tell which of the features on the brochure the business will ever use.

The short answer: a small manufacturer needs eight capabilities, in roughly this order of importance. Everything else on the brochure can wait until a specific problem asks for it.

  1. Bills of materials that say what goes into each product.
  2. Work orders that turn a BOM into a job, linked to the customer order it is for.
  3. Stock that moves when production happens: components out, finished goods in.
  4. Purchasing driven by shortages, so materials are ordered before the job stops.
  5. Real product cost: materials consumed plus labour and overhead, per unit.
  6. Sales orders connected to stock and production, so you only promise what you can make.
  7. Quality checkpoints that the right person signs off.
  8. Accounting that receives all of the above without retyping.

And four that most small manufacturers can postpone: automatic capacity scheduling, MRP runs across many levels of BOM, shop-floor terminals with time capture, and advanced demand forecasting. They matter at scale or in specific industries. If you are not sure you need them, you probably do not yet.

The Eight, and the Question to Ask a Vendor About Each

# Capability Ask the vendor
1 Bills of materials Can a BOM include labour and sub-assemblies? What happens to open jobs when a BOM changes?
2 Work orders Can a work order name the customer order it is for?
3 Stock moves with production When I report production, do components leave stock and finished goods arrive in one step?
4 Shortage-driven purchasing When materials are short, does the system tell purchasing, or do I find out on the floor?
5 Real product cost Is the finished unit valued at actual consumption plus labour and overhead, or a standard I type?
6 Sales connected to production Can a salesperson see whether an order can be made by the date?
7 Quality checkpoints Can I require a named role to sign off first-article and final inspection?
8 Accounting Is accounting built in, or synced to QuickBooks or Xero? What exactly does the sync post?

Put the same eight questions to every vendor on your list. The answers will separate them faster than any feature matrix.

The Options

Prices below were read from each vendor's own page on 15 October 2026, in US dollars. They change; check before you decide.

Katana

MRPeasy

inFlow Manufacturing

Fishbowl

Odoo

Microsoft Dynamics 365 Business Central (Premium)

Loopency

Against the eight questions:

# Loopency
1 Bills of materials
2 Work orders released from a BOM; a work order can name the sales order it is made for
3 Production consumes components and puts finished goods into stock, recording the movements
4 Stock below its reorder level raises a requisition; "Buy what's short" on a sales order raises a purchase request for exactly the shortfall
5 Finished goods valued at components consumed plus labour and overhead, divided by quantity; selling records that cost
6 An accepted quote reserves stock; the order shows what it is short
7 First-article and final inspection checkpoints that only named roles can sign off
8 Built in: receipts, production, shipments and adjustments post their own entries

Where we are the wrong choice, honestly: we do not run automatic MRP or capacity scheduling, and we do not have shop-floor terminals with time capture. If those are on your must-have list today, look at the dedicated manufacturing tools above. We are also newer than all of them.

A Simple Way to Choose

Then run one real job through your top two: a customer order that needs something made from a BOM, with one component short. Count the steps and the retyping.

Run one real job through Loopency


Competitor prices and plan details were read from each vendor's own pricing page on 15 October 2026 and are linked where used. They change; check the source.

#manufacturing#erp#software-selection

Related reading

Ready to try Loopency?

Build powerful apps without code. Start your trial today.

Start trial