When small manufacturers start outgrowing spreadsheets, the natural next step seems obvious: implement an ERP system. After all, that's what the big companies use. But for workshops with 5–50 employees, a full ERP implementation can be the wrong solution at the wrong time — expensive, complex, and far more than you actually need.
What Is ERP, and Why Do Small Manufacturers Consider It?
Enterprise Resource Planning (ERP) software aims to integrate every aspect of a business into a single system: finance, HR, inventory, manufacturing, sales, and more. Systems like SAP, Oracle, and Microsoft Dynamics are the dominant players at the enterprise level.
For a 200-person manufacturer with complex multi-site operations, ERP makes sense. For a 15-person assembly workshop building custom machinery, it's almost certainly overkill.
ERP Scope for Small Manufacturers
ERP implementations involve more than a software subscription. Depending on the system and scope, a business may need to account for:
- Software licenses
- Implementation and configuration
- Training and adoption
- Ongoing support
The total depends on the system, users, implementation scope and integrations. These variables should be compared with the processes a small workshop actually needs.
What Small Manufacturers Actually Need
Strip away the complexity, and most small assembly and manufacturing businesses have the same core needs:
- A reliable, shared parts list (BOM) that everyone can access
- Stock management — knowing what's on the shelf before ordering
- Purchase orders — recording parts, suppliers, quantities and delivery dates
- Supplier management — knowing who to call and what lead times to expect
- Project cost tracking — comparing project costs with the budget
- Delivery tracking — knowing when parts will arrive
Notice what's not on that list: payroll integration, multi-currency accounting, HR management, or complex MRP scheduling. Those are ERP features that most small workshops don't need — and pay for anyway.
BOM Software: The Right-Sized Solution
Purpose-built BOM management software addresses the core needs of small manufacturers without the cost, complexity, or implementation risk of ERP.
The key differences:
Implementation Time
Implementation time varies by system and by the condition of the data being migrated. AssembleFlow lets you import an existing CSV or Excel BOM and review it in the project workspace.
Cost
AssembleFlow's Workshop and Factory plans are priced at $29/month and $59/month respectively. Compare the plan features with the workflows your team needs rather than assuming a particular return.
Complexity
ERP requires dedicated administrators and ongoing IT support. BOM software is designed to be used by engineers and project managers — not IT specialists.
Focus
ERP tries to do everything. BOM software does one thing exceptionally well: helping you manage your parts, orders, and project costs from first inquiry to final delivery.
When Does ERP Make Sense?
ERP becomes the right choice when your business has genuinely outgrown simpler tools. Typical trigger points include:
- More than 50 employees across multiple departments
- Multiple manufacturing sites or warehouses
- Complex financial consolidation requirements
- High-volume, repetitive production (rather than custom/project-based)
- Integration requirements with customer or supplier systems
If you're not there yet, compare the scope of an ERP with the processes your business actually needs.
The Middle Ground: Start Right, Scale Later
The smart approach for most small manufacturers is to implement purpose-built BOM and project management software now, and plan for ERP integration later — once your processes are mature and your team is larger.
Good BOM software will export data in standard formats (Excel, CSV) that can be imported into ERP systems when the time comes. This keeps project data available if your business later evaluates a broader system.
Conclusion
If you're a small manufacturer with 5–50 employees doing project-based or custom assembly work, the right system depends on your requirements. A reliable, cloud-based BOM management tool can cover parts, procurement and project information without the broader scope of an ERP.
AssembleFlow is designed specifically for this gap: more structure than a spreadsheet, with a narrower scope than an ERP. Start your free 14-day trial and review the workflow with your team.
Frequently Asked Questions
Does a small manufacturer need an ERP system?
Usually not. ERP systems cover finance, sales, HR and production planning and need an implementation project. A small assembly or machine-building team often needs only parts lists, purchasing, stock, project costs and quotations.
What is the difference between BOM software and ERP?
BOM software focuses on the parts and procurement of each build. An ERP covers the whole business. Small builders often pick the focused tool first and keep their accounting package for finance.
Can BOM software work alongside accounting software?
Yes. Purchase orders can be exported as a CSV file and imported into accounting software such as Xero, QuickBooks, Sage or FreeAgent.
Free tools: the Excel templates (BOM, PO tracker, cost and quote worksheet), the margin calculator and a product tour need no sign-up.