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An ERP system for production and manufacturing integrates production planning, production control, procurement, warehousing, finance and quality management into a single database. Instead of each department using its own isolated software, the entire organisation works with the same real-time data: from order intake through to production planning and post-production costing. Microsoft Dynamics 365 Finance & Supply Chain Management (F&SCM) is Microsoft’s cloud-based ERP system designed specifically to meet these requirements.
The key features of ERP software for manufacturing at a glance:
Production planning and control with real-time demand forecasting
Purchasing, Materials Management and Warehouse Management
Finance and Management Accounting, including cost analysis
Quality management with test plans and traceability
collana implements F&SCM for medium-sized manufacturing companies, drawing on 40 years’ experience in ERP and 30 years’ practical project experience in discrete manufacturing. On this page, you can find out which functions the ERP system covers in production and manufacturing, which types of manufacturing it is suitable for, how it differs from SAP S/4HANA, and how the implementation process works in practice.
You can find an overview of our full range of ERP solutions on the page ERP systems from collana.
Microsoft Dynamics 365 Finance and Supply Chain Management
We are struggling with fluctuating demand, material shortages and a lack of transparency in the supply chain.
F&SCM provides real-time insights into inventory, demand and delivery times – for reliable planning, better control and more stable processes.
Our production processes are complex. Capacities, production orders and resources are difficult to keep track of.
The solution combines production planning, MRP, capacity management and shop floor processes in a single system, making interrelationships immediately visible.
We have many systems in use – data is scattered, decisions take too long.
F&SCM combines finance, purchasing, warehousing, sales and manufacturing in a single platform, creating a consistent data basis.
Key Facts about our industry experience in F&SCM
When selecting an ERP system, a company is not just choosing a piece of software, but also the partner who will implement it. collana offers four verifiable facts:
100%
Validatable ERP processes: Every process shown can be traced and verified
30
Years of experience in discrete manufacturing: We are familiar with individual—
40
40 years’ experience in ERP Selection, commissioning and operation
9-12
Introduction in 9–12 months: We implement your ERP system using rapid prototyping and industry-specific add-ons, either using a traditional or an iterative approach
Target group
Small and medium-sized enterprises & large corporations
Markets
Germany & Turkey
Industry expertise
Production & discrete manufacturing
This expertise is incorporated into every project: from process analysis through to system implementation, and on to training and support.
The Microsoft Dynamics 365 F&SCM cloud-based ERP system covers the entire order lifecycle in discrete manufacturing, from demand planning to post-production costing. An overview of the ERP system’s four functional areas:
Production planning and control form the core of the ERP system in manufacturing. To this end, F&SCM brings together the key functions of production management:
Rapid demand forecasting based on current stock levels, orders and delivery dates.Machine and staff planning based on actual capacities rather than static assumptions
Production order control throughout the entire process
Support for variant and batch production, including bill of materials and work plan logic
The result: reliable delivery dates, because planning and actual production processes are based on the same data.
Materials management and the flow of goods are handled end-to-end within the ERP system, from purchasing through to dispatch.
An overview of the features:
Inventory optimisation across all warehouses and sites
Automatic planning: Order proposals are based on actual demand, not on historical data
Warehouse Management for structured warehouse processes
Transport and delivery management right through to the customer
This allows stock levels to be reduced without compromising the reliability of production. Procurement and logistics operate using the same database as production planning – across the entire supply chain.
As an integrated ERP system, F&SCM links financial processes directly to production processes. The key functions are:
Multi-entity and multi-currency capabilities for corporate groups and international locations
Project costing and post-project analysis based on actual production data
Cost Centre and Profit Centre Accounting
Budgeting and reporting for sound decision-making
This means the CFO can see not only what production has planned, but also what it has actually cost – without the need for manual reconciliations.
Quality management is not an afterthought in the ERP system, but an integral part of the process. The functions:
Test plans and quality checks carried out directly during order processing
Traceability of materials by batch and order
Consistent process documentation
Integration with Power BI for reports and dashboards
Quality control and traceability are therefore documented in a manner that stands up to audit scrutiny, and transparency regarding your production processes emerges as a by-product of day-to-day work.
Single-unit manufacturers calculate costs on a project-by-project basis, mass producers optimise production rhythms and set-up times, whilst manufacturers of variant products require manageable BOM complexity because their products come in many different versions. Each type of manufacturing brings its own requirements and challenges. An ERP system for production must accommodate these requirements without forcing you to commit to a single model. This flexibility is not an end in itself, as in practice the boundaries are fluid: Many manufacturing companies combine mass-produced products with customised variants or supplement their standard business with project-based orders. The flexibility and adaptability of the ERP software then determine whether the ERP system grows with your business or holds it back.
Dynamics 365 Supply Chain Management supports several order types for this purpose: production orders for discrete manufacturing with a bill of materials and work plan, batch orders for formula-based process manufacturing, Kanban for lean manufacturing, and project orders for project-based manufacturing. According to Microsoft documentation (as at 10 July 2025), these order types can be combined in mixed mode – even within the same finished product.
For you, this means that single-item, project-based, batch and variant production, as well as hybrid models, are all managed within a single ERP system, using a unified database for planning, costing and reporting – regardless of how diverse your products and production processes may be. We’ll determine which solution and combination best suits your products and manufacturing processes during the process assessment. Drawing on 30 years’ experience in discrete manufacturing, we know exactly which questions to ask.
First, to address a frequently asked question: ERP and SAP are not the same thing. ERP refers to the category of business software; SAP is one of several vendors on the market, alongside Microsoft, Oracle and others. In selection processes at manufacturing companies – ranging from SMEs to upper mid-market firms – the ERP systems Microsoft Dynamics 365 F&SCM and SAP S/4HANA often end up competing against each other.
An objective comparison based on the criteria that matter to manufacturing companies:
Production Planning (MRP): flexible, straightforward production planning
Types of production: Variant, series and project-based production are supported
Cost control and costing: through to post-project costing
Integration stack: Integration with Microsoft 365 and Teams
Adaptability: as a benchmark for your specifications. The extent to which your process model needs to be adapted will help determine the effort involved and the operating costs
All in all, F&SCM offers advantages in terms of flexibility, speed of implementation and tight integration with the Microsoft ecosystem – although this is also possible with SAP S/4HANA; however, the architecture and integration approach differ significantly. Which ERP solution is right for your business depends on your process landscape, system environment and budget, not solely on the vendor. A robust comparison therefore requires your requirements specification, not just a data sheet: it is precisely these criteria that we clarify together during the selection process and use to evaluate both systems against your requirements – as your partner, right from the selection phase.
Case Studies
Two projects from the collana Group illustrate how an ERP implementation actually works in a manufacturing environment:
Both projects exemplify what an ERP implementation must achieve: transforming established workflows into end-to-end processes without jeopardising day-to-day operations.
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Dynamics 365 F&SCM Implementation
ERP projects rarely fail because of the software. They fail due to unclear processes, a lack of key users and poor data quality. Our implementation methodology therefore addresses precisely these issues:
You start working early on with a fully functional system rather than with concept slides. Any misconceptions become apparent whilst they can still be easily corrected.
We address production requirements not covered by the standard ERP system using tried-and-tested modules rather than bespoke development, right from the very first week.
The process model is tailored to your organisation and your processes, not the other way round – this flexibility also applies to the implementation.
Key user training sessions and a helpline ensure smooth operations following the go-live; as your partner, we remain available to assist you even after that.
The order has been chosen deliberately. An ERP project in manufacturing stands or falls on the people who will later use it on a daily basis: key users who understand their processes and bring the necessary expertise to the project provide effective protection against missteps. That is why we involve them right from the prototyping stage, rather than only bringing them in for training.
Using this approach, we will implement your ERP system in 9–12 months. If you are still at the early stages of the selection process, the ERP Orientation and Selection Workshop The right way to start: We’ll clarify the requirements, system architecture and project scope before you make a commitment.
Technology used
F&SCM is part of a stack. Depending on requirements, standalone modules, services and solutions supplement the ERP system with additional functions, each clearly defined and serving its own specific purpose:
Power Platform:
Power BI, Power Automate and Power Apps enhance the ERP software with analytics, workflow automation and custom apps. As both run on the Microsoft stack, the effort required for integration is reduced (e.g. interface projects, which regularly consume time and budget when using third-party software solutions).
Data Analytics:
For data-driven decision-making and management that goes beyond standard reporting. Case study: Beckhoff Automation: The automation specialist uses the TARGIT Decision Suite to operate an international BI platform with over 300 users across 11 countries, into which data from 20 years of ERP usage has been integrated, implemented by b-imtec (collana Group). Details in the use case International BI platform at Beckhoff Automation
AI solutions:
A real-world example from the industrial sector is Bucher Municipal: the company provides multilingual maintenance knowledge worldwide, from Scandinavia to Australia, via a chatbot based on Azure OpenAI Service, Azure AI Search and Azure Cosmos DB, implemented by Option 4.0 (collana Group). According to the project description, this reduces downtime and speeds up maintenance operations. Details in the use case AI chatbot for maintenance knowledge at Bucher Municipal and in the article AI in manufacturing
Modern Work:
Microsoft 365 and Microsoft Teams provide a modern working environment into which F&SCM integrates seamlessly. ERP data is available right where your teams are already working – without disrupting day-to-day operations
Our sector page illustrates how these building blocks interact within the sectoral context Production and discrete manufacturing.
Recommendation
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The most common causes are unclear or undocumented processes, a lack of key users in the project team, and poor data quality during migration. These issues can be addressed by carrying out a thorough process analysis before the project begins, involving key users at an early stage, and adopting a rapid prototyping approach that highlights false assumptions before they become costly.
Four functional areas determine the value of an ERP system in manufacturing: production planning with real-time MRP and production order control; integrated materials management from procurement through to warehouse management; finance, including project and post-production costing; and quality management, comprising inspection plans, quality control and traceability. Integration is more important than the length of the feature list: good ERP software brings all production and commercial processes together on a single database – in one system rather than many.
collana implements the Dynamics 365 F&SCM ERP solution in 9–12 months, using rapid prototyping, industry-specific add-ons and a choice of either a traditional or iterative approach. The actual duration depends on the scope of the processes, data quality and the availability of your key users.
F&SCM supports discrete manufacturing (production orders with bills of materials and work plans), process manufacturing (batch orders), lean manufacturing (Kanban) and project-based manufacturing, including combinations of these in mixed mode within the same end product. This enables single-unit, batch, variant and hybrid production models to be mapped within a single ERP system – tailored precisely to the manufacturing processes in your company.
Dynamics 365 Finance and Supply Chain Management are currently used primarily as cloud-based solutions on the Microsoft platform. However, Microsoft also offers on-premises deployment scenarios for Finance & Operations, with a different scope of functionality. Which option best suits your requirements should be assessed as part of the system selection process.
Are you planning to select an ERP system for your business, driving forward the digitalisation of your manufacturing operations, or looking to assess whether the Dynamics 365 F&SCM ERP solution supports your production processes? If so, let’s have a chat: Get a no-obligation consultation – or get started easily with the ERP Orientation and Selection Workshop. Let’s set out together into the future.