The general manufacturing industry continues to undergo digital transformation at an unprecedented rate. In this dynamic environment, it needs an efficient ERP solution to streamline all its processes, including supply chain, procurement, production, and inventory management.

Among the leading ERP solutions, SAP Business One for general manufacturing is designed for small and growing manufacturers. What’s impressive is that SAP Business One (or SAP B1) can also help small manufacturers streamline their non-core business functions like accounting, finance, and sales.

Here’s a look at how SAP B1 enables digital transformation in manufacturing companies.

Digital Transformation in General Manufacturing

Digital Transformation in Manufacturing with SAP Business One

As an ERP tool, SAP B1 enables digital integration in manufacturing with a host of systems, including CRM and supply chain management. With this integrated approach, manufacturers can optimise various functions, including:

  • Production planning
  • Inventory management
  • Quality control

Here are six focus areas that SAP Business One can transform for small and large manufacturers:

1. Supply Chain Visibility

In a competitive market, manufacturers want to reduce supply chain costs and meet customer deadlines. This is now possible through operational visibility into supply chains – enabled by SAP B1.

Here’s how SAP B1 can transform supply chain operations with improved visibility:

  • Synchronise functions like warehouse management, inventory management, accounting, and sales.
  • Monitor the movement of goods along the entire supply chain.
  • Track any price changes of inventory items.
  • Provide real-time data insights for improved decision-making.

2. Product Configuration

In the age of personalization, SAP Business One enables manufacturing customers to choose their product features and other options. With product configuration, manufacturers can manage product-related information, including product specifications, pricing, and current stock levels.

Product configuration enables manufacturing companies to increase their product offerings at no additional costs, thereby improving sales and revenues.

3. Inventory Control

Manufacturers need real-time access to raw materials and goods for continuous production. Inventory control is a significant cost factor for manufacturers – and needs to be balanced between meeting timely deliveries to customers and higher production costs.

With SAP Business One’s inventory management functionality, manufacturers can integrate and manage their inventory across multiple warehouses and locations. SAP B1 enables them to track inventory levels and plan production schedules to meet changing market demands.

4. Improved Waste Management

SAP Business One also enables manufacturers to minimise waste and efficiently utilise available materials. By integrating production orders with a bill of materials (BOM), manufacturers can correctly allocate materials to production without waste.

With SAP B1, they can create various types of BOMs (with specific instructions) and then production orders. When the material is released, it is automatically added to the work order after releasing the production order. Effectively, SAP B1 enables continuous production by automatically allocating required materials and resources.

5. BI and Reporting Capabilities

Most ERP solutions require developers to create customised reports. On the other hand, SAP B1 features an in-built reporting and business intelligence capability. Manufacturers can customise their reports using the SAP B1 reporting module to meet their specific requirements. They can also use built-in templates to generate reports immediately.

With its built-in BI functionality, SAP Business One can improve business efficiency by enabling manufacturers to address their problems quickly and find new sales opportunities.

6. Optimised Production

Through its Materials Requirement Planning (MRP) feature, SAP B1 enables general manufacturers to optimise their multilevel production capability. They can understand their current production schedules and supply chain operations correctly.>

Based on the MRP data, SAP Business One can accurately recommend the material and resource requirements, thus enabling manufacturers to generate timely production orders.


Digital transformation is driving the next level of manufacturing innovation globally. In this blog, we have discussed how SAP Business One for general manufacturing is helping in this transformation.

As a recognized SAP B1 partner, Praxis Info Solutions has been instrumental in delivering an industry-specific solution with SAP Business One. With our SAP Business One implementation expertise, you can quickly transform your traditional manufacturing setup into an intelligent factory.

Our professional team of SAP B1 experts is ready to help you with your digital transformation journey. Contact us today to learn more.