The discrete manufacturing industry in Australia faces unique challenges, from fragmented production data and inefficient inventory management to legacy systems slowing digital transformation. Unlike process manufacturing, discrete manufacturing relies on assembling distinct parts into finished products, making coordination and timely decision-making critical. Choosing the best ERP for discrete manufacturing is essential to streamline operations, improve forecasting, and maintain a competitive edge in this fast-evolving sector.
Why this article is important for Australian discrete manufacturers?
- Provides a clear guide to the top ERP solutions available in 2026.
- Helps manufacturers make informed decisions to enhance productivity.
- Reduces operational inefficiencies and potential disruptions.
- Supports long-term growth by aligning ERP systems with specific manufacturing needs.
Challenges in the Discrete Manufacturing Industry in Australia
Discrete manufacturers build products that depend on parts, assemblies, and machines working in sync. Even a small gap slows the complete process. Some of the evident challenges of the discrete manufacturing industry in Australia include:
- Fragmented Production Information
- Paper Based Scheduling Pressure
- Inventory management and forecasting inefficiencies
- Limited real-time visibility across production and operations
- Engineering Updates Reaching Teams Late
- Weak Forecasting Confidence
- Legacy systems and slow digital transformation
- Quality and Compliance Records Spread Across Files
Discrete Manufacturing vs. Process Manufacturing
Process manufacturing is another method of production. Unlike discrete manufacturing which assembles pieces that make finished products by mixing raw materials and ingredients in a formula or recipe. Discrete manufacturing uses parts and components where the assembly is often reversible and is directed by a bill of materials in a sequential or parallel assembly process, process manufacturing uses variable ingredients by volume, is done in batches or quantities of product, the assembly process is irreversible and is based on recipes or formulas that require mixing, blending, combining and so forth.
Key Elements of Discrete Manufacturing
Discrete manufacturing is all about taking raw materials and making them into finished goods. This process differs from one industry to another, but most will share in the following key elements.
- Supply Chain
- Bill of Materials
- Production Routing
- Assembly Line
- Quality Control
Customer Success Story: Dynamics Square Ensures Seamless Operations for Robotics Leader
A leading Smart Automation & Robotics Solution Provider in Australia relies on Microsoft Dynamics AX 2009 while preparing for a global shift to Dynamics 365 Finance & Supply Chain. Facing challenges like limited prior support and complex local operations, the company partnered with Dynamics Square for reliable AX 2009 support, expert consultation, and timely Microsoft plan renewals.
With Dynamics Square’s support, the client maintains stable daily operations, resolves technical issues efficiently, and preserves Microsoft customer continuity, all while gearing up for a smooth ERP transformation. This partnership highlights Dynamics Square’s commitment to operational excellence, business continuity, and enabling growth in the automation and robotics industry.
Top ERP systems for Discrete Manufacturing Companies in 2026
Discrete manufacturing involves assembling distinct parts into finished products using bills of material, routing, and production orders. This would be virtually impossible without the help of a solid ERP system that offers clarity in inventory, enable effective cost control, and support flexible production modes like make-to-order, engineer-to-order or configure-to-order.
This deep dive explores market-leading ERP solutions tailored to discrete manufacturers in 2026. Each section highlights a unique system, breaking down its core features, pricing details, and the types of companies it’s best suited for.
-
SAP S/4HANA
SAP S/4HANA remains a top choice for large-scale discrete manufacturers with complex global operations. Built on an in-memory database, it supports real-time analytics and lightning-fast MRP resolution. The system integrates seamlessly with other SAP modules to provide full enterprise visibility.
Key features:
- Multi-level bills of material and advanced variant configuration
- Real-time inventory and production visibility
- Integrated quality management and compliance tools
- Predictive maintenance and demand forecasting with embedded AI
Best for: Large manufacturers in automotive, aerospace, and electronics sectors who operate across multiple global sites and require comprehensive control over complex production workflows.
-
Oracle NetSuite
Oracle NetSuite is a cloud-native ERP that offers strong flexibility and modularity for discrete manufacturers. It’s fully SaaS, making it ideal for companies looking to modernize without managing infrastructure. NetSuite combines financials, inventory, CRM, and production in one platform.
Key features:
- Full suite for finance, production, inventory, CRM, and procurement
- Supports work orders, bills of material, and demand planning
- Built-in dashboards for production KPIs and cost tracking
- Strong multi-entity and multi-currency capabilities
Best for: Mid-sized to fast-growing manufacturers needing a scalable cloud ERP that can handle manufacturing, finance, and sales in one platform without extensive custom code.
-
Microsoft Dynamics 365 Business Central
Business Central is Microsoft’s entry-level ERP for small to mid-size manufacturers. It combines core finance, inventory, and manufacturing functions with a familiar Microsoft interface. Integration with Microsoft 365 and Power BI provides added convenience for reporting and collaboration.
Key features:
- Production orders, BOMs, and inventory traceability
- Integrated financials, warehousing, and sales modules
- Seamless integration with Microsoft 365 and Power BI
- Flexible cloud or on-premise deployment
Best for: Small manufacturers who want an intuitive, easy-to-implement ERP that works well with existing Microsoft tools.
-
Acumatica Manufacturing Edition
Acumatica is a cloud ERP designed with growing manufacturers in mind. It provides full visibility into operations with user-based licensing that avoids per-seat charges. The platform is known for its open APIs and flexible integrations.
Key features:
- Supports make-to-order, make-to-stock, and batch production
- Shop floor data collection and real-time dashboards
- Integrated quality control and engineering change management
- Role-based access and mobile-friendly interface
Best for: Mid-market manufacturers with varied production needs, especially those scaling quickly and needing cost predictability with open APIs.
-
Epicor Kinetic
Epicor Kinetic is focused on discrete and mixed-mode manufacturers, offering deep production capabilities and customizability. It is designed to handle complex shop-floor operations and advanced scheduling requirements. Deployment options are flexible, supporting cloud, on-premise, and hybrid environments.
Key features:
- Advanced scheduling and MES integration
- Lot and serial number tracking for traceability
- Built-in quality assurance workflows
- Available in cloud, on-premise, and hybrid models
Best for: Manufacturers in industrial equipment, fabricated metals, and electronics who require tailored ERP deployments and strong shop-floor control.
-
Infor CloudSuite Industrial (SyteLine)
Infor SyteLine provides robust functionality for manufacturers with detailed operational needs. It is tailored for manufacturers seeking in-depth planning and execution tools. The system can support complex multi-site operations and product configuration.
Key features:
- Multi-site planning and scheduling tools
- Advanced inventory and warehouse management
- Role-based dashboards and workflow automation
- Deep costing and product configuration tools
Best for: Discrete manufacturers in aerospace, machinery, and high-tech industries who need precise control and extensive configurability.
-
IFS Cloud
IFS Cloud combines ERP, EAM, and service management into a single solution, ideal for asset-intensive and project-based manufacturers. The system supports full lifecycle operations, from production to field service. AI tools assist in scheduling and planning.
Key features:
- Integrated project manufacturing and service scheduling
- Real-time asset tracking and condition monitoring
- AI-enhanced planning and scheduling tools
- Mobile-first interface with field service support
Best for: Manufacturers in aerospace, energy, and heavy equipment sectors who also manage after-sales service or maintenance.
-
Odoo
Odoo offers a modular and open-source ERP framework that’s highly customizable and cost-effective for smaller discrete manufacturers. It provides essential MRP tools and can be extended with over 30,000 apps. Deployment options include both cloud and on-premise.
Key features:
- Core MRP with work centers, routings, and BoMs
- Integrated apps for sales, purchasing, and finance
- Custom workflows and dashboards
- Community and enterprise editions
Best for: Small manufacturers who want full control over their ERP stack and prefer to start lean, customizing as they grow.
-
Fujitsu Glovia G2 (CrescentOne)
Glovia G2 specializes in make-to-order and engineer-to-order environments. It offers fine-grained control over part-level cost and project tracking. This ERP is suited for companies with long product cycles and heavy compliance requirements.
Key features:
- Real-time visibility into project-based production
- Multi-language, multi-currency and global compliance support
- Built-in MES and quality modules
- Strong integration with legacy systems
Best for: Aerospace, electronics, and automotive suppliers who handle complex customer-driven production and long-term contracts.
-
Katana
Katana is a modern ERP with a visual interface aimed at small manufacturers and makers. It is optimized for integration with ecommerce platforms and provides intuitive planning tools. The system supports light manufacturing and real-time order sync.
Key features:
- Simple BOM and work order creation
- Real-time inventory syncing across sales channels
- Shop floor task management and time tracking
- Native integrations with Shopify, Xero, and QuickBooks
Best for: Small to micro manufacturers, especially those selling online, who need light manufacturing tools combined with real-time order and inventory sync.
Key Things to Consider When Choosing an ERP System for Your Discrete Manufacturing Business
Before committing to any ERP system, manufacturers should evaluate their specific operational goals and constraints. ERP implementation is not just a software decision, it’s a strategic business choice that will influence daily operations for years.
Here are the most important aspects to consider:
- Production Mode Support
- Scalability
- Deployment Flexibility
- Integration Capability
- User Experience and Training
- Total Cost of Ownership
- Vendor Support and Community
- Compliance and Quality Management
By aligning your ERP choice with these priorities, you reduce risk and increase the chances of a successful, long-lasting implementation.
With a clear understanding of each system’s strengths and costs, manufacturers can choose the ERP that best fits their needs in 2026. If you’re evaluating systems, start by mapping your key processes, defining your scale, and deciding on cloud vs on-premise requirements. The right ERP should support your workflows, not complicate them.
Choosing ERP: what do you need to know first?
Any new software is a big step-change, so it needs to deliver big value – and ERP does just that. The right ERP solution will transform your discrete manufacturing business. How? At Dynamics Square, we want to set you on the path to transformation. Success is serious business for us, so we’ve looked closely at the features and functions you should evaluate to find the right ERP for your business.
Here are some questions you should be asking before choosing an ERP:
- Can it create a tight-knit shop floor operation?
- Can it help me streamline spending?
- Can it generate accurate quotes and build my business pipeline?
- Can it optimize inventory – even when I’m building-to-order?
- Can it help me plan ahead without being too rigid?
- Can it enhance my customer relationships?
- Can it improve quality control?
- Can it support my service team in the field?
- Will it improve my workflows?
- Can it deliver clear insight?
Why Dynamics Square is the Trusted ERP Partner for Australian Manufacturers?
Dynamics Square provides very specific industries with very specific ERP, supply chain management, and customer experience solutions. In today’s fast-paced, highly competitive economy, organizations don’t have time to waste forcing homegrown software, spread sheets, and one-size-fits-all solutions to do things they were never designed to do. Dynamics Square is on a mission to end those work arounds with industry-specific solutions instead of generic software, expert support instead of making you go it alone, and a steady influx of new ideas.
For more information, visit: https://www.dynamicssquare.com.au/
At Dynamics Square, we understand your dilemma and as a trusted partner in ERP solutions, we specialize in helping manufacturers achieve a successful transition. If you want to modernize production, maximize the supply chain, or enhance quality control, we are here to support you at every step of the way.
Explore how Dynamics Square’s local expertise, Microsoft-certified team, and tailored Dynamics 365 solutions make them a trusted partner for businesses across NSW:
Read the blog here: Microsoft Partners in NSW: Why Dynamics Square is the Top Choice
Contact us today to explore how Microsoft Dynamics 365 ERP can transform and uplift your manufacturing operations today for a better future tomorrow!
Conclusion
Selecting the right ERP empowers discrete manufacturers to overcome operational inefficiencies, maintain quality and compliance, and support flexible production modes. With expert guidance from partners like Dynamics Square, Australian manufacturers can ensure seamless operations today while preparing for future growth and digital transformation. The best ERP for discrete manufacturing isn’t just software; it’s a strategic foundation for efficiency, scalability, and long-term success.
