We can’t imagine today’s world without technology, as it makes our lives so much easier. Digitization facilitates food manufacturing, increases profit, and improves food safety. However, the abundance of solutions to implement can make you feel puzzled, and instead of benefiting from a great choice, you stop and can’t make up your mind.
This blog will discuss a dilemma: MES vs. ERP. We’re here to help. We will explain the difference between ERP and MES and suggest which is better for you. Let’s get started!
What Is MES?
MES stands for Manufacturing Execution System. It is a software application that helps businesses manage production processes on the shop floor. MES tracks and documents the path from raw materials to finished goods in real time by gathering information from different sources, such as sensors, equipment, operators, etc.
Real-time data helps gain visibility and drive data-based decisions. Moreover, MES will reduce downtime and help spot bottlenecks in production.
MES joins the shop floor and planning systems and has features like quality control, data collection and integration, production planning, work order management, inventory management, analytics and reporting, etc.
We broke down the topic of MES in our comprehensive guide called “What is a Manufacturing Execution System?” so you can find even more interesting facts there.
What Is ERP?
ERP stands for Enterprise Resource Planning. It is a system for managing daily business operations such as accounting, compliance, risk management, HR, manufacturing, procurement, and supply chain management.
ERP aims to improve operational efficiency and manage resource utilization efficiently. ERP is crucial for food producers as it enables seamless data flow and helps avoid misunderstandings by ensuring data integrity.
What Are the Differences Between MES and ERP?
MES and ERP have peculiarities, making them unique and valuable in particular aspects and situations in food manufacturing. Let’s cover different points, such as focus, functionality, complexity, and others, to determine how they differ.
1. Focus
While MES focuses on optimizing manufacturing processes, efficiency, and production execution on the shop floor, ERP covers resource allocation and strategic planning. In other words, while ERP is centered around financial performance and resource usage, MES takes care of smooth operations, quick issue resolution, and meeting manufacturing goals.
2. Functions
Enterprise resource planning system targets different company departments, including human resources, finance, inventory management, supply chain management, CRM, etc. On the other hand, the manufacturing execution system is responsible for data gathering, quality control, production scheduling, monitoring, etc.
3. Integration
Logically, MES is more specific, integrating with shop floor equipment. On the contrary, ERP can integrate with various systems in the company to deliver the expected result. ERP integration can help create a more coherent data flow.
MES can be integrated into ERP, and this collaboration will bring even more results to a food company, but we will talk about it later.
4. Data
ERP gathers and manages data from the whole organization. It provides comprehensive insights and valuable information; however, ERP updates the information less frequently than MES, which offers real-time data that helps you make data-driven and timely decisions.
5. Complexity
Because ERP is bigger than MES, we can assume that the manufacturing execution system is less complex to implement and manage, but let’s see in more detail.
An enterprise resource planning system captures the whole company, so implementing and controlling it takes more time. While ERP needs cross-department coordination, comprehensive training, and much time and resources, MES only applies to the shop floor and production, making it less complex. For instance, user training is more specific.
However, this doesn’t mean that MES is easy. It still needs adjustment and requires work on machine integration. Both MES and ERP can require substantial customization, which makes them similar in terms of complexity.
6. Tactic or Strategy?
MES focuses on daily operations, making it more tactic in nature. ERP, on the other hand, is a more long-term strategic system that focuses on resource allocation and business planning.
7. Who Uses MES and ERP?
MES is used by the production team, which includes operators, quality control managers, and others related to the production and shop floor. Compared to this, the primary users of ERP are managers, executives, business analysts, and others involved in budgeting, strategic planning, analytics, etc.
8. MES, ERP, and Regulatory Compliance
Again, as long as ERP is a more extensive system, it helps with compliance across the organization, so it involves tax, environmental, and other compliance issues. MES is related to production-specific compliance and helps ensure adherence to traceability, food safety, or quality standards. MES will help companies with HACCP certification or other food safety audits.
9. Scale and Growth Rate
MES and ERP markets differ in terms of market value and growth potential. According to Statista, the ERP software market is anticipated to demonstrate an annual growth rate of 4.26% and is expected to reach US$65.29 billion by 2029.
Meanwhile, MarketsandMarkets indicates that the MES market is predicted to reach US$23 billion by 2029. It is expected to grow at a compound annual growth rate (CAGR) of 9.2% from 2023 to 2029.
The statistics imply that ERP dominates in market size, but MES demonstrates higher growth potential.
How To Choose Between MES and ERP?
Choosing the right system for your food business requires reflection and comparing your needs and priorities. MES will be more appropriate for those searching for enhanced quality, production efficiency, and better food traceability on the shop floor. MES is good at capturing real-time data to ensure food safety compliance and tracking ingredients from farm to table. Check out our list on the best MES software.
You should opt for ERP if you are searching for a solution that could cover a broader range of processes, such as inventory, supply chain management, human resources, etc. ERP will fit companies with big supply chains and the need for streamlined business efficiency. Our guide covers some of the best food ERP software solutions if you want to find out more.
Food businesses sometimes combine both solutions to maximize their benefits and cover all their needs. ERP and MES can complement each other; do you know how?
Try it out today!
How ERP and MES Work Together To Improve Food Manufacturing Efficiency?
ERP and MES can perfectly work together, and here’s why! MES can be an invaluable element of ERP as it gives a more comprehensive overview of the production and shop floor, while ERP can have gaps related to managing these aspects.
The manufacturing execution system and enterprise resource planning platform will bridge the shop floor and broad business operations.
Together, they create a seamless information flow: MES instantly provides fresh data to the ERP system, which helps it make more accurate plans, improve scheduling, and control costs. Let’s also remember how the ERP system can use the data for analysis, forecasting, and decision-making.
Both MES and ERP are great solutions to adopt. Combining these systems will help achieve transparency and control, improved uptime, and better resource allocation. By integrating MES and ERP, manufacturers can also gain greater visibility and control and make data-driven decisions that will enhance efficiency and profitability across the entire business.
By the way, read more about how MES drives better decision-making in food production.
FoodReady Can Offer You the MES and ERP Solutions You Need!
At FoodReady, we realize how different businesses and their needs are, so we tailor our approach to meet the unique needs of our customers, whether they need an ERP system for their operational system as a whole or MES for streamlined production.
FoodReady combines the functionalities of MES and ERP and can cover your needs in real-time data collection, production optimization, resource allocation, and more. Its centralized platform allows you to control various processes, including food safety management, data management, document control, resource allocation, inventory management, etc.
We customize our approach to ensure you get the right technology that is aligned with your business goals. We work to help you achieve long-lasting success, food safety compliance, and efficiency.
Conclusion
MES and ERP systems differ and are used for different purposes. While ERP captures a broader range of operations, including finance, procurement, resource allocation, etc., MES has a narrow scope and is targeted at optimizing food production.
The systems have different functions, goals, scalability, etc., and you need to consider what request you have when choosing between MES and ERP. You can implement both, as the systems will help each other and create a more synchronized environment in the company.
Whatever you need, FoodReady is here to help you, provide you with MES and ERP functionalities, and bring you the best results. Contact us if you still have questions or are interested in our services.
FAQs
ERP can be cloud-based, on-premise, and hybrid.
MES is used in food and beverage manufacturing, pharmaceuticals, automotive, consumer goods, electronics, etc.
MES is focused on production processes, while IoT connects devices and enables data exchange and machine performance monitoring. MES uses IoT devices for data collection.
Integrating IoT devices offers benefits like real-time information capturing or better visibility.