Your machines are engineered to perform - your processes should be too

Machine building is complex by nature—long lead times, custom designs, and cross-functional dependencies are the norm. Yet many manufacturers still rely on Excel to manage this complexity. As engineer-to-order (ETO) becomes the standard and customer expectations rise, spreadsheets start to crack under pressure. What began as a quick fix becomes a bottleneck for growth, accuracy, and control.

If your organization is still running key processes in Excel, it may be time to reconsider whether this approach supports your goals—or actively hinders them. 

Below are six key reasons why machine builders should transition away from spreadsheets and toward an integrated ERP system designed specifically for project-based manufacturing.

Unlike volume-based manufacturing, machine building operates in a highly customized environment. Each project requires a unique bill of materials (BOM), often with nested subassemblies, multiple engineering revisions, and evolving specifications throughout the lifecycle of the order.

Managing this level of detail in spreadsheets quickly becomes unmanageable. Engineering changes made in one spreadsheet may never reach the planning or procurement teams. Procurement may order materials based on an outdated version of the BOM, leading to costly errors, rework, or delivery delays. Additionally, manual tracking of design versions and dependencies across disconnected Excel files introduces risk and consumes valuable time.

An ERP system tailored to engineer-to-order production allows engineering data to flow seamlessly across departments. The integration between CAD, engineering, planning, and procurement ensures that every change is reflected instantly in relevant processes. This reduces delays, minimizes errors, and allows teams to work with confidence, knowing they’re all aligned on the most current data.

Many machine builders rely on Excel for quoting, planning, purchasing, and reporting. But the same data often needs to be re-entered multiple times across different systems. For instance, a cost calculation created in Excel may be retyped into the financial software. A project schedule created in a planning spreadsheet may then be used to create a separate procurement plan in another tool.

Each manual handoff increases the likelihood of errors. It also adds unnecessary administrative burden that ties up skilled staff who could be focused on higher-value tasks. Moreover, when every department works in its own version of the truth, it becomes difficult to maintain data consistency across the organization.

ERP eliminates these issues by offering a centralized data environment. Information entered once—for example, a customer order or a project BOM—can be used across sales, procurement, production, and finance without redundant input. This not only saves time but also ensures consistency, traceability, and better decision-making across all business units.

Machine building projects often span several weeks or even months, with multiple phases, dependencies, and milestones. Keeping track of progress, costs, material consumption, and delays is vital for timely delivery and profitability. Yet, most spreadsheets provide only a partial and static view of the project status.

Without a real-time, integrated project overview, it becomes difficult to answer basic operational questions. Is the project on schedule? Are materials arriving on time? How do current delays affect the final delivery date? Are we exceeding the projected budget?

ERP systems designed for project manufacturing offer real-time dashboards that combine data from across the organization. Managers gain a holistic view of project health—time, cost, materials, labor, and delivery status—all in one place. Early warning indicators and alerts enable proactive management rather than reactive firefighting, helping to keep projects on track and customers informed.

Inventory management is especially challenging in project-driven environments like machine building. Each project has unique material requirements, and the timing of procurement is tightly linked to the overall project plan. In Excel, it is difficult—if not impossible—to dynamically link inventory levels with the production schedule and purchase planning.

The result is a reliance on buffer stock, “just in case” ordering, or last-minute rush purchases. Stockouts can delay production, while overstock ties up capital and warehouse space. Additionally, critical parts might be reserved for the wrong project, leading to internal conflicts and resource constraints.

ERP systems allow for predictive inventory management. Materials are reserved specifically for projects, and their availability is tracked in real time against project timelines. Procurement can plan purchases based on demand forecasts and actual project needs, improving reliability and reducing waste.

Many machine builders begin with an engineer-to-order (ETO) strategy, delivering highly customized machines designed from scratch for each client. While this offers differentiation, it also limits scalability. Every new order demands significant engineering time, custom documentation, and manual planning—making it difficult to grow without adding overhead.

As companies mature, they often explore a shift toward a configure-to-order (CTO) model. This approach uses predefined modules, options, and rules to create customized machines from a standard base. It reduces the engineering workload, shortens lead times, and simplifies inventory and production planning.

However, making this transition is impossible to manage in Excel. Configuration logic, dependencies, constraints, and pricing rules require a level of complexity and automation that spreadsheets cannot support.

An ERP system with product configuration capabilities supports this strategic shift. It allows sales teams to configure machines based on pre-engineered components, automatically generates BOMs and routings, and ensures downstream departments receive accurate, validated data. This enables machine builders to deliver variety without complexity—combining the flexibility of ETO with the efficiency of CTO.

In many organizations, planning spreadsheets and cost models are created and maintained by one or two key individuals. These files are often filled with custom formulas, undocumented logic, and years of accumulated tribal knowledge. When these employees are unavailable or leave the company, the business is exposed to serious operational risks.

The lack of standardized processes and systematized knowledge makes it difficult to onboard new staff or scale operations. Valuable know-how remains locked in local files and personal expertise, which limits organizational agility and resilience.

Recruitment is a long-standing challenge for UK firms, exacerbated by skilled machinists returning to their home country after Brexit. Given the hiring challenges, it’s even more important that new-starters can be onboarded swiftly, and don’t become frustrated by trying to retrieve everything from spreadsheets.

ERP systems capture business knowledge in structured workflows, templates, and processes. This creates institutional knowledge that is accessible to the entire team and not dependent on individuals. Documentation, versioning, and user permissions further strengthen operational integrity, allowing machine builders to operate with more consistency and less risk.

Machine builders operate in a complex environment that demands precise coordination, flexible planning, and deep integration across departments. Excel is not equipped to handle the demands of engineer-to-order or configure-to-order production. Its limitations in version control, real-time visibility, data consistency, and process standardization make it unsuitable for companies that aim to scale operations, improve reliability, and meet growing customer demands.

Transitioning to an ERP system designed specifically for machine building unlocks new levels of efficiency, insight, and control. It supports companies as they evolve from bespoke ETO operations toward more scalable CTO strategies—without sacrificing product quality or customer satisfaction.

For machine builders ready to modernize their operations, now is the time to embrace ERP and replace uncertainty with structure, speed, and scalability.