Cost by hull and work package
Material, labour and subcontract cost against budget shows where a build is drifting while it can still be corrected.
ERP for Shipbuilders
Why an ERP is best practice for shipbuilders
A practical look at what an ERP does for a shipyard or marine builder, where the value sits, and how to choose a platform that controls long build projects and long lead procurement.
Overview
What an ERP does for a shipbuilder
Shipbuilding is a long, capital heavy project business. Contracts run for months or years, materials have long lead times, and variations are frequent and valuable.
An ERP (enterprise resource planning system) links contract budget, procurement, yard labour, subcontractors and billing so the position on each hull is known rather than estimated at handover.
Design and production planning systems keep their role. The ERP governs cost, procurement and commercial performance.
For most shipbuilders, an ERP is where the following live:
Benefits
Why your shipbuilding business needs an ERP
The value is contract control across a long programme, where small drifts compound into large losses.
Long lead items committed early
Commitments visible from order rather than invoice keeps the forecast honest across a long programme.
Subcontractor control
Rates, orders and applications matched before payment reduce leakage on a large subcontract base.
Variations captured and billed
Change recorded against the contract with cost attached means variations are recovered rather than absorbed.
Milestone billing on time
Progress and milestone data drive invoicing, protecting cash across a long build cycle.
Better estimating next time
Actual cost by work package gives an evidenced basis for pricing the next vessel.
ERP stats
Why your shipbuilding business needs an ERP
Data taken from a survey we commissioned in December 2024. Click here to view
0%
of businesses are utilising an ERP
0 in 0
businesses are dissatisfied with their current ERP
0%
of businesses say using an ERP has contributed to achieving business outcomes
In practice
What this looks like in a shipyard
Six everyday situations where one connected system changes the outcome.
01
A contract is signed
Budget by work package and milestone schedule are set, so tracking starts at day one.
Example use cases
Enterprise resource planning for shipbuilders
An enterprise resource planning system provides a centralised platform for managing the complex operations of a shipyard, from initial design to final delivery.
A specialist superyacht builder
- The challenge
- Coordinating highly bespoke components and long lead time materials for multiple simultaneous projects proved difficult with disparate systems.
- The approach
- They implemented an ERP to integrate supply chain management, project planning, and financial tracking for all their builds.
- The outcome
- Improved visibility across their entire production cycle, leading to better resource allocation and smoother project execution.
A commercial vessel fabricator
- The challenge
- Maintaining tight control over project costs and progress across various construction phases was a constant struggle.
- The approach
- An ERP solution was introduced to unify project costing, inventory management, and labour tracking.
- The outcome
- Enhanced financial oversight and accurate real-time data on project status, supporting timely decision making.
A marine repair facility
- The challenge
- Managing diverse repair jobs, spare parts inventory, and complex billing for a varied client base was inefficient.
- The approach
- They adopted an ERP system to streamline work order management, procurement, and financial reporting specific to their repair operations.
- The outcome
- Greater efficiency in job scheduling and parts management, which improved service delivery and client satisfaction.
Illustrative, anonymised examples based on typical scenarios in this sector.
Choosing an ERP
What to look for when comparing ERP platforms
Long cycle project manufacturing needs specific capability. These are the questions worth asking before you shortlist.
Does it cover the whole operation?
Finance, purchasing, stock, projects and reporting should sit in one system. Anything left in a spreadsheet quickly becomes the version everybody argues about at month end.
Does it fit how you actually work?
A system designed for a different sector rarely suits shipbuilders and marine engineering businesses. The platform should reflect your real processes, approvals and cost structures rather than forcing a rewrite of how you operate.
Can you close and report faster?
Consolidation, reconciliation and management reporting should be routine rather than a fortnight of manual work. Ask to see a month end demonstrated, not described.
Does it stand up to audit?
Role-based permissions, approval workflows and a complete audit trail should be built in, so compliance is a by-product of daily work rather than a separate exercise.
How long until it is live?
Cloud platforms with standard processes go live in weeks rather than years. A long implementation is usually a sign the system is being bent into shape.
Will it grow with you?
New sites, entities, currencies or product lines shouldn't need a replacement system. Check licensing and functionality for where you expect to be in five years.
Our recommendation
Introducing Business Central - the perfect ERP for shipbuilders
Once you know what an ERP should do, the question becomes which platform fits how your teams already work. Microsoft Dynamics 365 Business Central brings finance, projects, purchasing, manufacturing and stock into one cloud system connected to the Microsoft tools you already use.
For shipbuilders that means project accounting by hull and work package, purchase commitments for long lead items, subcontractor control, milestone and progress billing, and Power BI dashboards for cost against budget.
It connects to design, planning and time capture systems through standard APIs, so yard activity becomes financial data automatically.
Why Business Central
The features that make Business Central the right fit
It isn't just an accounting package. These are the capabilities teams tell us make the biggest difference day to day.
Finance and reporting in one place
Ledgers, budgets, cash flow and management reporting run from the same data, with Power BI dashboards leadership can open themselves rather than waiting for a pack.
Copilot built in
AI drafts descriptions, reconciles bank entries, chases anomalies and answers questions about your data, taking a chunk of routine admin off the finance team.
Native Microsoft 365 connection
Approvals, quotes and reports work inside Outlook, Teams and Excel, so people use the tools they already know instead of learning another interface.
Automation without developers
Approvals, alerts and handovers can be automated with Power Automate using low-code tools your own team can maintain.
Security and audit trails
Role-based access, approval limits and full traceability protect the financial and operational data shipbuilders are accountable for.
Modular and scalable
Start with finance and operations, then add supply chain, projects, service or Dynamics 365 CRM as you grow - without another migration.
New to ERP outside shipbuilders? Start with our guide to what an ERP system is and how it works, then read how to choose an ERP system for the requirements, shortlisting and cost questions worth settling before you talk to any vendor.
FAQ
Frequently asked questions
No. Design and production planning stay where they are. The ERP handles procurement, cost, billing and reporting.
Yes. Projects and dimensions carry hull, block and package through every posting, so cost is reported at the level you manage.
Change is recorded against the contract with cost and value attached, so recovery is evidenced.
Yes. Billing schedules linked to progress trigger invoices in line with the contract.
Yes. Per user per month licensing suits yards needing strong project control without an enterprise implementation.
The main benefit is the integration of all core business processes, providing a single source of truth for project management, supply chain, and financials. This eliminates data silos and improves overall operational control.
An ERP centralises procurement, allowing for better management of supplier relationships, tracking of long lead time items, and optimisation of material orders. This ensures components arrive when needed and helps control costs.
Yes, modern ERP systems are designed to be highly configurable, allowing them to support the unique requirements of various shipbuilding projects, from new builds to complex refits and repairs.
Enquiry form
Not sure which ERP is right for your shipbuilding business?
Tell us how build cost, procurement and variations are handled today and we'll talk through what an ERP would change, which capabilities matter most and where to start. No obligation, just a straight conversation.