ERP Software | Compare All Enterprise Resource Planning Systems

ERP Software

ERP software boosts productivity and efficiencies for companies, plus enable them to operate compliantly and across borders with ease. 

At ERP Research we provide independent advice and analysis for top ERP systems, helping you find the best software, faster.

ERP Software

ERP Systems

Infor CloudSuite Industrial (Syteline)

Infor CSI is a popular ERP solution for small and medium sized manufacturing companies in discrete and process manufacturing industries. See how Infor compares.

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ERP Systems

SAP Business One

SAP Business One has developed many manufacturing specific add-ons for various manufacturing sub-verticals including textiles, food and beverage production, making it a strong choice for small manufacturers.

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ERP Systems

Oracle Netsuite

Netsuite has become a popular ERP system choice for small and medium manufacturers that are looking for a Cloud based ERP system to manage growth across sales, production, supply chain, inventory and financials.

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ERP Systems

Odoo

Odoo is an open source ERP platform which has been used by small and fast growing manufacturing organizations looking to unify their processes from shop floor to manufacturing execution and beyond.

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ERP Systems

SAP Business ByDesign

SAP Business ByDesign is a Cloud ERP solution that serves as a stable solution with over 30 out of the box processes for manufacturing firms including make to stock, make to order and mixed mode.

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ERP Systems

Microsoft Dynamics Business Central

Microsoft Dynamics 365 Business Central is used by SMB & SME manufacturers to cater for industry specific manufacturing industry challenges and requirements.

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ERP Software

SYSPRO ERP

SYSPRO is a popular ERP solution for small business manufacturers in multiple industries, with a variety of process and discrete manufacturing capabilities.

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ERP Software

Acumatica

Acumatica is a powerful Cloud based ERP system which is used by SMB and small business manufacturers around the world and provides deep manufacturing ERP capabilities.

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ERP Software

IFS Applications

IFS Applications is a strong ERP solution for manufacturers in the small and medium sized business space and is used by worldwide brands.

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ERP Software

Epicor

Epicor is a powerful Cloud based ERP system which is used by SMB and small business manufacturers around the world and provides deep manufacturing ERP capabilities.

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ERP Software

QAD Systems

QAD Systems is a popular ERP solution for small business manufacturers in multiple industries, with a variety of process and discrete manufacturing capabilities.

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ERP Software

SYSPRO

SYSPRO is a strong ERP solution for manufacturers in the small and medium-sized business space and is used by worldwide brands to manage production, sales orders and supply chain management.

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ERP Software

Global Shop Solutions

Global Shop Solutions is an ERP specificially designed for small and medium sized manufacturing companies and provides flexibility and deep production capabilities at a low cost - both On-Premise and in the Cloud.

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ERP Software

eci DEACOM

DEACOM by eci is an 'shop floor' first ERP solution designed specifically for process manufacturers and provides financial management, MRP, production, quality control and more in one ERP system.

ERP Software

PLEX ERP

PLEX ERP is an ERP system popular with small manufacturing organizations and is owned by American corporation Rockwell Automation.

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ERP Software

SAP S/4 HANA

SAP S/4 HANA for many is the gold standard ERP solution for large manufacturers. It provides deep industry capabilities for manufacturing and offers the largest customer base of global manufacturing organizations.

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ERP Software

Microsoft Dynamics 365

Microsoft Dynamics 365 has become extremely popular with manufacturing organizations that need a greater degree of flexibility in their ERP system. Microsoft has also heavily invested in AI & ML capabilities to improve automation and efficiencies.

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ERP Software

Oracle ERP Cloud

Oracle ERP Cloud is a popular ERP solution amongst manufacturers, particularly in process industries. ERP Cloud offers integrated functionality across large enterprises including supply chain, production, HCM, financials and more.

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Manufacturing ERP Software

What are some of the best Cloud ERP systems for manufacturers? See our highlighted best ERP software solutions for manufacturing that are Cloud based:

Cloud ERP Software

SAP S/4 HANA

SAP S/4 HANA is one of the best Cloud ERP for manufacturing and is used by many manufacturing companies in the food, discrete, automotive and other manufacturing industries. This Cloud ERP solution is available in private or public Cloud deployments.

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Cloud ERP Software

Microsoft Dynamics 365

Microsoft Dynamics 365 is a robust Cloud ERP for manufacturing system which comes in several editions built for small and large businesses alike. Dynamics is one of the best Cloud ERP for manufacturing, available in both private and public Cloud.

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Cloud ERP Software

Oracle ERP Cloud

Oracle ERP Cloud is a popular ERP solution amongst manufacturers, particularly in process industries. ERP Cloud offers integrated functionality across large enterprises including supply chain, production, HCM, financials and more.

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Cloud ERP Software

Oracle Netsuite

Netsuite has become a popular ERP system choice for small and medium manufacturers that are looking for a Cloud based ERP system to manage growth across sales, production, supply chain, inventory and financials.

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Cloud ERP Software

SAP Business ByDesign

SAP Business ByDesign is a  fully SaaS Cloud ERP for manufacturing solution that serves as a stable solution with over 30 out of the box processes for manufacturing firms.

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Cloud ERP Software

QAD Systems

QAD Systems is a popular ERP solution for small business manufacturers in multiple industries, with a variety of process and discrete manufacturing capabilities.

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Manufacturing ERP Software

What are some of the best Cloud ERP systems for manufacturers? See our highlighted best ERP software solutions for manufacturing that are Cloud based:

Manufacturing ERP

SAP S/4 HANA

SAP S/4 HANA is one of the best Cloud ERP for manufacturing and is used by many manufacturing companies in the food, discrete, automotive and other manufacturing industries. This Cloud ERP solution is available in private or public Cloud deployments.

LEARN MORE

Manufacturing ERP

Microsoft Dynamics 365

Microsoft Dynamics 365 is a robust Cloud ERP for manufacturing system which comes in several editions built for small and large businesses alike. Dynamics is one of the best Cloud ERP for manufacturing, available in both private and public Cloud.

LEARN MORE

Manufacturing ERP

Oracle ERP Cloud

Oracle ERP Cloud is a popular ERP solution amongst manufacturers, particularly in process industries. ERP Cloud offers integrated functionality across large enterprises including supply chain, production, HCM, financials and more.

LEARN MORE

Manufacturing ERP

SAP Business ByDesign

SAP Business ByDesign is a  fully SaaS Cloud ERP for manufacturing solution that serves as a stable solution with over 30 out of the box processes for manufacturing firms.

FULL GUIDE

Manufacturing ERP

Oracle Netsuite

Netsuite has become a popular ERP system choice for small and medium manufacturers that are looking for a Cloud based ERP system to manage growth across sales, production, supply chain, inventory and financials.

FULL GUIDE

Manufacturing ERP

Infor CloudSuite Industrial (Syteline)

Infor CSI is a popular Cloud ERP solution for small and medium sized manufacturing companies in discrete and process manufacturing industries. See how Infor compares.

FULL GUIDE

Manufacturing ERP

Global Shop Solutions

Global Shop Solutions is an ERP specificially designed for small and medium sized manufacturing companies and provides flexibility and deep production capabilities at a low cost - both On-Premise and in the Cloud.

FULL GUIDE

Manufacturing ERP

eci DEACOM

DEACOM by eci is an 'shop floor' first ERP solution designed specifically for process manufacturers and provides financial management, MRP, production, quality control and more in one ERP system.

Manufacturing ERP

PLEX ERP

PLEX ERP is an ERP system popular with small manufacturing organizations and is owned by American corporation Rockwell Automation.

FULL GUIDE

Manufacturing ERP

Epicor

Epicor is a powerful Cloud based ERP system which is used by SMB and small business manufacturers around the world and provides deep manufacturing ERP capabilities.

FULL GUIDE

Manufacturing ERP

QAD Systems

QAD Systems is a popular ERP solution for small business manufacturers in multiple industries, with a variety of process and discrete manufacturing capabilities.

LEARN MORE

Manufacturing ERP

SYSPRO

SYSPRO is a strong ERP solution for manufacturers in the small and medium-sized business space and is used by worldwide brands to manage production, sales orders and supply chain management.

LEARN MORE

ERP Systems

What is the best ERP for manufacturing in 2021?

We review the best ERP software for manufacturing? We compare and rank the best ERP software for manufacturers in 2021 including SAP Business One, Netsuite, Infor & more.

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ERP Software

ERP Requirements Gathering (RFI, RFP) Template Excel

Start your ERP evaluation process with our RFI & RFP Excel template for the engineering industry.

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ERP

ERP Project Budget Calculator Template

Calculate the costs of your manufacturing ERP project with our prebuilt budget calculator.

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ERP Software

ERP Modules & Functionality

ERP software includes a variety of modules and functionalities that enable organizations to scale and be more efficient. We review some of the key functionality for the best ERP software below:

Accounting and Financials

The best ERP for manufacturing has to include accounting and financials capabilities across multiple geographies and business units.

Purchasing

Purchasing needs to be controlled and the best ERP software for manufacturing allows you to do just this.

Supply Chain Management

Manage your supply chain effectively and deal with common issues in the manufacturing industry using SCM capabilities.

Production

Plan your supply chain and manage your manufacturing process in one wholistic ERP system including bill of materials management and kits.

Engineering Management

Manufacturing ERP software needs tight engineering capabilities to quickly iterate products whilst maintaining efficiencies.

Inventory Management

ERP systems for manufacturing allow for real time insights into inventory levels across your organization to drive efficiency.

Asset Management

Manage business assets with ERP for manufacturing to easily capitalise and monitor your assets.

Reporting and dashboards

Develop a single view of your manufacturing business in order to increase transparency, decision-making and ultimately drive results.

Customer Service

Customer service is a crucial part of top ERP software for manufacturing. Tie in data across production, sales and more with manufacturing ERP.

Shop Floor Management

Managing your shop floor effectively is key to providing a robust ERP system for manufacturing.

Customisation

Flexible ERP software that's built on an open and extensible foundation, allowing you to choose the features that suit your business needs.

Mobility

Access your ERP data at any time so you're more available to customers and take advantage of unexpected opportunities as they surface.

Development tools

ERP software for the manufacturing industry features all of the tailored solutions an organization needs to design, build and document their projects faster.

Updates and maintenance

Backed by the consistency of market-leading vendors, ERP software regularly updates to ensure an optimal user experience.

Versatile deployments

Connects customers, partners, and employees through real-time digital relationships to improve the way you do business.

Unlimited support

ERP implementation is a longterm strategic partnership and vendors provide free unlimited technical support for clients.

Guide to ERP Software

What is ERP software?

ERP software, also known as Enterprise Resource Planning software is used by all sizes of organizations to track, measure and use their resources more effectively. ERP systems achieve this by centralizing all business functions and processes into one system. ERP brings together different parts of your business such as finance and accounting, manufacturing and production, inventory management, supply chain management, customer relationship management, service and more.

By bringing all of these functions into one system, an ERP is capable of easily reporting on that data and understanding where there are bottlenecks within your business. ERP software can also pass information and data from one department to another without manual intervention or traditional, slow communication methods such as email, paper and so on. 

ERP Modules

The functionality and features of an ERP software is typically broken down into 'modules'. ERP modules are specific collections of features which are typically aligned with different parts of your business. ERP modules include: 

• Finance & accounting
• Inventory Management
• Supply Chain Management
• Production
• Manufacturing
• Field Service Management
• Service Management
• CRM & Sales
• Project Management
• Programme Management
• Human Resources
• Resource Management
• Billing

What are the benefits of ERP software?

ERP software can bring hundreds of benefits to businesses in every industry. The benefits of ERP software includes:

• Better reporting, business intelligence and analytics
• Lower stock holdings.
• Increased profitability. 
• Increased resource utilization.
• Increased customer satisfaction.
• Increased ontime delivery.
• Increase machine uptime.
• Increased cash flow
• Increased company valuation.

What are the challenges of ERP software?

ERP software can bring huge benefits to a business but not without some problems and challenges along the way.

The challenges or problems of using ERP software can include:

• ERP systems can be challenging to implement and ERP implementation can take months if not years and disrupt the way your business works.
• ERP software can be expensive and the upfront investment required can be a barrier to entry for some organizations. However, in the long term, investing in ERP software can save money and give your business advantages.
• ERP solutions need to be maintained and this is both time consuming, costly and requires discipline from your IT teams and business alike.
• ERP projects can be risky and can threaten your business with downtime and put a professionals reputation on the line.

What are the costs of ERP software?

ERP software is not free, even if you choose an Open Source ERP system. ERP software comes with many costs such as:

ERP Software License Costs

You typically need to pay for ERP software licenses, whether you purchase On-Premise ERP or Cloud ERP software.

ERP software can cost between $20-200 per user depending on which model you choose and the responsibilities of your specific users. For example, an account will need a full user, which is more expensive, whereas a warehouse operative may need a lighter user.

ERP Software Implementation Costs

The biggest cost of implementing an ERP system is implementation. Implementing an ERP software is expensive and can take a long time. Typically an ERP implementation will cost anywhere from $50,000 and upwards. Some companies have spent hundreds of millions of dollars implementing ERP software.

ERP Change Management Costs

Once you implement ERP software, you will need to pay for change management if you want your project to be a success. Change management enables your company to adapt its ways of working to the new software.

How long does it take to implement ERP software?

If you're thinking about implementing an ERP solution, then you'll definitely be asking yourself one of the following questions:

• How long does it take to implement an ERP?
• What is the average timeline to implement an ERP system?
• How long does it typically take to install ERP software?

As well as this, you should start to think about the factors that can increase or decrease the time it takes to implement your chosen ERP system. If you're like 99% of companies we speak to, then you'll probably want to create an effective plan for reducing your implementation timeline, which can reduce risk, speed up the time to value and give you lots of internal kudos.

What is the average ERP implementation timeline?

• Small and medium-sized businesses typically implement within 3-9 months.
• Large businesses typically take 6-18 months.
• Multinational businesses can have ERP programs that last for several years.

If you've spoken to an IT or ERP consultant lately, then they probably won't answer this question without first asking you 100 questions and even then they will tell you, 'it depends'.

That is simply frustrating to us at ERP Research, but please take those estimates with a pinch of salt and read on to find out why some will approach this topic very carefully.

Factors that influence an ERP project duration

So what are the caveats to these sticks in the ground? Let's explore.

ERP Project Scope

The biggest factor in your ERP implementation timeline will be the scope of your project. If you are implementing finance and accounting, inventory, supply chain, procurement, manufacturing, sales and CRM, then your project will take longer than if you just implement procurement and finance.

Similarly, if you have multiple geographies, sales offices, manufacturing and distribution sites then it will take much longer than rolling out the system to just one country.

If you want to have quick wins, then consider reducing your scope or breaking your ERP project into more bite-sized chunks, also known as 'phased ERP implementation'. This comes with it's own set of guidelines, pros, cons, risks and costs, however.

Customization Versus Configuration

9 times out of 10, an ERP system will come with prebuilt processes that can fit the majority of business needs. The art of implementing an ERP system successfully and on time is choosing one with the highest degree of fit to your business goals and then changing your business and process to acommodate the new ERP system. 

The problem is, some organizations don't want to change their business processes to fit the new system and instead, customize it to fit them. 

There are some valid reasons for customizing an ERP system - where it provides competitive advantage for example. But oftentimes, not wanting to change is the real driver.

Not only can customizing your ERP solutions leave you with outdated processes and IT debt, it usually takes a long time too and can quickly spin your ERP project out of control.

Resource

You can get pretty much everything done faster if you put more people on the task and the same goes for ERP projects. This applies to both your internal and external resources too.

Internally, ensuring the availability of your ERP project team, super users, executives and other stakeholders is critical to delivering your new ERP system on time.

These stakeholders need to be available to make decisions, test ideas, test configuration and much more. An ERP project can't be delivered without your internal teams chipping in and getting their hands dirty. ERP projects can't be 'done' to you and can never be completely outsourced to others.

This is why it's critical to consider the timing of your ERP implementation. Does it coincide with a busy period for your business? Will Go-Live be in the middle of the holiday season? Is it at the end of your financial year? 

As well as planning your internal resources effectively, you need to manage the availability of your third-party resource timing. 

If your chosen ERP implementation partner doesn't stick to timing, then your ERP project timeline will be in trouble. 

We have often seen ERP projects being prolonged due to ERP consultants not being available, or stuck on other projects.

Integrations

Integrating your ERP software with other applications can be notoriously expensive and time-consuming. We therefore recommend thinking hard about if and when it's necessary and properly quantifying the value of doing so, before embarking on the journey.

In certain circumstances, integrating your ERP with third-party systems is a no-brainer, for example if you use a third-party CRM, you'll probably want to pass sales orders, credit data and more between each system to maximize productivity, customer satisfaction and reduce errors.

On the other hand, it may not be necessary to integrate your ERP with systems that only interface irregularly and where there is no business value.

Top ERP Software

Some of the top ERP software includes SAP, Oracle, Microsoft, Infor, Netsuite, Odoo, IFS, FinancialForce and Sage.

However, every ERP software and every business is slightly different, so we recommend evaluating multiple options and doing your research before selecting an ERP system.

Alternatives to ERP 

There are several alternatives to ERP. Some organizations choose to implement several different applications and manually integrate them in a bespoke way. This is also known as a best of breed application & IT strategy. For example, a company may choose to implement an accounting platform, a CRM platform, a stock management system and more, they then use integration systems such as Mulesoft, Dell Boomi or Zapier to pass data from one system to another.

Best of Breed versus ERP

A best of breed strategy has benefits over ERP software and vice versa. It can be expensive to implement several different applications then integrate them. It is also risk prone, time consuming and complex to maintain. 

On the other hand, ERP software may not have the best capabilities in every area. For example, ERP software is typically quite limited in the CRM and sales space, with limited functionality for marketing, ecommerce and more. This has provided opportunity for vendors such as Salesforce to capitalize upon.

How to Implement ERP Software

Planning and Preparation

During the planning and preparation phase, businesses need to identify their needs, define the scope of the project, and select the right ERP software vendor. This phase requires a significant amount of research and consultation to ensure that the selected vendor can meet the organization's needs. It's also crucial to establish a project team that includes representatives from all departments that will be affected by the new system.

Business Process Analysis

The business process analysis involves reviewing the organization's existing processes, identifying inefficiencies and areas for improvement, and determining how the ERP system can streamline the process. This phase requires extensive documentation of all workflows, data flows, and system interactions. The goal is to ensure that the new system aligns with the organization's goals and objectives and supports its key business processes.

System Configuration

Once the business processes are analyzed, the next step is to configure the ERP system to meet the organization's specific needs. This involves customizing the software to match the business processes, integrating it with other systems, and testing it thoroughly to ensure that it works seamlessly. This phase requires a significant amount of collaboration between the vendor and the project team to ensure that the system is configured correctly.

Data Migration

Data migration is the process of transferring data from the existing systems to the new ERP system. This is a critical step, as it ensures that the data is accurate, complete, and consistent across all systems. The data needs to be cleansed, formatted, and validated before it can be migrated. This phase requires a significant amount of planning and preparation to ensure that the data migration is successful.

Training and User Adoption

Training the end-users on how to use the new ERP system is critical to its success. This involves creating training materials, conducting training sessions, and providing ongoing support to users. The goal is to ensure that the end-users are comfortable with the new system and can use it effectively. It's also important to encourage user adoption by highlighting the benefits of the new system and addressing any concerns or questions that users may have.

System Go-Live

The final phase is to go live with the new ERP system. This involves deploying the system to all users, ensuring that the system is stable and functioning correctly, and monitoring the system closely to address any issues that arise. It's essential to have a go-live plan in place, which outlines the steps required to transition from the old system to the new one. This phase requires close collaboration between the vendor and the project team to ensure that the system is fully operational.

How to Evaluate ERP Software

ERP (Enterprise Resource Planning) software plays a crucial role in modern organizations by providing an all-encompassing solution to manage different business processes such as finance, supply chain management, and human resources. Selecting the best ERP software for your organization can be an arduous task considering the numerous options available in the market. Therefore, evaluating ERP software is a critical step towards ensuring that the selected software aligns with the unique needs of your organization.

The evaluation process should commence by performing a comprehensive analysis of your organization's current state, including business goals, organizational structure, and existing business processes. This analysis helps to identify the critical features and functionalities necessary in an ERP system, thus allowing you to develop a comprehensive list of requirements for the ERP software.

After developing the list of requirements, the evaluation process should be based on various essential factors, including:

Functionality

The ERP software should be evaluated based on its ability to manage critical business functions such as tracking inventory, managing financial data, and handling customer orders. Ensure that the software provides all the required functionalities to support your organization's business processes.

User Interface

The software's user interface should be evaluated for its ease of use and intuitiveness. Determine how straightforward it is to navigate the software, perform tasks, and access information. A user-friendly software will increase efficiency and minimize downtime.

Customization

Every organization is unique and has specific requirements. Therefore, the ERP software should be flexible and customizable to meet your organization's specific needs. Evaluate how easy it is to customize the software and the extent of customization allowed. This feature ensures that the software aligns with the specific needs of your organization.

Integration

The ERP software should integrate seamlessly with other business systems, such as CRM, HR, and E-commerce platforms. Evaluate the software's integration capabilities to ensure that data flow across different systems is seamless.

Security

The software should provide robust security features to protect your organization's data. Evaluate the software's security features such as data encryption, user access control, and backup and recovery mechanisms. A secure software guarantees the confidentiality and integrity of your business data.

Scalability

As your organization grows, the ERP software should accommodate the increasing data and user requirements. Evaluate the software's scalability to ensure it can handle your organization's future needs. This feature ensures that the software can adapt to the growth of your organization.

Support

Evaluate the level of support provided by the software vendor. Ensure that the vendor offers comprehensive training, documentation, and technical support to help you effectively use the software. The availability of support guarantees that your organization will have a smooth transition to the new software.

Cost

The total cost of ownership of the ERP software, including licensing fees, implementation costs, maintenance fees, and other associated costs should be evaluated. Ensure that the software fits within your budget while providing the required functionalities and features. A cost-effective solution is essential for the growth and profitability of your organization.

What's the difference between ERP & CRM?

Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems are two popular software solutions that organizations use to manage their internal and external business processes. While ERP systems focus on managing the internal operations of a company, CRM systems concentrate on managing customer interactions. In this essay, we will compare and contrast ERP and CRM systems and analyze their benefits and drawbacks.

ERP systems are designed to manage the internal operations of a company. These systems help companies manage their finances, human resources, inventory, and supply chain. The goal of an ERP system is to provide a single source of truth for all of a company's data, allowing it to manage its resources and processes more efficiently. With an ERP system in place, companies can streamline their operations, reduce costs, and make better decisions based on real-time data.

On the other hand, CRM systems are designed to manage the external interactions of a company with its customers. These systems help companies manage customer data, interactions, and relationships. The goal of a CRM system is to help a company provide better customer service and support, increase customer loyalty, and improve sales and marketing efforts. With a CRM system in place, companies can gain a deeper understanding of their customers, personalize their interactions, and improve customer satisfaction.

One key difference between ERP and CRM systems is their focus. ERP systems are more internally focused, while CRM systems are more externally focused. ERP systems are designed to help companies manage their internal resources and processes, while CRM systems are designed to help companies manage their interactions with customers. While both systems are critical to a company's success, their primary focus is different.

Another difference between ERP and CRM systems is their implementation. ERP systems are typically complex and require significant planning and resources to implement. They often require a complete overhaul of a company's existing processes and systems, and they can take months or even years to implement. CRM systems, on the other hand, are often simpler to implement and can be up and running in a matter of weeks. They can integrate with existing systems and require less customization.

In terms of benefits, ERP systems provide companies with a single source of truth for their data, allowing them to make better decisions based on real-time information. ERP systems also help companies streamline their operations, reduce costs, and increase efficiency. CRM systems, on the other hand, provide companies with a better understanding of their customers, allowing them to personalize their interactions, improve customer satisfaction, and increase sales and marketing effectiveness.

However, both ERP and CRM systems have their drawbacks. ERP systems can be complex and costly to implement and require significant resources to maintain. They can also be inflexible and may not meet the unique needs of a company. CRM systems, on the other hand, can be limited in their scope and may not provide the level of customization that some companies require. They can also be costly and may not provide a significant return on investment.

Why do companies implement ERP?

Are you wondering if your business needs to implement a new ERP system? If you are, then it might help to understand when and why other businesses choose to install ERP software.

At ERP Research, we help thousands of businesses every month to start this process, so we can certainly help you to understand the reasons for implementing ERP.

Lets review some of the top reasons we see businesses decide to implement ERP and the timing of these decisions:

Growth

Small businesses and startups don’t need ERP systems in the beginning. Perhaps when your business began its journey, there were only three of you and a few contractors. There was no finance team, no sales team and getting information was as simple as remembering it or checking your notepad. Otherwise, you might start to acquire 'point' solutions one by one which together form a pseudo ERP system.

We often see small companies and startups using a myriad of different applications, spreadsheets, paper-based processes and spreadsheets to manage their business.

But as your company grows, as you hire more people, and these people divide themselves into different teams and departments and you open new offices and annual sales quadruple – you need real infrastructure.

For this reason, growth is perhaps the number one reason we see organizations deciding to implement ERP systems. Because ERP software can provide your small but growing business the ability to continue to grow, without having to hire a proportional amount of employees to deal with the administrative byproduct this growth creates.

Typically, we see businesses with as little as $5 million in annual sales beginning to look at ERP software to take them to the next level. In other cases, we often see heavily funded, pre-revenue companies do this much earlier. Likewise, many large ‘midmarket’ companies or SMB’s outgrow their first ERP systems and have to implement new ones to continue to grow.

In our experience, fast-growing small businesses and startups tend to select Cloud-based ERP systems including Sage Intacct, Microsoft Dynamics and Oracle Netsuite. But this often depends on which industry you are in – so make sure you consult an expert and do your own research.

Changing Business Models

All industries are constantly undergoing changing trends, transformation, changing dynamics and trends which require changes to your business model - a key driver for implementing a new ERP system.

For example, in the manufacturing industry, we are increasingly seeing a move towards companies shifting towards service provider business models, and consequently, manufacturers need to become more like professional services firms. Aerospace and Defence companies are increasingly needing to provide maintenance contracts as well as finished goods, for example.

Whilst your manufacturing ERP system (whether its Epicor, Global Shop Solutions, Plex ERP or some other manufacturing specific ERP) may be great at handling production, quality management, MRP and so on, it might not be able to cope with the needs of a service provider.

You may need additional functionality for this, such as field service management, project management, maintenance and customer service - as well as the ability to handle more complex contracts, metered billing and more.

Acquisition

Acquisitions are another popular reason for implementing an ERP. There are multiple scenarios concerning ERP systems when it comes to acquisitions and this topic deserves its own article, if not a small textbook.

In short, both acquiree or acquirer may need to adopt the other ones ERP system, or both of you may need an entirely new ERP system.

What’s for sure is that there will be changes or modifications necessary to your ERP and overall IT strategy - as remaining the same is neither cost-effective, nor effective.

Investment

As we discuss above, growth is a key reason for implementing an ERP.

To grow, companies often need funds, which requires investors, which in turn requires you can convince investors you’ve got a scalable, sustainable business which creates the need to implement an ERP system.

You probably won’t need an ERP system to get seed funding and you’ll probably sail through Series A funding rounds without one too, but beyond this point your investors will want to see that you can have real operational rigor behind your business.

Our team has worked with dozens of startups and scale ups who have taken the time to implement ERP systems to provide their investors the confidence that they have an operationally robust business that is worth of hundreds of millions of dollars of investment. 

ERP software can help your scale-up or startup to standardize, scale efficiently and remain compliant while doing so, helping them to protect the money they invested and helping you to persuade them to hand it over in the first place.

IT Debt & Cost

Disproportionately growing IT costs are another important reason why many organizations implement an ERP system. As is an increasing need for IT development, customization and integration – which takes up both time and money.

There are a few possible drivers for this.

Sometimes organizations are using old, unsupported ERP systems or system versions which require a lot of development to maintain. Great examples are ERP systems like Microsoft Dynamics Great Plains or SAP ECC 6.0.

Other times, the ERP system they are using isn’t fit for the type of business they are in, or for the type of business they have become. This leads to more spreadsheets, more integrations with point, ‘best of breed’ solutions and bending your existing ERP systems to do things they weren’t designed to do.

Selecting and implementing a new ERP when done correctly can alleviate increasing IT costs in the long run and enable you to integrate multiple business functions out of the box. Whether you’re in the manufacturing, professional services or not-for-profit space – when you choose an ERP that’s suited to your industry, you can often accommodate your unique processes as standard too.

Compliance

Compliance issues can shut down your business overnight and cost you millions in lost sales, litigation, penalties and remediation. Compliance is also a key reason why many companies decide to implement ERP software.

For example, pharmaceutical & medical devices ERP systems can help you to manage and deal with various FDA and MHRA imposed measures, from batch management to serialization and beyond.

On the other hand, every company needs to ensure compliance with local accounting and tax measures and ERP software can help you to streamline this. This can be especially troublesome when you operate in multiple accounting and tax jurisdictions, each with different accounting standards and rules. It can be prohibitively expensive to sell into these countries or areas without implementing a robust, multi-entity, localized ERP system.

Start Your ERP Journey With ERP Research

We help manufacturing firms to prepare for ERP change by guiding them through each stage of the process:

• Build An ERP Business Case 2-3 weeks

  A solid business case is a foundation you need if you are going to persuade your organization to consider enterprise resource planning (ERP) implementation. Download Business Case Template

• Compare ERP Vendors 2-3 weeks

  It’s critical to understand which ERP vendor is right for your business. Before you decide on the vendor for your company, take a look at our solution pages to find out which vendor would be best. Compare ERP Vendors

• Get Pricing Estimates 1-2 weeks

  Our exclusive process removes all the salesmen from the equation and gets you real pricing estimates from every qualified vendor. Contact Us For Pricing

• Organize A Solution Demo 1-2 weeks

  During a demo, you will learn about how large corporations are making use of ERP software and how they are improving their business practices. Book A Demo

• Build ERP Requirements 3-4 weeks

  If you're looking to buy an Enterprise Resource Planning (ERP) system or upgrade your internal systems you will need a clear definition of all the functions, features and capabilities that you expect. You can approach this challenge by building what's called an ERP requirements document. Download ERP Requirements Template

• Shortlist 4-8 Vendors 1 week

  One of the most important phases in the ERP project lifecycle is selecting the right software vendor. Ideally, you should shortlist 4-8 vendors - based on their credentials and your requirements. Contact Us To Shortlist Vendors