ERP System – Meaning, Functions, Benefits, Types, 10 ERP System Examples

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The ERP system is a tool that revolutionizes the way businesses operate. This sophisticated solution enables organizations to manage and integrate their operations effortlessly. It provides a smooth resource allocation and data management approach, enhancing productivity and facilitating informed decision-making.

What Is ERP?

Enterprise Resource Planning (ERP) is a software or system businesses use to manage and plan daily activities, including supply chain, financials, manufacturing, services, and other processes.

It is designed to automate and simplify individual activities within a company, such as accounting and procurement, project management, customer relationship management, risk management, compliance, and supply chain operations.

The ERP system assists organizations in optimizing performance by streamlining and automating business processes, facilitating the seamless flow of data between different functions within the company to establish a unified and reliable source of information.

ERP systems integrate a company’s financials, operations, supply chain, commerce, reporting, and manufacturing on one platform, reducing costs and saving time.

Functions Of ERP System

  • Human Resource Management

    ERP systems assist HR teams by merging employee data, resulting in the automation of manual workflows, reduction of errors, and promotion of collaboration. These systems track employee details such as job positions, contact information, and salaries, which leads to informed and quick decision-making that benefits the business.

  • Production Industry

    Organizations can also utilise ERP systems to monitor production schedules efficiently, keep tabs on inventory levels, and ensure quality control. These systems serve as a centralized resource for managing inventory, analyzing data, and planning replenishment strategies.

  • Business Transactions

    ERP systems offer comprehensive solutions that combine various commercial activities, including online, in-store, and back-office operations. Organizations can efficiently handle different aspects of their business through automated inventory updates, order tracking, and accounting.

    Certain ERP platforms also provide customer relationship management functionalities that enable businesses to manage customer data, contact information, accounts, and service requests. Moreover, ERP systems can automate marketing, sales, and customer service processes, enhancing overall operational efficiency.

  • Financial Management

    By integrating all financial information into a single system, Enterprise Resource Planning (ERP) systems enable you to effectively monitor, control, and input data in one central location. As a result, you can save time and minimize the occurrence of input errors.

    Enterprise Resource Planning (ERP) systems use automated data consolidation, centralized formulas, and key performance indicators (KPIs) to generate financial reports that offer insights into a company’s financial status and guidance on allocating resources effectively.

    These reports provide a comprehensive overview of a company’s financial health and help determine the best course of action.

  • Production Chain

    Supply chain management involves managing various aspects such as inventory, warehouse, vendors, and orders. ERP systems can support all these functions by improving demand forecasting accuracy, reducing inventory costs during large-batch production, enabling easy collaboration with external suppliers, and providing a unified view of the supply chain for better decision-making.

Benefits Of ERPs

  • Utilizing the appropriate ERP software can lead to several benefits, including cost savings through integrating core business processes, which allows for identifying inefficiencies, resource management, and increased visibility.
  • Automating tasks within the system can improve employee productivity, reduce human error, and decrease the need for additional hires. This automation also results in faster task completion times and reduced time spent searching for information.
  • ERP systems facilitate easy collaboration across departments by providing access to company financial data. They also aid in regulatory compliance by tracking transaction lifecycles, adhering to approval workflows, and automatically generating reports that adhere to current standards and requirements.
  • ERP systems offer automation opportunities for tasks like record updates and confirmations, reducing manual work and allowing employees to focus on more complex tasks, ultimately leading to increased productivity.

Types Of ERP Systems

On-premise ERP Systems

On-premise ERP systems refer to enterprise resource planning software installed and operated on servers located within the organization’s premises or under its control.

These systems provide the advantage of utilizing the organization’s own IT infrastructure, ensuring security and control while facilitating the integration of people, processes, and systems.

However, on-premise ERP systems typically entail substantial upfront and continuous investments for software acquisition, hardware procurement, server management, and facility maintenance. While they offer greater control over data and customization options, they require significant initial investment and ongoing expenses for upkeep.

Cloud-based ERP Systems

Cloud-based ERP systems, built on a unified database, employ analytics and reporting capabilities to enhance productivity and are increasingly proficient in delivering advanced metrics like overall equipment effectiveness (OEE) for manufacturing.

These ERP systems are hosted in the cloud, enabling users to access them online. They provide enhanced flexibility and scalability while demanding lower upfront costs. However, customization options may be more limited in comparison.

Open-source ERP systems

Open-source ERP systems are software systems characterized by publicly accessible source codes, enabling users to modify and adapt the method according to their specific requirements.

These systems provide a customizable and flexible solution that can be tailored to individual needs, serving as a cost-effective alternative to proprietary ERP systems. While open-source ERP systems are typically free, customization and maintenance may necessitate technical expertise and additional resources.

Industry-specific ERP Systems

Industry-specific ERP systems offer complete customization and can be applied across various departments such as finance, operations, retail, and sales.

These ERP systems are specifically developed to accommodate the distinct demands of a particular industry, offering a comprehensive range of features. They incorporate specialized modules and functionalities that specifically address the unique requirements of the industry in question.

10 ERP System Examples

  1. Intuit QuickBooks

    QuickBooks, developed by Intuit, is a user-friendly software that assists in managing various aspects of a business, such as a payroll, inventory, taxes, time-tracking, and invoicing, along with expense and cash flow tracking, report monitoring, and receipt management, all in one place.

  2. Oracle ERP Cloud

    The Oracle ERP Cloud is an all-inclusive enterprise resource planning system encompassing financial management, human resources management, manufacturing planning, and supply chain management. This system streamlines daily operations, enabling you to inquire about uncomplicated matters.

  3. Multiview ERP

    The Multiview ERP system integrates data into a single database to comprehensively overview a company’s operations. In addition to its robust financial ERP software, it also provides a team of customer support experts. The software aids in the elimination of data silos, streamlining accounting procedures, and enhancing access to information through dynamic reporting solutions that are among the best in the industry.

  4. SAP ERP

    The original name of SAP ERP was System Analysis Program Development or Systemanalyse Programmentwicklung in German. This software suite is designed to aid organizations in managing their finances, human resources, manufacturing, sales, and customer service operations. It is highly regarded for its extensive capabilities and adaptability and is utilized by countless businesses across the globe.

  5. TallyPrime

    TallyPrime is a comprehensive software for managing business operations. It allows companies to simplify invoicing, cost accounting, inventory, banking, cash and credit management, taxation, and payroll tasks through a single platform. TallyPrime helps businesses operate more efficiently and with greater control by automating key business processes. This reduces complexity and frees up time to concentrate on growing the business.

  6. Oracle NetSuite

    NetSuite streamlines business operations by automating critical processes and providing real-time financial and operational performance insights. The platform is customizable and comes with enterprise-grade applications for various aspects of business management, including analytics, reporting, and global infrastructure.

    Cube considers NetSuite one of its full integrations, and customers appreciate the ease with which they can extract NetSuite data directly into working spreadsheets using Cube’s FP&A software add-on.

  7. Sage Intacct

    Sage Intacct is a software system for managing financial and inventory operations, which employs real-time, multi-dimensional reporting. It automates accounting tasks to improve efficiency and productivity, streamlining daily operations. Along with ERP solutions, Sage also supports HR and payroll tasks.

    This platform simplifies budgeting, planning, and data-driven decision-making processes for organizations. By integrating Sage Intacct’s general ledger data with Cube’s planning and analysis capabilities, finance professionals can comprehensively view their company’s past, present, and future performance.

  8. Epicor

    Epicor is an ERP system that extensively supports organizations in managing all business areas, from financials and operations to sales and customer service. It is equipped with a broad range of features and capabilities that cater to businesses of all sizes. Epicor offers several advantages, including a user-friendly interface, comprehensive functionality, scalability, robust reporting and analytics, and flexible deployment options.

  9. Deltek

    Deltek is an ERP system that focuses on projects and is specifically created for architecture and engineering companies. It has a range of features that cater to project management, accounting, and business intelligence.

    The ERP system provides software and information solutions that enhance project intelligence, management, and collaboration. Deltek also offers a specialized CRM system called Vision, designed for businesses in this industry.

  10. Zoho Finance

    Zoho Finance provides various functionalities like generating invoices, managing budgets, and keeping track of expenses. It also can integrate with other Zoho products, such as Zoho CRM and Zoho Books, which makes it a complete solution for businesses.

    The software is a good fit for manufacturing, retail, and distribution services businesses. It offers all the necessary tools that help to simplify back-office operations and enables users to send payment reminders automatically and accept online payments through Zoho Invoice.

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