Best ERP Software in India for 2025

ERP software can reduce manual entries, centralize data, and make it visible to shareholders and your teams.

ERP software, also known as Enterprise Resource Planning Software, manages the daily business operations of organizations by merging every data into a single source of truth. An enterprise resource planning tool blends multiple business processes.

Understanding an ERP tool and its role can help businesses plan better and invest in the best ERP provider to improve business performance. The best choice for organizations is to enhance bottom-line results and gain a competitive advantage.

Read Our Detailed ERP Articles

• What is ERP?
• The Ultimate ERP Evaluation Guide (With a Free Template)
• Top 20 Examples of ERP Systems
• Top 10 Free and Open Source ERP Software for Business
• 15 Best ERP Software Companies for 2025

What are the Types of Enterprise Resource Planning Software?

The types of ERP software vary based on the industry, systems, and characteristics. They are organized according to functional levels, business size, and deployment. The following is a list of common types of ERP software.

What are the Benefits of ERP Software?

The best ERP software in India provides many advantages to a business. It includes:?

1. Decreased Software Overheads

   As ERP tools allow companies to consolidate other tools, they can free themselves from handling separate software for HR Management, CRM, supply chain management, and other tasks through a centralized system. So, a company can cut down on monthly overheads due to disparate software system subscriptions based on its needs.

2. Workflow Automation & Enhanced Accessibility

   With the help of artificial intelligence and natural language processing technologies, modern enterprise resource planning tools can automate business routines like customer service, project management, and more. As a result, it helps companies free up human resources to focus on more complicated tasks.

   Present-day ERPs also provide cloud-based options and IoT functionalities to offer unparalleled access to everyday business operations. Users can access, retrieve, and modify the information in real time.

3. Improves Communication

   As ERP tool make complete business data available in a single place, the company employees can gather to plan and track business events. For example, many systems allow employees to create progress reports, indicate inventory levels, and notify colleagues.

   They can act as a source of truth for stakeholders to compare successes and plan bumps in the road ahead.

4. Improves Efficiency

   With the integration of many business processes like marketing, production, accounting, inventory, and more into ERP tools, it becomes easy for an organization to gather, access, and retrieve information across the organization. It also streamlines workflow across different departments.

   It automates day-to-day tasks like generating reports, making data entries, and more. Hence, it frees your human resources from repetitive tasks and enables them to concentrate on core deliverables. Besides, an intuitive dashboard that accredits managers and key stakeholders to look at the key performance indicators across the organization quickly.

5. Boosts Data Security

   ERP platform is developed to protect a company's data against breaches. It possesses firewalls and restriction controls that ensure the data stays protected. Furthermore, as the ERP platform features a single data warehouse, access point monitoring becomes strict. Hence, security remains concentrated.

   It offers the admin the flexibility to lock sensitive data and increase data security so that user access permission to other information is not affected. Admin can deactivate terminated employees' access while granting access to the new joiners. Moreover, it displays the user's activities and allows the admin to spot any illegal actions taking place in the company.

6. Makes Precise Forecasts

   Organizations can develop strategies and make firm decisions based on accurate forecasts. Enterprise resource planning tools work with a single data repository and standardize business processes through advanced reporting tools. These reporting tools make use of filters and analytics to eliminate inconsistencies in the collected data.

7. Expands Flexibility in Operations

   Most enterprise resource planning software allows companies to integrate existing apps or export the data to other apps to streamline business processes. This tool also offers the option to add modules as the business grows.

   Thus, it prevents companies from replacing the system with new software. Moreover, connecting enterprise resource planning to the internet allows access whenever and wherever from any device.

8. Reduces Functioning Costs

   This system permits engineering, manufacturing, customer service, and other departments to work closely in real-time. Thus, problems can be solved mutually in no time. It keeps the operating costs in the budget.

   It streamlines different processes and monitors vital metrics while avoiding disruptions and delays. Further, ERP platform providers take into consideration any technical issues. Hence, it saves maintenance costs.

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What are the Key Features of ERP Software?

Though ERP software is brimming with innovative features to help businesses, some key functionalities are useful for most organizations.

1. Real-time generation of data for better management facilities.

2. Detailed analysis, forecasting, and report generation schemes for critical monitoring and research options.

3. Dedicated modules for financial management, human resource management, inventory management, etc.

4. User-friendly interface with effective and straightforward steering systems for monitoring user productivity.

5. Boundless integrated database management options with easy query retrieval and update solutions.

6. Cross-platform synchronization for better usability over varied interfaces.

7. Highly secure systems for safe transactional operations.

8. Easy creation of master data for more significant insights into the various operations.

9. Proper full-time customization of widgets and different integral functionalities effective visualization of departmental and employee performance.

10. 24/7 customer support solutions for greater customer satisfaction and retention on the whole.

Difference Between ERP and Financials

Financials and ERP, while often mentioned together, serve distinct purposes within an organization. Financials is a subset of ERP, focusing on the finance department’s needs, such as financial accounting, payables, receivables, revenue, and asset management. It ensures compliance with reporting standards like IFRS and FASB, with the CFO overseeing financials.

ERP, on the other hand, is a broader system covering various business processes, including procurement, supply chain, manufacturing, HR, and CRM. Modern ERP integrates advanced technologies like IoT, blockchain, and AI, offering insights across the organization. Due to its broad scope, ERP management usually involves collaboration among several executive leaders, including the CFO, CIO, and COO.

Deployment in ERP System

ERP deployment is the procedure of installing an ERP software system, transitioning data to the new system, configuring the system to work with your users and existing business processes, and training your users on how to use it. Here are a few types of deployment in ERP systems:

1. On-Premises ERP

   On-premise ERP solutions are installed on the company's servers and computers. This deployment method provides extensive control over the system, including data security and customization options. 

   However, it requires a significant upfront investment in hardware and software, as well as ongoing maintenance and IT support. On-premises ERP is often preferred by companies with stringent data security requirements or those operating in regulated industries.

2. Cloud-Based ERP

   Cloud-based ERP systems are hosted on the vendor's servers and accessible over the Internet. This deployment model has several advantages, including lower upfront costs, scalability, and remote access from any location with an internet connection.

   Cloud ERP systems are maintained by the vendor, which reduces the need for in-house IT resources. This model is particularly attractive to small and medium-sized businesses due to its flexibility and cost-effectiveness. Examples include NetSuite, Acumatica, and Salesforce ERP.

3. Hybrid ERP

   Hybrid ERP solutions contain elements from both on-premises and cloud-based systems. This model enables a company to combine the advantages of both deployment types, such as the control and security of on-premises systems, with the flexibility and reduced costs of cloud-based solutions. 

   Hybrid ERP is useful for businesses with varying needs across departments or those looking to gradually transition to a fully cloud-based solution.

How to Choose the Right ERP Software System?

Buying ERP software can be a complicated thing as it involves customization requests and uncertain vendor capabilities. So, taking the following factors into account can benefit you.

1. Business Requirements

   The most crucial step in the enterprise resource planning decision process is assessing how the functionality of software products and services fits with your company. Examining top enterprise resource planning tools, viewing ERP demos, meeting with solution experts, and determining the greatest functional compatibility.
   One of the most beneficial things you can do while selecting ERP software is to simplify internal communication to identify your company's business requirements for enterprise resource planning and the functional areas to focus on.

2. Return on Investment

   Tally up all the expenses you need to incur for the ERP solution. Consider the purchase price and the initial consulting costs. Your servers and networks might constantly require changes. While implementing ERP, you will have to cover costs for training and temporary staff. You incur support and maintenance charges yearly if you utilize ERP software.

   Owing to the ERP, you offer your consumers services and goods that were previously impossible, resulting in increased revenues.

3. Industry Specific

   Specific manufacturing ERP solutions are tuned to work best in sectors like manufacturing and distribution. You need to consider it while purchasing an ERP. It'll help you reconsider the packages. The implementation partner and software vendor must be specific to your industry needs.

4. Upgrade or Replacement:

   Before you decide to buy a new system, verify if your existing system requires a replacement or just an update. Many ERP solutions available nowadays allow you to integrate new modules without causing any disruption in the current system. This practice also reduces costs.

   If your current system is about ten years old, it is prudent to replace it. Instead, you can leverage a new ERP tool that offers better scalability, mobility, integration, and deployment options.

5. Training & Setup:

   Installing an on-premise enterprise resource planning tool requires a company to have someone with technical know-how. If your company has no professional team, ensure that you understand the service level agreement correctly because installation charges are often levied separately.

   Installing an enterprise resource planning solution is more complicated as compared to other business solutions. So, it needs user training. Make sure that you receive training that suffices average users need to adapt to the system.

6. Reporting & Dashboard:

   Today’s ERP solutions offer advanced reporting tools that create compliant financial statements depending on your region. The latest ones also include in-system queries and smart filters that come with real-time data. Similarly, agile and ad hoc reporting lets you quickly adjust to evolving business needs and disruptions.

   The intuitive dashboards provide insight into the user's qualitative and quantitative data at the role and departmental level.

7. Integration & Customization:

   It will work seamlessly with your existing applications. You must check its system-to-system, module-to-system, and file transfer capabilities. Culture and priorities differ from one department to another. For example, the marketing department spends whereas the accounting department saves. Likewise, the production department keeps up with daily output, while the sales department needs a monthly quota. So, it is wise to select a top ERP tool that offers customizable tools and configurable workflows.

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How Do ERP Systems Work?

Now that it is clear what is Enterprise resource planning system. Let us go through the workings of ERP systems and how to integrate various business processes and functions into a unified system that facilitates the flow of information throughout the organization. 

ERP systems help businesses streamline operations, enhance quality, and make more informed decisions by centralizing data and processes. Here's a high-level overview of how the ERP system functions: 

Centralized Database: ERP systems use a centralized database to store information from various business functions, ensuring that data is consistent and up-to-date throughout the organization.

Modular Design: ERP systems are composed of various modules, each representing a specific business function such as finance, human resources, supply chain, and customer relationship management. Organizations can select and integrate the modules that best meet their needs.

• Integration: The modules within an ERP system are integrated, allowing for seamless data exchange and communication between different departments. This integration helps eliminate data silos and ensures that all parts of the organization are working with the same information.
• Automation: ERP systems automate routine business processes, reducing manual labor and errors. This automation can include things like invoicing, payroll processing, and inventory management.

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• Odoo Vs. SAP Vs. Oracle ERP: A Comparative Guide
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10 Components of an ERP System

ERP (Enterprise Resource Planning) systems typically have the following key components:

1. Financial Management: Manages the financial transactions and accounting processes, including accounts payable, accounts receivable, general ledger, and financial reporting.
2. Human Resources: Handles employee information, payroll, recruitment, performance management, and benefits administration.
3. Customer Relationship Management (CRM): Manages interactions with customers, including sales, marketing, customer service, and support.
4. Inventory Management: Tracks inventory levels, orders, sales, and deliveries, ensuring optimal stock levels and reducing carrying costs.
5. Sales and Marketing: Manages sales processes, including order processing, sales forecasting, and marketing campaigns.
6. Project Management: Manages project planning, execution, and tracking, including resource allocation, task scheduling, and project costing.
7. Compliance Management: Ensures that the organization adheres to industry regulations and standards, including data security, privacy, and financial reporting requirements.
8. Business Intelligence: Provides analytical tools and reporting capabilities to help businesses make data-driven decisions.
9. Manufacturing: Manages production planning, scheduling, and control, including bill of materials, work orders, and shop floor control.
10. Supply Chain Management: Manages the flow of goods and services from suppliers to customers, including procurement, inventory management, and order fulfillment.

Related ERP Resources

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Challenges Faced While Implementing ERP Software

Although the perks of ERP solutions are substantially solid, there are certain shortcomings too. Below are some potential issues found with the enterprise resource planning tools:

Difficult to Implement an Overarching Infrastructure: For large corporations with branches at different locations, It is difficult to adopt a uniform ERP solution. Say that the culture, rules, and regulations may vary from one office to another. Making it challenging to implement an ERP tool in overarching infrastructure. As a result, it is either less adopted or remains deserted.

To solve organizational complexities, many companies are approaching two-tier enterprise resource planning, i.e., headquarters will use corporate enterprise resource planning, whereas branches will use another system.

Not All ERPs Allow Full Third-party Integrations: If a business uses a pool of applications, finding a fully integrated quick-install ERP solution is a daunting task. To incorporate the existing applications or systems, the company requires assessing ERP integration for each app. It is a time-consuming process.

It is better to get the platform with an open API, ensuring that the developer can modify the system to integrate the current apps.

Time, Training, and Upkeeps: Since ERPs deal with several modules and corresponding features, your employees may take a certain amount of time to learn and master them. Moreover, during any update in the software itself, which can frequently happen with specific software, you can neither add data nor view it. This can cause grave problems for a business.

ERP Case Studies for Better Understanding

Let's take a look at three companies that were successful with their ERP implementation projects and the lessons they learned.

ERP Case Study 1: N&N Moving Supplies

N&N Moving Supplies, a family-owned distribution company of moving equipment and supplies, successfully implemented an ERP system after growing from one location in Georgia to 3 locations across multiple states and more than increasing the total number of employees. 

Running QuickBooks and a third-party payroll provider made it nearly impossible to maintain accurate time records and reconcile payroll with general ledger accounts. So, N&N used ERP to manage its accounting and payroll processes. 

• Cut payroll processing time.
• Balance accounts faster.
• Improve the accuracy of hourly and vacation time counts.
• View labor-cost trends across its three locations.
• Allow employees to access personalized ERP dashboards on iPads at each of its locations.

• ERP projects often fail because executives and other employees lack buy-in. N&N avoided this pitfall by providing personalized dashboards to employees and, ideally, explaining their benefits prior to implementation.

The case study also demonstrates how a third-party partner can help you tailor the ERP system to your company's specific needs.

ERP Case Study 2: Green Rabbit

Once, two friends started a candy wholesale business. Then, they found a problem: shipping creamy chocolate bars during the summer months. After the peers designed a heat-sensitive supply chain, other food companies approached them for help. The duo rebranded as Green Rabbit, a supply chain logistics company that specializes in quick delivery of perishable goods.

That shift in strategy tested the company’s current processes, which relied primarily on Excel and email. Green Rabbit's employees were unable to communicate with one another, which resulted in misunderstandings. The warehouse staff frequently waited for assistance from the IT team. Therefore, Green Rabbit decided to choose ERP software.

• Customers can ship candy, snacks, and more across the country in 24 hours from one of three warehouses with no inventory errors.
• Instead of relying on manually entered data, the company's ERP system provides guaranteed error-free data.

• When implemented correctly, ERP simplifies the management of a complex supply chain, as proved by Green Rabbit's case study.
• ERP is extremely crucial to growth. Green Rabbit implemented ERP after it had grown significantly and anticipated further expansion.

ERP Case Study 3: Fulton & Roark

Fulton & Roark, a retailer of men's grooming products, is an example of a successful ERP deployment.

Just before upgrading to full-featured ERP, the North Carolina-based company tracked inventory in a spreadsheet and desktop accounting software. When the company's sales started doubling year after year, leadership realized its existing systems weren't keeping up. 

Spreadsheets couldn't account for fluctuating inventory costs, and accounting software lacked the workflows required to record the cost of goods sold (COGS), a critical financial indicator.

To consolidate all work in one location, the company's co-founders implemented an ERP system. According to team members, changes occurred immediately following the three-week implementation process. Finally, the Fulton & Roark team was capable of:

• Identify and correct inventory-related bookkeeping mistakes.
• Stop working with external accountants and significantly increase both unit and dollar volumes with no additional headcount.
• Increase sales by approximately 50% year over year without increasing headcount.
• Obtaining a more accurate picture of margins and inventory aided the expansion of its e-commerce operation.

• ERP implementations do not have to take months; Fulton & Roark's team was up and running in about 20 days.
• The company's story also emphasizes a key success factor: securing management commitment to an ERP project. In this case, the co-founders initiated the project, which consultants say frequently drives employee adoption.

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Common Myths About ERP System

ERP system is gaining popularity among businesses. However, many myths surround the implementation of an ERP tool. Let’s break those common erp myths today.

Myth 1: ERP Is Costly

You will find a range of enterprise resource planning tools designed to serve different sizes and industries. Don’t necessarily get confused that expensive ones are better than low-priced ones. However, your focus should be on getting a comprehensive system that fits your company’s needs.

Even if it seems costly, the investment will only reap benefits for you in the future. Your return on investment (ROI of enterprise resource planning) depends on the overall value derived from the system over time.

Myth 2: One ERP Solution Fits All

Certainly, not true. Each enterprise resource planning tool is unique in its applications and interface. It’s essential to compare ERP solutions and select the best fit for your business requirements.

The need for a company that manufactures a variety of products will undoubtedly differ from those that produce only one product. Besides, the food and beverage industry's needs will vary from those of electronic device-making enterprises. The functionalities and capabilities of an ERP tool vary depending on the various business needs.

Myth 3: ERP Is for Big or Large Enterprises Only

When ERP was first introduced, it was solely for the big enterprises in the market. However, things have changed, and vendors are coming up with ERP solutions for small businesses too. ERP tools come in various shapes and sizes. Selecting the right ERP software is essential for longevity and effective implementation.

Myth 4: ERP Only Benefits Executives and Management

An enterprise resource planning tool in place benefits every employee involved in the organization. It provides vital information to the upper management for decision-making. Besides, it automates the workflows between departments which results in widespread sharing of information. The advantage of it is that you will have improved project planning and lower purchase costs.

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• Common ERP Security Issues and How To Fix Them

Trends and Future Predictions in ERP Software

ERP software industry revenue is projected to hit 62.3 billion USD by 2028. This would represent a CAGR of 4.5% from 2025 to 2028 from the current size of the market at approx. 52.3 billion USD in 2025. This growth is in line with the digitization of business, using tools to optimize day-to-day business activities. ERPs are equipped with modules from accounting to project management, making them almost ubiquitous for all organizations.

Trends tend to follow the latest developments in technology. Here, we have compiled some significant ERP trends that are observed among the ERP vendors.

1. Cloud Adoption

   The shift towards cloud-based ERP solutions continues to be a dominant trend. Cloud ERP offers scalability, flexibility, and cost-effectiveness compared to traditional on-premise systems. This trend is driven by the need for agility and accessibility in today's dynamic business environment.

2. AI and Machine Learning Integration

   The integration of artificial intelligence (AI) and machine learning (ML) technologies into ERP systems is gaining momentum. These technologies enable predictive analytics, automation of routine tasks, and intelligent insights, empowering businesses to make data-driven decisions and optimize processes.

3. Mobile Integration

   With the proliferation of mobile devices, ERP vendors are focusing on providing mobile-friendly interfaces and applications. Mobile ERP allows users to access real-time data and perform tasks on the go, enhancing productivity and decision-making. This trend reflects the growing demand for flexibility and mobility in modern business operations.

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