25 Best ERP Software Solutions For Your Business in 2020

Here's what we'll cover

What is ERP Software?

ERP Software stands for Enterprise Resource Planning software. ERP software comprises of a set of applications that are used by organizations to manage day-to-day activities. ERP software aids an organization by integrating core business processes such as finance, sales, purchase, accounting, services, and others into a single system.

ERP systems define a plethora of business processes and enable the flow of data between them. The new ERP systems make use of the latest technologies like Machine Learning and Artificial Intelligence to provide visibility and efficiency across every aspect of a business.

In today's fast-paced business arena, enterprise resource planning has grown and advanced to include business intelligence. It is a definite must-have to gain a competitive advantage over rivals in the market space. No doubt implementing ERP technology is a boon for any organization, and ERP solutions can help a broad range of industries in several impactful ways!

Top Features of ERP Software

1. Separate modules for Financial Management, Human Resource Management, Inventory Management, etc.

2. An excellent user-friendly interface with extremely effective and straightforward steering systems for larger user productivity.

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

4. Detailed analysis and report generation schemes for critical monitoring and research options.

5. Extensive database and management with easy query retrieval and update solutions.

6. Cross-platform synchronization for bigger relevancy over varied interfaces.

7. Highly secure systems for guaranteed transactional operations.

8. Easy creation of master data for greater insight into the various operations.

9. Proper full-time customization of widgets and different integral functionalities for making certain extremely effective and skilled performance levels for the assorted structure resources.

10. Great reduction in time complexity for better and quicker solutions.

11. Enhanced facilitation of rollback features and auto emailing service for greater response strategy.

12. 24*7 customer support solutions for greater customer satisfaction and retention on the whole.

Types of Enterprise Resource Planning Software

ERP Software varies depending on the industry focus, systems, and features. They are grouped as per their functional levels, business size, and deployment. Here’s a list of common types of ERP software.

1. Generalist ERP:

It is one of the essential types of ERP software as it offers broad application. It adapts to different processes across industries. It can customize and integrate according to an industry’s requirements. NetSuite ERP is an example of a Generalist ERP solution.

2. Vertical ERP:

It is industry-specific ERP software that usually focuses on a niche within the industry. Start-ups and small businesses that try to concentrate on ERP broader industrial market like retail fashion or supermarket distribution use it. An example of a Vertical ERP solution is Microsoft Dynamics AX.

3. Small Business ERP:

It refers to on-premise fast ERP solutions. Small business ERP solutions generally focus only on processes that would affect an average start-up or a company with few employees. They concentrate only on some types of data while ignoring the rest. For instance, it features supply chain management and order processing functions only whereas it offers HRM and accounting as add-on options. Due to this functionality, it is also called lightweight ERP.

4. Open Source ERP:

It is a small part of the ERP market. It allows core software to be modified. Individual developers can add it when they create new modules and functions. As companies can customize it as per their needs, it is widely adopted. Companies preferring a collaborative approach to development also tend to use open source ERP solutions.

ERP Software Market Trends and The Forecast States

Benefits of ERP Software

ERP software provides many advantages to a business. It includes:

1. Streamlining Operations:

ERP software stores data across an organization. Right from a company’s warehouse management to its administration, it keeps track of all the data. Though default ERP software packages include most of the functions, they support some third-party integration as well. Thus, it streamlines business processes.

2. Decreased Software Overhead:

As ERP tool allows companies to consolidate other tools, they can free themselves from handling separate software for core HR, CRM, supply chain management, and other tasks. It lets companies control everything through a centralized system. So, a company can cut down on the number of monthly overhead due to disparate software system subscriptions based on its needs.

3. Workflow Automation & Enhanced Accessibility:

With the help of Artificial Intelligence and Natural Language Processing technologies, Top ERP software can automate business routines like customer service, project management, and more. It helps companies to free up their human resources to focus on more complicated tasks.

ERP tool makes use of cloud-based options and IoT-enabled functionalities to offer unparalleled access to everyday business operations. Users can access, retrieve, and modify the information in real-time.

4. In-depth Analytics:

Unlike other standalone systems, ERP software provides detailed analytics of the data from across an organization. It offers insights and granularity of business processes via an intuitive dashboard.

5. Standardization of Human Resources Information:

Many ERP solutions offer core HR functions like payroll, scheduling, time clock, and management. The time clock helps an ERP system to calculate payroll. Besides, the managers can view employee’s information while creating schedules. Thus, the ERP system connects an organization’s human resources with the enterprise’s data.

6. Increase in Communication:

As ERP software makes complete business data available at a single place, employees of the company can gather to plan and track business events. Many advanced ERP systems allow employees to create progress reports, indicate inventory levels, and notify colleagues regarding their win. Best ERP for small business can act as a single source of truth for stakeholders to compare successes and plan bumps in the road ahead.

Why Should Businesses Use ERP Tools?

Having known the meaning, types, and benefits of ERP Software, it is equally important to understand how it can help a business. So, let’s brief the advantages of ERP software.

1. 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, it’s intuitive dashboard accredit managers and key stakeholders to quickly have a look at the key performance indicators across the organization.

2. Encourages Team Participation:

Collaboration brings innovation and team play thus making businesses more competitive. Cloud based ERP software centralizes data of employees within an organization and bridges the gap between departments. It helps employees easily collaborate with different teams that are incorporated grain the ERP. Furthermore, SaaS ERP unites remote units and the headquarters via the internet.

3. Boosts Data Security:

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

It offers admin the flexibility to lock sensitive data in a way that user access permission to other information is not affected. Admin can deactivate the access of terminated employees while grant access to the new joiners. Moreover, it displays users’ activities and allows admin to spot any illegal actions taking place in the company.

4. Makes Precise Forecasts:

Organizations can develop strategies and make firm decisions based on accurate forecasts. ERP software poses a single data repository, standardized business processes, enhances data integrity, and offers advanced reporting tools. These reporting tools make use of filters and analytics to eliminate inconsistencies from the collected data.

Some advanced features like deduplication ensure that the data is not duplicated and is updated. It helps managers to generate reports with realistic forecasts. They can also estimate outcomes within a sensible range. If a company uses advanced ERP solutions, it can dig deep into more significant data with business intelligence tools and cut through the competition.

5. Expands Flexibility in Operations:

Most of the ERP software allows companies to integrate their existing apps or export the ERP data to other apps to streamline business processes. The ERP platform also offers the option to add modules to it as the business grows. Thus, it prevents companies from replacing the system with new software. Moreover, connecting ERP to the internet provides the flexibility to access it whenever and wherever from any device.

6. Decreases Functioning Costs:

ERP software 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 software providers look to it in case of any technical issues. Hence, it saves maintenance costs.

Modules of ERP Software

ERP software can be fully integrated or personalized as per business needs. However, any typical ERP software boasts the following modules:

1. Human Resource Management:

Here, the provision of standard administrative tools like timesheet, time tracker, and database for employees (including job profile and skills matrix) is beneficial. It also includes performance reviews and payroll systems. With advanced reporting capabilities, it also helps in strategic initiatives like employee evaluation and recruitment.

2. Financial/Accounting Management:

It is one of the most basic features offered by the ERP platform. It helps manage and automate core accounting operations like payroll, fixed asset tracking and financial transactions like a ledger, balance sheet, expenditures, payments, and more. It also generates financial reports for various departments of an organization. The HRM module often connects to the financial module.

3. Customer Relationship Management:

This module of ERP software manages data of an organization right from clients' information, and potential leads to customer service resources and live chat communications. It enables a company to have a detailed view of the customer data like their social media activities, purchase history, and past interactions with customer support representatives. It helps to automate tasks like order processing.

4. Sales and Marketing:

With this module, a company handles its sales workflow. It includes sales inquiries, sales orders, sales invoices, and quotations. Some advanced ERP solutions also pose features such as taxation rules and shipping tracker. ERP usually integrates CRM into Sales & Marketing for faster track conversions.

5. Inventory Management:

With ERP’s Artificial Intelligence enabled inventory tracking capacities, companies can maintain the right supply levels while eliminating product outages or overstock. Besides, its predictive analytics can recognize sudden hike or steep in demand. In case the inventory levels go down, ERP sends alerts and also automates replenishment.

6. Supply Chain Management:

This module streamlines the supply chain starting from procurement to production to distribution. It also manages product flow from customers to the company in case of returns or refunds. All these include demand tracking, cost optimization, and delivery efficiency with assistance from ERP's real-time inventory monitoring capabilities.

7. Manufacturing/Production:

Manufacturing modules increase business' efficiency in areas of product planning, daily production, material sourcing, and product forecasting. It also offers some y functions like material bills, scheduling production, and planning distribution. This module is strongly associated with SCM and inventory modules.

8. Purchasing:

This module manages the processes involved in material procurement, including a list of suppliers, quotation requests, purchase orders, stock updates, and more. It operates jointly with SCM and inventory modules.

Some Popular ERP Software

1. NetSuite ERP: 

NetSuite ERP has fully integrated Enterprise Resource Planning software that offers a scalable interface to fast-growing companies. Starting from financial management to vendor management, it provides all the solutions to streamline business processes. It even automates many fronts and back-office processes and offers reporting tools for valuable insights into the data.

2. SAP Business One: 

It is a PHP based ERP solution that mainly dedicates to small and medium-sized enterprises. It automates core business functions in Finance, Sales, Purchase, Production, and Human Resources modules. With 28 languages, 44 localized versions, and multi-currency support, SAP Business One is run by 60,000 customers across the globe.

3. Oracle ERP Cloud: 

Oracle ERP Cloud is an end-to-end business management platform for large scale businesses like sales firms, manufacturing industries, and more. It features risk management tools, financial planning functions, compliance monitoring options, and project execution capabilities. It also offers a performance management tool that lets the admin determine the productivity of the employees.

4. Microsoft Dynamics ERP:

Microsoft Dynamics ERP is famous for its business intelligence features. It easily adapts to the growing business needs by letting firms integrate third-party tools and software. Besides, it gives access to a myriad of features including human resources management, financial management, workspace collaboration, and supply chain management.

5. Sage 300 ERP: 

It is a robust accounting and operation management system for small and medium-sized businesses. It allows a company to use only the modules that befit their requirements. It even facilitates to maintain an unlimited number of currencies and exchange rates, automate gains or losses, and get daily updates. Later on, companies can build their financial and operational systems by adding more Sage 300 products and options.

6. Syspro ERP: 

Syspro ERP is developed specifically for businesses in manufacturing industries. With over 40 years of its service, it provides vigorous tools for document planning, accounting, project management, work order management, and inventory control. It automates redundant tasks with the help of BOT agents. These agents offer quick support for every function.

Best Cloud ERP Software for SMB's

Enterprise Resource Planning (ERP) is a broad set of activities that helps the organization to take care of business activities from production to dispatch. The induction of cloud computation in the same has rung the right bells and whistles for the business. Cloud ERP system hosts all the operations on the cloud rather than on-premise. It not only saves the upfront hardware cost but also provides flexibility and remote accessibility to the employees.

The cloud ERP system is a boon to small and mid-sized businesses as it offers access to the full-function application at economical pricing. It saves the company a considerable sum of money as they only have to pay for the cloud services, and the vendors take care of all the maintenance and support operations. Businesses can also adjust the cloud services as per the data storage needs. With a cloud ERP system, companies can seamlessly perform their tasks as it has a very reliable and stringent disaster recovery plan.

Mentioned below are the best cloud ERP systems with unparalleled professionalism and powerful features that proactively contributes to scaling the business productivity.

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

1. Challenging to Implement an Overarching Infrastructure: 

Large corporations with branches at different locations find it difficult to adopt a uniform ERP solution. Let's say, culture, rules, and regulations may vary from one office to another. Making it challenging to implement an overarching infrastructure. As a result, the ERP software is either less adopted or remains deserted. 

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

2. Not All ERP Allows Full Third-party Integrations: 

If a business is using a pool of applications, finding a fully integrated quick-install ERP solution is a daunting task. To incorporate the existing applications or systems with an ERP, the company requires assessing ERP integration for each of the apps. It is a time-consuming process. 

So, it is better to get an ERP with open API which makes sure that the developer can modify the system to integrate the current apps.

Things to Consider While Choosing ERP Software

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. Upgrade or Replacement:

Before you make your mind to buy a new ERP 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 ERP is about ten years old, it is prudent to replace it. Instead, you can leverage new ERP solutions that offer better scalability, mobility, integration, and deployment options.

2. Training & Setup:

To install an on-premise ERP system, it requires a company having 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 ERP 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.

3. 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 the evolving business needs and disruptions.

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

4. Integration & Customization:

See to it that the ERP system you are going to opt for works 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 an ERP system that offers customizable tools and configurable workflows.

Latest ERP Trends

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

1. SaaS & On-Premise hybrid:

Many companies prefer a hybrid approach, i.e., integrating on-premise software to the cloud platform. Let’s say, integrating cloud payroll into local HR-focused ERP. In the context of cost and process, this strategy seems meaningful. Thus, vendors tend to offer hybrid ERP. For instance, instead of replacing its on-premise licensing, Oracle is co-opting it with cloud solutions.

2. Two-tier ERP:

Two-tier ERP involves two ERP systems in a single company. Most of the multi-national companies are moving towards this approach where tier 1 is used at the corporate level, and tier 2 is used at the branch/subsidiary level. This strategy proves helpful when big corporations find it difficult to implement an overarching infrastructure due to cultural, geopolitical, and market differences.

3. Social ERP:

Social ERP is used to add data of social media platforms like Twitter and Facebook into the system. It is a CRM initiative as most businesses involved in online customer engagement, brand mentions, friend networks, public data, likes, and shares to obtain customer knowledge. It helps them improve conversion rates.

4. Mobile ERP:

Some ERP solutions provide native apps for Android, iOS, and Windows. It allows employees to stay connected and productive even outside the office. But, accessing data anywhere on a device that is not issued by the company is prone to a security breach. Mobile ERP solves this issue by providing separate user permission that helps the company control who can access data on their phones.

Making the Most Out of Your ERP Software

Although ERP software provides you with a wide range of features and functionalities, it is up to you how you make the most of it optimize your business. Some of the applications you can put into practice include:

1. Develop A Workflow:

It is always advisable to prepare a framework or outline of your work to reach the desired goal. So, first of all, you have to decide on the roles and responsibilities of individuals. Then, you can come up with specific tasks that an individual needs to accomplish. And lastly, you must decide how the jobs will move ahead right from the time they are assigned to the time they are performed. Following this strategy will help you monitor if the project is progressing in the right direction. It also assists you in checking the capabilities of individuals and pointing out any inefficiencies of the system.

2. Create A Timeline:

Once the workflow is designed, setting a timeline for each specific task is crucial. It helps you gauge the time frame in which the project will be completed. You can also determine the productivity of your team with this.

3. Set Performance Indicators:

Before implementing an ERP system in your company, it is essential to decide your goals and set key performance indicators. You can maintain the company's workflow and evaluate the success rate with the help of these indicators.

You will require putting some extra effort into learning how the ERP system works and understanding how you can maximize its use.

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