What is ERP and How Do ERP Systems Works?

ERP system enables you to gain a broad perspective of what is going on with your business. It helps you combine all the individual reports created during different business processes in the same software and make data driven business decisions. Some of the common business processes are as follows -  

  • Sales

  • Human resources

  • Warehouse/inventory

  • Purchase/finances

  • e-commerce

  • Customer relationship management (CRM)

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What does an ERP do?

The purpose of an ERP system is to check and improve how the company resources are utilized. ERP software brings together all the reports and metrics across various departments into the same environment which makes data analysis very easy. 

Using ERP tools help an organization understand if reducing resources affects quality/performance and then it can grow business more efficiently. Without an ERP system and proper planning of how resources should be utilized to maximize growth, you may invest resources in tactics that underperform.

However, a great ERP software allocates resources into those that would generate good returns. An ERP system let you quickly find the information or report as everything is on the same platform. You don’t have to look through different business applications to find the data you are looking for; it’s accessible right from the ERP interface.

Types of ERP by Industry

Do you think that the same ERP solution works for every industry. No, because every industry has its own specific requirements and needs. That is why there are several types of ERP designed for several industry to adress their customized needs.

  • Apparel ERP - Garment industry

  • Automotive ERP - Automotive sector

  • Cannabis ERP - Cultivation industry

  • Construction ERP - Construction industry

  • Higher Education ERP - Education sector

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    Manufacturing ERP - Manufacture sector

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Types of ERP by Implementation

  • On-premise ERP - This ERP is directly installed on your site devices.

  • Open Source ERP - AN ERP solution that lets you inspect and customize your application to better suit your business needs.

  • Cloud Based ERP - Any ERP software (SaaS) which is available over a cloud-hosting.

  • Hybrid ERP - ERP solution which is a blend of cloud based and on-premise  deployment.

List of Top 10+ ERP Tools 2020


Salesforce.com is one of the popular names in ERP solutions which is used by variety of sectors. It offers a wide range of products depending upon the business's size and the sector it belongs to. It also offers IoT cloud and has extended strategic partnership with Microsoft to bring the their products closer together for the betterment.

Microsoft Dynamics

Microsoft Dynamics is available on both the cloud and on-premise across various operating systems. It has developed into a full suite of ERP products including applications for financial management, supply chain management and human resource. Third parties are also allowed to customize the software.


Sage tools run on cloud, on-premise and across Windows/Linux operating systems and are perfect for mid-sized to large manufacturers. Invite sage into your business to grow with confidence. Sage ERP system helps in delivering efficiency, higher customer satisfaction, improved productivity and better decision making. 


It is an ERP tool specifically for the apparel manufacturers produced by Polygon. It is flooded with genral functionalities and features like orders, purchase, inventory, industry specific items and more. PolyPM is a Windows based ERP tool that is deployed on the client's server not on the cloud.

E2 Shop System

It is a job based manufacturing ERP software developed by Shoptech. It has several features and functions such as quotes, order and shipments,  quality control, contact management, materials, scheduling and accounting. It is best for small and medium sized firm and available on premise on Windows. 


 It is a cloud based financial accounting ERP tool that offers a wide range of finance and core accounting fetaures such as orders and billing, financial reporting, multi-currency management, project accounting and more. It is best for small and medium businesses and is available across Mac, Windows and Linux.


NECS entree ERP tool is designed for food distribution industry that runs on premise on Windows server. It is full of amazing features such as truck routing, sales, order entry, warehouse management, records of cash receipts, pricing flexibility, reporting and much more. 


It is world's #1 cloud ERP that automates manual tasks and runs your business in real time. Netsuite can be used by all sized firms from small to medium to large. It can be used by a range of industry and available across Windows, Linux, Mac operating system. 


SAP offers multiple ERP solutions - by design , business one and manufacturing. Business one has 41 country specific versions which is mostly used by medium sized firms of different industries such as retail, service, and distribution. 

Orcale JD Edwards 

This ERP solution focuses on core accounting functionality such as  advanced cost accounting, expense management, and accounts payable and receivable. It can be used on premise, and operated on Windows and Linux, and is OS agnostic via web browsers.

Benefits Of ERP Tools

Some major business benefits of ERP software are as follows:

Enhanced Business Reporting:

  • Better ls with real-time information

  • A single integrated database for all kind business procesreporting tooses

Better customer service:

  • Access to real time customer information

  • Faster response times

  • Improved order accuracy

  • Improved on-time delivery

Superior Supply Chain Management:

Reduce production bottlenecks

Transparency through the business

Effective demand forecasting and lean inventory

Cost Savings:

Better customer service

Improved inventory planning

Better procurement management

Improved vendor relationship management

Better Data & Cloud Security:

Dedicated security resources

Avoid installing malicious software

Data distributed across multiple servers

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How to choose an ERP Software Solution For Your Business?

As organizations grow and business expand, workload becomes paramount. Choosing the right ERP system allows organizations to securely store the sensitive data and use it for the decision making to achieve business goals. 

So, are there any foolproof guidelines that need to be followed while choosing the ERP solution for your business? Yes, here we are going to discuss some crucial factors that you must consider to find out the best suited ERP system for your businesss. 

  • Evaluating ERP Options - Before finializing any ERP software, it is very important to create a clear and extensive list of your company's needs and demands. Every software comes with some specific set of features and specialization, you have to look and evaluate which one fits your particular needs.
  • Planning forMobile -  Most of the organizations are switching to BYOD (Bring Your Own Device ia a trend where employees connect to the organization's nework and get access to the work-related confidential data) for which they require a mobile ready and most secure ERP software that keeps ypur data encrypted and safe.
  • Local, Cloud or Hybrid -  Another important aspect is that you have to decide what kind of platform you want - local, cloud or hybrid. Each and every model has its own pros and cons.  Local installation require high investment, cloud system requires careful integration and compatibility test before migrating data, while hybrid systems provide customized practical solution.
  • Customization and Integration - With time, needs and requirements of an organization keep on changing.  Therefore, you need an ERP software that can adapt and adjust with upcoming demands while providing value to your organization.
  • Selecting the Correct Implementation Partner - Buying software license is not where game ends, enterprises may not have proper knowledge, resources, time and expertise for smooth rollout. There are managed service provider available in the market that lend helping hand by providing skilled resources to carry out the business processes.

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These were some of the most powerful ERP tools that you can choose from to take better business decisions and increase productivity. Hope you found post informative and useful. Do share your views in the comment section below.