ERP System

Discover all you need to know about an ERP System, from the different modules to its role in a business and the frequently asked questions. We've combined the most important information in a quick & easy overview for you.
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What is an ERP system?

In today’s rapidly evolving market, organizations face a growing need to digitize their operations and maintain competitiveness. Traditional methods of collecting and organizing business information often fall short in achieving their goals and increasingly hinder performance. This is where ERP systems come into play.
ERP, short for Enterprise Resource Planning, is a category of business software systems designed to automate, integrate, and manage key operational processes within the organization. At its essence, an ERP system combines data from various outlets and organizes it into one centralized database, allowing for seamless information flows and process automations across different departments.
ERP zoekende op zoek naar een ERP-leverancier

How does an ERP system work?

Green moduels image representing ERP system modules. The image has dark green squares placed in a manner to create a random pattern.

ERP System Modules

An ERP system consists of various modules tailored to specific business needs, such as accounting, e-commerce, and project reporting. Each module feeds information into a centralized database. This database provides a comprehensive view across all departments and automates processes, thus reducing resource requirements and enhancing efficiency. In total, there are 12 modules within an ERP system, each with its unique purpose.
Discover all ERP modules

What ERP modules are there?

Basically, any ERP system can be set up with modules. Each module facilitates a core process. Within ERP, you will find modules such as:

Finance / Accounting

⦁ Automated financial statements
⦁ Cost allocation
⦁ Payment management

Warehouse Management

⦁ Support for warehouse employees
⦁ Labor planning
⦁ Efficient picking strategy
ERP-icoontje

Inventory Management

⦁ Item tracking
⦁ Manage inventory costs
⦁ Prevent stockouts and delays

Workforce Management

⦁ Monitor work hours
⦁ Measure employee stats
⦁ Distribute paychecks

Human Resource Management

⦁ Information sharing and collaboration
⦁ Overview of employee resources
⦁ Automated reporting

Supply Chain Management

⦁ Supply chain tracking
⦁ Manage refunds
⦁ Streamlined coordination

E-commerce

⦁ Quickk launch of a website
⦁ User-friendly tools
⦁ Update product content

Business Intelligence

⦁ Analyze KPIs
⦁ Advanced reporting
⦁ Dashboards

Procurement

⦁ Supplier relationship management
⦁ Automate quotes
⦁ Automate the purchasing process

Manufacturing

⦁ Production planning
⦁ Track real vs. forecasted production
⦁ Real-time reporting

Order Management

⦁ Order tracking
⦁ Optimize order fulfillment
⦁ Maximize on-time delivery rates

Project Management

⦁ Plan and manage projects
⦁ Track project status
⦁ Information sharing and collaboration
More about the ERP modules

What do ERP systems look like?

Do you want to know what an ERP system looks like? And do you want to find out what packages are out there?

We've created a page for you where we highlight 11 software packages. So you can see exactly what is possible with ERP software. In this article, you will also learn more about the advantages and disadvantages of each solution.

Check out the 11 systems with pros and cons and find out what ERP software looks like.
To the ERP examples

Pros & cons

Say bye to heaps of paperwork

No more standalone paperwork and spreadsheets scattered across departments. All data is now digitized and stored in the cloud, replacing traditional methods of collecting and organizing business information. This allows users to access essential information swiftly and effortlessly.

Upfront implementation and ongoing costs

The expenses of implementing an ERP system differs based on factors such as the size of the organization. Most common expenses include implementation services, software licenses, employee training, and more.

Streamline workflows

An ERP system removes the need for manual data entry within all kinds of business processes. Tasks such as invoicing and order processing become fully automated, reducing the potential for human errors.

Data migration process

When implementing an ERP system, organizations frequently need to transfer data from their existing systems. This data must be cleaned, transformed, and structured to ensure accurate migration.

Real-time reports

All data is automatically collected, captured, and updated in a centralized database. Reports can be generated using built-in analytics and reporting tools. This capability is further enhanced when integrated with Business Intelligence tools, offering advanced reporting features.

Change management adoption

As business processes become automated, employee roles may change. Therefore, as new systems are introduced, organizations should also invest in change management initiatives. These efforts, such as training, help reduce resistance and encourage employees to adapt to the new system.

Big picture view

All information is stored in a single database. This enables the swift creation of in-depth executive dashboards, enhancing decision-making across the organization and promoting business growth and profitability.

Complex systems

ERP systems, known for their advanced functionalities, significantly impact organizations. These systems often require personalized customizations, which can extend the implementation timeline.

Improved data security and accessibility

Several mechanisms are in place to protect and encrypt stored data, coupled with role-based access controls. This ensures only authorized users can access the information. Additionally, regularly scheduled backups safeguard against data loss in the event of disasters.

Better financial planning

An ERP system provides users with essential tools for budgeting, financial analysis, and forecasting. It offers real-time data on vital financial metrics, complemented by robust reporting and analytical tools. This empowers organizations to effectively manage cash flows, expenses, budgets, and more.

Significant ROI

Benefits like enhanced process efficiency, automation, and data centralization make an ERP system a valuable investment for organizations aiming to automate their operations. Moreover, these systems are scalable, ensuring the system grows with your business.

Which ERP systems exist?

Hundreds of ERP solutions exist in the market. Though popular choices vary by industry, the following systems are frequently used in businesses across the globe:
Logo of SAP
Logo of Microsoft Dynamics
Logo of Exact
Logo of Afas Software
Logo of Unit4
Logo of IFS
Logo of Oracle Netsuite
Logo of Visma
Odoo CRM-kiezen
And more...

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Frequently Asked Questions (FAQ)

ERP stands for Enterprise Resource Planning. It refers to a category of business software systems designed to automate, integrate, and manage key operational processes within an organization.

An Enterprise Resource Planning (ERP) system offers a plethora of benefits across various organizational processes. Depending on the modules and industry, these benefits can include centralized decision-making, process automation, real-time reporting, increased efficiency, and enhanced customer service.

Cloud

ERP systems deployed from the cloud are hosted within the cloud and accessible via a subscription service. This is the most popular choice for all-sized business due to the reduced initial investment, simpler integration, and room for growth. This is also a great option for those wanting little to no involvement regarding upgrades and maintenance.

On-Premise

On-premise deployment for ERP systemsis as it sounds, on site at your headquarters or other designated location. Many companies had or currently have this type of ERP systemand must manage all maintenance themselves or contract it out.

Hybrid

This method combines both on-premise and cloud capabilities so that a portion of data and applications are stored in both places. This gives you the advantage of control, as well as scalability.

Yes! Due to the ongoing upkeep, majority of businesses with on-premise systems are choosing to migrate their ERP to Cloud. We can help you find the right Cloud or Hybrid solution that fits your needs and that offers a smooth transition.

While a lot of ERP modules are available, you don't need to start with all of them to reap the benefits. Consider your workflows and the automations an ERP system could provide that would be most beneficial. We can collaborate with you to identify your needs and find the ERP solution that best fits them.

ERP systems typically aren't free. While some open-source solutions are free to download and use, they often need technical expertise and additional resources for effective implementation and maintenance.

ERP systems typically aren't free. While some open-source solutions are free to download and use, they often need technical expertise and additional resources for effective implementation and maintenance.

ERP system costs depend on their specific features and capabilities, as well as the size and requirements of the organization using them. Generally, these systems tend to be expensive due to the necessary customization, ongoing support, and maintenance.

Like any large investment, the value of an ERP system depends on an organization's specific needs and goals. These systems can offer a plethora of advantages, such as increased efficiency and productivity, better data management, improved reporting, and enhanced decision-making. However, implementing an ERP system demands a large investment of time and resources. Thus, it's crucial for organizations to carefully assess their needs and weigh if the benefits justify the expense. In some scenarios, the system's advantages might be worth the costs, but in others, an alternative solution could be more fitting.

No, ERP and CRM systems are not the same. ERP systems are software solutions that help organizations in managing and integrating their business processes. On the other hand, CRM systems help organizations manage interactions with their customers. Although both ERP and CRM can have overlapping functionalities, they cater to distinct business needs.

ERP systems for SMEs

An SME typically doesn't require the extensive functionalities of ERP systems designed for larger organizations. Accordingly, there are solutions tailored to the needs and budgets of SMEs. These ERP systems, for somewhat smaller companies, offer slimmed-down versions of enterprise-level counterparts, making them both more affordable and simpler to implement for smaller businesses.
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