Best ERP Software
Based on In-Depth Reviews

Let’s start at the very beginning, a very good place to start. When you read you begin with ABC. When you want to integrate business processes to achieve better communication across several departments while maximizing productivity and information sharing, you begin with ERP.

What is ERP Software? 

Enterprise Resource Planning, or ERP as we are going to continue calling it, is a tool used by businesses of all sizes to integrate their different departments into a cohesive unit, working towards a shared goal, mainly the growth of the business.

It’s not just software, though. ERP entails, or should, at least, a reconsideration of your current business organization, of its internal processes, and how different departments communicate with one another. It is, therefore, a shift in the company culture, a way of implementing a unifying strategy. 

I know what you’re thinking, this sounds a bit woo. It seems as though ERP software is a panacea to all business problems and, if only implemented correctly, it will take your business to the next level. In theory, sure, it could. But praxis is another thing altogether, and there are many factors, such as over expenditures or delays, that can affect the outcome. 

Let’s try and understand how ERP software works, who it’s good for, and what approach your company should adopt when looking to implement ERP systems. 

ERP: The Nerve Center of the Organization

We spoke with Oscar López, a systems analyst with decades of experience working as an ERP consultant. He has seen first-hand the many changes in software design and applicability and the evolution of ERP systems as a whole.

“What’s most important,” he said, “is realizing that the concept [of ERP] is the principal focus. As long as that is understood, most any software will do.” 

We can view a company as an organism, with the ERP system functioning as the nervous system, a network of communication and information-sharing. The organism is also composed of other smaller but no less complex systems, or modules. 

These modules can exist for a company’s different departments (accounting, marketing, production, inventory, and such) with further subdivisions for specific tasks within those departments (payroll, materials management, credit card processing, report making, invoicing, and budgeting among MANY others.) The goal of ERP software is to connect all these diverse departments, sharing information under one system. 

Components

Depending on the type of business and its size, there are some features we could call must-haves in ERP software modules. These can include:

Accounting – Bookkeeping is an essential task for any business, big or small. ERP software should have payroll integration, accounts receivable/payable, general ledgers, and audit features. Industry-specific ERP software can also provide additional accounting features to complement basic accounting tools. Further, compliance with tax laws and regulations is essential in avoiding government penalties levied because of inaccurate reporting. These modules can replace tax preparation software and payroll software. 

Human Resource Management (HRM) – this feature incorporates many HR functions to help human resource personnel perform various tasks in a more automated manner. Services include workforce management, hiring, training, and benefits management.

Customer Relationship Management (CRM) – CRM features help businesses keep close tabs on their customers. It doesn’t only let them store customer profiles but also lets them understand spending habits and analyze purchasing decisions. This information lets businesses create better marketing and sales campaigns while improving customer experience. CRM is indispensable for most companies, particularly those in retail and the service industry. 

Business Intelligence – Reporting is one of the main reasons why companies decide to pursue ERP integration. Having all business interactions and communications in one place allows the creation of progress reports, efficiency reports, and data analysis. ERP software can examine the gathered information and formulate reports which can lead to better business decisions.

Inventory Management – Retail businesses that effectively use inventory management modules can lead to highly efficient departments by helping you match supply with customer demand. Tracking inventory levels and asset management avoids overstocking which could lead to product depreciation.

Manufacturing Management – An area where successful ERP software can take businesses to another level by allowing them to handle its manufacturing processes. This gives companies better control over their resources thereby minimizing waste of materials and raising efficiency levels in their production times.

Benefits

The main selling point for ERP software application is that it allows companies to focus on expanding their operations, make better use of their resources, and better respond to emerging opportunities. The advantages of a unified company are self-evident. Just to name a few: 

• Streamlined communications between departments

• Immediate data sharing across the organization for increased visibility

• Automated processes without additional inputs

• More direct and analogous contact with clients or vendors

• A breadth of report options for business analysis

A well-thought-out and executed ERP strategy can lead to an increase in operational efficiency; in other words, maximizing output while minimizing costs. But therein lies the rub, how to decide if ERP software is right for your business and how to take the right steps towards making it work.

Who is it good for?

“ERP software is highly adaptable to the size and type of business,” said Lopez, which allows most vendors to provide custom-tailored programs and features. There is no one-size-fits-all approach. Nonetheless, any company or industry can benefit from a properly planned, executed, and managed ERP strategy.

However, before even thinking of plunking down the thousands, perhaps millions, of dollars for software that you don’t even know if you’ll use correctly, you need to honestly assess your business as a whole. That includes awareness of the potential growth of the company and the available time, funds, and resources the company has to adopt ERP. 

The functionality needed for different areas varies according to the type of business, and since ERP platforms are modular and provide such a broad range of services, before choosing the best ERP software provider, it’s important to map out exactly how your company does business.

If, after this initial assessment, a company determines it’s capable of pursuing growth and decides to look into ERP software as a business solution, companies should:

• Understand why they need ERP software, be it to dip their toes into it for the first time, integrate ERP software into their already existing systems, or to upgrade their ERP legacy programs.

• Determine their overall research strategy, such as identifying key personnel in the IT department that can work with ERP consultants, and cobbling together a team that can dedicate time and resources to select an ERP vendor.

• Determine their business requirements. Perhaps a company needs to define which types of modules are needed and which features within those modules will be necessary to run their business. This, in turn, should lead them to… 

• Adopt new business processes as a preamble to the eventual implementation of ERP software. 

Once you have an idea of exactly which tools you’d like to incorporate into the ERP software, and how they should interact, you can begin comparing vendors.

• Companies can schedule ERP vendor demos to see what products and services are available and whose offerings best fit your business needs.

• After receiving the vendor’s pitches, the company is ready to select their ERP software provider.

• Finally, with an ERP consultant at the helm, companies can devise implementation plans, installation and training schedules, scalability issues for the future, and, of course, costs. 

Sounds complicated, no? That’s because it is. Essentially, what we just listed is the path most companies might take towards ERP adoption. But there are other considerations, due to the vastness of software options and particular business needs.

Two (or Three) Distinct ERP Approaches

We’ve made it a point to emphasize the holistic aspects of ERP and have focused on how one company can deliver an ERP system that encompasses all of a businesses’ needs. This is called the best-in-class approach: one company, one ERP system. But there is another alternative known as the best-in-breed option that allows companies to pick and choose among several ERP providers, focusing on niche software companies that maybe do one module extremely well, but can’t provide other modules or services. Let’s provide a brief overview of those options.

Best in Class

The main way that companies can maximize their productivity, integrate their operations, and streamline data sharing is by adopting a unifying ERP software plan from one vendor. This means not just installing software but applying the overall strategy the ERP vendor develops in conjunction with your dedicated team. 

This approach aligns with the overall philosophy behind ERP and, correctly applied, is the most efficient way to go about it. However, it is generally costlier than the next approach and requires complete adoption of the vendor’s suggestions, something that can be difficult for traditional organizations to embrace. 

Best of Breed

This has nothing to do with standard poodles or fox terriers—this strategy involves using multiple systems to fill different gaps. The name refers to picking more than one individual vendor or choosing different software providers that serve specific functions, such as CRM or supply chain management, instead of picking one overall ERP software.

If a company already has an established accounting software, for which the employees know the features inside out and are already working at high efficiency, it could be better to leave it well enough alone and not go through the process of adopting a whole new approach. 

This eschews the complete organizational transformation we’ve previously mentioned in favor of a cheaper ERP alternative. The savings come from not having to splurge on functionality that might never be used and spending only on what is immediately needed. Of course, this can also lead to being unprepared for future business growth, but it might be a risk worth taking under some circumstances.

The No-ERP approach

It could be that your business does not currently need to implement ERP software. Or it may be that your company cannot produce the necessary resources to implement an organizational overhaul at the moment. 

A wait-and-see approach, though not ideal, could be the way to go. This goes back to the initial assessment of your company. Can your business continue using the software it’s using, maybe upgrade a bit, but forego implementing anything major? Perhaps the current ERP software products (particularly cloud-based ones) need to stabilize and mature before they can be applied to your business. 

No matter the type of approach your organization decides to pursue, there are pros and cons to all. The most important things to consider are your business needs and your business’s capacity to adopt change. With that information in hand, you can decide which avenue to explore.