Best ERP Software in 2024

What is ERP Software and How Does it Work?

ERP software stands for enterprise resource planning software. ERP is a business process management that helps to automate workflow, increase accuracy, the efficiency of office functions like billing, inventory, purchase, technology, services & human resource management in an organization.

ERP software integrated with organization computer systems and helps businesses in collecting, storing, managing and interpreting data from their various units, using a centralized database. It automates back-office tasks and streamlines workflows across departments. When optimized, the solution can drive efficiency, lower costs and increase profitability. It promotes healthy collaboration in your organization which is minimizing overhead cost, increasing productivity, decreasing redundancies and more.

Cloud-Based ERP Software Solution

With Cloud ERP software as a service, you can all its enterprise resource planning software functions online. Also, cloud ERP software requires minimal upfront cost, as there is no need to invest in computing resources and on-premise hardware.

Key Features of Enterprise Resource Planning ERP Software

1. ERP CRM: The CRM features of ERP solution helps organizations in boosting their customer service and profit per capita. It helps in managing leads, opportunities, and issues. The module provides you with a 360-degree view of your customers’ interaction with your company, by consolidating their data such as social media activity, purchase record and past interactions. In an ERP, CRM works closely with the sales & marketing module to fast track conversions.
2. ERP Accounting: This accounting ERP solution features is a necessity of organization and deals with accounting transactions like accounts receivable, payable, payroll, balances and manage all assets.
3. ERP Billing: ERP billing solution feature helps to generate online bulk bills, invoices, and track customer payments, revenue, manage customer complaints, automate the payment reminders. It is efficient in areas like planning, material sourcing, production monitoring, and forecasting. Its key features include the ability to generate bill of material, shop floor control, master production schedule &, sales & distribution plan.
4. ERP Inventory Management: This module is also known as a material management module. It helps businesses measure stock targets, manage replenishments and other inventory processes. The module uses a product’s ID number to track and locate items in your inventory. This module is closely integrated with the Purchase module.
5. Purchasing: The purchasing module manages the functions involved in material procurement. These include quotation requests, master production schedule, analysis, purchase orders, and stock updates. It functions closely with SCM & Inventory modules.
6. ERP Financial management: This module of ERP software helps manage a business’s capital inflow and outflow. The module covers standard accounting transactions such as expenditure, ledger, bank reconciliation, balance sheet, tax management, and payments. It also generates financial reports for different departments
7. HRM: The HR module comes with standard HRMS features such as attendance and time tracker, employee database and skills matrix. Some ERP software also comes with performance trackers and payroll. The latter works closely with the financial management module
8. Sales & Marketing: The sales & marketing module handles relevant workflows such as sales inquiries, sales orders, and invoices. A more advanced ERP solution also features taxation rules and shipping trackers. Sales and CRM modules work in tandem, ultimately to speed up the sales process and help the company in generating more profit.
9. SCM: The supply chain management module covers key aspects including purchase order management. It helps in managing product flow from manufacturing to consumer and vice-versa (in case of returns or recalls). A key feature of this module is process automation, with which you can streamline your entire supply chain and makes it adapt to market shifts.

Benefits of ERP System Software

1. Scalability: As your business grows, the ERP system adjusts & adds multiple features for enhanced functioning
2. Mobility: You can access the ERP data anywhere & anytime
3. Integration: Existing software in your organization can be integrated with an ERP system. ERP that you choose should work seamlessly with existing software in your business. An ERP that can easily integrate with existing infrastructure, improve functionalities & ensure smooth file migration, will help your business in the long run.
4. Less Spending: Setting up an ERP system is relatively cheap with a base investment for hardware, software & setup.
5. Increases Efficiency: ERP Software integrates different business processes like accounting, marketing, sales, production and inventory into one platform. The software makes it easier to collect and access data, streamlining cross-departmental workflows, and maintain accountability across the organization. Likewise, ERP solutions also automate redundant day-to-day tasks like manual data entry & report generation. Automating such repetitive tasks frees your teams’ time and lets them focus on their core deliverables. For example, marketing can access daily web traffic data without the tech team’s assistance or, the accounting team can instantly access sales statistics without chasing the sales team. Online ERP software also gives managers the ability to perform quick lookups. Its intuitive dashboard allows managers to review key performance indicators across the organization.
6. Promotes collaboration: Top ERP software breaks down communication walls between departments. Databases are easily shareable while workstations are connected. Such a setup allows teams to easily collaborate with each other using the ERP platform.
7. Moreover, the best ERP solution further expands collaboration between remotely located teams and headquarters using a localized network. Inducing a culture of collaboration enhances innovation and teamplay and, makes businesses more competitively viable.
8. Makes accurate forecasts: ERP’s reporting tools use filters and analytics to filter through data for inconsistencies. ERP software solutions also ensure that data updated is duplicate-free. With intact data integrity, report generation with realistic forecasts becomes easier.
9. Advanced ERP solutions come with business intelligence tools that use machine learning and predictive analysis to dig deep into big data. Companies with large data sources can use ERP to gain hidden insights and stay competitively viable.
10. Lower operational costs: ERP solutions can also be used to cut down costs. When different processes are streamlined and metrics are easily monitored, delays, disruptions, and breakdowns can be anticipated & its impact better managed.
11. ERP allows businesses into production, engineering, and other business units to work together using data obtained in real-time & resolve problems faster. Operating costs are thus kept within budget.
12. Increases data security :ERP has firewalls and controls to guard against data hacking and/or breach. Having a single database means that access points are closely monitored, and security is concentrated. User permission rules can be defined, giving admins the flexibility to lock sensitive data and limit user access to information.

Things To Be Concider Before Buying ERP Software

1. Upgrade vs Replacement: If you already have an ERP system, evaluate if you need to get a new one or just an upgrade. Most ERPs today can be simply integrated with a new module, with existing applications. This way, you can minimize costs & disruption. But if your existing ERP solution is ten years or older, it’s a wise choice to replace it. You can use today’s ERP for scalability, integration, and deployment.
2. Customization: Ensure that any ERP solution you choose, can work with your key business workflows. Go for an ERP that allows you to customize tools, localize dashboards and configure workflows. This will allow departments to define goals and use the ERP to improve their functioning.

Ask for Free and Open Source ERP Software

Before you purchase an ERP system, ask the vendor for a trial run of the product or a free demo. This will allow you to be familiarised with the solution and better understand if it is suited for your business.