What is ERP?
In short
ERP stands for enterprise resource planning: one integrated system for a company's core processes, such as finance, purchasing, inventory, production, sales and often HR. All departments work with the same data, so an order, the stock and the invoice match up directly.
What is in an ERP system?
An ERP system consists of modules that share the same database. Which ones you use depends on your business:
- Finance: bookkeeping, receivables, payables and reports.
- Purchasing and inventory: orders, receipts, stock per warehouse and materials planning.
- Sales: quotes, orders, delivery and invoicing.
- Production or projects: work orders, bills of materials and capacity, or hours and budgets per project.
- HR and payroll: in some systems, often linked to separate HRM software.
When do you need ERP?
An ERP system fits when separate packages can no longer keep up with each other: orders are entered twice, the stock in the webshop does not match the warehouse, or the monthly figures take days of manual work. Trading, manufacturing and wholesale businesses in particular benefit. A service provider with only invoices and hours often manages with accounting software and a CRM or project package.
What should you look out for?
ERP is a big investment of time: setting up the system, migrating data and training staff often cost more than the licences. Choose a system and an implementation partner with experience in your industry, and write down your processes before you look at demos. What it costs is explained in what does an ERP system cost?
Which software helps with this?
ERP systems vary widely by industry and company size, from packages for SMEs to systems for international groups. An implementation partner is often part of it.
Compare in the category
Including Cleverdesk, AFAS Software ERP and Gripp Bedrijfssoftware.