Top ERP Systems To Boost Business Efficiency in 2024
As a business owner, you're always looking for ways to streamline operations and cut costs to boost efficiency. But with multiple processes like inventory management, finance, HR, and manufacturing, all functioning at the same time, it can feel like an overwhelming and never-ending struggle.
That's where top ERP systems, like Deskera, offers comprehensive solution to integrate and manage all these critical business functions in one centralized platform.
According to the Panorama Consulting Group's report from this year, 97.7% of businesses reported improving their business operations after successfully implementing ERP systems. This is possible because with a reliable ERP, you acquire an accurate picture of what's going on within your organization.
You get a bird's-eye view of your entire business – all with just a few clicks, which helps you make informed decisions.
In this blog post, we will discuss the top ERP systems available today that businesses are using to achieve high efficiency in their processes. These are all based on various reviews and opinions of people who regularly use these systems.
What is Enterprise Resource Planning (ERP) Software?
At its core, an enterprise resource planning or ERP system is a comprehensive business management platform. It tracks everything and integrates various functions of your business like accounting, procurement, project management, risk management, compliance, and supply chain operations into a single system.
Rather than using separate software for each department, ERP unifies them all.
The centralized database that forms the foundation of ERP software enables data to flow seamlessly between business units. This integration provides a single source of truth, ensuring everyone is working with the same accurate, up-to-date information.
Top ERP systems help you automate core business processes, monitor performance in real-time, and gain deep insights through robust reporting and analytics.
Types of ERP Based on Implementation
As businesses have distinct challenges, top ERP systems are available in various types to fit diverse requirements and organizational setups. Here are the main types of ERP:
- Generic ERP: These are broad, multi-purpose systems that can be used across industries. They offer a wide range of modules and can be customized to fit specific business processes.
- Industry-specific ERP: These systems are tailored to the unique needs of particular industries, such as manufacturing, healthcare, retail, or construction. They offer specialized features and best practices for those sectors such as ERP for manufacturing, commonly known as MRP, ERP for ecommerce, etc.
- Vertical ERP: Similar to industry-specific ERP, vertical solutions are designed for niche industries with highly specialized needs. These might include ERP for auto dealers, hospitality, or pharmaceuticals.
- Small Business ERP: These systems are scaled-down versions of larger ERP platforms, designed for the needs and budgets of small and medium-sized businesses (SMBs). They focus on core functionalities and ease of use.
- Open Source ERP: These systems provide access to the software's source code, allowing businesses to modify and customize the system as needed. They often have lower upfront costs but may require more technical expertise.
Types of ERP Based on Industry
There are several types of ERP systems designed for specific industries or business functions. Here are some common examples:
- Manufacturing ERP: ERP systems for manufacturing or material requirement planning software (MRP) focus on features specific to manufacturing processes, such as bill of materials (BOM) management, production scheduling, quality control, and shop floor control.
- Distribution ERP: Designed for wholesale and distribution businesses, these ERP systems emphasize supply chain management, warehouse management, logistics, and order processing.
- Retail ERP: These solutions cater to the needs of retail businesses, with features like point of sale (POS) integration, merchandise management, customer loyalty programs, and e-commerce functionality.
- Construction ERP: These systems address the unique needs of construction firms, such as project management, job costing, subcontractor management, and compliance with industry regulations.
- Healthcare ERP: These ERP solutions focus on the specific needs of healthcare organizations, such as patient management, electronic health records (EHR), medical billing, and compliance with healthcare regulations like HIPAA.
- Nonprofit ERP: Designed for the unique financial management and reporting needs of nonprofit organizations, these systems often include fund accounting, grant management, and donor management features.
- Professional Services ERP: These solutions cater to the needs of project-based businesses like consulting firms, marketing agencies, and IT services providers. They typically include project management, time and expense tracking, billing, and resource management features.
ERP systems have evolved significantly from their origins in the manufacturing sector. Today, the top ERP systems span a wide range of industries, from healthcare and retail to professional services and non-profits.
Advantages of Using ERP Software for Your Business
A reliable ERP system implementation can bring numerous benefits to your business. Here are some key advantages:
- Streamlined operations: ERP automates and integrates core business processes, reducing manual tasks, data entry errors, and duplication of effort. This leads to increased productivity, faster processing times, and more efficient use of resources.
- Real-time data visibility: With a centralized database, ERP provides real-time visibility into all aspects of your business. This enables faster, more informed decision-making based on accurate, up-to-date information. You can monitor key performance indicators (KPIs) and quickly identify areas for improvement.
- Improved financial management: Top ERP systems provide robust financial management tools, including general ledger, accounts payable and receivable, and financial reporting. This helps streamline financial processes, improve cash flow management, and ensure compliance with financial regulations.
- Enhanced inventory control: ERP enables real-time tracking of inventory levels, helping you optimize stock levels, reduce carrying costs, and avoid stockouts. Advanced features like automated reorder points and demand forecasting further improve inventory management.
- Better customer service: With instant access to customer data, order histories, and inventory levels, your team can provide faster, more personalized service. ERP can also integrate with CRM systems to provide a 360-degree view of customer interactions and preferences.
- Improved supply chain management: ERP helps streamline procurement processes, from purchase order creation to vendor management. Real-time visibility into the supply chain enables better coordination with suppliers, improved forecasting, and faster resolution of supply chain disruptions.
- Increased collaboration: ERP breaks down data silos and enables seamless sharing of information across departments. This fosters collaboration, improves communication, and helps align everyone towards common goals. Workflow automation ensures tasks are completed efficiently and nothing falls through the cracks.
- Reduced IT costs and complexity: By consolidating multiple systems into a single platform, ERP reduces the need for separate software licenses, hardware, and IT support. Cloud-based ERP systems further reduce IT complexity by providing automatic updates, backups, and maintenance.
- Improved data security: Top ERP systems offer advanced security features, such as role-based access controls, data encryption, and automatic backups. This helps protect sensitive data from unauthorized access, theft, or loss. Centralized data management also makes it easier to maintain security protocols.
- Scalability for growth: ERP systems are designed to scale with your business. As you expand into new markets, add product lines, or acquire new companies, your ERP can adapt to meet changing needs. Cloud-based systems like Deskera ERP, in particular, offer easy scalability without the need for additional hardware.
With a clear understanding of the advantages that ERP brings to the table, let's move on to understand what makes the best ERP systems.
What Criteria Makes the Best ERP Systems?
Not all ERP systems are created equal. To separate the best from the rest, look for these key features and capabilities:
- Industry-specific functionality: The top ERP systems for manufacturing will have different features than those geared towards professional services. Make sure the ERP vendors understands your sector's unique challenges when you approach them with your problems.
- Scalability and flexibility: As your business grows and changes, your ERP should adapt. Look for a system that can be easily customized to your evolving needs without requiring significant IT resources. Top ERPs have a modular architecture that allows you to add or remove functionality as needed. They also enable easy customization of fields, forms, and workflows without heavy IT involvement.
- User-friendly interface: An intuitive, easy-to-navigate user interface is crucial for adoption and productivity. This is not just about the look and feel of the user interface but also about how easy it is to learn the product. Look for features like personalized dashboards, contextual help, and guided workflows that simplify common tasks.
- Mobile access: In our increasingly mobile world, anytime/anywhere accessibility is a must. Leading ERP systems provide native mobile apps or responsive web designs. These allow users to perform key tasks, view reports, and collaborate on the go, enhancing productivity.
- Third-party integrations: No ERP can do it all. The best ERPs offer open APIs, web services, and pre-built connectors. These enable seamless integration with CRM, e-commerce platforms, and other specialized software, ensuring smooth data flow.
- Advanced reporting and analytics: The true value of ERP lies in its ability to provide actionable insights from your data. Top ERP solutions provide robust reporting and analytics tools. These include customizable dashboards, ad-hoc reporting, drill-down capabilities, predictive analytics, and AI-powered insights for data-driven decision making.
- Deployment options: The best ERP systems offer deployment flexibility to suit your IT strategy. While cloud-based ERPs have become the norm, some businesses still prefer on-premises solutions for maximum control and security.
- Vendor support and resources: Your ERP vendor should be a long-term partner. Consider the quality of their support, training resources, and online knowledge bases. An active user community is also a valuable asset.
Now that we have understood what makes the best ERP systems, let’s look at some of the top ERP systems available.
Top ERP Systems Businesses are Using in 2024
Deciding on and implementing an ERP system is a serious task that requires thorough consideration. It is not a project that should be rushed or driven solely by IT.
Instead, it is a business-critical application that heavily involves accounting, finance, and multiple areas across the company, with IT acting in a supportive role.
Here are some of the top ERP systems businesses are using today:
1. Deskera
Deskera ERP is a comprehensive and flexible cloud-based ERP solution designed for small and medium-sized businesses. It offers a wide range of modules, including accounting, inventory management, manufacturing ERP (MRP), customer relationship management (CRM), and human resource management (HRM), demand forecasting, multi level BOM, production planning, etc.
Benefits:
- Clear pricing with no hidden costs
- Highly customizable
- Unified platform for all departments
- Mobile app for convenient management on the go
- User-friendly interface with a clear dashboard
- Seamless integration with over 2000 apps
- Low implementation costs
- Reliable and proactive customer support
- Built-in powerful AI assistant - David
Limitations:
- No free trial
Cost:
- Starts at $199/user/month.
2. Oracle Netsuite
Oracle NetSuite ERP is a cloud-based, unified business management suite that provides comprehensive ERP, CRM, and e-commerce capabilities. It offers a range of modules, including financials, order management, inventory management, supply chain management, and CRM.
Benefits:
- Offers a unified platform for all departments
- Highly customizable
- User-friendly interface
Limitations:
- High implementation costs
- No in-house customer support
- Requires a learning curve
Cost:
- Pricing on request
3. SAP Business One
SAP Business One is an integrated enterprise resource planning (ERP) solution designed for small and medium-sized businesses. It helps manage various business functions, including financials, operations, sales, and customer relationships.
Benefits:
- Unified platform for all departments
- Best for large enterprises
- Well-written documentation
Limitations:
- High implementation costs
- No user-friendly interface
- High learning curve
- No integration with legacy softwares
Cost:
- Pricing on request
4. Microsoft Dynamics 365
Microsoft Dynamics 365 is a cloud-based business application suite that combines ERP and CRM functionalities. It offers a range of applications, including finance and operations, customer service, sales, and marketing.
Benefits:
- Integration with Microsoft ecosystem of applications
- Vast functionality for large enterprises
- Regular updates to the system
- Mobile app support
- AI powered automations
- Free-trial available
Limitations:
- Requires a learning curve
- High implementation costs
- Some users report lack of auto updates to invoice collection
- Complex pricing - varies with different departments
Cost:
- Pricing page
5. Odoo
Odoo ERP is an open-source, comprehensive suite of business applications. It covers a wide range of functionalities, including accounting, inventory management, manufacturing, project management, and e-commerce.
Benefits:
- Highly customizable
- Low initial costs
- Modern and simple UI
- One free to use app with unlimited usage
Limitations:
- Difficult implementation
- High total cost of ownership (TCO) due to open source nature
- Poor customer support
- Lack of a centralized system across departments
Cost:
- Starts at $23.60/user/month
6. Katana
Katana ERP is a cloud-based ERP solution specifically designed for modern manufacturing companies. It streamlines operations by integrating essential functions such as inventory management, production planning, shop floor control, and real-time reporting.
Benefits:
- Simple and user-friendly interface
- Well-written documentation for implementation
- Strong MRP capabilities
- Integration with different tools like Hubspot or Xero
Limitations:
- No in-built CRM or HR modules
- Lacks mobile support
- Users report lags within the system
Cost:
- Starts at $179/month
Key Takeaways
To summarize, each ERP comes with its own set of unique value propositions to help you get the most out of your investment.
For example, if you’re an automotive business, choosing the right automotive ERP system will be a critical decision that will impact your business for years to come. By understanding your unique requirements and priorities, you can narrow down the options to find the best fit.
The top ERP systems we've highlighted are proven leaders, each offering a robust feature set and track record of success.
Remember, ERP is not just a software purchase - it's a business transformation. To reap the full benefits, you need to think holistically about people, processes, and technology. Choose an ERP partner that will support you through the implementation and beyond as you optimize operations and pursue growth.