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ERP software: understanding enterprise resource planning

Get real-time insights into every aspect of your company’s performance, optimise processes and streamline business management with cloud-based ERP software systems and solutions.
ERP overview

What is ERP software?

An enterprise resource planning (ERP) software is a type of business management software that integrates day-to-day business processes. It helps business leaders streamline company activity by connecting all data points and providing accurate business insights.

From HR and accounting to Workforce management and Multi-entity financial consolidation, connected ERP software lets users share information across the entire business from a single, secure database. In short, it connects the dots, packaging data into one simple system.

Important ERP software modules and features

ERP software typically consists of modules for different business functions. Each module can be customized and configured to suit the specific needs and preferences of each business.

Accounting and Finance

Helps businesses track their income and expenses, manage their cash flow, comply with tax regulations, and generate financial statements and reports.
Title (H2 med) Revenue Forecast Mon Tue Wed Thu Fri Sat Sun 0 £10k £20k £30k £40k Jan - Feb 2023

Inventory and Warehouse Management

Allows businesses to monitor their inventory levels, avoid stockouts or overstocking, optimize their warehouse layout and operations, and reduce inventory costs and wastage.

Production and Manufacturing

Helps businesses plan and optimize their production and manufacturing activities, ensure product quality and consistency, reduce production costs and downtime, and comply with industry standards and regulations.

Sales and Marketing

Facilitates the sales and marketing activities of the business, such as lead generation, customer relationship management, order management, pricing, invoicing, and delivery.

Human Resources and Payroll

Manages the human resources and payroll functions of the business, such as recruitment, training, performance appraisal, compensation, benefits, attendance, and payroll. This module can help businesses hire and retain talent, motivate and reward employees, track and manage employee data and records, and comply with labour laws and regulations.

Innovative ERP software solutions from Sage

From planning to integration, we'll help you get up and running with our professional ERP program at a price that works.

Sage Intacct

The smart cloud accounting and ERP solution to unleash the potential of your business. Learn why industry leaders choose Sage Intacct.

 

Discover Sage Intacct

 

Across all industries, Sage Intacct customers achieve an average of:

  • 250% ROI
  • 6 months payback
  • 79% close time reduction
  • 65% productivity improvement

Rated #1 in customer satisfaction by G2.

Sage X3

A complete business management solution tailored to the demanding mid-sized business user.

 

Discover Sage X3


Ideal for global companies in the manufacturing, distribution, chemicals, and services industries.

  • Take control of global operations
  • Get the insight you need, when you need it
  • Expand to new markets or geographies
  • Gain agility and focus on your business

Key benefits of an enterprise resource planning system

Enterprise resource planning tools help you streamline operations and collaborate effectively across departments, providing real-time information about your company, highlighting areas for improvement, and ensuring you comply with financial regulations.
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Streamline key processes

Consolidate daily operations and maximize efficiency with an easy-to-use enterprise resource planning software.

Keep costs down

Implementation is easy and ERP systems help identify areas for improvement and inform larger business decisions to keep costs down, all while growing your company.

Increase productivity

Ensure everyone is on the same page by improving the flow of information between teams. Enterprise software helps boost employee morale by simplifying operations and improving efficiency.

Future-proof your business

With in-depth insights, you can better define your goals, identify business needs, and expand into new territories or markets. Planning business growth is made simple with the right ERP tools.

ERP systems for all types of businesses and industries

If you run a small or medium-sized business, ERP software can address the specific challenges and needs of different industries, helping to manage their operations, resources, and data more effectively.

Healthcare

An ERP system helps medical businesses meet patients' needs faster and better, making healthcare easier by keeping data safe, protecting patients by providing real-time insights, and connecting processes.

Food industry

ERP software for the food industry streamlines operations and reduces silos. It enables demand planning, inventory management, order fulfilment, quality and compliance, and resource control.

Manufacturing

The manufacturing industry uses ERP software to improve production planning and scheduling, to optimize the use of resources, materials, and equipment, track production processes, and generate reports and audits.

Construction

ERP software for the construction industry can be used to plan, monitor and control projects from beginning to end, with visibility over scope, schedule, logistics, resources, budget, quality, and progress.

Distribution

ERP can automate processes for the distribution industry, with real-time views into inventory across multiple warehouses, sales and purchasing, supply and demand chain status, and customer services.

Supply chain management

ERP software can help with planning, coordinating and executing the flow of materials, services and information from suppliers to customers by providing real-time data and analytics on inventory, orders, shipments and deliveries.

Professional services

An ERP system can help automate time-consuming tasks and eliminate human errors in project management, financial management, HCM and CRM. It can also help with analytics, dashboards, forecasting, and smarter decision-making.

Seamless deployment and integration of ERP software

ERP deployment requires careful planning, preparation, and execution. As a leading provider of ERP software solutions for small and medium-sized businesses, Sage can help you achieve a smooth transition to a more integrated and efficient business system.

On-premise ERP deployment

On-premise ERP means that you install and run the ERP software on your own servers and hardware, which you own and maintain. This gives you more control and customization over your system and data security, but also requires more upfront investment, technical expertise, and ongoing maintenance. 


Cloud-based deployment

Cloud-based ERP means that you access and use the ERP software over the internet, hosted by a third-party vendor. You don't have to worry about installing, updating, or maintaining the software, as the vendor takes care of it for you. You pay a subscription fee based on your usage and needs, and you can access the system from anywhere, anytime. However, you would have less access to customisation options. 

Hybrid ERP deployment

Hybrid ERP means that you combine both on-premise and cloud-based ERP solutions, depending on your specific needs. For example, you can keep some of your core functions on-premise, while using cloud-based ERP for some of your remote functions, so you get the best of both worlds, while balancing the trade-offs. There could be technical complexity and coordination challenges, and potential compatibility and performance issues.

ERP solutions in the cloud for easy integration

Cloud-based software systems offer many advantages over traditional on-premise solutions. Service providers handle hardware, maintenance, and updates so you don't have to, and the systems can be adapted according to the changing needs of the business, offering flexibility and scalability.

Learn more about implementing an ERP solution and how Sage makes it easy.

Cover all the core aspects of running a business, such as accounting, finance, inventory, sales, purchasing, manufacturing, distribution, and more.
Integrate seamlessly with other cloud-based software systems, such as CRM, e-commerce, HR, and payroll.
Integrate with on-premise software systems, legacy systems, and custom applications, using APIs, connectors, and adapters.

Real customers, real reviews

Sage X3 gave us a blank sheet of paper. So we were able to do a degree of database cleansing…the old system had grown in a way that veered out of control.

Ian Butterfield, Finance Controller

Thatcham Research

As a newly independent entity, we were essentially starting from scratch... We worked tirelessly with the team at Sage Intacct to make it fit our unique needs. It has paid off in spades.

Matthew Joynes, Head of IT

Isio

We've had Sage X3 since the early 1990s, and we've seen it evolve into a flagship solution. The quality of people at Sage very much mirrors what we look for amongst our own people so we've built very strong working relationships, particularly on the technical side.

Graham Heaven, MD

Burbidge

While ERP software helps a business run more smoothly, there can be some challenges during implementation. It’s one thing to implement new planning tools. It’s another to ensure they’re effectively integrated and adopted.

  • Data migration: Migrating data to a new ERP system involves significant manpower, expenses, and potential risks. During this procedure, potential issues with data integrity, compatibility, and security might surface. Make sure you clean data prior to migration to ensure quality and relevance and roll out migration in phases to minimize disruption and allow for testing at each step.
  • Change management: Implementing a new ERP system requires a change in business processes, culture, and roles. There can be resistance to change, lack of communication, and a lack of proper training, which may impact the acceptance and performance of the new ERP system. Involve key stakeholders early, ask for feedback throughout the process, and set up support teams to assist staff post-implementation.
  • Customization: Although ERP systems come packed with standard features and toolsets, some businesses may need customization for their specific requirements. However, customization might lead to more complexities, increased costs, and higher maintenance needs, and affect the system's flexibility and scalability. Focus on modular customization, which can be easily adapted or removed if needed.
  • Integration: ERP systems need to integrate with other systems and applications that the business uses, such as CRM, HR, and BI. The integration process might bring up technical challenges related to compatibility, interoperability, and data syncing. It’s a good idea to assemble a cross-functional team with IT and business knowledge to manage integration effectively.

ERP can help businesses improve efficiency, reduce costs, and enhance customer satisfaction, but implementation can be complex and costly , requiring careful planning and stakeholder buy-in. Here are some steps to help you build a strong business case for ERP implementation:

  • Identify problems in your current system or processes, e.g. data errors, duplication, or inconsistencies. Consider the time and resources spent on manual tasks or multiple systems, and whether service and delivery can be improved.
  • Define the goals and benefits that you expect from ERP implementation. Do you want to streamline workflows, improve data quality, or automate processes? An ERP system can help to increase productivity, profitability, and customer loyalty? How will ERP help you achieve these outcomes?
  • Estimate the costs and risks of ERP implementation. Calculate the cost of software, hardware, and consulting fees. Work out how long the implementation will take and how it will affect daily operations. Remember to consider the potential challenges or pitfalls that you might encounter.
  • It’s important to compare the costs and benefits of ERP implementation with alternative solutions. For example, how much are you spending or losing by not implementing ERP? How much would it cost to upgrade your existing system or outsource some functions?
  • Present your business case to the managers and budget holders who have the authority and influence to approve the project. Use clear and compelling language, data, and visuals to show how ERP will solve the problems, deliver the benefits, and outweigh the costs and risks.

You can find even more tips on how and why to build a solid business case for a new ERP, including a step-by-step guide and the most important questions to consider.

ERP, CRM and financial software are three types of business software that help organisations manage different aspects of their operations. Here are some of the key differences between them:

  • ERP (Enterprise Resource Planning) software is a single system that integrates a range of business processes such as accounting, inventory, production, human resources, and sales, so you can cover all your business needs from one place. ERP software improves efficiency, reduces costs, and streamlines workflows across the organization.
  • A CRM (Customer Relationship Management) system collects and analyses data on leads, prospects and customers. This provides businesses with a complete view of their behaviour, needs, and purchase history to increase customer satisfaction, loyalty, and retention.
  • Financial software includes any software that helps to manage the financial aspects of a business, such as accounting, budgeting, forecasting, reporting, and taxation.

An ERP system connects all your business functions and gives you a single, accurate source of information. A CRM system helps you understand your customers better by gathering and analysing data on their behaviour, needs, and preferences. Financial software can be standalone or part of an ERP or CRM system, depending on the needs and preferences of the organisation.

Elevate your ERP software with Sage Marketplace

Extend the power of your Sage ERP solutions, manage your business and make life easier with our powerful connected apps.

Get practical advice on enterprise resource planning software and management

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