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ERP system : understanding enterprise resource planning

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

Key modules and features of an ERP system

ERP systems are made up of modules that manage core business functions, such as finance, HR, and supply chain management. Each module is designed to work together seamlessly, creating a single, connected solution that automates workflows and improves collaboration. Many include modules specific to your industry, such as process manufacturing or professional services.

What makes ERP software especially powerful is its flexibility—modules can be customized and configured to meet the unique needs of your business, no matter its size or industry. Additionally, ERP solutions capture, organize and analyze data, helping accelerate decision making while building the data foundation needed for artificial intelligence (AI).

Manage your finances with ease

Our ERP software helps you track income and expenses, manage cash flow, and stay compliant with tax regulations. Get real-time financial insights to make informed decisions and drive business success.

  • Cash flow management : Monitor inflows and outflows for better financial planning.
  • Tax compliance : Automate calculations and reporting to meet legal requirements.
  • Financial reporting : Create accurate, up-to-date statements effortlessly.

Screenshot: Sage Intacct

Optimize your inventory and warehouse operations

Monitor stock levels, avoid shortages or overstocking, and reduce inventory costs and waste. Streamline your warehouse layout and operations to improve efficiency and ensure the right products are in the right place at the right time.

  • Real-time inventory tracking : Keep tabs on stock levels to avoid disruptions.
  • Warehouse optimization : Maximize space and streamline workflows.
  • Cost reduction : Minimize waste and lower inventory-related expenses.    

Streamline your production and manufacturing

Plan and optimize production activities to ensure product quality, reduce downtime, and keep costs under control. Stay compliant with industry standards and regulations while maintaining consistency and efficiency.

  • Production planning : Schedule and allocate resources for smooth operations.
  • Quality control : Maintain high standards and ensure product consistency.
  • Cost efficiency : Minimize downtime and control production expenses.

Boost your sales and marketing efforts

Simplify and streamline your sales and marketing activities, from lead generation to customer relationship management. Manage orders, pricing, invoicing, and delivery seamlessly to drive revenue and improve customer satisfaction.

  • Lead generation and CRM : Attract prospects and nurture lasting customer relationships.
  • Order management : Track orders from placement to delivery with ease.
  • Invoicing and pricing : Ensure accurate billing and flexible pricing strategies.

Simplify human resources and payroll management

Manage recruitment, training, performance appraisals, compensation, benefits, attendance, and payroll with ease. Streamline HR tasks to hire and retain top talent, motivate employees, and ensure compliance with labor laws.

  • Recruitment and onboarding : Attract, hire, and train the right talent.
  • Employee management : Track attendance, performance, and compensation seamlessly.
  • Payroll and compliance : Automate payroll processes and stay aligned with regulations.
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Innovative ERP systems from Sage

From initial planning to seamless integration, we’ll support you every step of the way. Our ERP solutions are designed to fit your business needs and budget, helping you streamline operations and achieve your goals without breaking the bank.

 Sage Intacct

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 flexible ERP solution that streamlines operations, enhances cost control, and improves supply chain visibility for mid-sized businesses.

 

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

G2 Users Most Likely to Recommend Winner.

Sage 100

A fully customizable, cloud-connected total business management system for medium-to-large manufacturing and distribution businesses.

 

Discover Sage 100

 

  • Source, manufacture, and ship more products on time and more profitably than your competitors
  • Accelerate sale closure, improve customer satisfaction, lower administrative and carrying costs
  • Keep track of cashflow with automated bank feeds and reconciliation
  • Stay on top of compliance tax codes, audit histories, and government reporting
  • Gain real-time insights to drive informed decisions

The value and benefits of an ERP system

Enterprise resource planning (ERP) software helps businesses by bringing together different processes, keeping all data in one place, and improving collaborations across your organization. This software boosts productivity, cuts costs, and helps you make better decisions. With an ERP system, your business can achieve its goals and drive sustainable growth.

Gain real-time insights for smarter decisions

Get up-to-date data from across your business to make informed decisions faster. Real-time reports highlight areas for improvement, helping you act fast and strategically to address challenges and seize opportunities.

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Streamline operations and reduce costs

Simplify workflows and optimize daily tasks with best practices built into your ERP system. By spotting inefficiencies and cutting out unnecessary steps, you save time and reduce operational costs without sacrificing quality.

Enhance collaboration across departments

Break down silos by connecting teams through a shared platform. When everyone has access to the same data and tools, collaboration improves, leading to more consistent results and stronger relationships between departments.

Improve efficiency with a unified system

A consistent user experience across all functions—from finance to supply chain—ensures employees can work efficiently and confidently. A unified system eliminates the need to switch between platforms, saving time and boosting productivity.

Ensure compliance and reduce risk

ERP systems offer built-in controls and data integrity features to help you meet regulatory requirements and minimize risk. Automated processes and standardized workflows reduce the chance of errors, keeping your business secure.

Support long-term growth and scalability

As your business grows, your ERP system grows. With the flexibility to adapt to changing needs and the ability to scale into new markets, an ERP system positions your business for long-term success.

Lower IT and management costs

A unified, integrated ERP system reduces the need for multiple software solutions, lowering IT costs and simplifying system management. By consolidating tools into one platform, you’ll save on maintenance and reduce complexity.

ERP systems for every business and industry

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 systems

ERP deployment requires careful planning, preparation, and execution. As a leading provider of ERP 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 system 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 system 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 customization 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 a cloud-based ERP system 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 provides clear and consistent formats for accounts, meaning software maintenance is easier, and teams are leaner across countries due to standardized processes. Headcounts are the same, but teams are freed up to focus on more value added services.”

Helen Mullen
Shire Pharmaceuticals

“One of the real benefits of Sage is that we can run multiple companies off the same system.”

Mark Tweddle
Jupiter Marketing

Enterprise resource planning FAQs

ERP stands for Enterprise Resource Planning, a type of software that helps businesses manage and integrate their core operations. From accounting and procurement to supply chain and human resources, ERP systems streamline processes and centralize data, providing a unified platform for managing day-to-day activities.

In simpler terms, an ERP system is a tool that improves efficiency by connecting different departments, ensuring everyone has access to accurate, real-time information.

 In short, the ERP definition is all about creating a single source of truth for your organization, helping you work more efficiently and achieve your business goals.

While ERP systems help businesses run more smoothly, implementation can come with challenges. Success depends on seamless integration, adoption, and overcoming key hurdles:

  • Data migration: Moving data to a new ERP system requires careful planning and testing. Issues like data integrity, compatibility, and security can arise. Clean and validate data before migration, and roll it out in phases to minimize disruption and allow for thorough testing.
  • Change management: Introducing an ERP system often means adjusting processes, roles, and company culture. Resistance to change, lack of communication, and insufficient training can hinder adoption. Involve stakeholders early, gather feedback, and provide ongoing support to ease the transition.
  • Customization: While ERP systems offer robust standard features, customizations may be needed to meet specific business needs. However, excessive customization can add complexity, increase costs, and limit scalability. Focus on modular customizations that are flexible and easy to manage.
  • Integration: ERP systems must work seamlessly with other tools, like CRM, HR, and BI systems. Integration challenges can include compatibility issues and data syncing problems. Assemble a cross-functional team collaborating with your trusted ERP partner and IT and business expertise to ensure a smooth process.

By addressing these challenges with careful planning and collaboration, businesses can set the stage for a successful ERP implementation

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 systems can improve efficiency, reduce costs, and enhance customer satisfaction, but implementing them requires careful planning and stakeholder buy-in. Here are the key steps to build a strong business case:

  • Identify current challenges: Highlight inefficiencies like data errors, duplication, or time-consuming manual processes. Consider whether your current system limits productivity, impacts customer satisfaction, or delays service delivery.
  • Define your goals and benefits: Be clear about what you want to achieve with ERP. Are you aiming to streamline workflows, improve data quality, or automate processes? Show how these improvements will boost productivity, profitability, and customer loyalty.
  • Estimate costs and risks: Calculate the total investment, including software, hardware, and consulting fees. Assess how long implementation will take and how it might affect daily operations. Acknowledge potential risks and outline plans to mitigate them.
  • Compare alternatives: Evaluate the costs and risks of ERP implementation against other options. How much is inefficiency costing your business now? Would upgrading your current system or outsourcing specific functions be more cost-effective?
  • Make a compelling presentation: Share your business case with decision-makers using clear language, data, and visuals. Show how ERP will address current challenges, deliver measurable benefits, and outweigh both the costs and risks.

By following these steps, you’ll create a persuasive argument for ERP that aligns with your company’s needs and priorities, setting the stage for a successful implementation.

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