Simtech Development

What Is an ERP System In Simple Words and How It Works (With Examples)

Maria Chumakova

ERP ( Enterprise Resource Planning) is a business process management software that integrates and manages finance, operations, supply chains, reporting, manufacturing, HR.

When a company grows, management systems must evolve with it. So let’s determine the requirements for the ERP software solutions and find out why it is useful to have software that meets the business needs.

Enterprises were previously equipped with accounting, financial and personnel management systems, but the software was not interconnected. The modern enterprise resource management solutions bring various processes into a table and create a single control cycle.

Existing solutions allow each department to keep abreast of the work of others. As a result, the accounting and HR departments easily collaborate with customer relations and sales.

Top ERP Systems

The top ERP systems according to Capterra:

  1. Odoo by Odoo
  2. Dynamics by Microsoft
  3. Sage 100 by Sage 100cloud
  4. Netsuite by NetSuite
  5. Infor M3 by Infor

Whatever system you choose – CS-Cart Salesforce, SAP, Microsoft Dynamics, any enterprise resource management solution should cover the main business processes:

Money management 

ERP implementation allows an overview of financial performance from any device in real-time. It will also help you to opt-out of manual data entry: automate daily tasks and track business compliance with regulatory requirements.

Human resources

Nowadays solutions control company data and simplify employee management, for example, payroll, hiring, etc. Besides, you can monitor employee performance and identify personnel issues in advance. 


This feature automates daily processes, simplifies business communication, and helps manufacturers satisfy customer needs by managing real-time data. Besides, the solution optimizes project and cost management, production planning.

Supply chain

If your employees still enter the data manually and cannot tell the exact amount of inventory, you can easily automate these processes with ERP to save time and money. Modern solutions also simplify product management through dashboards and business intelligence.


So far, there is no perfect software solution for all business processes, but ERP technologies combine them better and better, improving collaboration, helping to make informed decisions based on data and increasing business efficiency.

If your software limits your company growth, you’re using disparate systems or you can’t satisfy customer expectations, it means you need an ERP integration.


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