What is Enterprise Resource Planning (ERP)?

Every day, businesses process large amounts of information: customer data, orders, invoices, stock levels, schedules and financial records. As an organisation grows, it becomes increasingly difficult to manage all these processes in a structured way.

An ERP system (Enterprise Resource Planning) helps organisations keep these processes under control. ERP brings together different departments and activities within a single central environment, ensuring that staff always work with the same, up-to-date data.

On this page, you can read exactly what ERP is, the benefits and considerations associated with ERP software, the options available, and what to look out for when comparing ERP systems.

Why companies choose ERP

Many organisations use separate systems for accounting, stock management, planning or customer management. As long as an organisation is small, this causes few problems. However, as the number of staff, customers and processes grows, it becomes increasingly difficult to maintain an overview.

Data becomes scattered across different systems, information has to be entered multiple times and departments do not work with the same data. This costs time and leads to errors.

An ERP system brings these processes together within a single central environment. Information only needs to be entered once and is immediately available to other departments. This creates a clearer overview, ensures processes are better aligned, and enables staff to work more efficiently.

An ERP system also grows alongside the organisation. Whether you’re taking on extra staff, opening new branches or further automating processes, a scalable ERP system supports this growth.

Medewerker op de computer in een kantoor

The 8 most important ERP modules

Most ERP systems have a modular structure: they consist of various components, each of which supports a specific business process. Which modules are available and how they relate to one another varies by supplier and sector. ERP systems generally offer the following functionalities.

Depending on the sector, ERP systems are often expanded with additional, sector-specific functionalities. Examples include warehouse management (WMS) for companies with a warehouse, transport management (TMS) for logistics service providers, supply chain management (SCM) for more complex goods flows, or document management (DMS) for companies dealing with large volumes of contracts, files or documentation.

Financial management

Accounting, invoicing, payments, budgeting and financial reporting

Purchasing and stock management

Purchase orders, supplier management and real-time insight into stock levels

Sales and order management

Quotations, order processing and recording customer agreements

Customer Relationship Management (CRM)

Centralised management of customer data, contact moments and sales opportunities

Human Resource Management (HRM)

Managing staff data, leave records and staff planning

Production

Planning production processes, managing work orders and coordinating materials

Project management

Planning projects, monitoring budgets and tracking progress

Business Intelligence (BI)

Reports and dashboards to provide insight into performance and results

The key benefits of ERP

An ERP system helps organisations to better align processes and make information centrally available. This creates a clearer overview within the organisation and enables staff to work more efficiently.

By automating processes and making information centrally available, staff can focus on tasks that genuinely add value.

The success of ERP stands or falls on the right choice and implementation. A system that does not sufficiently align with an organisation’s processes leads to unnecessary complexity, lower user acceptance and higher costs. You should therefore compare ERP solutions carefully and establish clear requirements and objectives in advance.

  • Less manual work and fewer errors through the automation of repetitive tasks and duplicate data entry
  • A single, centralised and up-to-date source of information for the entire organisation
  • Better collaboration between departments thanks to shared real-time data
  • Faster reporting and better-informed decision-making
  • A scalable foundation for further growth
Employees behind a computer in an office

The risks of choosing software too hastily

Implementing ERP software is no small investment. If you choose too hastily, you’ll be stuck for years with software that doesn’t fit your work processes. The consequences: a difficult implementation that runs over time, staff who avoid the new system, and customisations that quickly double the initial price.

A sound, well-considered choice begins with an honest analysis of what your organisation needs – not just now, but also in three to five years’ time.

These are the most common mistakes made during the ERP selection process

  • Failing to compare enough ERP suppliers
  • Choosing on the basis of an impressive demo, a well-known name or time pressure
  • Paying too little attention to sector-specific functions
  • Underestimating the total costs (implementation, training, licences and maintenance)
  • Involving staff too late or not enough in the decision-making process

Comparing ERP software

There is a wide range of ERP systems available. Some solutions are designed for specific industries, whilst other ERP systems are suitable for organisations across various sectors.

The right choice depends on factors such as the size of your organisation, the complexity of your processes, the number of users and the required functionalities. Scalability, integration options and implementation support also play an important role.

Before you start comparing ERP systems, first clearly identify which processes you wish to improve and what requirements you have for the system. Consider the necessary modules, the number of users and any integrations with other software.

Do you need help with this search? With our selection tool, we assess your software needs based on a series of questions. This enables us to provide you with a tailored shortlist of the most suitable ERP suppliers, free of charge.

Frequently asked questions

Here you’ll find the most frequently asked questions about ERP Guide and how we work

How long does an ERP implementation take?
That depends on the size of the organisation and the complexity of the processes. A simple implementation often takes a few months, whilst large-scale projects can take a year or longer.
When does a company need ERP?
As soon as processes become confusing, data becomes scattered across multiple systems or the organisation grows, ERP offers a solution.
What is the difference between ERP and CRM?
A CRM system focuses specifically on customer relationships, customer interactions and sales opportunities. ERP has a broader scope: it connects all business processes, including finance, stock management, planning and customer relationships. Many ERP systems have a built-in CRM module, but a specialised CRM system often offers more in-depth functionality for sales and marketing teams. The choice between CRM and ERP depends on whether you simply want to manage customer relationships or integrate your entire business operations.
Is ERP suitable for SMEs?
Absolutely. Whether you’re a start-up, a sole trader or a multinational, every business can benefit from an ERP system. A common misconception is that ERP is only for large organisations, or that it’s always expensive. That’s not true: these days, there are plenty of solutions specifically tailored to small businesses, both in terms of functionality and price. Some providers even focus exclusively on them.
How much does an ERP system cost?

The cost of an ERP system depends heavily on the number of users, the sector, the licensing model (SaaS versus on-premise) and the required functionalities.

With SaaS ERP, you pay licence fees per user per month, plus one-off implementation costs. For a small team with a handful of users, the monthly licence fees are usually in the tens of euros per user. For an enterprise-level implementation involving hundreds of users, customisation and integrations, the total investment can run into hundreds of thousands of euros, mainly due to the implementation costs.

As costs vary significantly depending on the supplier, licensing model and sector, we have deliberately chosen not to quote a fixed amount here. Our free selection tool will provide you with a price estimate tailored to your specific situation and the suppliers relevant to you.

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Compare ERP software

Choose your sector

Why this matters in your ERP selection: When making your selection, it is important to take your sector into account. A system must perfectly align with your business processes. These processes differ per industry. For example, a wholesale company operates differently from a construction company and therefore requires different functionalities.
Marc
Mark Sanders
Software Expert

What type of manufacturing are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to take different types of manufacturing into account. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.

Marc
Mark Sanders
Software Expert

How are your production orders planned?

Why this matters in your ERP selection:

In stock-driven production processes, items are manufactured based on sales forecasts. You want to keep inventory as low as possible without running into delivery problems. You then need ERP software that monitors stock levels and helps with reliable forecasting. Is your production customer-order-driven? Then orders must be taken into production quickly. The ERP must also take any customer specifications into account.

Marc
Mark Sanders
Software Expert

What does your production process look like?

Why this matters in your ERP selection:

In discrete manufacturing, you need an ERP with strong capabilities for building bills of materials. If you only do assembly, you are in luck: this typically requires less complexity from ERP systems. For (semi) process industries, these systems are not suitable. Here, the software must be able to handle formulas and recipes (ratios, mixing, etc.). Finally, project-based production is a completely different discipline and requires strong project management functionalities.

Marc
Mark Sanders
Software Expert

What production volumes do you work with?

Why this matters in your ERP selection:

In unit production, items are produced one by one (weighing, artisan products, etc.). In this case, ERP software must be able to accommodate many customer specifications. When products are made in multiple quantities at once, we refer to batch or series production. Due to the larger runs, inventory management functionalities are important. In continuous production, the production process is kept running as much as possible. As a result, ERP software must excel at calculating optimal capacity utilisation.

Marc
Mark Sanders
Software Expert

What type of trade are you specialised in?

Why this matters in your ERP selection: When selecting an ERP, it is important to consider what type of trading company you are. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.
Marc
Mark Sanders
Software Expert

Do you have a webshop that needs to be integrated?

How many physical stores with point-of-sale do you have?

Do you also import goods?

Do you also export goods?

What type of customers do you supply to?

Why this matters in your ERP selection:

Even among ERP systems for trading companies, there are major differences. How you answer the above questions determines which solutions are more or less suitable. If you import or export goods, you may for example need to deal with customs formalities. Do you supply to consumers? Then different legal regulations apply that you need to take into account.

Marc
Mark Sanders
Software Expert

What type of retailer are you?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what types of products you sell. Each sector has its own specific requirements for an ERP. For example, if you work with perishable goods, the ERP must be able to handle FIFO and best-before date data. Are you in fashion? Then colour/size matrices are important, etc.

Marc
Mark Sanders
Software Expert

How many physical points of sale do you have?

What type of customers do you supply to?

Do you also import goods?

Do you also export goods?

Why this matters in your ERP selection:

Even among ERP systems for retailers, there are major differences. How you answer the questions determines which solutions are more or less suitable. If you import or export goods, you may for example need to deal with customs formalities. Do you supply to consumers? Then different legal regulations apply that you need to take into account.

Marc
Mark Sanders
Software Expert

What type of service provider are you?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what services you provide. Each sector has its own specific requirements for an ERP. For example, if you organise events, the correspondence with suppliers and staff scheduling must be well organised. Do you provide consultancy and invoice by the hour? In that case, a good time tracking system is essential.

Marc
Mark Sanders
Software Expert

Is time tracking important to you?

Do you work with hourly rates and/or fixed rates?

Is HRM an important part of your business?

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you mostly supply to businesses or consumers?

Why this matters in your ERP selection:

Even when it is clear what type of services you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of logistics services do you offer?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of logistics services you provide. Each sector has its own specific requirements for an ERP. Do you specialise in sea freight? Then a connection with Portbase may be important. Do you specialise in road transport? Then trip planning and route planning are important.

Marc
Mark Sanders
Software Expert

Do you organise loads in the following way?

Groupage / Part loads (LTL)
Groupage/part loads consolidated at a hub for multiple clients
FTL
Full loads for multiple clients
Dedicated Logistics
Transport for a single client
Why this matters in your ERP selection:

You will be using an ERP system, among other things, to track goods to be transported. Naturally, the ERP system must properly understand how you work and for whom you are transporting. Therefore, indicate how you organise your loads so this can be taken into account in the ERP selection.

Marc
Mark Sanders
Software Expert

Do you have your own fleet?

Do goods need to be transported under refrigeration?

Do you import goods?

Do you also export goods?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. When importing or exporting, you will need to deal with customs formalities. The ERP system must be able to support you by providing the right data and documents. Do you have a fleet? Then it needs to be maintained and depreciated correctly. Do goods need to be transported under refrigeration? Then you need functionality for temperature monitoring and control.

Marc
Mark Sanders
Software Expert

Government and NGOs

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of government services you provide. Each sector has its own specific requirements for an ERP. Let us know what activities you carry out, and we will find vendors with the right references and experience in that specific area.

Marc
Mark Sanders
Software Expert

Do you work on a project basis?

Do you want a membership administration?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Does the ERP system need to be available on mobile?

Why this matters in your ERP selection:

Even now that it is clear what type of government role you fulfil, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of healthcare are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider what type of care you provide. The processes in a hospital differ greatly from an organisation involved in nursing or social services. Therefore, each branch of healthcare has its own specific requirements for an ERP.

Marc
Mark Sanders
Software Expert

Do you want to use the ERP system for client registration as well?

Does your organisation offer overnight stays?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Do you provide care on location?

Why this matters in your ERP selection:

Even now that it is clear what type of care you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of construction are you specialised in?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider the construction activities you specialise in. Each sector has its own specific requirements for an ERP. Property developers need very complex functionalities for risk management and (financially) monitoring the budget and progress. Civil engineering companies are characterised by the frequent need for a maintenance and certification module for the deployment of heavy equipment.

Marc
Mark Sanders
Software Expert

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you often work with many different parties?

Does your organisation manage real estate?

Why this matters in your ERP selection:

Even now that it is clear what type of construction company you are, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you carry out a lot of maintenance work?

Do you also want to be able to schedule assets?

Do you want time tracking for your employees?

Why this matters in your ERP selection:

Even now that it is clear what type of construction company you are, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

What type of education do you provide?

Why this matters in your ERP selection:

When selecting an ERP, it is important to consider the type of education you specialise in. Each sector has its own specific requirements for an ERP. Corporate training is more commercial than other forms of education, which may make CRM functions more important. In regular education, the ERP must handle the tracking of students (student tracking system).

Marc
Mark Sanders
Software Expert

Do your customers have a membership with you?

Do you also want to use the system for student registration?

Do you also want to use the system for HRM?

Why this matters in your ERP selection:

Even now that it is clear what type of education you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you also teach remotely?

Do you work with timetables and location planning?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Why this matters in your ERP selection:

Even now that it is clear what type of education you provide, there are major differences between ERP systems. How you answer the above questions determines which of these are more or less suitable.

Marc
Mark Sanders
Software Expert

Are you an installation company or a service company?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you want the ERP system to be ready for IoT (Internet of Things)?

Do you want an integration with key suppliers?

Do you also carry out maintenance work?

Do work orders need to be entered on mobile devices?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Does the system need to be accessible offline?

Do you need to be able to monitor machines remotely?

Do you also work on a project basis?

Do you need to register refrigerants?

Why this matters in your ERP selection:

These questions are important for making a more refined selection. There are many different ERP systems that specifically target the installation and service industry. By answering the above questions, it can be determined which vendors are more or less suitable.

Marc
Mark Sanders
Software Expert

Do you carry out maintenance regularly?

Do you work with Service Level Agreements?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Do you work on a project basis?

Do you want to record hours in the system?

Why this matters in your ERP selection:

There are many ERP systems that specifically target the rental sector. Answer the above questions to determine which vendors are more or less suitable. If you regularly maintain your assets, it is important to choose an ERP system with maintenance planning functionalities. Do you work on a project basis? Then project administration functions give you insight into the revenues, costs and margins of one or more projects.

Marc
Mark Sanders
Software Expert

Can you provide a brief description of your business activities?

Why this matters in your ERP selection:

To keep the selection tool manageable, we have chosen which sectors are listed by default. There is a chance your sector was not included in the overview. You can still use the selection tool. Provide a precise description of your business activities. The more you share, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Does the ERP system need to be available on mobile?

Does the ERP system need to be available offline?

Is time tracking important to you?

Do you work with hourly rates and/or fixed rates?

Why this matters in your ERP selection:

Since you did not select a standard sector earlier in the selection tool, we cannot ask industry-specific questions. However, by answering these questions you can still make your ERP search more specific. The questions are independent of your sector and help determine which ERP software suits you best. The more information you provide, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Is HRM an important part of your business?

Does your organisation work on a project basis?

What is the average lead time of your projects?

Do you mostly supply to businesses or consumers?

Does the ERP system need to be connected to other softwares?

Name of the software integration(s):

Why this matters in your ERP selection:

Since you did not select a standard sector earlier in the selection tool, we cannot ask industry-specific questions. However, by answering these questions you can still make your ERP search more specific. The questions are independent of your sector and help determine which ERP software suits you best. The more information you provide, the more accurate the selection will be.

Marc
Mark Sanders
Software Expert

Does your organisation have multiple locations?

How many warehouses do you have?

Do you work with multi-currency?

Do you operate internationally?

Is the head office located in the United Kingdom?

Do you have any specific requirements we should take into account? (Optional)

Why this matters in your ERP selection:

Although these questions are not about activities within the company, the answers are of great importance. Most vendors use this information to determine whether they can meet the requirements of your implementation. For example, some vendors cannot handle international implementations or work exclusively with a single currency.

Marc
Mark Sanders
Software Expert

Enter the number of employees

Why this matters in your ERP selection: When making your selection, it is important to know how many employees there are and how many people will be using the software. As a general rule: the larger the organisation, the more complex the implementation. This is not only because all users need to be trained, but also because decision-making often differs compared to smaller companies. With larger businesses, the vendor must be better able to handle longer communication lines and implementation timelines.
Marc
Mark Sanders
Software Expert

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