Enterprise Resource Planning (ERP)
What is ERP?
ERP—Enterprise Resource Planning— refers to the strategic coordination of core business processes—such as finance, supply chain, HR, and operations—to help organizations align resources with their goals.
It involves forecasting demand, managing capacity, and optimizing workflows to enhance efficiency, minimize waste, and facilitate data-driven decision-making throughout the organization.
What is an ERP system?
An ERP system is a centralized platform that connects and manages an organization’s essential operations through shared data and streamlined workflows. It replaces disconnected tools with a unified system that supports planning, coordination, and execution across departments, helping teams stay aligned, reducing errors, and enabling a faster response to changing business needs.
An example of an ERP platform in action
A rapidly growing e-commerce retailer uses NetSuite ERP—a cloud-based ERP system—to manage its order-to-cash process. When a customer places an online order, NetSuite automatically updates inventory levels, generates an invoice, and triggers order fulfillment from the nearest warehouse.
The finance team uses real-time dashboards to track sales performance and reconcile revenue.
Meanwhile, procurement uses the same system to restock popular items based on current demand and supplier lead times. With NetSuite handling end-to-end operations, the retailer improves order accuracy, speeds up delivery, and gains real-time financial insights.
Is my organization ready for an ERP system?
You might be ready for an ERP system if your business is struggling with disconnected tools, slow processes, or limited visibility across departments.
Common signs include rapid growth that’s outpacing your current systems, too much manual work causing errors, inconsistent data, or difficulty meeting reporting and compliance requirements. If these challenges are holding you back, it’s time to consider ERP.
What ERP solutions should an SMB consider?
Small to medium-sized businesses—SMBs—should consider ERP solutions that are scalable, user-friendly, and tailored to their industry and growth stage. Commonly researched options include:
1. Dynamics 365 (D365 / D365FO / D365 Finance & Supply Chain)
Microsoft’s enterprise-grade ERP is designed for midmarket to large businesses with complex, multi-entity, or global operations. Dynamics 365 is best suited for SMBs preparing for rapid growth or upgrading from older systems with advanced needs.
2. NetSuite
A leading cloud-native ERP for fast-growing SMBs, offering an all-in-one platform for finance, inventory, CRM, e-commerce, and more. NetSuite is known for its quick deployment and strong scalability, requiring minimal IT overhead.
3. Oracle (Oracle Cloud / Oracle EBS)
A powerful ERP suite typically favored by large enterprises. Oracle Cloud offers more modular, scalable options for midsize companies, though cost and complexity may be high for smaller SMBs.
4. Salesforce
Not an ERP system, but a top-tier CRM often integrated with ERP platforms. With ecosystem solutions like FinancialForce or Rootstock, Salesforce can extend into ERP-like functions, but is best viewed as a front-office tool.
5. Workday
A cloud platform focused on finance and HR, Workday is often chosen by mid-sized to large service-oriented organizations. It offers strong analytics and planning but may not support manufacturing or supply chain operations common in full ERP systems.
6. Dynamics GP
A legacy Microsoft ERP still in use by many SMBs, offering solid financial management. While no longer the future of Microsoft ERP, it’s still supported and used by businesses not ready to transition yet.
7. Dynamics BC (Business Central)
Microsoft’s modern cloud ERP built specifically for SMBs. It combines financials, operations, and project management, with tight integration into Microsoft 365 and a familiar user experience.
8. Dynamics AX
A discontinued ERP solution for large organizations, now fully transitioned to Dynamics 365 Finance & Supply Chain. Still maintained in some environments, but no longer sold or updated as AX.
9. SAP
Offers ERP solutions for a wide range of company sizes. SAP Business One is tailored for SMBs with strong inventory and manufacturing capabilities, while SAP S/4HANA Cloud is geared toward larger, more complex midmarket firms.
Choosing the right system depends on your current challenges, tech stack, and future goals. Also, consider your industry, budget, and growth plans when evaluating vendors.
More ERP resources:
Blogs
Include security and compliance from the start of ERP implementations
Best practices for managing access controls in your ERP System
Whitepaper
Managing risk & discovering value with Fastpath during an ERP implementation or upgrade
Webinar