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133 rows Jan 10, 2019 Top 10 ERP Software Vendors and Market Forecast 2017-2022. ERP software for only small businesses is less complex and has limited functionality to cut costs and tailor to the needs of smaller companies. Industry-Specific ERP Software Industries like discrete and process manufacturing, distribution, retail, and more use industry-specific ERP solutions to cater to their business’s unique needs. Category:ERP software companies. Jump to navigation Jump to search. The main article for this category is Enterprise resource planning. This category is for companies developing ERP applications.
What is Small Business ERP Software
Enterprise resource planning (ERP) software for small businesses gives you an affordable, easy-to-use, and secure way to manage business operations, financials, and sales. ERP systems typically include modules that you can choose from based on your company’s needs. For smaller businesses, it’s important to only choose the modules you really need to cut down on costs - you can always add more modules on as your business grows.
Small Business ERP Software Features
| Feature | Description |
|---|---|
| Human Resources Management | Automate payroll processing, track time and attendance, and manage employee records like performance reviews, benefits, and scheduling. Self-service functionalities allow employees to request time off or view their attendance record. |
| Financial Management | Track income and expenses and record transactions and account structures. Create financial documents like profit and loss statements and balance sheets. |
| Inventory Management | Track items you build, store, buy, or sell. Keep up-to-date stock records to avoid running out of items or buying items unnecessarily. |
| Customer Relationship Management (CRM) | Manage customer contact info, order histories, invoices, and quotes. |
| Supply Chain Management | Manage the flow of goods and services from raw material acquisition to delivery of the finished product to the customer. |
| Analytics and Reporting | Measure key performance indicators (KPIs) like income and expenses, top performing products, or open orders over a set period of time. |
Best Small Business ERP Software
1. Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 Business Central helps small to medium-sized businesses with business and financial management. Some features include financial reporting, supply chain management, customer relationship management, and project tracking. Microsoft Dynamics 365 starts at $70/user/month.
2. SAP Business One
SAP Business One is a popular ERP solution for small to medium-sized businesses that can be deployed on the cloud or on-premise. Some functionalities include financial management, CRM, supply chain management, purchasing and procurement, and reporting and analytics. Pricing for SAP Business One is customized based on the number of users and the functionalities you need.
3. Sage Intacct
Sage Intacct is an online ERP system for small to medium-sized businesses. This solution assists with accounting and financial management, as well as order and inventory management. Sage Intacct is priced per month per user and is customized to your business needs.
Types of ERP Software for Small Businesses
Cloud ERP Software
Cloud-based ERP software is a popular choice among most small businesses due to the low upfront costs and lower monthly payments. Online software is easy to set up and scale with your business. As your business grows, you can add or remove modules as needed to customize the solution to your business’s needs.
ERP Software Designed Only for Small Businesses
Some ERP solutions are marketed as being only for small businesses. These solutions can be on-premise or web-based; though, web-based is more common for small businesses due to the generally lower upfront cost. ERP software for only small businesses is less complex and has limited functionality to cut costs and tailor to the needs of smaller companies.
Industry-Specific ERP Software
Industries like discrete and process manufacturing, distribution, retail, and more use industry-specific ERP solutions to cater to their business’s unique needs. For example, manufacturers look for ERP with quality control functionality while construction contractors want project management capabilities. Examples of industry-specific ERP software that caters to small businesses include Apprise ERP for distributors, JustFoodERP for food manufacturers, and abas ERP for manufacturers.
Cost of ERP Software for Small Businesses
Over the course of ownership, expect to invest between $25,000 to $150,000 on an ERP system for your small business. The price range varies greatly due to a variety of factors including the number of concurrent users, additional modules, implementation costs, ongoing maintenance, and training. Be aware of hidden costs that can make ERP software much more expensive. The ERP software vendor you choose should be able to help you choose only the functionalities you need to ensure your solution is cost-effective.
Free and Open Source Small Business ERP Software
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Most ERP solutions represented as free are meant to be more of a demo than a permanent solution. There are usually some costs associated with these systems to add functionality that are required for your business or installation and maintenance fees.
Some examples of free and open source small business ERP software include:
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- Odoo: The free plan, Odoo Community, is an open-source ERP software that includes one app of your choice (some examples include CRM, invoicing, expense tracking, eCommerce, appointment scheduling, and POS). You can add on additional apps ranging in price from $12/month to $72/month. If you need integrations with something like eBay or USPS, expect to pay another $36 to $72 per month per integration.
- Dolibarr: A free open source ERP system that features CRM, HR management, CMS, inventory control, marketing automation, and project management. Free and purchasable add-ons are also available.
ERP Integration with Other Systems
As a growing small business, you need to find an ERP system that will scale well with your business. You’ll likely need to be able to add more users or additional functionality as your business grows. When evaluating ERP solutions, don’t just rush into implementing a solution because it fits at the moment - think about the functionalities you will need in the next 3-5 years. As your business brings in more sales, you’ll need a more comprehensive system for managing orders, inventory, and invoices. As you bring on more employees, you’ll need to keep track of payroll, employee schedules, benefits, and tax information.
Many small business ERP systems allow you to add and remove modules as needed, as well as provides integration with other systems. Standalone software like business intelligence (BI) tools, CRM, and manufacturing execution systems (MES) might not be required now, but could be an important tool in the next few years. You can purchase a standalone system when you’re ready and integrate it with your ERP system without much trouble.
Enterprise Resource Planning (ERP) software suppliers come in all shapes and sizes, with the vital business process software available as a client server application, a hosted ERP service or even via a web-based portal.
What is ERP software?
ERP software has its roots in the Nineties manufacturing industry, where earlier forms of the applications were used for manufacturing resource planning (MRP) and computer integrated manufacturing (CIM).
However, ERP has grown to cover all core functions of a business, regardless of its industry sector. As a result, both private and public sector organisations now use ERP systems in some form or other.
ERP applications tend to be modular in nature, sharing vital business information which is held on a central database repository, or repositories.
What does ERP software do?
ERP systems typically carry out financial and business planning functions, which might formerly have been carried out by many smaller standalone applications.
Examples of ERP system modules include: product lifecycle management, supply chain management (for example purchasing, manufacturing and distribution), warehouse management, customer relationship management (CRM), sales order processing, online sales, financials, human resources, and decision support system.
Why use ERP software?
One major benefit of having a single modular ERP system is that it can unite and link together multiple processes and parts of the business, making the business run more efficiently.
By automating various functions, you can also benefit from having, for example, good order tracking, from acceptance through to fulfilment. In terms of the revenue cycle, you can track invoices through to cash receipts.
ERP systems also centralise the data in one place, which can eliminate the problem of synchronising changes between multiple systems, and allows business managers to get a more accurate view of the business’s information.
Having a single data repository can also lower the risk of losing sensitive data, if you use appropriate data security and authorisation.
What are the drawbacks of ERP systems?
ERP systems can prove to be complex and difficult to customise, keeping in mind the actual complexities and idiosyncrasies of each individual business itself.
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Many firms fail to adequately invest in ongoing training for the involved IT personnel, and there is often a lack of corporate policy to protect the integrity of the data in the ERP systems and the ways in which it is used.
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Also, ERP systems can be very expensive. This has led to a newer breed of simpler ERP systems for smaller enterprises which carry a lower cost, and many established ERP vendors now offer managed ERP services, offered over the web.
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Finally, the fact that ERP systems centralise the data in one place can increase the risk of loss of sensitive information in the event of a security breach.
Popular ERP Vendors
- Microsoft Dynamics
The Microsoft Dynamics ERP suite includes Microsoft Dynamics AX, an accounting and finance, HR and CRM tool; Microsoft Dynamics GP, a mid-market accounting suite; and Microsoft Dynamics NAV and Microsoft Dynamics SL, both SME ERP platform. - Oracle e-Business Suite
A modular ERP platform, the Oracle e-Business Suite has many elements including Oracle CRM, Oracle Financials, Oracle Logistics, Oracle Order Management and Oracle Warehouse Management Systems. The software makes use of the Oracle database. - SAGE
Sage Line 500 and Sage 1000 are the cornerstone ERP solutions for thousands of UK businesses. Developed for the UK mid-market from day one, the Sage Line 500 and Sage 1000 Suites offer customers a broad range of capabilities including CRM, HR, Payroll and Business Intelligence. - SAP Business One
Aimed at SMEs, SAP Business One contains over a dozen core modules, such as Financials, Sales Opportunities, Purchasing Banking, Human Resources, E-commerce and WebCRM. - Infor Global Solutions
Infor is a large business software provider which has several ERP suites, such as Infor ERP LN, Infor ERP SyteLine, Infor ERP VISUAL, Infor ERP Adage and Infor ERP LX. They are built on an open, flexible, service-oriented architecture (SOA) with web-based user interfaces. - NetERP from NetSuite
NetSuite supplies on-demand, integrated business management software suites aimed at mid-market enterprises and divisions of large companies. It offers hosted accounting, CRM, ERP, e-commerce and web site development software. - Lawson Software
Lawson merged with business software firm Intentia International in 2006, to offer mid-market business an alternative to larger ERP vendors. The vendor’s ERP packages are Lawson S3 (broadly for service firms) and Lawson M3 (broadly for manufacturers and distributors.