ERP (Enterprise Resource Planning) is a software system that integrates all departments of your business into a single platform. It enables all your processes from inventory management to accounting, from sales to production to work on the same database.

What is an ERP Program?

An ERP program offers a centralized solution instead of disconnected systems used in different departments. If accounting uses its own software, the sales team works on another program, and the warehouse uses Excel, data inconsistencies and communication breakdowns occur. ERP software puts an end to this chaos.

When a customer order is placed, the system automatically:

Updates inventory
Revises production planning
Creates accounting records
Prepares invoices

Everything works interconnected, eliminating the need for manual data entry and inter-departmental transfers.

How Do Enterprise Resource Planning Systems Work?

The enterprise resource planning ERP structure is built on a modular architecture. Your business only uses the modules it needs. Each module is interconnected and data sharing occurs in real-time.

Core ERP Modules

Finance and Accounting: ERP accounting software provides income-expense tracking, accounts receivable management, budget planning, and financial reporting. When a sale is made, accounting records are created automatically, and collection tracking becomes easier.

Inventory and Warehouse Management: Includes features such as how much stock of which product is available, which warehouse it’s located in, lot and serial number tracking, and minimum stock alerts. Optimizes your inventory turnover and eliminates excess inventory costs.

Sales and Customer Management: Handles quotation preparation, order management, customer tracking, and sales reporting. CRM integration strengthens customer relationships and makes sales processes transparent.

Purchasing and Procurement: Manages supplier management, purchase requests, quote comparison, and order tracking. Material receipts are automatically reflected in inventory and accounting records are created.

Production Planning: Handles work orders, production tracking, material requirements planning (MRP), and capacity planning. Shows what’s being produced on which production line, scrap rates, and your efficiency.

Human Resources: Maintains payroll, leave management, performance evaluation, and personnel records. Integrated with time and attendance systems to automate salary calculations.

Types of ERP Software

Different types of ERP software exist in the market. Deciding which is suitable for your business is critically important.

Open Source ERP Systems

Open source ERP provides access to source code and doesn’t require licensing fees. You only pay for installation, customization, and support.

Advantages:

No license costs
Customize as you wish
No vendor lock-in risk
Active developer community

Popular open source ERP examples:

Odoo (most widely used)
ERPNext (user-friendly interface)
Apache OFBiz
iDempiere

Commercial ERP Software

Commercial solutions come with ready-made industry templates, guaranteed support, and regular updates. Installation time is shorter, they’re “out-of-the-box” ready to use.

Advantages:

Ready modules and workflows
SLA-guaranteed technical support
Automatic legal updates
Comprehensive training materials

Online ERP Program vs Server Installation

Online ERP (Web-Based ERP): Runs on the cloud, requires no installation. Provides secure access from anywhere, doesn’t require IT infrastructure. Works with monthly/annual subscription models.

Server Installation: Software is installed on your own server, data stays with you. Provides more control but requires IT team and hardware investment.

Most medium-sized businesses prefer web-based ERP because it offers quick start, low initial cost, and ease of maintenance.

What Does an ERP Program Bring to Your Business?

A properly configured enterprise resource planning system provides tangible benefits:

Operational Efficiency

Manual processes are automated, your employees focus on strategic tasks instead of routine tasks. Inter-departmental information flow accelerates, waiting times decrease.

By the numbers:

30-40% reduction in operational costs
70% time savings on data entry
20-30% decrease in inventory costs

Data Accuracy and Transparency

There is a single source of truth, data inconsistencies are eliminated. With real-time reports, you can see your business status at any time.

Since there’s no manual data transfer, error rates are minimized. Auditing becomes easier, processes become traceable.

Faster Decision-Making Processes

Reports are prepared instantly, no waiting required. You track critical metrics like sales trends, profitability analyses, and inventory turnover from dashboards.

You make data-driven decisions, acting with real numbers instead of developing strategies based on assumptions.

Customer Satisfaction

Order status is visible instantly, clear information is provided to customers. Delivery times shorten, stock availability increases. Error-free invoicing and fast service improve customer experience.

How to Choose the Best ERP Programs?

ERP selection is the most important decision in your business’s digital transformation journey. Wrong selection is costly and time-consuming.

Conduct Needs Analysis

Which of your processes are problematic? What reports do you need? How many users will access the system? How should inter-departmental data flow work?

Don’t start looking for ERP without answering these questions. Selections made without needs analysis usually fail.

Best ERP Software List Criteria

Ease of Use: Complex interfaces face user resistance. Intuitive, easy-to-learn systems should be preferred.

Module Variety: Are all the modules you need available? Missing modules lead to additional costs later.

Integration Capabilities: Can it integrate with your existing e-commerce platform, CRM, accounting software?

Language Support: Local ERP solutions or systems with native language support facilitate your team’s adaptation. Ready availability of legal requirements like e-invoicing is important.

Scalability: The system shouldn’t become inadequate as your business grows. It should adapt to increases in user count and data volume.

Most Used ERP Software

Preferred systems vary according to business size:

SME (10-50 people): Simple ERP software, quick installation, and low cost are priorities. Open source options like Odoo Community and ERPNext are ideal.

Mid-Size (50-250 people): More comprehensive modules and industry customizations are needed. Odoo Enterprise and Microsoft Dynamics 365 Business Central are popular.

Large Scale (250+ people): Enterprise-level features and multi-location structure support are essential. SAP S/4HANA, Oracle NetSuite, and Microsoft Dynamics 365 are preferred.

Why is ERP Consulting Important?

You can install ERP-based programs yourself, but working with an ERP consultant significantly increases your chances of success.

The Consultant’s Role

Needs Analysis: Examines your business processes in detail, determines which modules you need. Prevents you from spending money on unnecessary features.

System Selection: Recommends the most suitable one among ERP companies. Manages demo processes, explains technical details.

Customization: Designs industry-specific workflows, arranges reports according to your company’s needs.

Training and Support: Trains your team on using the system, breaks resistance. Quickly solves problems after go-live.

ERP Implementation Process

1. Planning (2-4 weeks): Needs analysis, system selection, project plan creation.

2. Design (2-3 weeks): Designing workflows, module configurations, user authorization.

3. Development (1-3 months): Customizations, integrations, data migration preparations.

4. Testing (2-4 weeks): Pilot work, error detection, corrections.

5. Training (1-2 weeks): User training, documentation preparation.

6. Go-Live: Migration from old system, parallel operation, stabilization.

Total time varies between 3-6 months depending on project scope.

Advantages of Working with ERP Software Companies

ERP software programs are not just a product but a long-term partnership. Choosing the right ERP software companies is critical.

What Should They Offer?

Experience and References: Have they worked in your industry? Do they have successful project examples?

Training and Documentation: Do they provide comprehensive user training? Is documentation available in your language?

Technical Support: Do they provide post-go-live support? Do they offer SLA (Service Level Agreement)?

Updates and Development: Do they make regular updates to keep the system current? Do they support your new module needs?

Frequently Asked Questions

How much does an ERP program cost?

Cost varies according to number of users, modules, customization, and hosting choice. Starting with open source ERP ranges from $15,000-50,000, commercial solutions start from $60,000. Monthly cloud subscriptions range from $30-150 per user.

Which industries should use ERP?

All industries with 50+ employees benefit from ERP. Widely used in manufacturing, retail, logistics, healthcare, education, and service sectors.

Should I use ERP instead of Excel?

Excel works up to a certain size but becomes inadequate as you grow. You experience problems like data inconsistencies, manual error risk, and lack of real-time reporting. ERP solves these problems.

What’s the difference between ERP and CRM?

ERP manages the entire business (inventory, accounting, production). CRM only manages customer relationships (sales, marketing, support). Good news: Both can work integrated.

Conclusion: Is ERP Investment Worth It?

Enterprise resource planning systems have become essential for businesses wanting to grow. Manual processes, disconnected systems, and data inconsistencies create obstacles to growth beyond a certain point.

With the right ERP program selection and successful implementation:

Your operational costs decrease
Your decision-making processes accelerate
Your customer satisfaction increases
You gain competitive advantage

You can start quickly with an online ERP program and expand the system as your needs grow. What’s important is working with the right ERP consultant and being patient.

Request free consultation to find the right ERP solution for your business.

What is ERP? Enterprise Resource Planning Systems Guide