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What is ERP Software, and Which Industries Benefit Most?

Enterprise Resource Planning (ERP) Software is a centralised platform that enables organisations to manage and integrate core business functions across all departments.

By serving as a single source of truth, ERP Software connects operations, finance, inventory, procurement, sales, human resources, and compliance through integration. This eliminates challenges associated with disconnected systems and manual workflows, replacing them with automated, real-time data sharing.

The purpose of an ERP system is to reduce inefficiencies, increase the accuracy of reporting, and support informed decision-making. By doing so, it delivers business value in three core areas:

1. Productivity through automation.
2. Collaboration through integration and the flow of data.
3. Efficiency through total visibility of business processes and functions.

95% of businesses that implement ERP Software experience immediate operational benefits when migrating from legacy systems, spreadsheets, or manual tools. Specific outcomes can be seen across multiple industries and departments:

• Manufacturers see a 22% reduction in operational costs
• Construction firms see a 10% reduction in total project spend and a 20% increase in on-time project delivery
• Wholesalers and distributors reduce inventory costs by 10% and see a 65% improvement in service levels
• Food and beverage manufacturers see a 25% decrease in finished goods inventory and a 14% improvement in delivery speed
• Accounting teams reduce payroll processing time by up to 80%
• E-commerce retailers achieve a 70% customer retention rate

Leading Reasons Why UK Businesses Implement ERP Software

1. Teams Are Operating in Silos

The biggest challenge facing growing businesses is siloed data and departmental isolation. This is caused by teams using different tools and incompatible systems. For instance:

• Sales teams rely on CRM systems like Salesforce or HubSpot
• Operations departments depend on Excel spreadsheets
• Finance teams use accounting platforms such as Sage or QuickBooks
• Inventory management occurs through spreadsheets or warehouse systems
• HR departments keep employee data in HRIS systems

This results in fragmented data and significant business risks, with companies losing 20-30% in revenue every year because of inefficiencies linked to data silos. ERP Software replaces disconnected tools and eliminates silos by creating a unified data architecture. It allows all departments to work from a single, consistent data source, meaning:

• Sales orders automatically trigger inventory allocation and production scheduling
• Financial transactions update in real time
• Inventory levels are reflected immediately in sales systems
• Management receives consistent reporting across all functions

2. Planning Is Reactive, Not Proactive

Without an integrated ERP system, businesses often operate in a state of constant reactivity, addressing problems only after they occur rather than preventing them. This impacts inventory stockouts, equipment maintenance, staff scheduling, supplier negotiations, and more.

Modern ERP Software introduces planning tools such as:

• Demand forecasting: AI and predictive analytics tools analyse historic data, trends, and market indicators to predict future demand
• MRP: Automatically calculates material needs based on production timelines and lead times
• Capacity planning: Optimises resource allocation regarding facilities, equipment, and staff
• Scenario planning: Generates what-if scenarios to analyse potential outcomes based on data and assumptions

3. Reporting Is Slow and Inaccurate

In the absence of software, reporting involves compiling information in spreadsheets, taking data from multiple sources, and attempting to draw insights from incomplete or outdated data. This causes delays and errors that essentially undermine decision-making.

Instead, an ERP system will streamline reporting across multiple departments and dimensions, taking into account time periods, location, products, customers, and operational metrics. This enables faster, more reliable decision-making. It transforms reporting with:

• Real-time Dashboards: KPIs update automatically as business processes occur
• Role-based Analytics: Users see relevant metrics that are related to their responsibilities
• Automated Report Distribution: Reports are generated and distributed automatically
• Mobile Access: Decision-makers access current data from any location
• Predictive Analytics: ML algorithms identify trends and potential issues before they occur

4. Finance and Operations Processes Are Disconnected

The disconnect between finance and operations departments can create data blind spots that impact cash flow, profitability analysis, and strategic planning and forecasting. This leads to:

• Inability to determine the accurate cost per unit
• Difficulty distinguishing between committed and available budgets
• Outdated profit and loss (P&L) statement
• Uncertainty about actual inventory levels

ERP Software integrates finance and operations processes in real time, creating a financial system that reflects real business activity, including processes such as:

• Operational activities are updated immediately on financial records with automated journal entries
• Inventory movements adjust the cost of goods sold
• Purchase orders automatically update budgets and cash flow projections
• Sales and delivery data synchronise with invoicing

5. Operational Complexity As the Business Grows

Rapid growth can often expose limitations in business processes. Disconnected systems, bottlenecks, and manual processes become more evident, ultimately constraining scaling.

Enterprise Resource Planning Software provides the capabilities to address the concerns when expanding, such as:

• Automating workflows and reducing manual tasks
• Providing user role management to maintain security and access control
• Monitoring departmental performance to identify capacity constraints
• Enabling seamless integrations of enterprise applications
• Offering a modular architecture for greater precision when adding and removing modules

6. Compliance and Auditing Challenges

Industries such as manufacturing, construction, distribution, food and beverage, and healthcare face strict regulatory demands. To keep on top of compliance and regulatory demands, organisations require a sophisticated documentation and tracking workflow.

Enterprise Resource Planning systems provide audit-ready features by default, including:

• Automated audit trails and version control
• Time-stamped digital approvals
• Role-based access permissions
• Historical change logs and audit trails
• Built-in compliance modules for ISO, OSHA, HACCP, GDPR, FDA, HMRC, and more

These tools simplify compliance and enhance credibility with auditors, insurers, and business partners.

11 Best ERP Software Options In the UK For 2025

Key ERP Software Modules and Capabilities That Businesses Benefit From

Finance and Accounting Integration

Financial modules integrate financial management tools such as general ledger, accounts payable and receivable, budgeting and forecasting, multi-currency management, and automated bank reconciliation. This exceeds the capabilities of basic accounting tools and helps accounting teams to:

• Offer real-time visibility into key financial metrics
• Eliminate manual data re-entry between departments
• Automate invoicing and revenue recognition
• Allocate costs accurately by project, product, or department

Finance departments using standalone accounting tools often operate without real-time input from other departments and business processes. This disconnect leads to inefficiencies and inaccuracies, such as delayed financial reporting and a lack of real-time financial visibility.

Centralised Data With MDM

For growing organisations, it’s common to operate with disconnected and manual-based systems. This means each department builds its own data sources, resulting in conflicting information.

ERP Software with master data management (MDM) and role-based access provide a single source of truth for customers, suppliers, products, and transactions. This enables businesses to:

• Eliminate data duplication and version conflicts
• Ensure all departments have access to the same real-time dataset
• Improve auditability and track changes efficiently
• Adhere to data governance and data protection regulations

Sophisticated Reporting and Analytics

Without a central system, reporting becomes slow, manual, and superficial. Decision-makers often wait for data exports or depend on outdated snapshots.

Modern ERP systems provide advanced analytics that take raw operational data and turn it into actionable business intelligence, ultimately reducing reporting times from hours to minutes. Utilising embedded reporting, real-time dashboards, and analytics modules, businesses can:

• Provide live, role-specific insights and KPIs
• Utilise generative and Agentic AI capabilities to summarise reporting
• Enable data drilling, from high-level trends to detailed transactions
• Support strategic decision-making with accurate, up-to-date data
• Integrate predictive analysis with IoT sensors and scenario modelling tools

Planning, Forecasting, and Scheduling

Using manual planning methods and having a short-term focus can hinder long-term growth. Enterprise Resource Planning systems use historical data, trend analysis, and predictive modelling to:

• Automate demand and supply forecasting
• Align capacity planning with sales projections
• Support diverse production models, including make-to-stock and just-in-time
• Enable scenario planning and risk management analysis

Inventory and Supply Chain Management

For warehouse and inventory departments using spreadsheets or a basic WMS, they’re limited in their reporting and operations. Stockouts, overstocking, accuracy errors, and supplier miscommunication are all consequences of this.

Inventory and supply chain modules offer real-time visibility tracking, AI-driven reorder points, supplier performance metrics, and multi-location visibility. These features allow organisations to:

• Monitor stock movements across all sites in real time with cycle counting automation
• Automate purchase orders based on defined thresholds
• Improve forecasting accuracy based on supplier lead-time data
• Integrate barcoding, RFID, and material handling systems for automated, precise tracking
• Plan intelligent replenishments for out-of-stock scenarios

Asset Maintenance, Management, and Performance

Unscheduled equipment failures can lead to costly operational disruptions. ERP Software, integrated with maintenance modules, life cycle management platforms, and IoT sensors, allow businesses to monitor the operational output of their assets effectively.

This enable teams to:

• Schedule equipment preventative maintenance by usage or condition triggers
• Create a detailed asset register with operational and financial data
• Track asset lifecycle data and warranty records
• Predict failures using environmental data with temperature and vibration sensors
• Align maintenance schedules with procurement and resource planning

Seamless Third-Party Integration

Modern ERP Software is modular and built with agility and flexibility in mind. Systems support the integration of third-party enterprise applications through APIs and pre-built connectors. This extends a system’s functionality without needing to replace it and synchronises relevant data across all platforms.

Third-party integration capability allows businesses to connect systems and enterprise applications, such as:

• CRMs
• E-commerce platforms
• Business intelligence tools
• Document management apps
• Human Resources and Payroll tools
• Manufacturing and MRP systems
• Warehouse management and distribution platforms

Core ERP Software Costs and ROI Breakdown

The Total Cost of Ownership (TCO) of the ERP implementation process lies in direct, indirect and hidden costs. Understanding these costs is not only critical for accurate budgeting but also for setting realistic return on investment (ROI) expectations.

These cost components consist of five sections:

1. ERP Software Licensing and Subscription Fees

The typical cost range for licensing and subscription is £10,000 to £100,000 per annum. That includes fees for individual user licences, modules, add-ons, and data storage. These fees would depend on the deployment model, most commonly on-premise ERP or cloud ERP:

• Cloud ERP Software: Modern systems operate on a subscription basis, charging a monthly fee per user, typically between £50 and £150. Additional charges may apply for extra modules or API usage.
• On-Premise ERP: This model requires a one-time licence fee, often ranging from £20,000 to £100,000 or more, along with annual maintenance contracts, which usually cost 15 to 20 per cent of the original licence fee. On-premise ERP systems also require servers, storage, network infrastructure, cybersecurity, and IT personnel.

2. Implementation and Configuration

Each ERP implementation process is unique, as every organisation has its own data structure and integration requirements. This is reflected in the costs, which typically range from £15,000 to £250,000, although they can be ongoing and exceed this amount.

Implementation costs reflect the level of customisation and expertise required to configure a system correctly. When planning, keep in mind:

• Implementation timescales can take anywhere between 3 months and 36 months, depending on customisation and complexity
• Implementation consultants charge £800 to £1,500 per day
• Data cleansing and migration from legacy systems increases the complexity of implementation
• Integrations with CRM, payroll, and eCommerce systems may require bespoke development
• Industry-specific systems with unique modules may take longer

3. Training and Change Management

Investing in training is critical to ensure Enterprise Resource Planning Software adoption and success. Without it, users may revert to legacy systems or manual methods such as spreadsheets. Training will focus on:

• Role-specific programmes for executives and end-user training
• Developing internal champions to support ongoing learning
• Measuring user adoption and improving training strategies
• Recording training sessions for future use and onboarding

Training costs consist of materials, onboarding programmes, ongoing support, and change management consultants. These costs range between £5,000 and £50,000.

4. Support, Maintenance, and Upgrades

On average, support, maintenance, and upgrades for an ERP system cost 15-20% of the annual licence fee. This includes technical support, bug fixes, system updates, and performance monitoring, which differ for deployment types:

• For cloud ERP Software, support and upgrades are generally included in the subscription fee
• For on-premise ERP, this is a separate recurring expense to access software updates and vendor support

Data migration is also included in these costs and can be significant in terms of time and costs depending on legacy system mapping, custom integrations, data cleansing, and historical data requirements.

5. Add-Ons and Custom Integrations

Out-of-the-box Software may not provide the modules and capabilities required for all business processes. To combat this, organisations will spend on custom-built modules and external system integrations.

For cloud systems, this will cost between £2,000 and £15,000 per annum. For on-premise ERP solutions, the upfront costs range from £25,000 to £100,000.

Calculating Return on Investment From ERP Software

ROI post-implementation is realised through improvements in the following areas:

1. Labour and productivity gains
2. Inventory optimisation
3. Reduced downtime and maintenance costs
4. Improved financial control
5. Compliance and risk reduction

To calculate ROI, the standard formula is: ROI (%) = ((Total ERP Benefits – Total Costs) ÷ Total Costs) × 100. Total ERP benefits are tangible gains like increased revenue, reduced downtime, and cost savings. Total costs include all direct and indirect costs like licenses, implementation, and training.

As an example, if an ERP system delivers £55,000 in benefits in the first year and costs £47,000 to implement, that would be an ROI of 17%.

Most businesses begin to realise measurable ROI between one and three years after implementation. The average ROI for Enterprise Resource Planning Software is approximately 52%, with 82% of enterprises achieving positive ROI within three years.

How ERP Software Impacts Different Industries

• Manufacturing: Manufacturing ERP systems help manufacturers plan and schedule production, improve product quality, leverage product lifecycle management, optimise supply chain planning, and gain accurate inventory control.

  Shortlist the UK’s Best Manufacturing ERP Systems

• Retail/E-Commerce & Distribution: Retailers utilise e-commerce integrations and ERP modules such as order management, warehouse management, customer tracking, and supply chain management to improve control of sales and the customer experience.

  Find the Best ERP E-commerce Platform Integrations

• Construction and Engineering: Construction and engineering operations use integrated enterprise applications to track and assign sub-contractors, control the inventory of building materials, plan for resource allocation, and improve project management on a large scale.

  See the UK’s Best Construction ERP Solutions

• Banking and Financial Services: Enterprise Resource Planning systems are used by financial services to control risk management, plan for “what-if” scenarios, secure data management, and track custom relationships.

  Discover Finance ERP Modules

• Food & Beverage: Tailored food and beverage ERP tools use information to analyse and improve food waste management, recipe management, ingredient tracking, and allergen and dietary safety compliance. As well as using warehouse and inventory management modules for storing products with temperature, weight, and date requirements.

  Find a Food & Beverage ERP System

• Healthcare: Hospitals, care homes, blood banks, and more, use business management systems to manage medical inventories and supplies, digitalise patient records to build centralised patient portals, and create accurate financial forecasts.
• Education: Institutes, schools, and colleges use ERP Software to make sharable information available to parents, students, staff, and teachers, as well as help to build digital student records and improve the availability of educational equipment through resource planning and asset management modules.

Types of ERP Software Deployment to Consider Before Implementing

From project drivers to budget allocation, the ERP implementation process is complex. It involves picking the right methodology approach; waterfall or agile? As well as knowing what strategy best matches your requirements; big bang, phased, parallel, or hybrid?

The answer to these implementation-driven questions depends on the type of deployment.

Cloud ERP/SaaS (Public or Private)

Cloud ERP Software are by far the most popular deployment type, with 86% of digital finance leaders claiming a cloud-first mindset. Cloud ERP is a software package that resides on a server and is accessed via the internet and by paying a subscription service model to the provider (also known as software-as-a-service). There are two types of Cloud Software models:

• Public: All infrastructure is owned and operated by a third-party vendor operating a multi-tenant subscription model.
• Private: A cloud model owned by just one company, as opposed to multiple, with the infrastructure either on-site within a company’s firewall or off-site in a company-owned data centre.

On-Premise ERP Solution

A company operates and maintains its own software and hardware infrastructure on-site. ERP Software is installed on in-house servers and all infrastructure assets – including licenses – are exclusively owned by the company.

Hybrid Cloud ERP

A combination of public and private cloud models offers a mixture of advantages. Private cloud provides ownership and security, while public cloud models offer ease of implementation and scalability, particularly with data storage and computing requirements.

Specialised (Industry)

Specialised Enterprise Resource Planning systems are customised to provide features and capabilities targeted at specific niche operations and industries. For example, while a Distribution ERP system will have generalised features for finance and HR, it will provide more specialist features for distribution activities like order fulfilment, warehouse management, and demand forecasting.

Two-Tier Deployment

A two-tier approach is deployed when a core ERP system (Tier 1) is either overly complex or doesn’t provide the specialised requirements of business subsidiaries. Therefore, instead of all regions and subsidiaries using one core system, organisations will deploy another ERP Software (Tier 2).

3 Real-World Examples of Successful ERP Software Implementation

1. N&N Moving Supplies Scales With ERP

As N&N Moving Supplies, a family-run wholesale distribution business with $5-$10 million in revenue, expanded its operations, it encountered increasing complexity from managing multiple sites and a growing workforce.

To keep up with product demand and address cross-departmental scaling challenges, the company implemented an ERP system with an integrated workforce management module to eliminate manual processes and disconnected systems. By choosing ERP Software, it:

• Reduced payroll processing time by 84%
• Improved labour cost tracking and faster account reconciliation
• Enabled scalable growth without a proportional increase in administrative workload

2. Cadbury’s 5-Year Implementation Process

Cadbury adopted Enterprise Resource Planning Software over a five-year IT project timeline to standardise operations across its international business units. By doing so, it set out to address concerns regarding production and distribution during a high-growth phase.

The objective of implementing an ERP was to unify its global footprint and improve efficiency across manufacturing and logistics. After doing so, it:

• Standardised processes across 16 international locations and 13 manufacturing sites
• Reduced operational costs and enhanced production and logistics efficiency

3. CONA Services Bottles Operational Efficiency

CONA Services, a technology partner for 12 independently owned Coca‑Cola bottling companies, faced challenges due to disconnected systems, limited inventory visibility, and poor forecasting accuracy.

By shifting from an on-premise solution to a cloud system, it transformed its operational infrastructure to meet the demands of a complex distribution network. This resulted in:

• Automated core business processes and centralised operations
• Achieved real-time visibility across bottler distribution networks
• Improved demand forecasting and customer service responsiveness
• Transformed and improved recruitment and HR operations

Selecting and Implementing ERP Software In 9 Steps

Selecting and implementing ERP Software is a strategic decision that impacts every aspect of your organisation. It affects operations, finance, employee workflows, customer service, and long-term scalability. Successful ERP adoption involves aligning technology with business goals and managing change across people, processes, and systems.

To avoid costly implementation failure, use this step‑by‑step checklist to guide your Enterprise Resource Planning Software purchasing decision.

Step 1: Assess Your ERP Software-Readiness

Before engaging vendors, determine whether your operational needs and growth trajectory warrant ERP investment. To do so, perform a current state analysis:

• Are critical processes managed via spreadsheets or disconnected systems?
• Do planning, ordering, or reporting processes suffer delays or errors?
• Are departments duplicating work due to a lack of system integration?
• Is real-time visibility into financial and operational data limited?
• Is business growth outpacing the capacity of current systems?

Step 2: Build a Cross-Functional ERP Software Selection Team

Selection should involve more than just IT and finance teams. As ERP systems serve almost all departments, your evaluation team should reflect a wide range of perspectives.

Recommended stakeholders include:

• Finance: Oversees budgeting, reporting, and compliance
• Operations: Understands real-world workflow challenges
• IT: Manages integration and system architecture
• Procurement and Inventory: Engages with supply chain systems
• Leadership: Ensures strategic alignment and change support
• End Users: Offers practical insights and promotes adoption

Step 3: Map Existing Processes and Identify Pain Points

ERP Software implementation should improve existing workflows, not replicate outdated ones. Begin by mapping your current state:

• Document current business processes across all departments
• Identify operational challenges, bottlenecks, and data silos
• Map data flows between existing systems
• List all current systems and applications in use, alongside license fees

Step 4: Define Functional, Technical, and Industry-Specific Requirements

With a full understanding of your operations, define your requirements in three categories.
Functional Requirements:

• Finance and account management (general ledger, accounts payable/receivable, budgeting)
• Inventory and supply chain management
• Sales, CRM, HR, payroll, and procurement
• Manufacturing or service delivery processes

Technical Requirements:

• Cloud or on-premise deployment
• Integration with existing systems (CRM, eCommerce, payroll)
• Data migration and configuration needs
• User access permissions and system security

Industry-Specific Needs:

• Compliance (e.g. ISO, MTD, GDPR, FDA)
• Traceability and lot tracking
• Job costing and work-in-progress tracking
• Field service or asset scheduling

Step 5: Understand ERP Software TCO Against Your Budget

ERP Software is a long-term investment. Your decision must take into account all direct and indirect costs, not just the upfront software cost. Consider TCO factors like:

• Licence or subscription fees
• Implementation, training, and support
• Custom integrations and add-ons
• Maintenance, upgrades, and system management
• Downtime or productivity impacts during go-live

Step 6: Shortlist ERP Software Vendors and Book Demos

With your requirements in hand, engage with 4–6 ERP Software vendors and request tailored demonstrations. Avoid generic demos and ask each vendor to show how their system handles your processes and pain points.

In demos, look for:

• User interface and ease of use
• Flexibility in workflows and reporting
• Depth of automation and integration
• Customisation vs configuration (and what that means for cost)
• Relevant industry experience

Once you’ve scored vendors, gathered feedback, reviewed demos, and understood costs, it’s time to make a decision. When selecting your Enterprise Resource Planning system, ensure you:

• Align with a vendor experienced in your industry and business size
• Validate the vendor’s post-sales support and upgrade roadmap
• Secure buy-in from leadership and end users
• Prepare for change management as much as for technical setup

Step 7: Plan For ERP System Implementation

Implementation timeframes range from 3 to 36 months, depending on complexity. Planning is essential. Key planning components include:

• Appointing a clear project owner and governance team
• Deciding between phased vs big-bang rollout (pilot with one department or site first)
• Defining a realistic timeline with defined milestones
• Preparing a data migration plan with cleansing and validation
• Communicating strategy across departments
• Designing a training and change management plan
• Developing integrations with existing systems

Step 8: Train Users and Drive Change

Even the best ERP system will fail if users don’t understand or adopt it. Proper training is critical to ensure adoption. Training best practices include:

• Role-based training (finance, warehouse, operations, etc.)
• Hands-on testing environments (sandbox systems)
• Creating super-users to support departments
• Documenting guides for each process
• Encouraging feedback and iterative learning

Step 9: Go Live and Monitor Performance

A successful go-live is just the beginning. To achieve ROI, track the impact of ERP against your pre-defined KPIs. Post-go-live priorities should be to:

• Track system performance and user engagement
• Offer dedicated support for the first four weeks
• Log early wins and troubleshoot issues
• Measure success using KPIs (report generation time, stock accuracy, invoice turnaround, labour hours saved, order error rates, etc.)
• Fine-tune system configuration as and when needed
• Document lessons learned and best practices

Popular ERP FAQs

How Much Does an ERP System Cost?

• £2,000 to £15,000 for small business ERP Software.
• £15,000 to £50,000 for medium businesses with simple requirements, light customisation and straightforward integration requirements.
• £50,000 to £150,000 for medium businesses with customisation and integration requirements.
• £150,000 to £1,000,000 for medium businesses with complex requirements, bespoke development, customisation and two-way (bespoke) integration.
• £1,000,000 to £10,000,000 for enterprise businesses that have simpler processes.
• £10,000,000+ for enterprise holding companies with multiple businesses/subsidiaries and complex processes.

How Long Should It Take to Implement ERP Software?

The duration of implementation hinges on several factors, but on average can take anywhere between 3 months to 3 years. This timescale largely depends on the size of a company:

• 3–6 months: Small businesses who opt for an out-of-the-box cloud solution
• 6–9 months: Medium businesses that require a slightly more customised system
• 9–18 months: Large organisations with over 1000 users and requiring multiple module integrations
• 18–36 months: Multinational enterprises that have multiple subsidiaries and therefore may require a two or three-tier deployment

As well as considering the time of an ERP deployment’s lifecycle (planning, design, transition, testing, and post-analysis), other factors play a role in how long implementation can take, including:

• Required customisations
• Complexity of a system
• Migration of existing data from legacy systems
• Required user training
• Deployment type (cloud, on-premise, or hybrid)

How Can You Use Reviews To Shortlist ERP Software?

ERP Software reviews can be useful, but genuine reviews can be very hard to find. The BBC reported that the authorities investigated fake online reviews on major websites.

The trouble is, review websites are completely disconnected from the Software purchase cycle. They have no understanding of the purchase, implementation, or buying process of ERP Software. They are simply collecting the reviews. Hence, it becomes very easy to game the Enterprise Resource Planning Software reviews.

Literally, anybody can post a review.

Nobody likes to post reviews, so review websites often end up paying for them. This makes it very difficult to trust these reviews. As a result, the chances of finding a negative review are significantly reduced.

Another major issue with reviews is that they are statistically insignificant. The number of reviews available is not a true representation of the Software.

SAP, for example, has only hundreds of reviews despite having 25,000 customers globally. Statistically, fewer than 0.01% of SAP’s customers have left a review.

In essence, genuine reviews for ERP Software are difficult to find, and you are unlikely to encounter any bad reviews online.

There are two ways to identify reviews of ERP Software:

• Look at testimonials, case studies, or success stories featured on a shortlisted Software vendor’s profile or website. Since this information is available directly from the vendor, it is likely to be genuine.
• The best way to identify genuine reviews is to speak with the support team of your shortlisted Software vendors. Support teams often provide clear insight into which areas of the product require more support, what types of customers the ERP Software suits best, and they may suggest best practices to avoid pitfalls.

Always speak with both satisfied and unsatisfied customers of your shortlisted products. That is the best way to uncover the right fit for your business.

Will an ERP System Integrate With External Applications and Existing Software (Like CRM, E-Commerce, Payroll, etc.)?

Yes, modern ERP systems are designed to integrate easily with commonly used business tools. These include CRM, HRM, inventory and WMS, e-commerce platforms, and payroll.

There are three main methods of integration: native/pre-built, iPaaS/middleware, and point-to-point/custom APIs and SDKs.

Although seamless integration is common, it also depends on the configuration of external applications and a vendor’s capabilities. If integration is a key factor in your ERP software decision-making, be sure to consider:

• What connectors or pre-built integrations are provided
• Whether the system supports custom-built application integrations
• Will you will receive real-time data synchronisation across all applications connected to your ERP
• Whether integrations incur extra costs
• How long it will take to connect existing applications with the Enterprise Resource Planning system
• Who manages the integration process

How Best To Compare ERP Software Options?

Most businesses looking to compare ERP Software tend to focus primarily on the products themselves. Typically, features and pricing are the initial points of comparison.

However, in addition to features and prices, there are four additional factors that should also be evaluated:

1. Implementation success and onboarding programmes: Assess the vendor’s track record, typical implementation timelines, and the quality of onboarding support they provide.
2. Support quality: Evaluate the available support channels, average response times, and the technical proficiency of the support team.
3. Product evolution: Review how frequently the vendor releases updates and new features to ensure the software continues to meet evolving business needs.
4. Team stability: Vendors with low staff turnover often indicate strong internal management and can offer more consistent long-term support.

What Are the Perceived Risks of Implementing ERP Software and How Best to Manage Them?

1. High Implementation Failure Rate

Most ERP adopters are apprehensive about successful Implementation. Whilst there is data suggesting over 55% of Implementations fail, the data is outdated. Most of it is related to on-Premise software deployment.

Most modern cloud ERP systems have reliable data import routines, experienced implementation teams, and industry experts. Meaning the majority of Enterprise Resource Planning implementations are well managed.

2. Difficult to Implement

ERP is a complex product because it becomes your data and decision-making nervous system of a business. By default, you are looking to change the data fabric of your business by implementing a system. So it is not an easy project.

Speaking with businesses who have implemented ERP systems is one of the best ways to exponentially improve your implementation success rate. Most buyers don’t do deep reference checks and implementation checks on their chosen products. We highly recommend to speak with existing customers of your selected product(s) before you sign on the dotted line.

Often, by speaking with the existing customers you will be able to validate the speed of implementation.

3. ERP Software Is Features Heavy

Niche and Medium business-focussed ERP products often offer deep features (with less breadth). Enterprise Resource Planning products need to be feature rich because of the variety of users, use cases, and applications they have to cater too.

Phased implementation and collectively agreeing on the must-have features often ensures swift adoption of the chosen ERP system.

What Are the Different ERP Tiers to Consider?

There are three tiers: Tier 1 ERP, Tier 2 ERP, and Tier 3. Although not standardised, ERP Software can be based on a hierarchy that accounts for the size, complexity, and budget of a business.

Tier 1

• Business Size: Large global enterprises with over £500 million in revenue
• TCO: Most expensive, typically over £1,000,00
• Operations: Global
• Requirements: Customised modules and integrations to match complex workflows

Tier 2

• Business Size: Mid-market businesses with high growth potential
• TCO: Moderately expensive, ranging from £150,000 to £1,000,000
• Operations: Country-wide with some international
• Requirements: Industry-focused modules with basic customisation

Tier 3

• Business Size: Small to medium-sized businesses
• TCO: Least expensive, ranging from £10,000 to £150,000
• Operations: Almost entirely local
• Requirements: Basic modules for accounting, HR, and payroll business processes

What Are the Emerging Future Trends for Enterprise Resource Planning?

• Agentic AI: ERP systems are evolving from passive data repositories to active participants in decision-making. AI agents can now recommend actions, flag anomalies, and simulate business scenarios.
• Composable ERP: Businesses are shifting from monolithic systems to modular, “plug-and-play” ERP that fits specific needs.
• Predictive Analytics: Next-gen platforms forecast demand, stock levels, and cash flow using machine learning.
• Hyperautomation: Integration of RPA and AI to automate complex workflows across departments.
• User-centric design: ERP interfaces are being redesigned for easier adoption, especially for mobile and non-technical users.

Who Are the Primary Users of ERP Software and How Do They Apply It?

Executive Leadership (CEO, COO, MD)

• Monitor real-time dashboards tracking sales, margins, inventory value, and cash flow
• Generate comparative reports by region, business unit, or time period
• Review high-level KPIs, including on-time delivery rates, gross profit per product, and working capital status
• Use forecasting and scenario planning tools to model growth strategies and risk mitigation

Finance Teams (FD, CFO, Accountants)

• Automate invoice generation, payment tracking, and bank reconciliation
• Close month-end and year-end accounts efficiently with minimal manual intervention
• Create and manage budgets, monitor cash flow, and forecast revenue and expenditure
• Conduct internal audits using built-in traceability, document history, and version control

Operations Managers

• View real-time job schedules and allocate labour or machine capacity accordingly
• Track production status and identify operational bottlenecks
• Monitor material availability and enable just-in-time inventory ordering
• Analyse production throughput, waste rates, and downtime metrics
• Log resource usage directly into the system for accurate cost accounting

Supply Chain and Procurement Teams

• Set automated reorder points based on stock levels and lead times
• Approve purchase orders, track supplier deliveries, and manage order discrepancies
• Evaluate supplier performance across cost, delivery reliability, and quality
• Manage vendor contracts, catalogue pricing, and payment terms
• Link purchase orders to goods receipts and supplier invoices for seamless processing

Field Service and Maintenance Teams

• Access scheduled maintenance tasks on mobile devices while on-site
• Record job status, time spent, and parts used during service calls
• Review asset history to identify recurring faults and optimise maintenance schedules
• Trigger urgent work orders for reactive maintenance when issues are reported
• Sync task completion data with finance for billing or cost recovery

Warehouse and Inventory Teams

• Use barcode or RFID technology to manage stock movements in real time
• View live inventory levels across all storage locations, bins, and batches
• Conduct cycle counts and update inventory to reflect actual quantities
• Allocate stock efficiently to sales or production orders
• Identify expired or damaged stock and flag it for review or disposal

Sales and Customer Service Teams

• Check real-time stock availability before confirming customer orders
• Access customer profiles, order history, payment status, and contact preferences
• Convert quotes to orders and generate invoices in a single workflow
• Track delivery status and respond to customer enquiries with accurate updates
• Apply authorised pricing, discounts, or promotions based on defined rules

Human Resources and People Teams

• Manage employee records, payroll, timesheets, and leave schedules in one system
• Track absences, shift patterns, and workforce availability
• Automate tax calculations, statutory deductions, and payslip generation
• Assign mandatory training, record certification status, and ensure compliance
• Analyse staffing costs across departments, roles, and locations

IT and Digital Transformation Leaders

• Define user roles, permissions, and access controls to ensure data security
• Integrate ERP software with existing systems such as CRM, eCommerce, and BI tools
• Monitor system performance, manage backups, and ensure cybersecurity
• Plan and execute system upgrades, patches, and custom configurations
• Extend functionality using APIs and compatible third-party solutions

Which Scenarios Are Best Suited To Implement ERP Software?

Implementing ERP Software is most beneficial when specific operational, business, or technical conditions are present. Below are the key scenarios where Enterprise Resource Planning Software delivers measurable value:

1. Operational Scenarios

• Cross-departmental workflows: When processes span multiple departments and require shared access to common data.
• Production, operations, or logistics planning: When improved planning directly enhances customer service levels.
• Standardising procedures across sites: When multiple locations require consistent processes, policies, and reporting standards.
• Data reliability issues: When there is a lack of confidence in the accuracy of operational data.
• Slow or error-prone reporting: When reports take too long to generate or frequently contain errors.
• Duplicated efforts: When departments perform redundant tasks or re-enter data multiple times.
• Siloed systems: When disconnected tools hinder collaboration across departments.
• Weak compliance adherence: When regulatory and audit requirements are inconsistently met.
• Need for end-to-end visibility: When connecting sales, operations, delivery, warranty, and after-sales processes increases efficiency.

2. Business Scenarios

• Rapid growth with outdated systems: When legacy tools cannot scale to meet business expansion.
• Efficiency and productivity gains: When operations suffer from bottlenecks or inefficiencies.
• New ways of working: When shifting to leaner, more automated, or remote-friendly models.
• Improving communication: When teams operate in silos and need better coordination.
• One source of truth culture: When leadership prioritises unified performance metrics across the organisation.

3. Technical Scenarios

• Centralised data security: When it is easier to secure a single database than multiple fragmented systems.
• Unified data foundation: When high-confidence reporting depends on a single source of data truth.
• Cloud adoption readiness: When preparing for efficient cloud computing, scalability, and uptime.
• Simplified IT maintenance: When reducing the burden of supporting legacy applications and integrations.
• Compliance-friendly architecture: When IT governance requires built-in controls, audit trails, and structured updates.

ERP Software Implementation & Industry Guides