Features Of Enterprise Resource Planning (ERP) Systems 

Enterprise resource planning (ERP) systems continue to change the operational efficiencies of various industries. When you use an ERP system, you can streamline and standardize your operations, thus improving your overall output.

Although initially designed for the manufacturing industry, the enterprise resource planning (ERP) system has evolved into other sectors. Advanced technology means adopting an ERP system depending on your industry of operation and the type of implementation you want to adopt. The implementation type can either be cloud-based, on-premise, or a hybrid. So, if you are an accounting firm and embrace cloud technology, you can search online for cloud-based accounting ERP, such as sage 100 software. Based on this, you can see that there are no one-size-fits-all ERP systems, instead, it’s based on the company’s preference and the kind of operation you’re integrating it to. 

Enterprise Resource Planning. A photo of an engineer.

However, the features of ERP systems mentioned below remain the same across all industries. 

  • Integration 

By integrating the various departments into one system, an ERP system ensures that operations in all departments run in sync with each other. It also allows information vital to your operations to be shared from a central point. If your organization has two or more separate software, for example, accounting and production or accounting and human resource, an ERP system can help integrate them. This helps reduce duplication of data, thereby increasing operational efficiency and transparency. 

Furthermore, the integration feature of ERP systems enables you to have a single database to collect, analyze, store, and monitor data from all departments in your organization. This provides a single source of communication for the company and reduces inconsistencies among your team members. Thus, for instance, a customer’s information available to a front-end team member would be the same as the information in the accounting department. This means you reduce such errors as partial or missed payments. 

  • Automation 

Like many technologies, ERP systems can help take care of some routine and repetitive tasks in your organization. This reduces human input and can help reduce the time required to complete such tasks. Additionally, less human input can reduce errors along your operation lines, thus keeping costs at a minimum. Furthermore, your team members can focus on other essential tasks. 

With an ERP system, you can have data available across your organization entered into the database from a single point. This can help your team execute their duties more efficiently and enhance productivity. For example, if you’re using a supply chain management (SCM) system, inventory tracking can help in having timely invoice preparation and shipment processes. This helps improve relations with your customers and your company’s reputation too.  

Its automation feature also helps generate business information through various business intelligence tools. Decision support systems and executive information systems are some of the tools that can help a manufacturing operation analyze its production processes. This, in turn, can help when making critical operational decisions.  

ERP systems help automate accounting, invoicing, and payroll tasks, while reducing errors and their delivery times.

  • Data Analysis And Reporting 

The amount of data that runs through your organization’s system every day can be enormous and confusing. However, ERP systems can consolidate these data or break them down into easy-to-digest information. You may only need to input metrics and parameters like dates and scope. As it’s an integrated system, every department can extract such analytics and develop relevant reports. 

Although data analysis and reporting can be separate features, in most cases, they go hand-in-hand. Furthermore, the data analysis aspect uses statistics and other data to find trends and patterns in your operation and display these in actionable information. Moreover, reporting provides a dashboard for this information to be displayed. Thus, you may often find analyzed data on bar graphs, pie charts, or other visual representations. 

  • Tracking And Visibility Aspect 

With an ERP system, you can have a platform to access these operational data. You can make more informed future operational decisions based on this. It’s important to note that an ERP system also helps break down heavy data and makes it accessible in easy to interpret reports. 

In addition, ERP systems enable you to track information on various aspects of your organization. For example, you can get production statistics versus staff productivity, which determines performance levels.  

From an operational point of view, using an ERP system in your supply chain gives you extensive tracking and visibility functionality. For example, you can track in real-time a product from delivery of raw materials on your premises to delivery of the final product to your customers. This can help you understand your supply operations and note such issues as delays or increases in demand. 


In summary, you can use ERP systems in any industry. You may only need to opt for the implementation you prefer. Once you have an ERP system, it can help automate some of the repetitive tasks and provide a tracking and visibility module for your supply chain. Additionally, its integration feature can improve your data analysis and reporting.