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Top 10 ERP Systems for Small Business in 2024

Top 10 ERP Systems for Small Business in 2024

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Construction, Consumer Goods, Distribution, ERP, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By / March 17, 2025

As businesses evolve beyond the startup phase, they often resort to employing various disjointed solutions, even if ERP may be part of their architecture. ERP adoption at this stage is primarily centered around financial reporting and basic transactions. The budget constraints of the previous stage lead to the creation of ad-hoc processes and unique data models, urging the need for streamlining to sidestep financial challenges at the next inflection point. Additionally, the expansion of departments introduces overlaps in responsibilities, making finding ERP systems for small business uniquely challenging.

To meet KPIs and delivery expectations, batch capabilities become pivotal at this stage. The increased workload arising from reconciling disconnected data silos and managing ad-hoc processes prompts exploration of process re-engineering and tightly integrated processes. This also triggers the consolidation of critical point solutions requiring tighter alignment of cross-functional processes, particularly those involving inventory. Inventory accuracy and financial control gain significance, especially if the small business is now owned by a private company with aggressive M&A and growth plans, necessitating a superior ERP implementation, often requiring expert assistance.

Top 10 ERP Systems for Small Business in 2024 - Quadrant

While a micro view is important at this stage of ERP selection, complete automation of planning, procurement, and scheduling may not be a critical focus. Additionally, if executive teams lack experience in such transformations, they might not fully appreciate their value. Their tactical perspective and critical success factors are likely to guide them toward systems aligning with their priorities and current needs. So, which ERP systems are best suited for smaller businesses?



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Criteria

  1. Definition of small organizations. $10-100 mil in revenue or 25-300 employees. Low implementation budget up to $100K. No appetite for integration or custom development. Some systems and processes could remain siloed. Little to no planning is needed.
  2. Overall market share/# of customers. The higher the market share among small organizations, the higher it ranks on our list.
  3. Ownership/funding. The more committed the management to the product roadmap, the higher it ranks on our list.
  4. Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
  5. Community/Ecosystem. The larger the community with a heavy presence from small organizations, the higher it ranks on our list.
  6. Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
  7. Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  8. Small business market share. The higher the focus on small organizations, the higher the ERP system ranks on our list.
  9. Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  10. Acquisition strategy aligned with startups. The more aligned the acquisitions are with the small organizations, the higher they rank on our list.
  11. User Reviews. The deeper the reviews from small organizations, the higher the score for a specific product.
  12. Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.


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10. SAP Business One

SAP Business One proves excellent for smaller companies prioritizing financial control over extensive operational features, particularly suitable for companies in geographies where other operationally rich ERP solutions might not be available. In contrast to DIY-friendly options like Odoo or Zoho, SAP Business One has more detailed ERP layers but not as detailed as those found in NetSuite or Acumatica. 

The cloud version lacks the deep industry functionality inherent in the on-premises version, especially in contrast to specialized solutions like Aptean Ross. Diversified business models, such as equipment dealerships, seeking robust field service capabilities may find SAP Business One less accommodating than alternatives like Acumatica or Prophet 21. Due to a perceived lack of momentum in the SAP Business One portfolio, a slight downgrade has been made, yet it retains its position at #10 of top ERP systems for small Business.

Strengths
  1. Global Capabilities. Ideal for companies in geographies where other operationally rich solutions might not be accessible.
  2. Financial traceability and governance workflows built with the product. The transactional maps to track complex multi-entity workflows are built as part of the product. 
  3. Power of HANA. Companies with complex product mixes and resource-intensive product models, such as serial number processes, may require the power of HANA even for smaller operations.
Weaknesses
  1. Behind in cloud capabilities. The cloud version is not as rich operationally as the on-prem variant, requiring third-party add-ons and code base from VARs.
  2. The cloud ecosystem is not as developed as its on-prem variant. The cloud ecosystem doesn’t have as many companies investing in add-ons and integration.
  3. Lack of SAP’s commitment to the SMB market. SAP’s focus is on retaining its enterprise market, which puts the SMB market at a disadvantage.

9. Rootstock

Utilizing the Salesforce platform, Rootstock, alongside SAP Business One, MS Dynamics 365 Business Central, and Epicor Prophet 21, caters to distributors and project-centric custom manufacturers. Particularly attractive to companies on the Salesforce platform, Rootstock faces limitations inherent in the Salesforce platform. Newer CRM systems, including Salesforce, lack the same database-level referential integrity enforced by traditional ERP systems. While enhancing the user experience for sales and marketing teams, this design may pose financial control challenges.

Rootstock’s current implementation base is limited, relying on various apps within the Salesforce ecosystem, thereby elevating integration and maintenance risks. Additionally, issues like the disconnected reporting layer in Salesforce contribute to a less cohesive experience compared to newer ERP systems. Despite these considerations, Rootstock maintains a strong position for smaller businesses, securing its spot at #9 on our list of top 10 ERP systems for small businesses.

Strengths
  1. Salesforce-native experience. The transition would be easier for companies already using the Salesforce platform for other departments.
  2. Pre-integrated with other best-of-breed Salesforce apps. The transactional maps to track complex multi-entity workflows are built as part of the product. 
  3. Cloud-native and mobile-friendly. Companies with complex product mixes and resource-intensive product models, such as serial number processes, may require the power of HANA even for smaller operations.
Weaknesses
  1. Data integrity and financial control issues. CRM-friendly data models bypass the database-level referential integrity, potentially causing financial control issues.
  2. Limited install base. The current install base of Rootstock is substantially limited compared to other solutions positioned for smaller companies.
  3. Limited consulting base and ecosystem. While Rootstock leverages the Salesforce ecosystem, the companies that would deeply understand Rootstock IP are limited.

8. Aptean Ross ERP

Aptean Ross ERP caters to process manufacturers and distributors with extensive requirements for traceability, formulation, and nutrient support. Similar to Epicor Prophet 21, Aptean Ross ERP has undergone rearchitecting to incorporate cloud-native functionality.

While not as globally localized, Aptean Ross ERP excels in providing deeper operational functionality tailored to specific industries. Positioned between larger solutions like Sage X3 and Microsoft Dynamics 365 Business Central and smaller ones like Odoo or Zoho, Aptean Ross requires consulting support for setup and implementation.

Given its targeted focus on specific industry verticals, Aptean Ross ERP may face challenges with companies with diversified business models. Despite these considerations, Aptean Ross ERP retains its position at number 8 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Last-mile capabilities for the process industry. The last-mile capabilities, such as recipes, formulation, and batch production capabilities, are pre-baked as part of the solution.
  2. Pre-integrated essential bolt-ons. Supported and maintained by Aptean. But don’t forget to vet pre-baked workflows for your use cases.
  3. Relatively Cloud-native. While legacy, the solution is available as a cloud version, making it easier for smaller companies to implement ERP without worrying about IT.
Weaknesses
  1. Limited consulting base and ecosystem. The consulting base is limited to Aptean, and since Aptean is privately equity-owned, the support and professional services may not be as friendly as those of family-owned businesses.
  2. Clunky technology underneath with potentially poorer documentation. Since it’s not a complete rewrite, it retains the legacy code base, exception flows, data model, and documentation.
  3. Limited focus. Companies that are diverse with their business model or active in the M&A cycle might outgrow the solution quickly, requiring another implementation.

7. Sage Intacct

Distinguished from other options, Sage Intacct holds a unique market position, concentrating on service-centric sectors like oil and gas, construction, utility, non-profit, and media. While lacking the extensive operational capabilities of Acumatica or NetSuite for product-centric industries, Sage Intacct boasts enhanced multi-entity functionality tailored to its design and target market. 

However, Sage Intacct falls short of Acumatica’s versatility in supporting diverse business models such as manufacturing, distribution, field service, and construction. Born in the cloud ERPs like Acumatica and NetSuite, Sage Intacct features a modern interface akin to Acumatica or Microsoft Dynamics 365 Business Central. Positioned beyond smaller startup solutions like Odoo or Zoho, Sage Intacct necessitates consulting assistance for setup and configurations.

Despite these considerations, Sage Intacct maintains its position at number 7 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Great as a corporate financial ledger. The accounting and financial capabilities are enterprise-grade to support global financial operations in one database while using best-of-breed solutions or ERP in the 2-tier setting.
  2. Last-mile capabilities for service-centric organizations. Service-centric organizations have very unique needs, such as revenue recognition, partner accounting, and subscription accounting, which are pre-baked with the solution. 
  3. Cloud-native. The technology is cloud-native, with modern APIs to integrate with best-of-suite offerings.
Weaknesses
  1. Limited focus. The core capabilities, especially for inventory-centric organizations, are substantially limited, making it more of a best-of-breed enterprise-grade cloud accounting solution as opposed to a true ERP.
  2. Overly complicated security and macro capabilities that smaller companies might not find as valuable. 
  3. Integration challenges for smaller companies. The reliance on external CRM and field service software causes challenges with integration and maintenance in the long run.

6. Epicor Kinetic

Epicor Kinetic serves as a specialized manufacturing solution, catering to hybrid manufacturing scenarios that demand formal manufacturing processes and intricate inventory management, particularly in sectors like metal, automotive, and aerospace. Tailored for organizations straddling manufacturing, construction, and distribution, Epicor’s core processes uniquely suit this intersection. 

The modernized Epicor Kinetic boasts mature cloud capabilities, including enterprise search, setting it apart from its legacy counterparts. While laden with operational features for larger enterprises, its focus remains limited, potentially presenting an overly complex data model for smaller organizations with constrained implementation budgets. Offering out-of-the-box MES functionality, Epicor Kinetic appeals to smaller companies seeking pre-integrated Industry 4.0 capabilities without hefty consulting expenses. As a result, Epicor Kinetic secures the 6th position on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Great for formal manufacturing organizations. The manufacturing organizations that follow formal manufacturing processes with revision numbers would relate to the product more.
  2. Last-mile capabilities for complex manufacturing organizations. 90% of the capabilities required by verticals such as metal, automotive, and aerospace are pre-packaged with the core platform. 
  3. Mature cloud capabilities. Although a legacy product, it includes mature cloud capabilities such as enterprise search and transactional maps for end-to-end transactional traceability.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on Epicor’s professional services for consulting and support.

5. Epicor Prophet 21

Epicor Prophet 21 caters to smaller industrial distributors, offering deeper operational functionality despite being less globally and locally oriented than SAP Business One or Microsoft Dynamics 365 Business Central. Its out-of-the-box capabilities make it a preferred choice for smaller distributors aiming to avoid expensive integration and custom development risks. Although distribution-focused, it lacks the diversification seen in other solutions on this list that cater to various business models like industrial manufacturing or field service capabilities. 

While Epicor Prophet 21 has undergone a rearchitecture with the Epicor Kinetic UX framework, a significant portion of the code remains legacy. The SaaS version offers concurrent users, potentially reducing costs for companies with multiple shift workers reutilizing licenses. Despite legacy aspects, it maintains its position at number 5 on our list of the top 10 ERP systems for small businesses due to its strong presence in buying groups.

Strengths
  1. Ideal for industrial distributors. Last-mile capabilities include support for buying groups and complex kits, with light manufacturing built as part of the product.
  2. Ecosystem integration in the industrial space. Epicor Prophet 21 has pre-baked integration with most tools prevalent in the industrial distribution space, such as eCommerce platforms. 
  3. Mature cloud capabilities. Although a legacy product, it includes mature cloud capabilities such as enterprise search.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial independent ERP consulting help to be successful with the product.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on Epicor’s professional services for consulting and support.

4. Infor CloudSuite Industrial

Infor CloudSuite Industrial stands out as a robust solution for larger OEMs engaging in mix-mode manufacturing. Unlike Acumatica or NetSuite, it surpasses them in size, offering comprehensive support for multi-entity structures and global operations. With inherent capabilities for diverse manufacturing processes like JIT and Kanban, Infor CloudSuite Industrial eliminates the need for numerous add-ons. Additionally, it includes Infor OS, facilitating seamless integration with other Infor products like Infor WMS and Infor CRM.

Although larger than startup-focused solutions such as Odoo or Zoho, Infor CloudSuite Industrial, tailored for manufacturing, may require assistance from a consulting company. It may not be the ideal choice for businesses with hybrid models like manufacturing and distribution or distribution and construction. Despite these considerations, Infor CloudSuite Industrial maintains its position at number 4 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Ideal for industrial manufacturers. The data model is especially friendly for companies with or without formal manufacturing processes with complex field service operations.
  2. Last-mile capabilities. Mixed-mode manufacturing capabilities, especially for manufacturers that might require all modes of manufacturing, including ETO, MTO, or MTS.
  3. Infor OS. Unlike other systems on this list, Infor OS doesn’t require a separate license for external iPaaS tools to integrate with external applications.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring another ERP system to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on a limited number of Infor resellers.

3. Acumatica

Acumatica, akin to NetSuite and Sage Intacct, is a cloud-native ERP solution with extensive multi-branch capabilities spanning manufacturing, distribution, construction, and field service, all consolidated in a single database. This broad functionality distinguishes Acumatica from more specialized solutions like Epicor Kinetic, Epicor Prophet 21, and Infor CloudSuite Industrial.

Despite its focus on small businesses, Acumatica lacks robust globalization and localization features, catering to a limited number of countries by default. This simplicity, however, benefits smaller companies by avoiding unnecessary layers of multi-entity operations. While well-suited for operations in countries like the US, UK, and Australia, Acumatica’s scope is restricted compared to solutions providing localized capabilities in more regions. Although targeting small businesses, Acumatica surpasses Odoo or Zoho in scale, necessitating consulting help for implementation. These aspects solidify Acumatica’s standing at #3 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Rich operational capabilities packaged in one database. Business models as diverse as field service, manufacturing, construction, and distribution in one database.
  2. Cloud-native, with the experience being very similar to other SAAS products, such as Salesforce or Quickbooks.
  3. Deep batch capabilities. While some solutions on this list might not have scalable layers for batch operations, the Acumatica data model is friendly for most 1:N capabilities companies seeking to decouple and optimize their operations.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. Limited global application. Acumatica is relevant only in certain countries where they might have localization supported.
  3. Limited mature last mile capabilities. While Acumatica has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution might be limited.

2. Microsoft Dynamics 365 Business Central

MS Dynamics 365 Business Central excels for diverse businesses in the service and product-centric industries. It is especially friendly for holding and private equity companies trying to streamline their entire portfolio on one solution. While the operational capabilities might be limited, its vibrant marketplace can fill the gap for most industries, making it a truly diverse ERP system in the small business space. 

It is also one of the most localized and globalized solutions with a consulting base present in most countries, making it a truly global solution to keep all global entities without requiring another ERP because of the diversity or outgrowth of the business model because of active M&A activities. Because of these reasons, Microsoft Dynamics 365 Business Central retains its position at number 2 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Diverse capabilities.Supports multiple industries and business models and pre-baked integration for the best-of-breed CRM and field service solutions.
  2. Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities of most industries.
  3. Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for smaller businesses.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. The channel is not as regulated. The Microsoft channel is very complex, without any direct support for its resellers and partners, making navigating the Microsoft channel extremely hard.
  3. Limited mature last mile capabilities. While Microsoft Dynamics 365 BC has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution might be limited.

1. NetSuite

NetSuite stands out as a globally adopted and diverse solution for smaller businesses. While it boasts strong financial capabilities for both public and private sectors, the experience can be patchy due to the legacy interface despite being a cloud-native ERP. Scalability issues with data layers make NetSuite challenging to implement in spaces like manufacturing and industrial distribution. However, it excels for holding companies and private equity firms streamlining their portfolio companies on one solution.

In contrast to Acumatica, NetSuite, like SAP Business One and Microsoft Dynamics 365 Business Central, excels in deep globalization, covering over 100 countries with country-specific apps for regulatory compliance. While startups may be enticed by its introductory offer, NetSuite’s scale demands consulting help, setting it apart from simpler solutions like Odoo or Zoho. NetSuite maintains its position as the number 1 choice on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Diverse capabilities.Supports multiple industries and business models with pre-baked integration flows available through Celigo.
  2. Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities in most industries.
  3. Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for smaller businesses.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. Weaker data model. The data model is not as structured as with SAP or Acumatica, making it harder to understand and follow.
  3. Limited mature last mile capabilities. While NetSuite has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution are extremely limited.

Conclusion

Defining SMB can be subjective, yet small companies share specific needs upon outgrowing the startup phase. Limited budgets and expertise hinder expensive integrations, requiring comprehensive functionality within the suite. 

When evaluating an ERP solution as a small company, avoid smaller solutions for startups or larger ones for mid-size enterprises. Identifying the right-sized solution is crucial for a successful implementation. Taking the help of an independent ERP consultant might go a long way to finding a solution uniquely tailored to your needs.

FAQs

Top 10 ERP Systems for Startups in 2024

Top 10 ERP Systems for Startups in 2024

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Construction, Consumer Goods, Distribution, ERP, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By / March 17, 2025

Growing startups transitioning from smaller accounting systems after they hit their first million in revenue may not immediately prioritize process integration. The simplicity of their existing systems may lead them to believe that larger counterparts overcomplicate processes and data. Some startups attribute their agility and superior customer experience to their “uniquely crafted processes.” Operational challenges typically emerge around $30-40 million in revenue, varying by industry, as headcount increases, leading to diverse processes and conflicting sources of truth.

This financial inflection point indicates the outgrowth of the startup stage. Progressing to the next inflection point involves embracing tighter processes and data integration while minimizing existing data silos. Companies weigh options between fully integrated ERP systems or partial integration, with operational integration being the priority. Depending upon the direct impact of data siloes on operational efficiency, the need for integration might vary. In certain industries, the need for integration may not be pressing due to lower transaction volumes or minimal impact on the bottom line.

During the startup phase, companies often lack the financial means to hire experienced executives or consultants. Consequently, they gravitate toward user-friendly ERP systems that require minimal expertise and are specifically designed to be “forgiving.” While their forgiving nature simplifies usage, it may lead to data integrity concerns. Nonetheless, these issues typically don’t have a substantial impact on the bottom line during this stage. The systems crafted for startups possess unique characteristics. Curious to discover which systems are tailored for this crucial phase?



ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

Download Now

Criteria

  1. Definition of startups. Less than $10 mil in revenue or 20-25 employees. Founder leading most of the functions. 1-2 employees for each function, including accounting, purchasing, and operations. $0-30K implementation budget.
  2. Overall market share/# of customers. The higher the market share among the startup companies, the higher it ranks on our list.
  3. Ownership/funding. The more committed the management to the product roadmap, the higher it ranks on our list.
  4. Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
  5. Community/Ecosystem. The larger the community with a heavy presence from the startups, the higher it ranks on our list.
  6. Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
  7. Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  8. Startup market share. The higher the focus on startups, the higher the ERP system ranks on our list.
  9. Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  10. Acquisition strategy aligned with startups. The more aligned the acquisitions are with the startup market, the higher it ranks on our list.
  11. User Reviews. The deeper the reviews from the startup companies, the higher the score for a specific product.
  12. Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.


The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

Download Now

10. ECI Macola

ECI Macola, acquired from Exact, resembles SYSPRO in functionality, serving 1K+ customers with deep capabilities for small manufacturers and distributors, surpassing Odoo or ERPNext. While not as robust as Acumatica or NetSuite, it excels with distribution industries and light manufacturing within ECI’s portfolio. Despite being less complex than Acumatica or NetSuite, consulting help is essential, setting it apart from DIY solutions like Odoo or ERPNext. 

Without consulting help, companies are likely to run into implementation and adoption challenges. The uncertainty in ECI’s commitment to Macola’s future, especially innovation compared to other products in their portfolio, results in a substantial downgrade this year, maintaining rank #10.

Strengths
  1. A tightly integrated data model. The data model is scalable and very ERP-like but would require substantial consulting expertise to code and formalize SKUs, BOMs, and GLs.
  2. Processes are especially friendly for FMCG distributors. The data and process models are especially friendlier for FMCG distributors. It might not be as suitable for other industries or diverse business models.
  3. SQL-based. Compared to other solutions on this list, this is an SQL-based solution, providing tighter data integrity that might not be feasible with file-based variants.
Weaknesses
  1. Requires consulting help. The relational data structure requires substantial consulting help. Without seasoned executives or consutlants, the startups are likely to face implementation or adoption issues.
  2. Uncertain technology roadmap. With so many solutions in ECI’s portfolio, overlapping solutions like ECi Macola might not receive the same attention as their cloud-native variants.
  3. Not as cloud-native. While they have improved the tech stack substantially, it’s not as cloud-native as other options on this list.

9. NetSuite

NetSuite, a multi-tenant, multi-entity solution, targets distribution, B2C, and commerce-centric and service-centric organizations with an attractive starting implementation fee of $30K. The price point is appealing for startups, although it necessitates significant customer involvement. While suitable for upper-range startups, NetSuite is the most complex on this list, requiring consulting help. 

Its object and process model rival Acumatica and Sage Intacct, and it offers globalized and operationally rich solutions for product-centric and service-centric companies. Despite being excellent for slightly larger organizations, NetSuite’s complexity makes it less desirable for startups seeking simpler DIY solutions. This year, NetSuite sees a slight downgrade but maintains rank #9 on the list for ERP systems for startups.

Strengths
  1. A scalable ERP. NetSuite’s diverse operational model and global capabilities can accommodate many business models in several geographies, making it a scalable ERP.
  2. Ecosystem and consulting base. The ecosystem has one of the best-of-breed SaaS solutions with pre-baked integration to augment its core capabilities, and the consulting base is available in most countries.
  3. Ability to support diverse business models. Ideal for startups that are private equity-owned or active with M&A cycles. Also, it is ideal for holding or private equity companies looking to streamline their entire portfolio on one platform.
Weaknesses
  1. Requires consulting help. The complex data model would require substantial consulting help, or the startups might face implementation or adoption challenges.
  2. Bloated Multi-entity Capabilities. The bloated multi-entity entities’ capabilities might be overkill for startups operating in just a couple of countries and might require unnecessary consulting and data modeling help.
  3. Expensive. NetSuite is perhaps one of the most expensive on this list, which might be cost-prohibitive for startups looking for affordable solutions.

8. Acumatica

Acumatica, a multi-tenant, multi-branch solution, primarily targets US and UK-based companies with limited global operational capabilities. It focuses on distribution, construction, manufacturing, and field service organizations, utilizing a reseller network for promotion. Although suitable for startups outgrowing their initial phase, Acumatica may lack simplicity for those avoiding costly consultants and intricate integrations. 

Native integrations include Shopify, BigCommerce, POS, PLM, and marketplace integrations, catering to late-stage startups. However, the design complexity requires consulting help and budget allocation is necessary to maintain integrations. While Acumatica is comparable to NetSuite, its smaller size and simpler design make it more approachable for startups. This year, Acumatica experienced a slight downgrade but maintains rank #8 on the list of ERP systems.

Strengths
  1. A scalable ERP. Just like NetSuite, Acumatica’s data layers natively support complex business operations, whether you need simpler transactional processing capabilities or batch, to make your operations efficient.
  2. Ability to support diverse business models. Acumatica can support multiple business models as part of the same database, making it ideal for companies with diverse business models.
  3. Not as bloated with global capabilities. Limited multi-entity capabilities make the data model simpler for startups that don’t need unnecessary layers of global capabilities.
Weaknesses
  1. Requires consulting help. It would require seasoned ERP consultants to implement, making it less friendly for startups with limited implementation budgets.
  2. Pricing might be harder to predict with growth. Consumption-based pricing requires consulting expertise to estimate transactions as the pricing is not as intuitive and predictable as per-user pricing.
  3. Harder to learn. The ERP layers make it harder for startups to learn who might require a simpler data model without cross-functional dependencies and exceptions.

7. Sage Intacct

Sage Intacct focuses on non-inventory or service-centric industries, offering extensive financial capabilities suitable for mid-sized professional service firms. While surpassing QuickBooks enterprise, Microsoft GP, Zoho, and Odoo in financial capabilities, Sage Intacct may require add-ons, integrations, or custom development if you plan to use it in industries it doesn’t target, such as manufacturing or distribution.

Unlike QuickBooks or Odoo’s simplicity, Sage Intacct, tailored for slightly larger organizations, likely necessitates consulting help for implementation. For service startups, including non-profits, construction, marketing agencies, or financial services, Sage Intacct stands out, providing deeper operational capabilities unique to these verticals. Similar to NetSuite and Acumatica, Sage Intacct faces challenges with layers and complicated accounting and security structures that might be less beneficial for startups. As a result, it has been substantially downgraded and now ranks at #7 on our list of top 10 ERP systems for startups.

Strengths
  1. Ideal for holding and private equity companies looking for a corporate financial ledger. Ideal for holding companies to host global startups in one database.
  2. Friendlier for service-centric startups. Capabilities such as partner accounting and revenue recognition are natively built as part of the product.
  3. Ecosystem and consulting base. Their ecosystem consists of several SaaS vendors, and most accounting firms consult on the product.
Weaknesses
  1. Requires consulting help. A richer accounting and security layer would require help from consulting firms.
  2. Bloated Multi-entity Capabilities. Unnecessary for companies looking for simpler solutions.
  3. Integration challenges. Sage Intacct doesn’t have core capabilities built as part of the same solution, such as CRM or field service, requiring external software and integration maintenance in the long term.

6. Zoho

Zoho, like Odoo, dominates the CRM and HCM markets with a substantial market share. Employing a strategy akin to Salesforce and Workday but tailored for smaller startups in professional services, distribution, healthcare, and eCommerce. With growth, challenges may arise with intricate scenarios like consolidated invoicing or complex allocations. Despite these challenges, Zoho’s user-friendly design facilitates easy DIY implementation with minimal consulting help or expenses. However, we’ve downgraded Zoho due to less tightly integrated apps, causing potential data integrity issues for ERP-like operations. Despite the downgrade, it retains the #6 rank on our list of the top 10 ERP systems for startups in 2024.

Strengths
  1. Easier to learn for companies outgrowing QuickBooks. ERP data models are generally harder to learn because of cross-functional dependencies. That’s not the case with Zoho.
  2. Friendlier for service-centric startups. The data model is especially friendlier for service-centric operations, with CRM being very similar to Salesforce with an integrated project and HCM module.
  3. Does not require as much consulting help. The data model is flatter and doesn’t have as complex ERP layers, which makes the implementation easier and less expensive for startups.
Weaknesses
  1. Does not provide the same level of data and process integration as with a true ERP. Flatter data model would not be as scalable for startups looking for mature capabilities such as batch operations or layered pricing.
  2. Ecosystem limited to Zoho products. Zoho’s ecosystem might not have as many best-of-breed pre-integrated options for companies integrating with tools of their choice.
  3. Not a scalable ERP solution. The data model is not as tightly correlated, which will drive operational inefficiencies and financial control issues at the micro level with growth.


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5. SYSPRO

SYSPRO, a single-tenant product, closely resembles ECI Macola, Microsoft GP, SAP Business One, or Infor Visual. Tailored for small discrete and process manufacturers and distributors, it offers extensive operational functionality comparable to Acumatica or NetSuite.

While not as globally localized as SAP Business One, SYSPRO matches in financial capabilities, supporting complex distribution businesses with rich UoMs, activity-based accounting, and layered object hierarchies. Despite these capabilities, implementation demands consulting help, posing challenges for startups in self-serve mode.

Comparable to Acumatica or NetSuite for businesses with one or a couple of US sites, SYSPRO lacks the cloud-native edge of newer players. Its operational and financial depth surpasses Odoo and Zoho, yet the complexity and implementation costs deter startups from seeking simpler, DIY-friendly solutions. Despite pros and cons, SYSPRO maintains the #5 rank on our list of top 10 ERP systems for startups.

Strengths
  1. A tightly integrated data model. An ERP-like data model with mature ERP capabilities, such as complex layers for inventory costing and MRP.
  2. Ability to support diverse business models. SYSPRO, while friendlier for F&B-centric distributors, can support many business models including discrete and process, as well as distribution.
  3. SQL-based. Compared to other solutions on this list, this is an SQL-based solution, providing tighter data integrity that might not be feasible with file-based variants.
Weaknesses
  1. Requires consulting help. The relational data structure requires substantial ERP consulting help. Without seasoned executives or consutlants, the startups are likely to face implementation or adoption issues.
  2. Harder to learn. The ERP layers would make it harder for companies that might be outgrowing point solutions such as accounting or CRM.
  3. Not as cloud-native. While they have improved the tech stack substantially, it’s not as cloud-native as other options on this list.

4. ERPNext

ERPNext stands out for startups with technical skills, following a distribution strategy akin to Odoo and fostering a vibrant open-source developer community. Though not as well-adapted as Odoo, it caters to the verticals with a heavier need for custom development, such as non-profits or universities.

While supporting basic transactions, it lacks depth in business objects and process models in richer ERP systems, which is crucial for scalability. Unlike other niche, focused solutions solutions, such as ECI Deacom, ProShop, GlobalShop, and JobBOSS2, ERPNext lacks industry-specific last-mile functionality. Despite the pros and cons, it maintains the rank of #4 on our list of the top 10 ERP systems for startups.

Strengths
  1. Easier for companies to outgrow QuickBooks. The data model is not as tightly correlated and integrated as other richer ERP solutions, making it easier for startups transitioning from point solutions such as CRM or QuickBooks. 
  2. Ecosystem and Development Help. ERPNext has a vibrant technical community of developers, which makes it affordable for companies to access technical talent in several geographies.
  3. Does not require as much consulting help. The data layers are not as intertwined as the other richer ERP systems, making the implementation easier and less expensive.
Weaknesses
  1. Does not provide the same level of data and process integration as with a true ERP. Cross-functional data layers don’t have the same hierarchies and layers, making it less scalable compared to other richer ERP solutions.
  2. An open-source ecosystem might lead to inexperienced developers promoting untested and unsecured code. The code promoted by inexperienced developers may lead to cybersecurity issues and operational disruptions.
  3. Requires business consulting help to avoid overengineering by developers. And overengineering might lead to maintenance nightmares and operational inefficiencies.

3. ECI JobBOSS2

ECI JobBOSS2 emerges as a new cloud-native product, combining JobBOSS and E2 Shoptech’s strengths. JobBOSS was tailored for smaller custom manufacturing startups, while E2 Shoptech, a more robust counterpart akin to SYSPRO or Macola, targeted smaller jobs and machine shops, featuring deep capabilities seen in products like GlobalShop or ProShop.

As ECI JobBOSS2 unfolds, it’s poised to inherit JobBOSS’s development flavors, promising easy configuration in the DIY mode. With deeper functionality tailored for machines and job shops, unparalleled in vanilla solutions like Odoo or ERPNext, ECI JobBOSS2 holds its ground at #3 on our list of top 10 ERP systems for startups.

Strengths
  1. Easier to learn. The data model and user flows are similar to QuickBooks, making the software easier to learn for startups.
  2. Friendlier for machine shops. Ideal for smaller machine shops without complicated inventory needs or SKU codings but still with the most relevant operational capabilities, such as job management and basic scheduling.
  3. Does not require as much consulting help. The data model does not require codings or layers similar to richer ERP systems, making it much less expensive to implement.
Weaknesses
  1. Might not provide other crucial integrations such as MES or QMS out-of-the-box. Gaining compliance certifications may require expensive consulting and development help.
  2. Private Equity ownership might not be as friendly for startups with support and consulting. The support and consulting might not be as friendly as ECI, which is privately equity-owned, as startups might expect from other family-owned solutions.
  3. Compliance workflows such as AS9100 might require substantial consulting support. The compliance workflows might not be as pre-baked with other solutions that might not be ERP but might have richer operational and compliance capabilities.

2. ECI Deacom

ECI Deacom stands out as the purpose-built solution for process industries catering to food and beverage distributors, pharmaceutical and cannabis manufacturers, and DTC brands. Unlike file-based solutions, DeaCom excels in transactional integrity, boasting an SQL-based data store. Even more mature systems like Acumatica or NetSuite face challenges in these verticals, necessitating multiple add-ons. 

Companies in these niches demand unique capabilities, including traceability, recall management, route accounting, and compliance with serial number requirements. While ECI Deacom, born in the cloud, may not have as detailed and scalable data model as NetSuite or Acumatica, its seamless implementation in the DIY mode, with minimal consulting assistance, contributes to its rank at #2 on our list of the top 10 ERP systems.

Strengths
  1. Easier to learn. A flatter data model makes it easier for startups transitioning from point solutions such as QuickBooks to learn. 
  2. Cloud-native. The cloud-native interface would not have as much switchover effect as with the other legacy variants.
  3. Substantial last-mile capabilities for process and F&B verticals. Deeper operational capabilities required for process industries, such as route accounting or multiple serial and lot numbers supported on the item master, make it uniquely suitable for these industries.
Weaknesses
  1. The data model is not as scalable as a true ERP. The data model is especially flatter for complex operations such as multi-entity accounting, running into scalability and traceability issues.
  2. Private Equity ownership might not be as friendly for startups with support and consulting. The support might not be as friendly as with a family-owned company.
  3. It would require consulting help with data modeling. The deep layers of data required for pharma and F&B operations would require consulting support to implement successfully.

1. Odoo

Odoo emerges as a straightforward choice for startups, offering superior operational capabilities compared to cloud accounting solutions like QuickBooks, Xero, or FreshBooks. With an affordable per-app business model, Odoo has a tighter data model comparable to mature ERP solutions than lightly integrated software like Zoho. While lacking out-of-the-box last-mile functionality for niche industries, Odoo stands out for eCommerce companies and industry 4.0 integrators, leveraging in-house capabilities to extend and support internal processes.

Odoo’s object and process model may not match the richness of Acumatica or NetSuite, but this simplicity contributes to its startup-friendly design, eliminating the need for expensive consulting assistance. As a result, Odoo maintains its top position at #1 on our list of the top 10 ERP systems for startups.

Strengths
  1. Easier for companies to outgrow QuickBooks. The lean data model and workflows make it easier for startups transitioning from QuickBooks-like solutions to learn. 
  2. Ecosystem and Development Help. The availability of cheaper technical talent globally helps startups extend or augment core capabilities.
  3. Ideal for diverse startups. The data and process model supports diverse industries, including product and service-centric startups, making it an ideal solution for private equity and holding companies to host all of their global startups in one database.
Weaknesses
  1. Mature capabilities are not as pre-baked as larger peers. Mature capabilities such as MRP, allocation, and batch are not as detailed as with other richer ERP systems. 
  2. An open-source ecosystem might lead to inexperienced developers promoting untested and unsecured code. The inexperienced developers might promote untested code, causing cybersecurity issues or operational disruptions.
  3. Requires business consulting help to avoid overengineering by developers. Without access to seasoned ERP consultants, Odoo implementation is likely to run into implementation or adoption challenges.

Conclusion

Crafted for startups, these solutions provide vital features without requiring consulting, facilitating a smooth transition and adoption. With essential pre-built capabilities, they surpass other cloud accounting alternatives that barely provide after-the-fact financial reporting without access to critical financial control that you need with growth.

If you’re moving beyond QuickBooks, Xero, or FreshBooks, these solutions are perfect for advancing to the next stage of growth without straining your finances. Ensure a thorough analysis of your specific needs to pinpoint the solution aligning with your critical success factors. If you lack regular insights into these solutions, consider engaging independent ERP consultants for informed guidance.

FAQs

Top 10 Distribution ERP systems in 2024

Top 10 Distribution ERP Systems for 2024

Leave a Comment / Automotive, Blog, Chemicals, Consumer Goods, Distribution, ERP, Food and Beverage, High Tech & Electronics, Life Sciences, Retail / By / March 17, 2025

Isn’t distribution a breeze? Simply buying and selling others’ products. Choosing distribution ERP systems isn’t a walk in the park. The distribution business model can be as intricate as any other. Some layers of distribution ERP systems are similar to other ERP systems, such as geography, the need for diversified business models, and the size of a business. However, there are some unique layers with distribution ERP systems as well. For example, there is a clear divide between ERP systems designed for industrial verticals vs the ones that suit FMCG.

Industrial distributors present unique challenges with pricing catalogs, buying groups, and specific layers for UoMs. FMCG distributors may share some requirements but with distinct nuances, like the need for bin capabilities, license plates, and category planning tailored to FMCG specifics such as shelf-life and expiration date management. With lower margins compared to other industries, optimizing metrics like pick per hour is crucial. As manufacturers consider going DTC, meeting OEMs’ sales targets becomes non-negotiable for distributors to maintain relationships. Furthermore, the surge in marketplaces has exponentially increased architectural complexity for distributors.



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In the end, ERP process complexity and critical success factors determine if a system aligns with your business processes. While similarities exist among ERP systems, it’s the differences that impact your selection. So, how do you find the right fit? Our annual distribution ERP systems list not only outlines core capabilities but also tracks recent developments. This year, notable changes include Acumatica’s shift due to limited focus in certain countries, with other product positions adjusting marginally.

Criteria

  1. Overall market share/# of customers: The higher the market share of the product, the higher it ranks on our list.
  2. Ownership/funding: The more committed the management to the product roadmap, the higher it ranks on our list.
  3. Quality of development ( legacy vs. legacy dressed as modern vs. modern UX/cloud-native): The more cloud-native the distribution capabilities, the higher it ranks on our list.
  4. Community/Ecosystem: The larger the community for the specific product, the higher it ranks on our list.
  5. Depth of native functionality for specific industries: The deeper the distribution functionality provided out-of-the-box, the higher it ranks on our list.
  6. Quality of publicly available product documentation: The poorer the product documentation, the lower it ranks on our list. 
  7. Distribution Product Share (and documented commitment of the publisher through financial statements): The higher the focus on distribution, the higher the ERP system ranks on our list.
  8. Ability to natively support diversified business models: The more diverse the product, the higher it ranks on our list.
  9. Acquisition strategy aligned with distribution: The more aligned the acquisitions are with distribution, the higher it rank on our list.
  10. User Reviews: The deeper the reviews on public sites by distribution companies, the higher the score for a particular product.
  11. Must be an ERP product: It can’t be an edge product such as Salesforce, Workday, ServiceNow. Ariba, or Coupa. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.


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10. SAP Business One

Tailoring to smaller distribution companies with one legal entity and multiple warehouses, SAP Business One is ideal for those in regulated industries requiring audits. However, it falls short for companies seeking robust cloud-based operational capabilities. Despite its less exciting roadmap compared to others on our list and the recent exodus of several SAP Business One resellers to more cloud-native options such as NetSuite and Sage Intacct, it poses questions about SAP’s and SAP resellers’ commitment to this product. But due to its strength in regions lacking other operationally rich products on this list, like South America or Europe, it secures its #10 spot on our list.

Strengths
  1. Rich Financial Traceability. It provides the same transaction workflows and maps for global traceability as with SAP’s bigger solutions, such as SAP S/4 HANA and ByDesign. 
  2. Support for HANA. Having HANA as the database allows SAP Business One to process the same workload as S/4. 
  3. Ecosystem.  SAP Business One has rich ecosystems, with industry partner solutions available, including scale, WMS, and shipping solution integration. 
Weaknesses
  1. Leaner Cloud Solution. The cloud version has extremely limited distribution capabilities and would not be a fit for most distributors. The other solutions are likely to have native capabilities in the cloud and would not require a thick partner add-on. 
  2. Limited Last-mile Capabilities. The last mile capabilities, such as buying group credit passthrough and integration with plumbing and electric codes, would be more expensive and technically risky.
  3. Limited Integrations. The other solutions, such as NetSuite and Acumatica, are likely to have more pre-baked integrations with best-of-breed systems such as Shopify, Channel Advisor, and OMS/POS systems.  

9. SYSPRO

Much like SAP Business One, SYSPRO caters to smaller distribution companies with one legal entity and multiple warehouses. Ideal for food and beverage and FMCG distributors under $50 million in revenue, it’s less suitable for larger distributors with multiple entities or high workload demands. What sets SYSPRO apart is its diversity, offering capabilities for both discrete and process manufacturing alongside robust distribution and finance features. Despite receiving recent technological enhancements, its ranking slightly lowered this year due to momentum with other products on the list. Nevertheless, it secures the #9 spot.

Strengths
  1. Rich Distribution Functionality Available in Cloud. Its core finance and ERP functionality are very similar to SAP, with complex distribution features, such as activity-based costing, complex MRP strategies, and detailed inventory accounting layers.
  2. SQL-based Database. Unlike other smaller distribution packages, such as the ones in the ECi portfolio, the current versions of SYSPRO are SQL-based, allowing it to do far more heavy lifting. 
  3. Native Capabilities to Support Food and Beverage Distributors. Support for formulas and recipes, a logistics process embedded as part of the ERP functionality, and features such as planning based on food family, etc. 

Weaknesses
  1. Ecosystem. While SYSPRO has a great ecosystem and several partners, the ecosystem is not as robust as other distribution ERP systems on this list. 
  2. Limited Last-mile capabilities. The industrial distributors might struggle with the limited last mile capabilities, such as buying group credit passthrough, and integration with plumbing and electric codes would be more expensive and technically risky.
  3. Limited Integrations. The other solutions, such as NetSuite and Acumatica, are likely to have more pre-baked integrations with best-of-breed systems such as Shopify, Channel Advisor, and OMS/POS systems.  

8. Oracle Cloud ERP

Tailored for large distribution companies (over $1B in revenue) worldwide, Oracle Cloud ERP excels in managing substantial transaction volumes. Ideal for firms heavily relying on OMS and WMS/TMS in distribution, treating ERP as a financial ledger. Oracle’s best-of-breed products, including CPQ and TMS, offer a competitive edge with seamless integration. Its unique data model aligns with industries like telecom, media, healthcare, energy, and construction distribution, addressing unique processes where others may falter. Attractive to large, global, and publicly traded firms, Oracle Cloud ERP’s advancement in this year’s ranking stems from a lack of momentum among other solutions in the distribution space.



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Strengths
  1. WMS and TMS Capabilities Bundled with the ERP. Oracle Cloud ERP has WMS and TMS processes tightly embedded as part of the ERP transactions. 
  2. Proven Solution with Large Workloads. Large distributors may process millions of GL entries per hour. The workload Oracle Cloud ERP is designed to handle.
  3. Ecosystem.  It has an ecosystem of experienced consultants who have the capabilities to handle the design and architecture of such complex enterprises.
Weaknesses
  1. Limited Last-mile Capabilities. The last mile capabilities for specific distribution verticals, such as integration with electrical and plumbing ecosystems, credit transfer between the buying groups, or support for B2C transitions, might be expensive.
  2. Not necessarily a Distribution Solution. It would be a natural fit for distribution verticals in telecom, media, and energy. The product-centric distribution industries might not be the best fit. 
  3. Overwhelming for SMB Distributors. Not a fit for SMB distributors looking for a turn-key solution tailored to the processes of the specific micro-vertical.

7. Acumatica

Geared towards smaller distributors with revenue up to $100 million and a few entities in specific countries, Acumatica caters to B2B and B2C business models, including field service or DSD components. Not suited for larger companies with intricate global operations or significant workload demands. While add-ons cover most distribution verticals, the experience may lack nativity in complex industrial sectors. Acumatica’s substantial downgrade this year is attributed to unpredictable pricing, limited application in industrial verticals, and a narrow geographical focus. However, it still ranks at #7 on this list.

Strengths
  1. B2B Data Model and Processes. Acumatica’s data model is especially attractive for B2B companies with complex customer hierarchies, such as buying groups, vendor catalogs, B2B pricing, and branch accounting for inventory reconciliation across channels.
  2. Consumption-based Pricing. Acumatica’s consumption-based pricing may be especially attractive for companies with seasonal workers and low transaction volume.
  3. Diverse Businesses in the Same Product. Acumatica’s product architecture allows hosting all manufacturing, construction, field service, and distribution as part of the same product. That can support very complex business models.
Weaknesses
  1. Limited Global Capabilities. Acumatica is primarily a North American solution with very limited exposure globally. The product architecture has limitations when multiple countries with different currencies and sub-ledgers need to be hosted as part of the same solution.
  2. Not a Fit for Larger Distributors. Acumatica’s sweet spot is companies looking for ERPs under $100 million in revenue. Acumatica may struggle and may be slower with the workloads for companies with over $100 million in revenue.
  3. Limited Capabilities for B2C Business Models. Acumatica has limited support for B2C business models to support the processes of individual consumers. There is also limited support for B2C-centric platforms such as connectivity with marketplaces.

6. Infor® CloudSuite Distribution (SX.E)

Infor CloudSuite Distribution (SX.e) is Infor’s SMB distribution product, targeting industrial distributors with revenues of up to $250 million. Ideal for those with complex business models like brick-and-mortar locations, eCommerce storefronts, and light custom manufacturing. While used in large distribution accounts, its batch capabilities aren’t as intuitive as other products on this list. It is not the best fit for FMCG distributors or those with complex channels like DTC. It ranks slightly higher this year, benefiting from a lack of momentum with other products, and now sits at #6 on this list.

Strengths
  1. Rich Industrial ERP Distribution Systems Capabilities Provided Out-of-the-box. The system natively supports workflows such as image-based shopping lists, buying group credit passthrough, and warehouse-level reconciliation capabilities to support branch-level inventory and accounting.
  2. Pre-baked Integrations with Other Industrial Systems. Favorite among industrial buying groups and ecosystems, Infor CSD has pre-baked integrations with several industrial B2B systems, such as Optimizely and Unilog. 
  3. Infor OS. Compared to other systems on this list that will require separate licensing for integration with Celigo or Dell Boomi, Infor OS can support integration with Infor and Non-Infor systems natively.
Weaknesses
  1. Limited Capabilities to Support Diverse Distributors. Need diverse capabilities not used by traditional distributors, such as CRM or customer service capabilities? Not a fit.
  2. Weak Data Structure to Gain Operational Efficiencies. The data structure is not as fluid as other ERP systems, such as Acumatica or NetSuite, to support 1:N scenarios required to achieve operational efficiency.
  3. Limited Pre-baked Integrations for Diverse Businesses. Companies with diverse architecture needs might struggle when they need support for systems such as pre-baked EDI connectivity, marketplace integration, or other eCommerce platforms not in the B2B industries.  

5. Epicor Prophet 21

Epicor Prophet 21, Epicor’s SMB distribution offering, caters to industrial distributors with revenues of up to $250 million. Ideal for those with extensive catalogs of industrial products and control systems. It is not the optimal choice for FMCG distributors or businesses with intricate channels like DTC. Legacy industrial distributors with complex catalogs and light assembly needs will find Epicor Prophet 21 appealing. Its slightly higher ranking this year results from a lack of momentum with other products, securing its position at #5 on this list.



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Strengths
  1. Rich Industrial ERP Distribution Systems Capabilities Provided Out-of-the-box. The system natively supports complex relationships between vendors and suppliers (and buying groups), along with capabilities such as branch accounting, retail-centric material flow, and warehouse architecture.
  2. Best for Prescriptive Architecture. Epicor Prophet 21 is a good fit when you can replace/use the systems provided in the Epicor ecosystem, such as payment providers, POS systems, shipping add-ons, and marketplace integrations. 
  3. Pre-integrated with Other Best-of-breed Industrial B2B Systems. Integration with other best-of-breed industrial eCommerce systems, such as Optimizely or Unilog, is pre-baked.
Weaknesses
  1. Limited Capabilities to Support Diverse Distributors. Only fit for businesses with traditional business models with a limited number of channels. Not fit for modern distributors and DTC-centric businesses.
  2. Legacy Technology. While the new Kinetic experience can offer mature cloud capabilities such as enterprise search, the underlying data model and other cloud capabilities, such as mobile, are still legacy and patchy. 
  3. Ecosystem. A limited number of consultants and partners are available to support the product. The marketplace is extremely limited to create the best-of-breed architecture.

4. Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is the SMB distribution product from Microsoft that targets FMCG distributors and construction-centric distributors. It’s especially suitable for distributors with complex supply chain networks and warehousing needs. While the add-ons may be available for other industrial verticals, the experience might not be as native and seamless as with other products on this list. Overall, FMCG distribution and construction-centric distributors will find Business Central attractive. It ranks slightly higher this year due to the lack of momentum for other products and now is at #4 on this list. 

Strengths
  1. Rich Distribution ERP Systems Capabilities Natively Supported. Replenishment strategies such as warehouse-level transfers, license plate construction, and bin-level capabilities are supported out-of-the-box for complex distribution businesses.
  2. Cloud-native Architecture. The product has been completely rearchitected using the cloud-native architecture. Cloud ERP capabilities are stronger than those of competing products such as SAP Business One.
  3. Global Capabilities and Ecosystem. Unlike several products such as Acumatica, which is primarily a North American product, it has support for several European, Asian, and African countries where most products might struggle.
Weaknesses
  1. Limited Capabilities to Support Diverse Distributors. Only fit for FMCG-centric distributors. The industrial distribution would require add-ons to support capabilities such as buying groups, HVAC code integration, and vendor catalogs.
  2. Unproven Add-ons and Unqualified Consulting Networks. Microsoft partner processes are not as streamlined as other vendors. So it may require the help of an independent ERP consultant to vet the add-ons and architecture in the Microsoft ecosystem.
  3. Ecosystem. While the ecosystem may have options for distribution industries where BC specializes in, it might not have integrations with the best-of-breed eCommerce systems in the industrial distribution space.

3. Microsoft Dynamics 365 F&O

Microsoft Dynamics 365 F&O, Microsoft’s flagship product, is designed for larger distributors with revenues exceeding $1B and more than 10-20 entities. Ideal for larger companies boasting diverse business models and a global presence. Less suitable for smaller companies with limited internal IT capabilities. Large, complex global companies with revenues exceeding $1B will find Microsoft Dynamics F&O appealing. It ranks slightly higher this year due to the lack of momentum for other products and now is at #3 on this list. 

Strengths
  1. Operationally Richest Cloud Product for Large Complex Businesses. Businesses that have multiple global entities with complex business models such as discrete and process manufacturing, distribution, and project-based business models would find Microsoft Dynamics F&O attractive.
  2. Cloud-native Architecture. The product has been completely rearchitected using the cloud-native architecture. Cloud capabilities are stronger than competing products for distributors such as SAP S/4 HANA and Oracle ERP Cloud.
  3. Common Data Model and Database-level Integration for Best-of-breed Architecture. Large, complex systems could be frightening to use for sales and field service crews. Microsoft provides pre-baked integration with the best-of-breed CRM and field service products.
Weaknesses
  1. Financial Traceability and Audit Support. Complex global organizations may struggle with financial traceability and SOX compliance capabilities.
  2. Large Workloads. Compared to SAP S/4 HANA, it might not be able to match the performance expectations of large complex organizations where companies may need to process millions of journal entries per hr.
  3. Overwhelming for Smaller Organizations. The complex workflows built to support the processes of large, complex organizations may overwhelm organizations seeking simpler solutions without unnecessary processes and approval flows.

2. SAP S/4 HANA

SAP S/4 HANA, SAP’s flagship product, caters to larger distributors with revenues exceeding $1B and more than 10-20 entities. Tailored for large companies with high-volume transactional demands, handling up to 1 million journal entries per hour—especially for business models with nuanced transactions requiring serial number traceability, which strains even the most robust systems. Its suite includes an embedded EWM solution, enterprise-grade CPQ, and a commerce platform, offering a best-of-breed architecture for complex distributors, including those with 3PL business models. Its slightly higher ranking this year results from a lack of momentum for other products, placing it at #2 on this list.

Strengths
  1. Large Workloads. SAP S/4 HANA could process more than 100K serialized goods receipts within 22 secs, while Oracle Cloud ERP took more than 18 mins for the same test. SAP S/4 HANA’s design allows companies to process the workload requirements of Fortune 500 when every other system might struggle.
  2. Best-of-breed Architecture for Distributors. SAP’s best-of-breed architecture can support the business model of large distributors, irrespective of whether they are a traditional distributor or a combination of 3PL, which typically has a different warehouse and TMS architecture than traditional distributors.
  3. Financial Traceability and Control. Fortune 500 organizations with shared service models spread in multiple countries would appreciate the financial traceability built at the document level.
Weaknesses
  1. Weak Operational Capabilities for the Cloud. The last-mile capabilities available with some of the mid-market products may require substantial development with SAP S/4 HANA.
  2. Limited Pre-baked Integration. The third-party integration options, such as integration with eCommerce platforms, POS systems, channel connectivity, etc, may require substantial development efforts.
  3. Overwhelming for Smaller Organizations. The complex workflows built to support the processes of large, complex organizations may overwhelm organizations seeking simpler solutions without unnecessary processes and approval flows.

1. NetSuite

NetSuite focuses on SMB distributors with up to $1B in revenue and several global entities. Ideal for eCommerce and retail-centric business models featuring consumerized products. Less suitable for B2B and industrial distributors with intricate distribution and manufacturing needs. Overall, SMB distributors with B2C business models will find NetSuite attractive. It maintains its #1 ranking from the previous year.

Strengths
  1. B2C Data Model and Processes. NetSuite’s data model is especially attractive for B2C companies with integration requirements with several B2C channels, such as marketplaces.
  2. Global Capabilities. NetSuite can natively support the localization requirements of more than 100 countries. As well as consolidating and supporting intercompany transactions.
  3. Ecosystem. NetSuite has one of the largest ecosystems with pre-baked integration available to support the integration with multiple digital and physical channels. As well as 3PL providers.
Weaknesses
  1. Limited B2B Capabilities. The data model and pricing are not friendly for B2B companies. The pricing layers are not as scalable as other systems, such as Acumatica. NetSuite may struggle with the complex product catalog for industrial distributors.
  2. Limited Capabilities for Diverse Distributors. Distributors with diverse business models with manufacturing, construction, or field service might require several add-ons.
  3. Not Designed for Large Companies. NetSuite may struggle with transactional workload requirements of companies over $1B and the ones that might be acquiring 10-20 entities every year.

Conclusion

Distribution enterprises possess unique demands in planning cycles and network structures. While manufacturing ERP systems might seem adequate, they lack the inherent alignment with distribution organizations. Failing to opt for a fitting distribution solution could result in employees relying on spreadsheets or isolated add-ons, impeding process scalability.

When assessing a distribution ERP system, pay attention to these intricacies to select the appropriately sized solution for your company. If you find the complexities overwhelming, consider enlisting the assistance of independent ERP consultants to streamline your selection process.

FAQs

Top 10 Manufacturing ERP Systems in 2024

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, ERP, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Service Companies / By / March 17, 2025

Manufacturing companies require extensive ERP capabilities due to high inventory costs, production efficiency, and regulatory controls. The abundance of manufacturing ERP systems makes choosing the right one challenging. The manufacturing industry, with its diverse nature, faces increased complexity in finding an optimal ERP solution. The overlap of options adds to the confusion. Issues such as business models as different as software development being compared to manufacturing further complicate matters. It convolutes to the extent that before you attempt to define ERPs, you might be forced to define manufacturing.

The manufacturing landscape spans from spaceships to beverages, encompassing diverse processes. Each micro-vertical has specific business processes, resulting in unique ERP needs. Traditionally, selling generic ERP solutions faced challenges due to nuanced requirements. ERP vendors thrived by tailoring designs to specific micro-verticals. Using an ill-suited product might feel unnatural, while overly focused solutions may struggle with diverse businesses. Most ERP systems, while appearing comprehensive at the surface level, might support only a few geographies, making them irrelevant for manufacturers in other regions.



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Additionally, certain ERP systems integrate processes from adjacent systems like PLM or HCM. Another factor that has influenced ERP systems’ design is the frustration with leading ERP systems, birthing newer marketed as “cutting-edge” but with weaker data models and integrity, creating technical and process backlogs. Beyond core capabilities, changes in their roadmap can impact you as well. We publish this annual list to help you grasp these nuances. In 2024, significant changes to the ranking reflect exciting developments with some of these products.

Criteria

  • Overall market share/# of customers. The higher the market share of the manufacturing ERP system, the higher it ranks on our list.
  • Ownership/funding. Who owns the ERP vendor? Is it a private equity company, a family or a group of families, or a manufacturing company? 
  • Quality of development. The more cloud-native manufacturing capabilities, the higher it ranks on our list.
  • Community/Ecosystem. The larger the community for a product, the higher it ranks on our list.
  • Depth of native functionality for specific industries. Does the publisher own the code? Or do they use a white-labeled, third-party add-on? 
  • Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
  • Manufacturing Product Share. The higher the focus on manufacturing, the higher the ERP system ranks on our list.
  • Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  • Acquisition strategy aligned with manufacturing. The more aligned the acquisitions are with manufacturing, the higher they rank on our list.
  • User Reviews. The deeper the reviews by manufacturing companies, the higher the score for a particular product.
  • Must be an ERP product. There are several edge products that may have a larger market share than these products. And they may be more successful in their respective categories, such as Salesforce, Workday, and ServiceNow. Ariba, or Coupa. However, since they don’t have the cross-functional capabilities as of today to be qualified as a manufacturing ERP system, none of these edge products qualify on this list.


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10. Plex

Adopting an MES-first strategy, Plex targets companies in the Toyota and Ford automotive ecosystems. Despite superior technology compared to other solutions on this list, Plex has fewer installs, primarily focusing on the automotive industry. Uniquely, Plex integrates some of the HCM processes tightly with MES and ERP, which is beneficial for automotive companies if skillsets and certifications are key inputs for production scheduling. However, its relevance may vary for other industries. While it maintains the #10 spot, its limited progress has led to a slight reduction in ranking among the top 10 manufacturing ERP systems.

Strengths
  1. Last-mile Functionality for Toyota and Ford Ecosystems. Tailored for manufacturers in the Toyota ecosystem (i.e., Toyota suppliers), Plex offers distinctive features. These encompass unique business processes like forecasting, collaborative planning, and compliance requirements.
  2. MES-first approach. Originating as an integrated MES solution, Plex boasts extensive MES capabilities. This appeals to companies handling processes traditionally within ERP, like quality, scheduling, and asset maintenance, providing a valuable shop floor perspective.
  3. Cloud-native UI and Architecture. Similar to cloud-native ERP alternatives like Acumatica or NetSuite, Plex features a cloud-native and mobile-friendly user interface.

Weaknesses
  1. Limited Core ERP Capabilities. While Plex lacks extensive finance and accounting capabilities for global organizations, it could be a great two-tier solution used at the plant level on top of Oracle and SAP as a corporate system.
  2. Limited Mixed-mode Manufacturing Capabilities. Its limited focus on specific manufacturing verticals hinders its ability to handle the hybrid manufacturing capabilities crucial in high-mix, project, and custom machinery manufacturing.
  3. Limited Ecosystem and Consulting Base. Plex has fewer installations and a minimal marketplace and consulting base compared to other manufacturing ERP systems on this list.

9. Sage X3

Designed for large process manufacturing companies (up to $3B in revenue), Sage X3 competes with large ERP systems like Oracle Cloud ERP, SAP S/4 HANA, or Microsoft Dynamics F&O in process verticals, provided extensive globalized and localized capabilities aren’t necessary. It may not be ideal for discrete verticals or SMB manufacturers under $50M in revenue. However, upper-mid process manufacturing and agriculture companies would find Sage X3 highly appealing. While Sage X3’s ranking has slightly decreased this year, it still holds the #9 spot among the top 10 manufacturing ERP systems.

Strengths
  1. Last-mile Functionality for Process Manufacturing and Agriculture. These verticals have fairly unique compliance, traceability, and audit requirements such as lot-level reporting, catchweight, and use-before inventory release.
  2. Process Manufacturing-centric Ecosystem. These companies require unique add-ons such as LIMS and weighing scale integration. They also need consulting companies with deep expertise in HIPAA or pharma validation.
  3. Robust ERP Capabilities for Public Companies.  Due to Sage’s roots, the accounting perspective of Sage X3 solution would be friendly for companies that have deep audit requirements. For example, complex workflows of GL restrictions or Sarbanes Oxley requirements.
Weaknesses
  1. Limited MES Capabilities. It has limited MES capabilities tailored to discrete manufacturing. The device integrations needed in discrete verticals are likely not to be pre-baked with Sage X3.
  2. Too Big for Smaller Companies. Its overarching data model to accommodate the needs of larger companies, such as complex departmental budgetary and approval processes, might feel overwhelming for smaller companies.
  3. Limited Ecosystem for Discrete Manufacturing. The add-ons, such as PLM and CAD integration tailored, along with the consultants with deep expertise in discrete manufacturing verticals, are likely to be limited with Sage X3.

8. Oracle Cloud ERP

Geared toward large manufacturing firms with 10+ global locations (over $1B in revenue), Oracle Cloud ERP excels with high transaction volumes. Ideal for companies prioritizing financial functionality over plant-level needs or preferring plant-level integration with best-of-breed solutions. It is not the optimal choice for SMB manufacturers lacking internal IT capabilities seeking full-suite capabilities. Oracle Cloud ERP is also ideal for global companies with diverse business model that plan to use multiple ERP systems at the plant level and use Oracle Cloud ERP as their corporate ERP system. Oracle Cloud ERP retains the #8 position among the top manufacturing ERP systems, appealing to large, global, and publicly traded companies.

Strengths
  1. Robust Finance Capabilities for Large, Global Manufacturers. Capabilities include having five layers of GL restrictions, multiple layers of sub-ledgers, and book closing requirements across divisions.
  2. Proven Solution with Large Workloads. Large companies may process millions of GL entries per hour. These workloads may be even higher for manufacturing companies. They might need to decouple transactions as a single system might struggle to support the end-to-end transaction of a global enterprise.
  3. Ecosystem.  Oracle Cloud ERP has an ecosystem of experienced consultants who have the capabilities to handle the design and architecture of such complex enterprises.
Weaknesses
  1. Limited Last-mile Capabilities. The last-mile capabilities may require the subject-matter expertise of consulting companies as vanilla processes need to be translated for specific micro-vertical needs.
  2. Not necessarily a Manufacturing Solution. The manufacturing and supply chain capabilities of Oracle Cloud ERP are an afterthought. So, it’s only relevant for companies that need to decouple their processes ( or are struggling to support end-to-end processes in one system).
  3. Overwhelming for SMB Manufacturers. Not a fit for SMB companies looking for a turn-key solution tailored to the processes of the specific micro-vertical.

7. Acumatica

Tailored for manufacturing companies in the $10-100 million range, Acumatica suits manufacturers with diverse models like construction, distribution, and field service. While a decent manufacturing solution, it lacks mature capabilities for specific verticals, such as matrix inventory planning for metal or engineer-to-order scenarios, allocation layers, and robust MRP strategies. With limited global operation capabilities, it may not be ideal for those seeking shared services or global synergies. Nevertheless, smaller manufacturing startups valuing a superior user experience would find Acumatica appealing. Notably, Acumatica has experienced a ranking boost this year and now holds the #7 position on our list.



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Strengths
  1. B2B and B2C Manufacturing Products. Its data model is friendly for B2B businesses, with support for complex customer hierarchies and pricing (and discounting layers). It also supports divisional/branch accounting with warehouse-level pricing and replenishment strategies.
  2. Diverse Capabilities to Support the Needs of Multiple Business Models. Support for hybrid business models in the same product/database, such as manufacturing and distribution (or manufacturing combined with construction, DTC, or field service). 
  3. Cloud-native UI and Flexible Pricing Options. Superior experience for teams using ERP primarily on mobile devices. Consumption-based pricing options reduce costs substantially for certain business models, such as seasonal businesses with labor spikes.
Weaknesses
  1. Limited Global Capabilities. The current multi-entity functionality might be limiting for companies with operationally connected offshore locations.
  2. Limited Mobile Reporting Capabilities.  The mobile capabilities are leaner for complex reporting scenarios such as parallel processing or reporting labor or machines separately from the same work center. 
  3. Multiple Add-ons may be Required for Regulated Industries and Complex Manufacturing. Requires several add-ons, such as MES, PLM, and quality, posing integration and communication challenges.

6. QAD

QAD targets mid-to-large automotive, electronics manufacturing, and life sciences companies with a depth in Supply Chain. It’s especially suitable for companies that require deep layers of collaboration with their vendors for forecasting and planning. But it’s not a fit for companies with diverse business models or very small companies. QAD has seen substantial advancements in its portfolio, especially with its technology, which was a massive barrier for QAD in the past. Despite advancements in technology, QAD’s ranking dipped due to competitors’ developments but still maintains its rank on this list at #6.

Strengths
  1. Global Capabilities. While not as globalized and localized as other larger solutions, such as SAP S/4 HANA or Oracle, QAD is as limited as smaller solutions and can accommodate several countries with global synergies in one product/database.
  2. Supply Chain Suite + ERP. Combining capabilities that traditionally resided in a Supply Chain Suite, QAD includes trade compliance, TMS capabilities, and S&OP planning in its core solution.
  3. Last Mile Capabilities for Several Industries. While not as vanilla as other solutions on this list, QAD offers deep last-mile functionality for industries like Life Sciences, Electronics Manufacturing, and Food and Beverage.
Weaknesses
  1. Diverse Business Models. QAD’s limited focus poses challenges for holding and private equity companies with aggressive M&A cycles trying to keep all of their entities on one solution.
  2. Global Corporate Solution. While operationally strong, QAD may not be the best fit for companies seeking a global corporate financial solution.
  3. Weak Ecosystem. QAD lacks a robust ecosystem, including limited partners and coverage for third-party add-ons and marketplaces.

5. SAP S/4 HANA

Targeting large manufacturing companies (over $1B in revenue) with global operations, SAP S/4 HANA excels in handling millions of transactions per hour. Ideal for large product-centric and publicly traded companies heavy on financial compliance and governance, it may not suit SMB manufacturing companies without internal IT maturity. SAP S/4 HANA enjoys a unique advantage for MRP-driven companies requiring enterprise-grade workloads intending to keep all of their entities in one database. With some momentum in its portfolio, SAP S/4 HANA has seen some boost in its ranking, and now it ranks at #5 on this list.

Strengths
  1. Enterprise Product Designed for Product-centric Companies. The item master, product model, and warehouse architecture can accommodate the needs of most manufacturing business models.
  2. The Power of HANA to Run Global Operations End-to-end in One System. Our simple test of HANA’s capabilities with 100K serialized goods receipt found it to be faster than most systems out there. SAP S/4 HANA could process it in under 22 seconds, while Oracle cloud ERP took more than 18 mins for the same test. So it would not require as much decoupling of transactions as other systems.
  3. Financial Governance and Best-of-Breed Architecture. Financial traceability is built with each transaction, which makes the transactions and SOX governance flows highly traceable. 
Weaknesses
  1. Behind in Cloud Capabilities. Despite advanced technical capabilities such as AI, the last mile industry capabilities and operational functionality are limited in their cloud ERP version.
  2. Too Big for Smaller Companies. Companies looking for a fully baked suite without internal IT capabilities will find it overwhelming.
  3. Limited Last Mile Capabilities and Third-party Pre-integrated Options. The last-mile capabilities available with other ERP systems, such as Infor LN or Plex, would not be as strong with SAP S/4 HANA.

4. Microsoft Dynamics 365 F&O

With more logos among project-centric manufacturers with global reach and diverse business models, Microsoft Dynamics 365 F&O excels in localizations where other solutions may falter. While not as robust as SAP S/4 HANA for Fortune 1000 workloads, it’s ideal for upper mid-market companies seeking a diverse and global solution. A vibrant ecosystem makes it suitable for private equity and holding companies aiming to streamline their portfolio companies on one solution. SMBs, however, might find its complex data model overwhelming. With ongoing portfolio momentum, it has surged in our ranking, now holding the #4 spot.



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Strengths
  1. Product-centric Solution Ahead in Cloud. It has richer operational functionality for the cloud than SAP S/4 HANA and Oracle ERP Cloud. 
  2. Best-of-breed Products Integrated at the Database Level. With the integration enabled at the database layer level for superior data integrity, it is pre-integrated with an enterprise-grade best-of-breed CRM and field service solution. 
  3. Powerful Ecosystem and Marketplace Add-ons. Microsoft has a talent and consulting base in countries where finding talent may be a challenge. Its marketplace also has add-on solutions from companies as big as Aptean.
Weaknesses
  1. Limited MES Capabilities. The MES capabilities are very lean and can only support basic use cases. The marketplace may have richer MES options available from third parties but would not provide as embedded experience as with other solutions on this list.
  2. Too Big for Smaller Companies. The smaller companies would find it overwhelming with the configuration and approval flows built with ERP for large enterprises.
  3. Limited Last Mile and Best-of-breed Capabilities. The last mile functionality may be a challenge and would require several add-ons. Equally limiting is the best-of-breed capabilities available with SAP, Oracle, or Infor.

3. Infor CloudSuite Industrial (Syteline)

Geared towards SMB OEMs with extensive SKUs and complex subassemblies, Infor CloudSuite Industrial (Syteline) excels with its flexible BOM structure, accommodating both formal and informal manufacturing processes. Ideal for businesses deeply integrated with field services and manufacturing, it offers robust capabilities for quality and field services. While possessing hybrid manufacturing features, it falls short in global trade compliance and lacks support for manufacturers heavily involved in distribution-centric processes. Despite its specific application, Infor CSI retains the top spot on this list with a slight ranking decrease due to its limitations on certain manufacturing business models.

Strengths
  1. Support for Both Informal and Formal BOMs and Engineering Processes. Infor CSI BOMs don’t mandate a revision number, making it easier for companies with relatively unsophisticated data models and engineering processes to use without going through the painful formalization of SKUs and BOMs. 
  2. Deep Costing Layers. Compared to other products with patchy experience, the costing layers are well-designed and scale well in verticals where multiple layers may impact product pricing and costing. 
  3. Field Service Integration with the Core Manufacturing Processes.  Deep composable serviceable units are built as part of the core solution with complex assemblies and back-and-forth interactions of channels to service units in the field.
Weaknesses
  1. Disconnected Financial Reporting Experience. Unlike other products, financial reports are not embedded with the product and would require an Excel interface, creating a patchy experience for the users. 
  2. Poor User Experience and Steep Learning Curve. While marketed as a cloud product, the cloud capabilities, such as enterprise search and opening multiple tabs, are limited, making the experience non-intuitive.
  3. Weak Ecosystem and Third-party Options. Similar to Epicor, Infor CSI takes the suite approach. So it might be harder to find integration with best-of-breed third-party apps.

2. Epicor Kinetic

Epicor Kinetic targets small-to-mid-size manufacturers specializing in industries with formal manufacturing processes and complex inventory needs, such as automotive, aerospace, metal, fabrication, and medical devices. It is also equally deep with project-centric operations and distribution processes for manufacturers with hybrid business models. Despite recent developments, Epicor Kinetic might not be the best fit for companies with global financial operations and deep field service operations. Yet Epicor is one of the strongest manufacturing ERP systems on this list, and that’s why it has seen a surge in its ranking, and now it ranks at #2 on our list.

Strengths
  1. Strong for Comapnies with Formal Manufacturing Processes. Mandatory revision numbers and the BOMs driven by revision numbers would be especially appealing for formal engineering organizations used to seeing BOMs this way.
  2. Strong with Complex Inventory Needs. Companies that require multiple attributes that need to be part of the planning and MRP, such as metal, fastener, automotive, and aerospace, would find Epicor to be appealing.
    Microsoft Look-and-feel. Epicor has a very similar look and feel to Microsoft ERP products, providing you with the same experience but with much deeper last-mile capabilities where other products might struggle.
Weaknesses
  1. Global Financial Operations. Unlike larger products that might support more than three layers of financial hierarchies, such as corp, subsidiary, entity, and business units, the limited number of layers would operationally inefficient workarounds, such as using sub-accounts for such traceability.
  2. Embedded Experience with Field Service and Quality. Despite recent acquisitions, the field service capabilities are not as embedded and proven as some of the other products on this list.
  3. Weak Ecosystem and Marketplace. Epicor takes a suite approach to its products while selling directly to its customers. This limits the overall consulting and marketplace penetration.

1. Infor CloudSuite LN/M3

Infor CloudSuite LN and M3 are two completely different products and target large manufacturing companies (from $250-$3B in revenue). LN targets complex manufacturing products such as rocketships, satellites, or construction machinery. Infor M3 suits apparel, F&B, and chemical manufacturing. These are the only two products in the market that have the deepest capabilities for pure-play manufacturing companies with global operations. The other products might struggle with specific business processes or global scale. Infor LN and M3 both can support best-of-breed architecture with PLM, WMS, Supply Chain Visibility platform, and WFM products uniquely tailored to these industries. They are one of the best options for Fortune 1000 companies needing operational solutions in a two-tier architecture or upper mid-market companies needing to manage all of their entities in one solution/database. Because of their strengths, they still maintain the #1 position on our list of the top manufacturing ERP solutions.

Strengths
  1. Global Operations. Infor LN and M3 are the only solutions in the market that have sufficient layers with financial hierarchies and global trade compliance functionality pre-baked with products to support manufacturers exploring global financial and operational synergies. 
  2. Last-mile Capabilities Along With Breadth of Capabilities for Diversified Manufacturing Business Models. The verticals such as apparel manufacturing require the deeper integration of PLM, vendor portals, and merchandising solutions. Complex manufacturing requires handling units, several layers of allocation management, and international trade compliance.
  3. Best-of-breed Integrations Offered Out-of-the-box. Most tools that a manufacturer would require, such as HCM, PLM, data lake, ERP, WMS, TMS, and advanced supply chain planning, are all pre-integrated with LN and M3.
Weaknesses
  1. Might Not be the Best Fit as a Corporate Solution for Holding and Private Equity Companies. Holding companies as diverse as manufacturing, construction, and professional services may not be able to keep all of their entities on one solution and database.
  2. Legacy UI and Experience. Infor LN and M3 are both legacy solutions with technical limitations to provide the cloud-native experience with universal search, mobile experience, etc.
  3. Weak Ecosystem and Marketplace. The consulting base and marketplaces are virtually non-existent for both Infor LN and M3 if you need third-party best-of-breed pre-integrated solutions.

Conclusion

Selecting a manufacturing ERP system is hard. You have several competing priorities that need to be aligned for everyone to be equally efficient with it. While your shop floor is likely to dictate the requirements for your ERP, successful implementation requires that the product meets the needs of all departments equally well.

There are several other ERP systems that are highly popular manufacturing ERP systems and might be a great fit for a lot of industries and situations, such as NetSuite, IQMS, Salesforce/Rootstock, SYSPRO, ECi Macola, JobBoss2, Aptean ProcessPro, Aptean Ross, Aptean Made2Manage, ECi Deacom, ECi M1, GlobalShop, ProShop, Odoo, and GeniusERP. They might be as strong as these products (in fact, stronger) for some industries and market segments. 

The only reason they didn’t make it to the list is that either they have too small a market share or are too focused on specific industries. Or they might not have as strong native operational functionality to be a strong contender for any industry. In conclusion, when selecting a manufacturing ERP system, consider including these solutions in your evaluation and hiring independent ERP consultants, as they might offer strengths tailored to your organization’s needs.

FAQs

Top 10 ERP Systems For 2025

Top 10 ERP Systems in 2025

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Consumer Goods, Distribution, ERP, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By / March 25, 2025

AI advancements have pushed ERP systems to a critical inflection point in 2025. While generative AI remains in the experimental phase, its impact on application interaction models is still evolving. To stay competitive, buyers will explore AI-centric ERP solutions; however, finding mature, AI-driven systems may prove challenging.

Another key factor that could significantly impact ERP rankings in the coming years: is whether cloud nativeness will continue to drive procurement cycles. While migrating legacy systems to the cloud has been a major focus recently, this trend may lose relevance once AI agents reach maturity. At that point, systems with legacy data models could become just as user-friendly as their cloud-native counterparts.

Despite ongoing changes, several established factors remain relevant and were considered in our evaluation this year. These include whether a system is designed to support diverse business models or emphasizes suite-centric capabilities with pre-integrated, industry-specific solutions.

For instance, a large enterprise engaged in frequent M&A may prioritize a robust global financial core over extensive operational features or specialized integrations for individual business units. Horizontal solutions typically emphasize global and generic ERP capabilities, while industry-specific functionality is often delivered through third-party solutions. Conversely, what suits an enterprise may not align with a startup’s needs.

Broader industry trends are equally relevant, such as solution consolidations or vendor acquisitions, which often reshape a system’s architecture and scope. Additionally, consider adjacencies like community strength and market momentum. Each ERP system has its unique strengths, and identifying the right fit requires careful analysis of specific needs and efficiency goals. Join us as we explore the top ERP systems.



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10. Odoo

Odoo is a solid choice for smaller companies transitioning from QuickBooks or Xero, consolidating operations previously managed through spreadsheets, add-ons, and disconnected applications. It provides essential transactional processing across ERP, CRM, and HCM categories, all within a unified data model and app suite.

Ideal for budget-conscious businesses, particularly those with in-house developers, Odoo’s modular design enables flexible app purchasing for startups unable to commit for longer term fixed costs. However, its data model lacks tight integration, which may concern companies requiring strict financial control. This limitation can be especially challenging for less experienced firms struggling with internal processes and data management.

Another drawback is Odoo’s limited support for advanced ERP processes and transactions, typically found in more mature systems like Acumatica or NetSuite. How does this impact growing businesses looking for scalability without excessive customization costs? While Odoo offers a compelling entry point for startups and smaller enterprises, does its multi-country management capability outweigh its constraints in advanced ERP functionalities? Compared to competitors like Zoho and ERPNext, is Odoo’s connected data model enough to justify its ranking? To see how Odoo stacks up against the top ERP solutions of 2025 and find the best fit for your business, download the full Top ERP Systems in 2025 Report now.



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9. Acumatica

Acumatica is an excellent choice for companies transitioning from smaller ERP or MRP systems. However, businesses without experienced CFOs, operations executives, or controllers skilled in process and data translation for ERP systems may face challenges. Founder-led companies, in particular, might find implementation demanding due to the need for expertise in translating manual processes. Adapting to Acumatica’s structured data model—with its intricate business rules for enhanced financial control—can be a hurdle for those unfamiliar with such systems.

Acumatica’s versatility makes it a strong choice for businesses with diverse operations. But how does it compare to more mature ERP systems in terms of advanced features like dimensional inventory and global localization? While its cloud-native design and marketplace extensions offer flexibility, can they fully bridge the gaps in deeper operational capabilities? With competition from AI-first systems and dominant players like NetSuite and Sage Intacct, will Acumatica’s recent Professional Services edition be enough to gain market share? Download the full Top ERP Systems in 2025 Report now to see where Acumatica stands among the top ERP solutions.



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8. IFS

Like other upper mid-market ERP solutions such as Infor LN, QAD, and Sage X3, IFS offers extensive functionality, particularly suited for companies with asset-intensive and field service operations. Uniquely positioned in the market, IFS appeals to enterprises seeking mature, industry-specific capabilities—reducing the need for extensive customization compared to vanilla ERP systems like SAP or Oracle. It serves as a strong alternative in the upper mid-market space, offering both best-of-breed asset management and field service capabilities, as well as a comprehensive ERP solution tailored for asset-centric industries, including telecom, energy, construction, MRO, airlines, and IT field services.

IFS’s complex data model and advanced asset scheduling make it a strong fit for upper-mid-market companies, but does its need for experienced internal teams and external advisors pose a challenge for growing enterprises? With its cloud-native architecture and global multi-entity capabilities, is it the best choice for businesses nearing the $1 billion revenue mark? As IFS expands in North America and invests in AI-driven acquisitions, will its unclear generative AI roadmap impact its competitive edge against other top ERP solutions? Download the full Top ERP Systems in 2025 Report now to see how IFS compares in this year’s rankings.

7. Epicor Kinetic

Epicor Kinetic is the company’s flagship solution. It excels in supporting manufacturing companies with structured processes. Its unique data model and BOM structure are key. It also has strong planning for dimensional inventory. This makes it ideal for industries like metal, fasteners, and fabrication. It works well for aerospace, automotive, and medical device manufacturers. Epicor Kinetic supports complex planning across various business models. These include manufacturing, distribution, and construction. Its advanced features manage WBS-centric processes. This allows efficient management of large programs with centralized cost tracking.

Epicor Kinetic is designed for companies beyond basic transactional processing. It offers a sophisticated data model. This model surpasses entry-level ERP systems like Acumatica and NetSuite. It targets businesses needing advanced manufacturing capabilities like MRP, allocation, and scheduling. Successful implementation requires deep expertise in process and data coding. It’s less suitable for founder-led companies without experienced executives. The rigid revision model can be challenging. Companies with poor SKU and BOM structures may face issues. Strong internal capabilities and advisory support are crucial.

Epicor Kinetic has evolved with modern cloud capabilities and a familiar Microsoft Dynamics-style interface, but do its financial management tools still lag behind competitors? With recent acquisitions enhancing field service, S&OP, and PIM, has Epicor truly differentiated itself, or does its suite-centric approach blend in with other ERP vendors? Its generative AI announcements are among the most exciting in the space, but will it outpace competitors in delivering AI-driven innovations? Download the full Top ERP Systems in 2025 Report now to see where Epicor Kinetic stands in this year’s rankings.

6. Infor CloudSuite LN/M3

Infor LN and M3 are Infor’s flagship solutions. They cater to distinct micro-verticals across industries. Both are built on the Infor OS platform. They share similar suite capabilities. These solutions are well-established in the upper mid-market. They target companies with $250 million to $750 million in revenue. They are for businesses outgrowing entry-level ERPs like Acumatica, Infor CSI, or NetSuite. Infor LN and M3 offer mature capabilities for complex manufacturing and distribution. They provide a suite experience similar to SAP and Oracle. Key features include PLM, WMS, WFM, BI, and a supply chain collaboration platform.

Infor LN is designed for discrete manufacturing sectors, including automotive, aerospace, and high-tech industries. In contrast, Infor M3 specializes in process and apparel manufacturing, serving industries like fashion, food & beverage, and chemicals. Both solutions excel in supporting advanced global operations, particularly for multinational companies seeking cost synergies across regions. Their native capabilities effectively address global trade and compliance requirements, making them a strong choice for international business operations.

Infor LN and M3 serve enterprise companies well in a two-tier ERP strategy. But does their limited industry focus restrict growth opportunities for businesses pursuing diversification or M&A? With a complex data model and BOM structure requiring significant expertise, are the operational efficiencies worth the investment? As Infor shifts toward a platform-driven approach rather than major functional advancements, can it stay competitive in an evolving ERP landscape? Download the full Top ERP Systems in 2025 Report now to see where Infor LN and M3 rank among the top ERP solutions.

5. Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central, designed for SMBs, is a natural choice for companies transitioning from smaller ERP, MRP, and accounting systems such as QuickBooks, Microsoft GP, Odoo, Katana, or Fulcrum. Competing with NetSuite, Sage Intacct, and Acumatica, Business Central offers a robust ecosystem with numerous industry-specific add-ons. However, successfully leveraging this ecosystem requires expertise in evaluating unproven code from VARs and ISVs. A solid approach of system architecture is essential to prevent conflicts between plugins and ensure unpainful implementation.

Business Central is particularly well-suited for companies with diversified global operations looking to consolidate all entities into a single database. This is useful for streamlined reconciliation and tracking. While add-ons can extend its functionality for complex industrial operations, its core design aligns best with industries such as non-profits, the public sector, FMCG, and F&B distribution. It is also a strong fit for light assembly manufacturing, telecommunications, media, technology, energy, and utilities.

Business Central’s strong consulting ecosystem and global adoption make it a popular choice, but is it the right fit for companies needing more advanced operational capabilities beyond financial reporting? As Microsoft leads AI-driven innovation, how will Business Central’s alignment with this strategy shape its future compared to other ERP solutions? With many vendors still refining their AI approaches, will Business Central’s stability give it a competitive edge? Download the full Top ERP Systems in 2025 Report now to see where Microsoft Dynamics 365 Business Central ranks this year.

4. Oracle ERP Cloud

Oracle ERP Cloud remains a top choice for large enterprises across diverse industries, including media, telecommunications, construction, energy, oil and gas, and healthcare (following the acquisition of Cerner). It is particularly well-suited for organizations with strong internal IT expertise and a need to integrate various proprietary and third-party software systems, such as patient claims management or utility billing solutions.

Oracle ERP Cloud is an ideal solution for global companies using it as their corporate financial ledger while maintaining other systems at the subsidiary level. Its robust financial capabilities support organizations requiring ledger-level security and hierarchical financial reporting. They might require this whether by line of business, function, or fund. Additionally, it offers seamless integration with a powerful HCM suite and a natively embedded EPM solution.

Oracle ERP Cloud is a strong choice for financial services and insurance, but does its limited success in product-centric industries make it less viable for manufacturing and supply chain-heavy businesses? With many enterprises using it primarily as a corporate ledger, does it provide enough operational depth at the subsidiary level? As competitors like Microsoft and SAP push AI-first strategies, can Oracle ERP Cloud maintain its leadership without a clear roadmap for innovation? Download the full Top ERP Systems in 2025 Report now to see how Oracle ERP Cloud ranks this year.

3. Microsoft Dynamics 365 Apps

Microsoft Dynamics 365, now referred to by various names for different industries—such as Supply Chain Management or Project Operations—has become one of the most in-demand ERP solutions for upper mid-market and large enterprises. While Microsoft doesn’t disclose specific revenue figures for its Dynamics portfolio, estimates suggest that the business unit generates several billion dollars in revenue, significantly smaller than SAP but notably larger than many smaller ERP vendors.

Microsoft Dynamics 365 is particularly well-suited for large global organizations, especially in regions where niche ERP solutions are less prevalent, such as Eastern Europe, South America, or Australia. These regions present unique localization challenges that require tailored solutions to meet specific country- and province-level compliance needs. In many cases, organizations deploy Microsoft Dynamics 365 primarily for accounting and financial reporting, while relying on specialized operational systems for subsidiary-level functions.

Microsoft Dynamics 365’s vast consulting ecosystem and strong ISV marketplace give it a unique edge. But does the complexity of navigating these add-ons lead to higher implementation risks? With unqualified ISVs and VARs contributing to a higher failure rate, how can businesses ensure a successful deployment? As Microsoft prioritizes AI-driven innovation, will Dynamics 365 regain momentum despite facing stronger competition this year? Download the full Top ERP Systems in 2025 Report now to see where Microsoft Dynamics 365 ranks in this year’s analysis.

2. SAP S/4 HANA

SAP S/4HANA continues to be the top choice for large enterprises. The large enterprises with global operations and extensive localization needs across multiple continents, with Oracle being its primary competitor. While alternatives like Unit4, IFS, or Deltek may handle the demands of larger enterprises, they often fall short in delivering the robust global compliance and transactional capabilities that SAP S/4HANA excels at. Additionally, SAP S/4HANA stands out for its superior transactional workload handling capabilities, as well as outstanding traceability for large, complex organizations.

SAP S/4HANA is also an ideal choice for companies seeking a best-of-breed architecture tailored to specific functional needs. This architecture allows for operational cores on isolated sub-ledgers, which is particularly crucial for large distribution and 3PL companies managing complex WMS networks. Companies with intricate HCM operations and stringent compliance requirements may need to integrate best-of-breed systems. Moreover, SAP S/4HANA offers the essential capabilities for enterprises requiring sophisticated eCommerce platforms, including features like CDP and CPQ. Its flexibility and enterprise-grade architecture make it a standout solution for diverse operational needs.

SAP’s impressive growth in 2024, fueled by strategic acquisitions and a strong AI strategy, has positioned it as a leading ERP contender, but will its focus on core ERP workflows give it a lasting competitive edge over customer-centric solutions? With initiatives like RISE and GROW targeting the mid-market, can SAP successfully expand beyond its traditional enterprise stronghold? As it aligns with Databricks and enhances adoption rates, will SAP’s momentum continue? Download the full Top ERP Systems in 2025 Report now to see where SAP S/4HANA ranks this year.

1. NetSuite

Securing the top position, NetSuite remains the leading ERP solution. It is recognized for its broad industry success, robust ecosystem, credible marketplace add-ons, and comprehensive functionality. While not as complex as competitors like SAP S/4HANA or Microsoft Dynamics 365 F&O, NetSuite excels in supporting diverse business models, including omnichannel operations, matrix/dimensional inventory, and subscription-based models.

Despite its versatility, NetSuite may not be the best fit for industrial distributors and manufacturers due to limitations in pricing and item master capabilities. However, it performs exceptionally well in lighter manufacturing and consumer-centric industries such as health and beauty, fashion, apparel, and CPG. Its strong financial capabilities, coupled with an integrated HCM solution, also make it a preferred choice for service-centric industries, including smaller banks, credit unions, financial services, non-profits, as well as the technology and media sectors.

NetSuite’s top ranking is backed by its product quality. But how can businesses avoid the common pitfalls of over-customization and integration issues that lead to implementation failures? With no clear AI-first roadmap and limited portfolio momentum, does NetSuite risk falling behind its competitors in the long term? As it enters the field service vertical to compete with Acumatica, will NetSuite’s strategic direction be enough to maintain its position? Or will it be overshadowed by newer market challengers? Download the full Top ERP Systems in 2025 Report now to see where NetSuite ranks this year.

Conclusion

Choosing the right ERP system can be a daunting task due to the many factors to consider. When it comes to critical digital transformation initiatives, where the stakes are high and job security could be affected, it’s important not to base your decision on popularity alone. While systems like SAP may carry a strong reputation, relying on this alone can be a risky strategy.

Instead, adopt a more structured approach to ERP selection by carefully assessing solutions that are tailored to your specific industry or market segment. This thoughtful, strategic process will increase the chances of finding an ERP system that truly meets your organization’s unique needs and long-term goals.

FAQs

Top 10 ERP Vendors in 2025

Top ERP Vendors for 2025

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Consumer Goods, Distribution, ERP, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By / March 16, 2025

With uncertainty surrounding how AI agents will influence transactional applications, many ERP vendors are still in the experimentation phase until clearer expectations emerge across the industry. This phase could lead to intriguing developments, such as new interaction models, architectural changes, or even the potential obsolescence of certain categories. It could also significantly alter the positions of ERP vendors.

In recent years, cloud-nativeness and upgrades to cloud technologies have been a dominant focus for both vendors and customers. Newer cloud-native vendors held an unfair advantage over legacy vendors, mainly because they faced fewer challenges related to backward compatibility. However, this advantage may no longer hold in the new world. In fact, legacy vendors could now have the upper hand over cloud-native vendors, thanks to their more robust backend layers and the ease of integrating AI agents, which, in terms of efforts required, might be simpler than completely rewriting an application with cloud-native technologies.

Ease of implementation is just one advantage; it also offers superior interfaces, potentially revolutionizing the ERP industry and significantly shifting vendors’ positions. As with any technological advancement, new vendors could emerge if building AI-first systems becomes easier than upgrading legacy systems, further disrupting the market. Another key innovation that could have a major impact on the ERP market is the adoption of no-schema databases, once (if ever) proven to provide the same transactional integrity required by ERP applications. While there are significant developments on the horizon, it’s still too early to predict the future direction of the ERP industry. Therefore, for this year, the positions of ERP vendors will remain relatively stable, with some changes.



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10. Acumatica

Breaking into the top 10 ERP vendors is no small feat for companies with revenue under $100 million, yet Acumatica has successfully earned its place. However, its presence in segments exceeding $100 million in revenue remains limited, with stronger traction among businesses generating $50–100 million. Geographically, Acumatica’s footprint is also narrower, concentrated in developed markets like the US, UK, and Australia. While Acumatica delivers solid operational capabilities as a true ERP solution, its micro-capabilities are relatively lean for complex industries such as manufacturing. Competitors like Infor, Epicor, and IFS offer deeper functionality for businesses advancing their ERP maturity. That said, Acumatica’s simplicity, affordability, and ease of implementation make it a strong choice for companies moving beyond entry-level solutions like Odoo or QuickBooks.

Is Acumatica’s focus on cloud-native features like enterprise search and mobility enough to meet your business needs, or could its limited operational depth pose challenges? How does its vibrant marketplace help fill solution gaps, and what risks come with its limited native global localization compared to competitors like NetSuite and Sage Intacct? While Acumatica’s pricing is often viewed as a strength, how might its complexity affect your budgeting? With recent updates introducing a PSA module for professional services, how does this change its suitability for your industry? And with lingering questions about its AI roadmap and presence among larger enterprises, is Acumatica still a top contender for your ERP strategy in 2025? For deeper insights, download the full Top ERP Vendors in 2025 report now!



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9. Deltek

Deltek is a specialized ERP vendor with a strong focus on government contracting, construction, and architecture sectors. It has a proven track record of success in small to upper-mid-market accounts within these verticals, offering tailored capabilities and data platforms designed to meet their unique needs. However, its suitability may be limited for companies with diversified business models or those pursuing M&A strategies to expand beyond their core industries.

How does Deltek’s ownership by Roper Technologies impact its growth potential compared to ERP vendors backed by larger private equity firms? What role do strategic acquisitions, such as IntelliTrans, play in strengthening Deltek’s capabilities for regulated manufacturing industries? With its proprietary data and research providing a unique edge, how can businesses leverage these resources for benchmarking and compliance? While Deltek’s subject matter expertise continues to secure major clients, will its slower AI innovation hinder its long-term competitiveness? And as Deltek’s dominance in its niche industries remains strong, is it still the right choice for your ERP strategy in 2025? For deeper insights into Deltek and other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!



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8. Sage

Sage, traditionally known as an accounting software vendor with strong distribution channels through accounting firms, maintains a presence in the ERP market. Their legacy products—Sage 100, 200, 300, and 500—continue to serve existing customers, while Sage 50 competes directly with QuickBooks in the small business segment. Sage’s growth strategy emphasizes newer solutions like Sage Intacct, which targets smaller service-sector accounts, and Sage X3, positioned for larger enterprises and process manufacturing industries such as Food & Beverage and Life Sciences.

How does Sage’s reliance on partner add-ons impact its ability to compete with cloud-native ERP vendors offering richer operational capabilities? With Sage’s legacy solutions still maintaining market presence, what challenges might your business face when transitioning to its newer offerings? While Sage’s strong focus on security and regulatory compliance aligns well with AICPA standards, could these features feel excessive for smaller businesses without stringent audit needs? And with Sage’s AI strategy remaining unclear, how might this uncertainty affect its long-term competitiveness? To explore Sage’s positioning and insights into other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!



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7. QAD

QAD stands out as a specialized ERP solution designed for supply chain-intensive industries such as Automotive, Food & Beverage, and Life Sciences. With integrated supply chain and PLM capabilities, QAD effectively addresses complex challenges within highly specific micro-verticals—challenges that many broader industry solutions may struggle to meet.

How will QAD’s transition to its new O3 cloud-native platform impact its competitiveness in the ERP market? With its move to AWS, Java, MariaDB, and TypeScript aligning with modern architectures like NetSuite, could this shift improve scalability and flexibility for your business? How does QAD’s acquisition of Redzone—integrating HCM and shop floor processes—enhance its value for manufacturers and industrial businesses? As QAD aligns its cloud transformation with emerging AI trends, could this timing position it for greater long-term success? And with Thoma Bravo’s typical investment timeline nearing its midpoint, how might future ownership changes influence QAD’s strategy? For deeper insights into QAD and other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

6. IFS

IFS follows a strategy similar to QAD, Deltek, and Unit4 but distinguishes itself with higher revenue. Like Epicor, IFS has experienced notable growth, recently surpassing the $1 billion revenue milestone. Positioned as a strong alternative for enterprise companies seeking deep operational functionality, IFS offers capabilities that go beyond traditional horizontal ERP solutions like SAP and Oracle. Its enterprise-grade EAM and field service capabilities have helped IFS secure contracts with major airlines and MROs—markets historically dominated by SAP and Oracle—where managing large fleets of service technicians is critical.

How will IFS’s strategic acquisitions and focus on predictive maintenance reshape its role in manufacturing-centric ERP solutions? With its expanding presence in North America, can IFS effectively challenge established players like Infor, SAP, and Microsoft in larger enterprise accounts? While IFS’s AI investments have focused on data-related innovations, how might its approach to generative AI influence its future capabilities? And given IFS’s significant install base of best-of-breed solutions, how should buyers assess its ERP-specific value? To explore IFS’s positioning and insights into other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

5. Epicor

Like IFS, Epicor belongs to the exclusive $1 billion revenue club, offering a diverse portfolio of industry-leading solutions across multiple micro-verticals. Notable products include Epicor Kinetic, Epicor Prophet 21, Epicor Eclipse, BisTrack, and LumberTrack. While Epicor was slower to adopt cloud technologies than some legacy vendors, it has made significant progress. Its Kinetic UI and UX now deliver mature cloud capabilities, including enterprise search. Epicor has also been developing enterprise traceability transactional maps similar to those found in SAP, marking a key advancement for the platform.

How does Epicor’s deep focus on micro-verticals give it an edge in industries like metal, automotive, and aerospace? With its fully integrated MES available as a standalone solution, could Epicor be the right fit for businesses seeking advanced Industry 4.0 capabilities? How will Epicor’s recent acquisitions, such as S&OP planning and PIM, enhance its integrated suite—and what challenges might arise for customers needing to replace existing solutions? As Epicor’s leadership shifts focus toward AI readiness, how soon can businesses expect meaningful innovations? To learn more about Epicor’s position and other top ERP vendors in 2025, download the full top ERP vendors in 2025 report now!

4. Infor

Infor’s revenue surpasses that of Sage and Epicor but remains significantly lower than the largest ERP vendors. With its comprehensive product suite, Infor competes with Epicor, SAP, Oracle, and Microsoft, offering enterprise-grade solutions tailored to specific industries. While Infor’s global reach may not match SAP or Oracle, its strength lies in deep vertical specialization. It is also among the few vendors outside the industry’s largest players capable of delivering a best-of-breed architecture similar to SAP, Oracle, and Microsoft. In certain areas, such as workforce management (Infor WFM) and supply chain connectivity (Infor Nexus), its capabilities may even outperform Microsoft’s, which relies on third-party add-ons for these capabilities.

How does Infor’s ability to deliver robust industry-specific functionality give it an edge over smaller vendors like Epicor and Aptean in demanding sectors such as Aerospace, Healthcare, and Utilities? With its recent shift toward a platform-centric approach, how might Infor’s strategy mirror successful models from Salesforce and Microsoft? As Infor announces AI initiatives, what gaps remain in its roadmap for integrating AI-driven innovations? And with new partnerships positioning Infor to target larger accounts, can it successfully expand its presence in enterprise markets? For deeper insights into Infor’s strategy and other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

3. Microsoft

Microsoft has significantly strengthened its cloud-native capabilities across its two flagship ERP solutions: suites of applications targeting larger companies such as Project Operations or Supply Chain Management — and Business Central. Similar to SAP and Oracle, Microsoft offers a comprehensive suite of best-of-breed applications to support enterprise architecture, with Azure standing out as a leading cloud infrastructure platform for custom application development. Its seamless integration with the Microsoft 365 Suite further enhances its overall value proposition.

How does Microsoft’s dominance in both ERP and CRM categories enhance its competitive edge, particularly against SAP and Salesforce? With its cloud-native ERP capabilities outperforming SAP in some areas, could Microsoft’s solutions better support your business model needs? While Business Central’s reliance on third-party add-ons may limit its core operational depth, does Microsoft’s extensive developer ecosystem help mitigate these gaps? And as Microsoft positions itself as an AI leader, how might its still-unclear roadmap impact future innovation? For a deeper look at Microsoft’s strategy and insights into other top ERP vendors, download the full Top ERP Vendors in 2025 report now!

2. Oracle

Oracle offers two prominent cloud ERP solutions: Oracle Cloud ERP and NetSuite. Both are highly advanced in cloud capabilities, though they cater to different segments. NetSuite, with its extensive localization and deep operational functionality, is particularly well-suited for small to upper-mid-market companies.

How does Oracle’s deep integration with Java and Oracle databases give it an advantage in industries like media, telecom, and energy? With its strong presence in both enterprise and mid-market segments, can Oracle maintain its ERP leadership despite its growing focus on database and cloud infrastructure? Will NetSuite’s vibrant ecosystem offset Oracle’s slowing ERP momentum? And how will Oracle’s Cerner acquisition shape its influence in the healthcare sector? For a comprehensive analysis of Oracle’s position and insights into other top ERP vendors, download the full Top ERP Vendors in 2025 report now!

1. SAP

SAP holds the largest market share in the ERP space, driven largely by its dominance in enterprise deals, which are significantly larger than mid-market transactions. Its extensive portfolio features best-of-breed solutions, particularly within the SAP S/4HANA Suite, which is favored by enterprise-grade organizations. Key offerings such as SAP SuccessFactors (HCM), SAP Hybris (Commerce), SAP EWM (WMS), Ariba (P2P), and Concur (T&E) further expand its comprehensive capabilities.

How does SAP S/4HANA’s in-memory architecture give it an edge in managing high transaction volumes and complex traceability? With its ability to streamline multi-country operations in a single database, could SAP be the right fit for your global business needs? As SAP continues to refine its mid-market strategy with Rise and Grow, will it successfully capture SMB traction despite lingering uncertainties around SAP Business One and ByDesign? And how might SAP’s Databricks partnership enhance its cloud capabilities in a competitive landscape increasingly shaped by AI innovation? For deeper insights into SAP’s positioning and other leading ERP vendors, download the full Top ERP Vendors in 2025 report now!

Conclusion

The ERP market is set for significant transformation in 2025, with AI-first strategies likely taking center stage. The traditional advantage held by cloud-native vendors may no longer be as relevant, paving the way for new categories and potentially new vendors offering AI-driven solutions. While AI is expected to be the dominant theme of 2025, other developments, such as no-schema databases, could also have a profound impact on the ERP landscape.

Though it’s too early to predict how these trends will reshape the industry and affect vendor positioning, one thing is certain: ERP as we know it today will look very different in the near future. Who’s ready for an exciting (and possibly uncertain) journey ahead?

FAQs

ERP System Price How Much Does ERP Software Cost

ERP System Price: How Much Does ERP Software Cost?

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Consumer Goods, Distribution, ERP, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By / March 26, 2025

The ERP system price is complex to understand. It contains several variables impacting not only your costs but the outcome of your project. With several options available, it’s often hard to compare them and assess the actual ERP software cost of ownership.

Although you might appreciate the straightforward ERP System Price with fewer variables, they offer flexibility. Some pricing models could be more affordable than others, depending on your business model.

Therefore, a thorough understanding of different variables of ERP System Price and how they would impact the implementation is essential.

This article will teach you various factors that drive the costs of your ERP project.



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ERP Project Cost Categories

Before we start understanding each cost element, let’s first discuss the categories that impact the costs of an ERP project.

Depending on the complexity of the project, the category of costs could vary. For example, the regulatory or public sector space could have many more cost elements underneath hosting costs.

Similarly, suppose the scope of your ERP project extends beyond the traditional ERP capabilities. In that case, you might require several ERP add-ons, creating a further need for several integration platforms. That said, here are the most common categories:

  1. ERP Software Licensing Costs
  2. Project Implementation Costs
  3. ERP Add-on Licensing Costs
  4. Integration Platform Licensing Costs
  5. IT Infrastructure and Hosting Costs
  6. Internal Staffing Allocation and Opportunity Costs
  7. ERP Support Costs and Upgrade Costs


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ERP Software Licensing Costs

On-prem ERP System Price Option

When it comes to ERP software licensing costs, the on-prem and cloud pricing models could differ significantly. The one-time ERP system price for an on-prem individual license could be 2.5-3x of a SaaS user. Additionally, the on-prem model will require you to pay software maintenance costs of ~25% of your licensing fees each year.

With an on-prem option, since you pay upfront, your first year’s spend is likely to be more. On-prem users are typically more expensive because cloud models allow you to distribute your license costs over several years.

On-prem ERP System Price Option | ElevatIQ

On-prem Users are 2.5x – 3.5x more expensive than SaaS

To compare the On-prem and SaaS model differences, suppose that both options support three user tiers.

Also, assume that you have 60 employees in total. Of these, ten are financial and operations admins requiring access to planning modules and financials. Twenty are managers/supervisors who approve POs and assign tasks, etc. The remaining 30 could be shopfloor or warehouse workers. They might require interactions with ERP for data entry, such as labor or material reporting. Here is how you can compute the costs by comparing both on-prem and SaaS options.

Total Spend Calculation
  • # of users: standard users = 30, manager users = 20, admin users = 10
  • SaaS: standard user = $100/month, manager user = $150/month, admin user = $250/month
  • Total Annual Spend SaaS for 60 users = 30*100*12 + 20*150*12 + 10*250*12 = $102,000
  • Total 5 Year Spend Saas = $102,000*5 = $510,000
  • On-prem (one-time fee): standard user = $3,000, manager user = $4,500, admin user = $7,500
  • Total Spend On-prem for 60 users = 30*$3,000 + $4,500*20 + $7,500*10 = $255,000
  • Total 5 Year Spend Including 25% annual Maintenance = $255,000 + $255,000*.25*5 = $573,750
  • Assume that you will spend $2,000 per month for hosting, infrastructure maintenance, backup, and upgrades. Even if you decided to maintain your server and hardware, you would spend about the same on Windows, VM licenses, and hardware. You might also pay additional costs for a special internet connection, electricity costs, installation, etc.
  • Total 5 Year Spend Including Maintenance and Hosting = $573,750+ $2,000*12*5 = $693,750

Depending on the price offered by the vendor, the on-prem option could be higher or lower.

For the on-prem option, just because you pay one time, there is a prevalent misunderstanding that it is typically cheaper. Once you have accounted for all costs, you would realize that it is rarely the case. These costs could include increased consulting costs and internal efforts to maintain your data center. Additionally, the on-prem option would not scale as quickly. Furthermore, you might also have a significant unused capacity to accommodate for your seasonal spikes in volume.

Concurrent Option

However, there could be potential cost savings opportunities with an on-prem option if you bought concurrent users. While rare with cloud ERP providers, some cloud ERP vendors such as Acumatica also offer this option. A concurrent license allows multiple users to access the same license seat simultaneously. But its cost could be 2-3x of the regular user.

Concurrent User Pricing | Acumatica Cloud ERP | ElevatIQ
Concurrent User Pricing | Acumatica Cloud ERP


Therefore, if you plan to opt for this model, you may need to analyze your ERP users’ expected usage behavior. If most of your users are seasonal workers or work in shifts, the concurrent option could be appropriate. This option allows your shift workers to use the same license seat without impacting other users’ workflow. It will also help save significantly in licensing costs.

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SaaS ERP System Price Option
Named User Option

The named user option, which is the most common cloud ERP licensing model, allows you to pay for each user. Besides paying for each user, some ERP vendors may also have additional surcharges for base costs or a minimum number of ERP users. Additionally, they might increase their ERP system price based on the edition.

The other ERP vendors make it more comfortable with their flat ERP system price per user option without any complications. But the disadvantage of the flat-price-for-all model is that you might pay higher for non-admin users.

Several ERP vendors that serve small-sized customers might also have tiers with their ERP pricing. For example, the starter edition for these ERP vendors could be significantly cheaper. But once you reach 20 users, they might upgrade you to the next tier, increasing your per-user ERP system price.

Consumption-based Option

The consumption-based ERP system price is another standard pricing model that exists for cloud ERP software. The consumption-based price tier design bases on the number of transactions as opposed to the number of users. The transactions could be the monthly volume of sales orders, purchase orders, or invoices, depending upon whichever is higher.  Once you grow the volume, you might need to upgrade to an expensive tier.

The advantage of a consumption-based ERP system price is that you will get an unlimited number of users. However, the pricing model is even more complicated as it’s hard to estimate the expected transaction volume. Also, the perceived fear due to unpredictable costs with expensive tires may keep off several buyers. These tiers, however, could exist even with the named users.

Still, once you understand the model’s nuances, you could have significant cost savings. These cost savings could especially be relevant if you are a low-volume business. Some examples of these low-volume businesses could include high-dollar manufacturing (MTO, CTO, or ETO). They could also include distribution (industrial or machinery), services, or construction businesses.

Entity-based Option

Another ERP system price model for cloud ERP software is to charge based on the number of entities. This pricing model includes entities as an additional variable in its model, together with users.

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ERP System Implementation Costs

Besides your ERP software license costs, you will need ERP consulting help to make sure the new ERP system configures appropriately. You will also need their help to customize the ERP software as per your business requirements.

The need for an ERP system implementation consultant

If you had never bought an ERP before and used smaller-sized business software such as Xero or QuickBooks, you might mistakenly assume and question the need for ERP consultants and training.

Businesses that assume this might learn the hard way as implementing ERP software is like learning a new language.

Since ERP implementation systems are highly configurable and customizable, even the best ERP system may not provide an optimum throughput if not configured correctly. To calibrate optimally, the ERP consultant must have experience working with similar businesses to reduce their training time on your business.

ERP Consultant Is Not An Option | ElevatIQ
“ERP Consultant Is Not An Option. You need it, ” Sam Gupta, Principal Consultant, ElevatIQ

Additionally, they require mastery of that specific ERP software to recommend appropriate options and structure your data in a way that reduces friction from processes and expedites your business transactions.

Finally, since ERP systems are highly involved in nature, the implementation also includes training your team to ensure that your team can successfully use the product for their day jobs.

How ERP system implementation consultants charge

Since ERP consulting cost line item differs from your ERP software license, you might likely sign two separate contracts with two completely different companies. They might also follow completely different payment terms and structures.

Unlike your ERP software license, ERP implementation costs are project-based and require you to pay one time depending upon the efforts needed to implement an ERP project.

The duration and skillsets required for your ERP project could vary depending upon the complexity of your business operations and your ERP system needs. More straightforward ERP implementation could take 6-9 months, while smaller companies may be able to go live within a few months.

Your ERP implementation duration would also range based on your data’s current state and your process documentation maturity.

Types of ERP Implementation Project Contracts

The pricing model for ERP implementation could vary depending on the engagement model of your consultant. The four most common models exist when it comes to ERP implementation projects.

Time and Material (T&M)

The most common model is time and material (T&M), which essentially charges based on the hours worked.

With a T&M mode, you may want to go for dedicated resources since an ERP implementation project could involve many stakeholders. And if you don’t allocate dedicated resources to the ERP project, resource constraints could cause additional wait times and a longer implementation cycle, increasing your costs and risks. The downside of the dedicated resources is that the ERP consultant might bill you for hours even while waiting for your team to make progress.

Due to the high rate for ERP consultants, you might perceive the T&M mode to be the most expensive. But like other service companies, ERP consulting companies most commonly use them as it offers the least risk for them due to the cost overruns or changed scope. It is also the most recommended methodology as ERP projects are harder to scope and execute as fixed-bid projects.

Fixed-bid

The other standard ERP implementation model includes fixed-bid where the consultant charges based on the project or the scope.

While it might appear attractive at a surface level, it’s tough to assess an ERP implementation scope beforehand.

The ERP consultant might bill you for any scope creep, which might have significant cost overruns. With fixed-bid, you might also not have the flexibility to change the requirements as you gather more information about your business.

Recurring Model

The third and perhaps the most effective for both parties would be the recurring model. This model charges based on per day or month (sometimes distributed over several years).

Computed non-linearly, the average per-hour rate in this model is highly subsidized and lower as the consulting company has a predictable, fixed revenue stream. This model also doesn’t have as much admin overhead compared to the T&M model.

The advantage of this model is that you don’t pay the cost-prohibitive per-hour rate for each ERP consultant. And at the same time, you don’t lose the flexibility you would with the fixed-bid pricing model. However, not every ERP vendor would agree to this pricing model due to the significant risks involved from their perspective.

Read The Fine Lines of Your ERP Contract
“Make Sure to Read The Fine Lines of Your ERP Contract,” Sam Gupta, Principal Consultant, ElevatIQ

Whichever ERP implementation project contract you choose, make sure you read the fine lines of the agreement. Sometimes an ERP consultant might claim that they might finish the ERP implementation at half the cost. But the fine lines might include only a certain number of hours in that price that might be valid for a couple of months.

After you exceed that timeline, they might bill you a very high per-hour rate to make up for the lost revenue as part of your fixed bid ERP project contract. Additionally, with this contract, the assumption would be that you will carry out most of the responsibilities and get trained using the documented resources.

Unless you have an in-house consultant with deep familiarity with the ERP system, you will require a lot more handholding than your ERP vendor would provide as part of their fixed bid.

Therefore, the fixed-bid option may appear most lucrative on the surface. It requires significant expertise to make it work. With the other models, you have flexibility and control in measuring and controlling your costs.

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ERP Add-on Licensing Costs

Depending upon the complexity of your needs, business operations, and ERP product maturity, you might require several ERP add-ons. The add-ons could be as big as other ERP software with deeper capabilities in a specialized area such as Workday for deeper HR capabilities not offered by your core ERP system. Or it could be a plugin to integrate two software for them to be able to communicate—for example, an outlook or a credit card processing plugin.

These add-ons may not be part of the core ERP software just because not everyone uses them. Or they might be out of the scope of core ERP system capabilities.

ERP Projects Need Add-Ons | ElevatIQ
“ERP project add-ons are not part of your core ERP offering and may require separate contracts, ” Sam Gupta, Principal Consultant, ElevatIQ

Depending upon the publisher of the add-ons, the pricing model and licensing could vary. For example, if the add-on belongs to the ERP publisher, they might align both their products’ pricing, making the purchase experience more comfortable. If your ERP reseller or the ERP consulting company owns the add-on and is built specifically for your ERP software, they might also align with your core ERP system.

However, suppose a company owning the add-on supports multiple ERP software, or the add-on is not necessarily ERP-centric. In that case, the add-on could follow a completely different pricing and licensing model. While your ERP system could be a cloud ERP software, it doesn’t mean that the add-on would be cloud software as well.

Like ERP software, since an add-on is software in itself, the cost categories discussed in this article could apply to the add-on. Besides, you may have a separate consulting company that might specialize in that product, so you need to accommodate their implementation costs as well. Furthermore, you might need to align the user types in both software to ensure that appropriate users can communicate with both systems.

Integration Platform Licensing Costs

Like add-ons, you might require several integration tools depending upon your add-ons and ERP software’s underlying technologies. If your ERP publisher or consulting company owns the add-on, they might bundle the integration platform as part of the core ERP system. In this case, it might also be cheaper as they might include as part of their core offering to upsell their ERP add-on software.

1+1=11 in case of technology integration due to its complexity | ElevatIQ
“1+1=11 in case of technology integration due to its complexity, ” Sam Gupta, Principal Consultant, ElevatIQ

However, suppose the add-on differs entirely from the underlying ERP. In that case, you might require a specialized integration platform or might pay your consultant to develop the custom integration code if the add-on doesn’t include a pre-integrated option. As an add-on, an integration platform is software in itself and may require you to consider all the cost elements discussed in this article, along with the costs for an ERP integration consultant. You might also need to align all software licenses involved in the integration to ensure you have appropriate licensing privileges to communicate with all software.

IT Infrastructure and Hosting Costs

This cost is only applicable if you decide to go for an on-prem ERP software or private-cloud option or if one of the add-ons may not support cloud options. Estimating IT infrastructure and hosting costs could be even more involved tasks and a project in itself.

As a first step, each software publisher will provide a software and hardware requirement sheet that you can use to estimate the software and hardware needs for your ERP project. After consolidating all software and hardware requirements, you need to work with an IT infrastructure company specializing in provisioning infrastructure or the cloud. Your ERP consultant may have in-house capabilities, or they might partner with another IT firm to provide this capability for you.

“Don’t Forget to Include IT Infrastructure and Hosting Costs With Your On-Prem ERP System,” Sam Gupta, Principal Consultant, ElevatIQ

Internal Staffing Allocation and Opportunity Costs

Most companies might exclude opportunity costs just because they might not be capable of tracking internal costs. However, this is a critical cost element to calculate the total cost of ownership and compare different ERP vendors. It’s also an important metric to assess the activities that might be cheaper to perform internally vs. externally.

Opportunity Costs Calculation

The best way to calculate your internal costs is to compute each of your internal resources’ hourly rates. For example, if your internal resource’s salary is $X, then their hourly rate wholly based on this salary would be ~X/2K. So, if your resource makes $100K in annual salary, the hourly rate for this resource would be $100K/2k = $50/hr.

If they utilize benefits and vacation, you might have a surcharge of another 30% on top of this rate. So the total rate accommodating these benefits could be $50*1.3 = $65/hr. Additionally, you might want to include marginal admin costs associated with this resource. These admin costs could be their individual need for equipment such as their computers, tools, software license costs, and costs of running their payroll, etc. If this admin marginal overhead could also be 30%, their fully loaded hourly rate could be $65*1.3 = $85/hr. Likewise, you might want to accommodate all your variable costs and proportionate fixed costs to come up with your resources’ fully-loaded costs.

Once you have computed the hourly rate for each of your internal resources, estimate the time they will invest in the project. For example, suppose you have two full-time resources that make $100K in salary, each dedicated to the six-month project. In that case, your internal costs could be $85*168*6*2 = $171,360, where $85/hr is the rate based on $100K salary, 168 is the number of paid hours in a given month, 6 is the number of months, and 2 is the number of resources.

Internal Staffing Allocation and Opportunity Costs with ERP System Purchase | ElevatIQ
Internal Staffing Allocation and Opportunity Costs

ERP Support Costs and Upgrade Costs

There would be several cost elements that would affect this line item. The number of cost elements could also vary based on the configuration and ERP deployment model selected. The consulting and support costs could be higher for the on-prem model to maintain infrastructure, backup, and hardware upgrades. For the cloud ERP, the major cost drivers include tier upgrade, additional storage required, and the cost to maintain separate test or dev instances.

Infrastructure Support Costs

If you opt for an on-prem ERP, you might want to account for maintaining windows and VM licenses and additional costs, including consulting help to upgrade them. With the cloud ERP option, your ERP vendor will take care of these activities for you, and your licensing costs would include them. The cloud ERP option includes most costs from an infrastructure perspective as part of your licensing bundle.

User Support Costs

The user support would be similar in both options, where the ERP publisher would cover any product-related issues. At the same time, your ERP consultant provides support only for a few weeks after the ERP project implementation.

If several add-ons and integration tools are associated with your ERP implementation, each company owning the code might support their respective products. However, if there is an issue that you can’t attribute to a specific product, or if it is related to your specific requirements, you might not get much help from publishers. The support reps at publishers may not have ERP implementation experience or expertise with your industry so that communication could be a challenge as well.

Only ERP consultants with ERP implementation experience can provide the support you need | ElevatIQ
“The product support from ERP publisher is not enough for you – you would need support from an ERP consultant with deep implementation experience, ” Sam Gupta, Principal Consultant, ElevatIQ

The best way to ensure that you always have one point of contact and want to invest predictable cash flow in your support costs instead of a steep hourly rate for your ERP consultant is to subscribe to a premium support package. They might cover it on a per-user basis or as a percentage of your license fee to provide one point of contact for all your support needs.

If you didn’t have access to such support from your ERP consultant, you might invest a ton of money in briefing and training each new consultant that you might hire to support you with your issues. The premium support from the ERP consultant would provide a straightforward computation of your support expenses. For example, they might charge $50-$100 per user per month, depending upon the number of ERP users accessing the system.

Version Uplift Costs

With a cloud ERP system, you get the most recent functionality frequently. While you have access to the most updated product all the time, it might be an issue during version uplifts. The newly released functionality may cause merge issues with your customizations. To resolve these merge issues, you would need consulting help. The premium support may include the version uplifts as part of their package.

Tier Upgrade Costs

Some cloud ERP software may also have limitations with their tiers. For example, they might have storage or bandwidth limitations. Once you run out of the provider’s storage or if you need more bandwidth to accommodate your growing user base, your cloud ERP publisher might charge you extra to upgrade.

Conclusion

ERP pricing is not easy to understand. Each ERP software, add-on, and consultant may have their model. And each decision you make may have implications for you. A thorough understanding of your cost elements is essential to avoid any cost overruns and mistakenly selecting options that might appear cheaper on the surface.

When you are ready to dive deeper into understanding different cost elements for all your ERP system purchases, make sure to choose the most economical ERP system appropriate for your business model. Also, make sure you account for all internal and external costs to determine the total cost of ownership of an ERP software purchase.

FAQs

Document Management A Need For Manufacturing ERPs

Document Management: A Need for Manufacturing ERPs

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, ERP, High Tech & Electronics, Industrial Manufacturing, Life Sciences / By / March 26, 2025

Manufacturers have varying document management maturity levels. Some manufacturing companies have well-defined processes for managing their documents, while others struggle with their ad-hoc procedures. Although you might manage to collaborate using ad-hoc methods, they are also a leading cause of team-related conflicts.

This article will help you understand ERP document management and its features to streamline communication and avoid any conflicts in your team.

What is ERP document management?

ERP document management refers to a centralized repository system to maintain all your digital and scanned documents. There could be several reasons why the documents need to be stored, including regulatory or audit. While needs vary across businesses, ERP document management system generally stores the following documents:

  • Invoices, dunning letters, and printed checks
  • Design documents and drawings
  • Bill of materials and their versions
  • Packaging and marketing assets
  • Legal documents and contracts
  • Product images from vendors and manufacturers
  • Financial reports and account statements

Most functions in a company need an electronic document management system (EDMS), including sales, operations, marketing, legal, and engineering. Since their use is so wide-spread in various departments, companies also refer to it as an Enterprise Document Management system. 



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Options for electronic document management system


Depending upon your business processes’ maturity, these are the methods that companies use to store their documents.

1. Manual Document Management

This method does not utilize any document management software tool to store documents but keeps them in their physical form. Generally, local computers and shared drives would act as the primary storage in this method.

If you opted for this method, you might experience serious control issues due to the lack of centralized storage and governance processes.

2. Cloud-based Document Management Software

The only difference between manual and cloud storage methods is the type of storage used, with Dropbox or OneDrive being some of the choices. While this method helps prevent data loss and provides portability across devices, it would struggle with control and compliance issues.

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3. Standalone Document Management System

Standalone document management software, such as Microsoft SharePoint, is the primary storage method in this method. This method solves challenges such as compliance and control; however, it will not tightly integrate with your transactions.

Therefore, you will spend a significant amount of time entering details to correlate your documents with transactions through an ad-hoc naming strategy. Additionally, this scheme’s ad-hoc nature will lead to non-compliance and challenges of finding documents quickly without manual collaboration.

4. ERP Document Management System

ERP document management consists of two significant databases or components. The first component is the document storage that stores documents in the binary format. The other part stores the contextual information, also known as metadata, that helps you correlate documents with their transactions to help find easily. This metadata will also help you implement scenarios such as bundling and consolidation of documents.

Metadata and File Content Document Management View - Infor CloudSuite Industrial (Syteline) ERP
Metadata and File Content View – Infor CloudSuite Industrial (Syteline) ERP

In summary, manufacturing companies could be at different maturity levels but would use one of the above methods. Most start-up companies would start with manual tracking or perhaps replace that with spreadsheets. As they grow, their needs will change. First, They might replace manual methods with cloud storage or standalone systems. Once they have outgrown their siloed systems such as QuickBooks or MISys, they will need an ERP document management system.

Six Reasons why manufacturers need ERP document management

Manufacturers, in particular, require a sophisticated records management system due to their needs for access control and the complexity of their processes. For example, if you are in the advanced manufacturing space such as Robotic Process Automation or Machinery, you may have several levels in your BOM. Each level will have a different workflow and control needs as you collaborate with your customers or suppliers.

Visual BOM View - Infor CloudSuite Industrial (Syteline) ERP
Visual BOM View – Infor CloudSuite Industrial (Syteline) ERP

1. Collaboration

You might need to share tons of documents irrespective of whether you collaborate with your customers or communicate internally. If you use DropBox or SharePoint methods that lack the transactional correlation, the documents will likely get mixed. This mixing of documents and ad-hoc approaches may result in financial losses.

For example, if your supplier delivers the wrong part because of the incorrect design version you shared, the supplier may have to charge you for your lack of diligence. While losses with customers or vendors might be noticeable, the wastes with your internal teams may go unnoticed.

To illustrate the internal problem further, if you shared a wrong version with your production team, they might end up doing a production run for an incorrect part or spend time configuring the incorrect tooling. Most companies consider employees’ lack of training or attitude to be the cause of such conflicts. In reality, it’s the lack of a centralized document management system that automates these processes without requiring to think about them.

Ming.le Collaboration for Document Management - Infor CloudSuite Industrial (Syteline) ERP
Ming.le Collaboration View – Infor CloudSuite Industrial (Syteline) ERP

2. Control

When it comes to a wide variety of documents ranging from sales quotes to confidential documents, you need appropriate access levels for each stakeholder. You might argue that document management software such as SharePoint or DropBox provides robust control features. 

The issue, though, with such systems is the decentralization of your control. In other words, having more than one command of authority would be an issue unless both sources refer to the same database. In the real world scenario, siloed document management software is likely to have an independent database from your ERP.

It would help if you had centralized access control that ERP document management provides to prevent disclosing your confidential documents because of unintended negligence.

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3. Compliance

If you are in the space with requirements of document approvals or release control, your regulatory bodies may penalize you for oversight. The most common industries with such requirements include medical device, automotive, aerospace, defense, etc.

Along with the requirements of centralized control in the case of Sarbanes-Oxley (or SOX) compliance, you may need to have e-signature capabilities with some of your workflows.

This compliance overhead will add an unnecessary admin burden to your financial statements. An ERP document management system will help you comply with regulatory bodies easily without excessive overhead.



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4. Traceability

Faster traceability improves customer experience, increases product margins, and enhances team morale. Let’s take an example of a customer experience. The quicker the resolution your customer service reps provide, the happier your customers will be. If you have siloed systems without a transactional correlation, it will take your representatives significantly longer to resolve issues.

The ERP document management system will provide end-to-end traceability of your customer interactions along with their related physical documents. This centralized view of your documents tied to customers and vendors records optimize your processes. And this optimization will result in better customer experience, reduced product cost, and superior employee experience.

5. Workflow

A document could go through several stages in an organization as you make progress with its related transaction. For example, it could start with an opportunity, which may have a related quote document with line items. The follow-up documents may include design documents, marketing collaterals, packaging drawings, BOMs, or invoices.

Document Management Workflow View - Infor CloudSuite Industrial (Syteline) ERP
Document-Driven Workflow View – Infor CloudSuite Industrial (Syteline) ERP

These phases may include business rules where a document needs to go through a series of approvals before releasing it to the customer. The rules could comprise receiving an approved contract from the customer before you can kick-off your production or project.

In the case of standalone document management software, you will need to manage these workflows in several systems with manual, ad-hoc processes. The ERP document management system will include these workflows as part of the system.

6. Document Change Management

As documents evolve with your processes, they could have several revisions. To ensure the usage of an intended version, you need to manage the version history. The inability to track versions or track changes could lead to conflicts in your teams, followed by chaos and blame.

To summarize, an ERP document management provides the ability to manage changes with features such as check-in, check-out, and changelogs.

Document Change Management With Change Log - Acumatica Cloud ERP
Document Change Management With Change Log – Acumatica Cloud ERP

Ten essential features of an ERP document management system

If you are in the process of evaluating a manufacturing ERP, you may want to review the following features that manufacturers commonly require.

1. File Structure

Having support for different modes of searching for a file may not be as relevant if your file volume is low. However, once your file volume grows, you need sophisticated searching and filtering capabilities to search for documents through universal search.

While the universal search could provide excellent capabilities, not every user will be comfortable using it. Consequently, the system must support diverse organization and traceability capabilities. For instance, the users should be able to organize files in logical folders, but the search capabilities should not be tightly-coupled to this folder structure. Additionally, they should also be able to locate the file by going to the appropriate record and locate corresponding files.

While most vendors may claim that they have sophisticated search capabilities, the enterprise system will support building complex criteria. With some learning curve initially, your team will be highly efficient once they get the hang of different options that the system supports.

For example, Google has several options that you could use in its search box. An ERP Document Management system will support similar possibilities.

Google Search Options
Google Search Options

3. Ease of Use

Ease of use could be a subjective topic. Your users will find a system easy-to-use that reduces the number of clicks in performing their document management duties. 

For example, Acumatica cloud ERP automatically creates the PDF version of different documents and attaches with the appropriate record. In the legacy ERP systems, the same process might require dozens of clicks and steps. Acumatica cloud ERP also allows you to drag and drop files on any transactions or records.

Step 1 - Drag and Drop a File On a Transaction - Acumatica Cloud ERP
Step 1 – Drag and Drop a File On a Transaction – Acumatica Cloud ERP

Step 2 - File Stored With One Click on Sales Order - Acumatica Cloud ERP
Step 2 – File Stored With One Click on Sales Order – Acumatica Cloud ERP


4. Mobile Access

Since they often need to quickly take pictures from their mobile devices and store them on appropriate records, your field sales and technicians need mobile capabilities.

Without these abilities, they might not remember to enter critical data in your ERP or might not use the system at all. Having robust mobile functionality ensures product adoption and marks your team efficient.

Artificial Intelligence Capabilities to Read File Contents - Acumatica Cloud ERP
Artificial Intelligence Capabilities to Read File Contents – Acumatica Cloud ERP

5. Security


Having appropriate security privileges for each role and user allows you to control the access of your documents. The access features must inherit security roles from your ERP so that you don’t have two sources of truth and security loopholes.

File Level Access Rights - Acumatica Cloud ERP
File Level Access Rights – Acumatica Cloud ERP

6. E-signature


You may need e-signature capabilities if you serve FDA-regulated customers to log the confirmations on training or compliance. If you are part of regulated industries, your compliance authorities may require you to have e-signature capabilities.

Having e-signature capabilities integrated as part of your document management software will help meet your compliance needs.

7. Version Control

While the processes such as Engineering Change Order (ECN) could provide you control over your BOM versions, your physical documents require version control capabilities.

First, the ability to check-out a document prevents other users from making changes simultaneously. Second, the check-in feature allows you to submit your changes while opening up for other team members to checkout. Finally, the rollout feature will enable you to roll back any changes while the audit trail provides the ability to review the changelog.

While features such as annotation and stamps are nice-to-have, some manufacturers may need them depending upon their collaboration complexity.

Document Management Version Control Features - Acumatica Cloud ERP
Version Control Features – Acumatica Cloud ERP

8. Workflow

As manufacturers become more sophisticated with their automation capabilities, the need for document-driven workflow will increase. A robust ERP document management system will allow you to develop business process workflows.

For example, upon saving the physical invoice in your document storage, you might want to kick off a log entry process to capture invoice details in another system. Complex workflows such as this will allow you to create document-driven business process workflows.

9. File Types Support

Manufacturers have complex needs when it comes to supporting different file types. If a document management software doesn’t support storing CAD design or packaging artwork, these teams may not use your ERP system. They might also use another method, creating two sources of truth.

The robust ERP document management system supports Blob and link storage while also allowing to interface with external storage. The support for external storage may be necessary as some systems use old technologies for their storage. These old technologies could be prohibitively expensive to store a large file base. The newer technologies might provide the same capabilities for the faction of costs.

A robust ERP document management system providers a variety of options for your storage while allowing you to control your storage costs.

Document Management External Storage Types - Acumatica Cloud ERP
External Storage Types – Acumatica Cloud ERP

10. Attribute level permissions

The Attribute level permission feature enables attributes to have a different security model compared to other attributes. That is to say, it adds another layer of access control and provides extended control on top of your role-based security.

For example, you might use this feature to control a “Status” attribute where only some can maintain its value. This feature allows granting access to users to edit some attributes but not the content of the document.

Conclusion


Inefficient document management processes can lead to severe inefficiencies with your operations. You need a robust electronic document management system (EDMS) to make your processes efficient.

ERP document management features provide robust capabilities for your enterprise-wide documentation needs while also meeting your compliance requirements. An efficient document management processes can lead to superior customer experience, higher profit margins, and improved employee morale.

If you have been experiencing the symptoms of blame games, conflicts, and churn in your team, you may be ready for an ERP system that provides robust document management capabilities.

A DIY ERP Implementation Do You Need Consulting Help

A DIY ERP Implementation: Do You Need Consulting Help?

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Consumer Goods, Distribution, Food and Beverage, Life Sciences, Retail, Service Companies / By / March 26, 2025

As an ERP consulting company, we often need to demonstrate our value. We come across two sets of potential customers. The first group is entirely on board with the reason why an ERP implementation requires consultants’ help. On the other hand, the second group is slightly adventurous with their preference for a DIY ERP implementation.

This article will help you understand why DIY ERP implementation isn’t as economical as it appears.

Briefly About the ERP Implementation Process

If you are not familiar with the ERP implementation process, the process will start once you finalize the ERP product and the ERP consultant. The ERP implementation project effort could be a couple of weeks or months, depending upon your processes’ complexity and automation goals.

For the sake of simplicity, let’s take an example of a simple ERP project. Most ERP projects would start with the requirements workshops. The workshops will follow rounds of testing once the consultants have completed the configuration, finally, the data load and go-live. 



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Requirements Phase

During requirement workshops, the ERP consultant may follow a series of configuration checklists. Most information they require would have interdependencies. The checklists will help you stay on track as you identify foundational elements. They will also help you identify the dependent data needed to construct the whole solution.

A DIY ERP Implementation Data Model Image
A DIY ERP Implementation Data Model Image – Screenshot researchgate.net

For example, before they could configure vendors, the payment terms need to be set up in the system. Similarly, before they could set up the payment terms, the ERP system needs to have a chart of accounts.

The process of mapping these data objects’ dependencies makes the ERP implementation project challenging. Also, even if you have mastered other ERP solutions, the new ERP solution will still have a learning curve. Each product follows its design and data model.

Without access to ERP consultants and checklists, the DIY ERP implementation process may not be as organized.

Construction and Testing Phase

After the requirement workshops, your ERP consultant will configure the solution. They will then test it as per their understanding of your business processes.

Once the ERP software has enough details configured to perform transactions, the consultant might release the ERP system for you to test. The transactions could include creating a sales order or entering a bill.

As you make progress with your ERP implementation, they will configure appropriate security levels and personalize it for each user.

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Data Load and Go-Live Phase

Once you have tested the configuration data, the ERP consultant will upload the other datasets, such as vendors or customers. You will then run the final tests before going live.

Your ERP consultants will expect you to take ownership of the project with their technical or product support. They might walk you through the pros and cons of each decision, but they will rely on you to make decisions after getting consensus from your team.

Your roles and responsibilities during an ERP implementation

While your overarching role is to own the ERP project and make critical business decisions, your team will still share 50% of the project’s responsibilities.

ERP Implementation is a partnership

Requirements Phase

During requirement workshops, your role is to gather details needed to set up in the ERP system. This exercise will require discussions with your internal team to accommodate their current and future needs.

For example, in the old ERP system, especially if you had disconnected processes, your AP team might use six different payment terms. In contrast, your Account Receivable team may use four of them. When you finalize these details, you need to develop a standard solution after discussing it with each relevant stakeholder.

If some of your processes were paper-based, you might need to gather these details by looking at previous invoices and orders. This comprehensive research will ensure that the new system will handle all of your business scenarios.

Suppose your old system is a smaller accounting system, such as QuickBooks, without enough relational controls built to ensure data consistency. In that case, you may need to cleanse your data before your ERP consultant can import it.



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Construction and Testing Phase

Once the system has enough data to perform transactions, they will expect you to write test cases with their support. You will then test the system and report any issues.

After they fix the problems, you will need to test again to ensure the fixes are resolved. You might also need to test for each user role to ensure that they have appropriate privileges.

Data Load and Go-Live Phase

To keep the consulting costs low, you may want to choose a train-the-trainer approach. This approach assumes that you will train your users while the ERP consultant helps you or a couple of crucial users from your side.

This method ensures that you get an immersive experience with the product before going live on the new ERP system. It will also guarantee that the new ERP system’s knowledge doesn’t become a barrier to running your business.

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Your consultant’s role during the ERP implementation process

Requirements Phase

During the requirement workshop phase, the ERP consultant will walk you through each detail, what they need, and in which structure. They will also address any questions you might have related to any specific data set.

Once you provide enough details, they might create a blueprint document listing all your processes. The document will capture both your as-is and to-be processes.

Once you both agree on the details and before they start configuring them, they might ask you to sign off on the design document.

Construction and Testing Phase

After completing the configuration, they will conduct multiple sessions with you to review the new system’s business scenarios. You will also be testing along to become familiar and ensure that it satisfies your needs.

In parallel, the development team might work on developing forms and reports as per your requirements. They might also work on integrating any external systems such as EDI or e-commerce.

Data Load and Go-Live Phase

After they finish testing the master configuration of your ERP solution, your consultant will upload all of your data (such as vendors, customers, and items). You will then need to perform the final rounds of testing before going live.

You need to own your ERP implementation.

The ERP consultant will support you with any issues your team might experience after going live for a couple of weeks. They might also provide support during your first month close. However, you will be responsible for managing your live ERP solution and ensuring your users’ success.

The risks of DIY ERP Implementation

While ERP software might appear easy on the surface, the relational dependencies between business objects make it harder to learn and implement. Identifying each of these dependencies and structuring them to fine-tune the ERP solution for specific needs is an art.

In addition, ERP products follow a hierarchy of different data objects, such as pricing and discounting rules. While these hierarchies provide appropriate control and flexibility to the system, they require years of expertise before you can debug issues in an ERP system.

Unless you have years of experience with the new product, taking the DIY approach may end up being more expensive. 

The Consequences of the DIY ERP Implementation

Before taking the adventurous path of DIY ERP Implementation, you may want to review the following consequences associated with this approach.

  1. More Expensive. Your users may not be able to perform the transactions due to the system’s misconfiguration. They may get unknown errors that might require more consulting time later to debug and fix.
  2. Inefficient Solution. Since your team may not be familiar with the product’s best practices and design guidelines, your processes could be counterproductive. 
  3. Waste of your License Money. You might end up wasting your money as you might not be able to go-live on the product. The ERP consultant might end up charging more, as they may need more time to clean up the misconfiguration first.
  4. Longer Implementation Time. The lack of training of your team may lead to them taking more time to implement the solution. Ignoring the opportunity costs, you will pay for the software license unnecessarily for the time you can’t go live.
  5. System Adoption Issues. If your users can’t perform their duties smoothly on the ERP system, they might not use it at all. They might also avoid entering your crucial business data. Without this essential data, your planning may not be accurate, causing issues during your production runs and order fulfillment.

Conclusion


Implementing a fully integrated ERP system may appear easy on the surface. In reality, though, it requires you to thoroughly understand the data model and best practices.

The ERP system has more settings than a typical machine on your production floor or in your warehouse. As with your machines, you need to calibrate your ERP systems to get optimum results from them. Only certified technicians with implementation experience can help you get the optimum results from your ERP purchase.

FAQs

Read This Before Buying QuickBooks’ WMS Add-On

Read This Before Buying QuickBooks’ WMS Add-On

Leave a Comment / Automotive, Blog, Chemicals, Consumer Goods, Distribution, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By / March 10, 2024

If you are a warehouse-centric business such as distribution or manufacturing, automating your warehouses using barcode scanners is a must-have, especially, for growing companies. But why? To expedite your fulfillment processes and gain efficiencies. So do I need software to do that? Yes, a warehouse management system (WMS). It is a system or module that allows you to achieve your warehouses’ automation goals. Are they available for QuickBooks users as well? Yes, read on to learn your options.



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Why Do you need a WMS add-on for QuickBooks?

While QuickBooks is a great accounting system that provides a quick jump start to your accounting and finance processes, it’s limiting. With it, you might need to manage your operations manually (or with spreadsheets). Its design is not suitable for automating other business processes, such as managing your warehouse or fulfilling your orders.

As you grow, your operational processes could become overwhelming. The amount of churn required to fulfill your orders (or revenue collection being late) is due to the amount of bookkeeping or administration needed. As well as due to disconnected processes. These issues could lead to the need to increase your warehouse staff’s headcounts to fulfill your orders within time.

Even if you managed to increase your warehouse’s labor capacity to circumvent this challenge, some related issues might persist with customer orders. Issues such as customers not receiving the right items or too many customers returning their orders. This could lead to further problems such as an increased workload for your customer service department.

There could be several drivers why a company may look for a WMS add-on, such as 1) the perceived costs. 2) unqualified advice from unreliable sources. 3) perception of disruption to existing working processes. Or 4) perception of bandwidth required to change a component vs. big bang approach.

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Why is QuickBooks WMS add-on not the right solution?

Generally, two factors drive the need for a WMS system and why the above problems exist with businesses that use QuickBooks. 1) the need for automation of warehouse processes. And 2) the lack of necessary controls throughout business processes, which might be impacted by warehouse processes.

While challenging, even if you succeed in achieving your automation goals through a WMS add-on, these heterogeneous technologies may fail. But fail in what sense? To provide the necessary control that you would need in your processes.

There are two reasons why lack of control would be an issue with a WMS add-on. 1) QuickBooks is not designed to give control across your operational processes. And 2) unless an add-on is built using the same technology or supplied by the publisher (in this case, Intuit) that developed QuickBooks, the add-on would have limited control over someone else’s software.

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QuickBooks WMS add-on alternatives and their benefits

The right way to solve this problem would be to find an integrated option developed from the ground up for a company of your size. These integrated options, such as Acumatica or Infor CloudSuite Industrial (Syteline), would natively support the accounting and warehouse automation processes out of the box using the same code base. Their operational procedures contain built-in controls to ensure the consistency of items throughout the order-to-cash cycle. And avoid scenarios such as the mixing of orders or items.

If the costs are your primary driver, an add-on might appear to be a lucrative option in the short term. Over time, though, you will spend more due to maintenance costs as you will have to deal with multiple vendors and their terms and contracts. The price for finance modules with software such as Acumatica could be lower than QuickBooks due to their bundled offering. Plus, you have the option to grow with it by adding as many modules as you like, in the same technology built by the publisher as opposed to a third party.

On the other hand, in the case of time and effort. Irrespective of whether you purchase a QuickBooks’ WMS add-on or the integrated option, your accounting procedures are likely to be impacted. Why? Because you are likely to have several ad-hoc processes unique to your business due to the lack of enforcement provided by QuickBooks. The WMS add-on would require you to standardize them as most companies, including these third parties, design their code using standard practices commonly used in the industry. For this reason, whether you consider an add-on or the integrated option, your perception of saving time or money would not be a reasonable reason to buy a WMS add-on.



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Wrapping up!

QuickBooks’ design doesn’t support the operational processes of a growing company. It’s a small accounting system designed to jumpstart your accounting processes. Rather than creating patchy architecture by adding add-ons for your critical processes and spending more in the long term due to its consequences, you should find appropriate software for your stage once you outgrow QuickBooks. Adding an add-on will only make your problems worse!

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