What is ERP?

What Is Erp?

Enterprise Resource Planning (ERP)

ERP is an acronym for Enterprise Resource Planning. It’s a modular software system designed to integrate the main functional areas of a company’s business processes into a single integrated system. Essentially, what an ERP software system does, is to standardize, simplify, and integrate business processes, to increase an organization’s efficiency and productivity – critical to a company’s growth and profitability.


Different types of ERP

On-premise ERP

An on-premise (traditional) ERP system runs on in-house servers at a company’s location or locations under the company’s control, requiring additional maintenance and associated costs. Enterprise-level corporations mostly use On-premise ERP systems.

Cloud ERP

Cloud-based ERP systems enable companies to store, manage and access all of their business data in the cloud without costly on-premise hardware and maintenance. Cloud ERP can significantly reduce a company’s operating costs, time, and resources.

Hybrid ERP

Hybrid ERP, or a “mix” of on-premise and cloud ERP, enables companies to manage and control their ERP system via their in-house servers while in parallel storing all or some of their business data in the cloud.

Why implement ERP – Common use cases

  • Integrate financial data
  • Manage orders & inventory
  • Manage customer relations
  • Streamline production
  • Manage human resources
  • Handle procurement
  • Eliminate data silos

The top 6 benefits of ERP


Insights & reporting

Gain real-time business insights using the system’s built-in analytics, reporting, planning, and forecasting tools to make better, more informed business decisions.


Business processes

Automate manual or routine tasks, implement smarter, more efficient workflows, and support more sustainable processes.


Cost savings

Save time, resources, and costs with enhanced inventory planning and procurement, project and time management, and other critical cost-saving system tools.


Customer service

Easy access to customer data for faster response times, accelerated delivery times, and an enhanced customer experience.



Automated accounting processes, including invoicing and collections tools to boost company cashflow and save time, resources, and costs, while maintaining government/banking compliance.


Supply Chain management

Automated demand forecasting and planning tools to maintain lean inventories, reduce manufacturing bottlenecks, and support transparency throughout the supply chain.

When is it time to consider ERP for your business?

When it comes time to replace your legacy business management systems with an ERP, it’s essential to first understand your company’s actual business needs, and only then, shop around for the best possible ERP system. While ERP can be a costly upfront investment, implementing an ERP system will save valuable time, resources, and costs down the road.

Following are real-life business scenarios that suggest it may be time for your organization to consider implementing an ERP, or upgrading your current ERP system:

  • Your business is growing and planning to take on new employees, products, and/or new local or global markets
  • Your organization’s strategy and product roadmap outline the need for implementing digital processes companywide that includes a new business management software solution
  • You need better management and control of your operational and business processes to make timely, better-informed strategic business decisions
  • Your organization’s legacy standalone system is outdated, where upgrades are no longer available, and the system no longer serves your business and system user needs.

While ERP systems streamline and automate processes, creating leaner, more accurate, and more efficient operations, there are several critical reasons why a company should consider ERP. If your organization is faced with any or all of the issues listed here, then it may be not only a good time but the best time to invest in ERP software.

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