An ERP replaces the collection of spreadsheets and disconnected apps most companies accumulate with one system where a transaction is recorded once and everyone downstream sees it.

The practical test of whether a business needs one is not size, it is reconciliation: if your team regularly spends time working out which of two numbers is correct, that is the cost an ERP removes.

What it typically covers

  • Finance โ€” general ledger, receivables, payables, fixed assets, reporting
  • Supply chain โ€” inventory, purchasing, warehousing, landed cost
  • Sales โ€” quotations, orders, invoicing, and the link back to stock
  • People โ€” employee records, payroll, leave, attendance

Common open-source options include ERPNext and Odoo; the large proprietary vendors are SAP, Oracle and Microsoft Dynamics.