What does 'ERP' mean and what are ERP systems?

If you are wondering what ERP systems are, and whether they are necessary and applicable to your business, consider how many software products you operate in the various units you manage, whether they are compatible, and whether you are losing information or duplicating data.

'ERP' or the Enterprise Resource Planning software is designed to bring order to a chaotic environment, to give you real-time clarity on all aspects of your business, and to help you plan more easily and efficiently in the future.

ERP systems are used in all the processes necessary for the operation of a company - personnel and customer management, finance, production, availability of materials or products, delivery systems, services, orders and much more. In short, ERP combines all these processes and activities into one system, giving you a clear picture in real time.

Improved productivity, increased efficiency, optimized costs and streamlined processes are just some of the key benefits of an ERP system. Enterprise resource planning (ERP) is a type of software that organizations use to manage their day-to-day activities, such as sales, procurement, and all other operations. Our ERP package also includes Business Intelligence (BI) software that helps you plan, forecast, and report your organization's financial results.

ERP systems are used to connect several business processes and allow the exchange of data between them - for this purpose they collect shared data of the organization from several sources. ERP systems eliminate duplication of information and provide a complete business image across a single platform.

ERP systems are designed around a single platform, which has a common database and interface. This helps to ensure that the information used in the enterprise is channeled and based on uniform definitions and requirements. The main purpose of an ERP is to integrate people, processes and technologies into the modern enterprise.

To illustrate the capability of the ERP system, we will take as example a car manufacturing company because it requires the purchase of parts and components from several suppliers. The ERP system would facilitate the process of tracking stocks and purchasing the necessary materials and components, and ensure that the same correct data is used at every stage of the process - from order to payment. The same principle applies to reporting and analysis. If an ERP system is implemented correctly in the respective company, the "brake pads" component, for example, will be identified in the ERP system simultaneously with: part name, size, material, source, batch number, supplier number, serial number, price and other specifications, without duplication and without appearing elsewhere under different names. This process works in tandem with many other descriptive and data-based elements, shortening the process of manually entering and duplicating information.

A basic principle of the ERP system is the centralized data collection for a wide distribution. Instead of several independent databases with an endless inventory of disjoint spreadsheets, ERP systems put order into these processes. Thus, all users - from CEO to store employees - can create, store and use the same data, the system being specially designed to ensure that the information is accurate and complete.

Today, ERP systems are essential for the management of thousands of companies of all sizes and in all industries. These companies use ERP systems as an indispensable infrastructure for running their business.

Slave to business or lost in data?

If you feel more and more often that the overall image of your business is being lost due to the analysis of details that require too much time and resources, it may be time to consider implementing an ERP system. Be honest and see if the following descriptions apply to you and your organization.

  1. You spend more and more time with daily tasks - sometimes using too many different applications can cause delays in managing key tasks. ERP software integrates solutions and data into a single system with a common interface, which facilitates business unit communication and efficient work.
  2. You have many unanswered questions about your business - can you easily answer important questions about your business such as: what is the revenue from the production line or profitability? If not, it means that detached systems and lack of access to essential parameters are slowing you down. This also slows down your analysis and decision-making.
  3. You have unclear business processes - it can be difficult to manage inventory, satisfy customers, or keep costs under control. If you find yourself in this situation, it means that your processes need to be restructured in order to grow your business or change your priorities.
  4. You have intensive, manual data-entry processes - do most of your departments use their own applications and processes to do their job? In this case, you may be wasting too much time and resources on duplicate data. When information cannot flow easily between systems, reporting takes longer, errors are more frequent, and decision-making is more difficult.
  5. You lack the ability to act quickly - you spend so much time running your business that you can't look for new opportunities? New ERP systems include advanced and intelligent capabilities, such as machine learning and predictive analytics that make it easier to identify new and potentially profitable businesses.
Implementing the ERP software is a fundamental solution and should be well thought out. This is a prerequisite especially if you are implementing a complete software solution for the first time. If you want to see a positive change in your business and achieve overall growth, it's important to take the necessary steps to see the benefits. You need to keep in mind that the implementation process is time consuming and, in addition to financial investment, it requires patience, perseverance and constant motivation.

The benefits of the ERP


The ERP software requires a considerable investment, but in the long run, your costs can be even higher without a system that brings together all the information about your business.

Some managers choose to adhere to proven and conservative methods, others, on the other hand, look for innovative technological solutions. Implementing the ERP software helps you stay competitive with faster, real-time solutions, protecting you from potentially costly errors.

Improved process efficiency

Reducing manual input saves time, prevents errors and minimizes duplication of processes. The ERP takes care of that. This not only improves productivity, but also significantly reduces the probability of working with inaccurate data. The implementation of the ERP software improves daily business activities by simplifying processes, which facilitates the collection of information from all departments in real time.

Accurate forecasts

ERP systems give your users - especially managers - the tools they need to create more accurate forecasts. Inventory and sales information, financial services and customer service help make realistic forecasts so that the company can effectively reduce costs. Because ERP information is as accurate and up-to-date as possible in real time, companies can make realistic and efficient plans for their day-to-day operations.

Interaction between departments

A big challenge for any business is to remove the invisible walls between different departments, which sometimes act as competitors within the same company. Saving information in different units that may have different motivations eventually distorts the image and damages the activity. Interaction between different teams is crucial to take the right decisions. The data entered into ERP systems is centralized, consistent and up-to-date, making it almost impossible for departments to work separately and without exchanging information. ERP software allows the exchange of information at any time, ensuring that the data is accurate.

Sharing information in real time through a centralized database is one of the main advantages of an ERP. Because the ERP system contains business-wide data, stakeholders can easily access information from other departments for analysis.


One advantage of the Enterprise Resource Planning software is its ability to use data even outside the office. With the ERP software, users have access to a centralized database from wherever they work, as well as from a variety of devices such as laptop, tablet or mobile phone. The adaptability of ERP software is crucial because it increases productivity and makes information accessible wherever you are.

Data reliability

The ERP system provides reliable data that can be accessed from different locations (if deployed in the cloud). But the remote use of all business information raises the issue of security. ERP allows for the incorporation of additional protection, which, in accordance with the rules of use, eliminates the risk of misinterpretation of important information. Accuracy and security are the key to the ERP software.

Custom reporting

ERP software simplifies reporting. This facilitates the company's response to complex requests for aggregate information. Employees have the opportunity to make their own personal reports, which saves time and offers the opportunity to work on other projects without delay.

Increased productivity

By automating redundant processes, employees have more time to work on other priority tasks that require more attention and focus.

Compliance with regulations

ERP can be designed to monitor industry regulations and regulatory changes. This allows the company to keep up with the legal provisions, not to miss deadlines for changes and to avoid significant discrepancies that could lead to penalties for non-compliance.

Flexible systems

Modern ERP software systems are stable, flexible and subject to various configuration options. They can be tailored to the unique needs of the specific business. ERP systems can also adapt to the ever-changing needs of the organization without the need to purchase a new software solution. When implementing the ERP software of your choice, it is important to make sure that the product is tailored to your business and has all the features you need to support your day-to-day business.

The benefits of the Enterprise Resource Planning software are many, but before you decide to take the implementation step, you need to be well-informed and prepared to avoid potential problems that may arise after you've already made your investment.

Implementation and maintenance costs

The main investment is in software, but the time required for implementation can make the process even more expensive. Customers need to keep in mind that the price of an ERP must include the cost of labor and the time required to successfully implement the system. In some cases, you may need to hire an additional team of IT specialists as well as ERP consultants. The maintenance fee is often separate from the price of the license, and you may need to invest in new hardware that provides the right infrastructure for the ERP software to work.

If you decide to invest in basic ERP software, you can easily secure a combination of features with a single license. However, the introduction of a more comprehensive management model may not be possible for small and medium-sized enterprises. But there is a solution to all these problems - you can save some of your costs with a paid monthly cloud solution that gives you a full ERP service!

Don't skimp on employee training

If you have not stated your needs accurately and in detail and the software does not meet them, it will prove that the system does not perform according to the requirements and, in fact, the customization does not take place. This will complicate the business process instead of making it easier.

ERP systems serve all departments of the company and at the same time, go into detail when it comes to the activities of each department. This changes the way it works, eliminates parasitic activities and provides complete details of information flows. All these optimizations are a plus for the organization, but also one of the biggest problems for the implementation of the system. As managers in different teams often cannot assess the need for such a system and / or do not have the necessary training to perceive such a level of overall company data integration before implementing an ERP system, It is a good idea for managers in all units to take an information course that will give them a more accurate idea of the benefits and what they need to do to accomplish their tasks. It has happened that companies invest in ERP, but do not properly plan the implementation steps with their staff.

A key requirement for ERP implementation is for the team to be well trained and persuaded to accept the software, despite its complexity.

Conservatism or innovation

Do you need an ERP system or not? Potential difficulties in implementing and maintaining the new platform should not stop you from trying to deploy ERP software. Certainly the tools that can propel your business to the next level have their advantages. You are also required to listen to expert advice and, before deciding on such a major change, make an honest and detailed assessment of your organization's needs and problem areas.

ERP or Unified Enterprise Resource Planning systems are currently considered to be the highest class of business software.

One of the main advantages of an ERP, compared to other systems, is the ability to centrally manage the activities of the entire company, as well as control over the implementation of tasks. Planning all resources - material, time, human, financial, expected, etc. - is of great importance to corporations and will play an increasingly crucial role in competitiveness.

Get started with ERP now

Sign up for a free TRIAL system

To get an idea of how Prim.io works, you can create a free trial system here. Pay attention to the pricing plans we offer because the testing system will have different functionalities depending on the chosen pricing plan.

Sign up for a free DEMO with default data

To access Prim.io demo, we need an email address to which we can send your login details. At the specified email, you will receive the link of the operating system without restrictions, loaded with predefined data so that you can form an idea about Prim.io.

Contact our implementation experts

Save time and set up a face-to-face or online meeting with our team here. Our consultants will give you access to the ERP system, introduce you to Prim.io and answer any questions you may have. If you prefer another mode of communication, you can also find us at +40 (31) 229 4693 or send us an email at info@prim.io.