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If your e-commerce business has made it this far without one of the best ERP systems out there, please tell us your secret. We’d love to know how you’ve done it. Especially if you’re shipping more than 1,000 parcels a month. That’s some achievement.

However, chances are you’re here because you want to invest in ERP software. Probably because trying to manually manage everything is less fun than it used to be, right? 

Coordinating your accounting, manufacturing, sales, HR and everything else that comes with running your business has become all consuming. You’ve heard about ERP systems, but want to know if they’re worth the investment. Search no further! In this article we discuss the best ERP systems in 2023 and explain which one is suitable for your growing business.

We will discuss:

What is an ERP system?

ERP stands for Enterprise Resource Planning (you probably knew that, but saves you having to look it up again). Sounds techy, right? It is. 

But it’s just a fancy name given to software used by businesses to align and manage certain processes. This can include accounting, inventory, human resources, procurement, customer relationship management and more.

There’s no ignoring the demand for ERP and its impact on the business world. To give you an idea of the ERP uptake among different industries worldwide, software giant Sage did some research in February 2023. They found that more than 70% of large enterprises use ERP software, while 32% use ERP systems to manage inventory.

An ERP system has four key characteristics:

  1. Modular design.
  2. Flexibility.
  3. Open and centralized database.
  4. The automatic generation of information.

Plus, there are three different types of ERP systems:

1. On-premise ERP software

As the name suggests, this is ERP software deployed on-site.

2. Cloud-based ERP system

Often referred to as Software as a Service (SaaS), a cloud-based ERP system is usually managed by a third-party.

3. Hybrid ERP solutions

Sometimes described as a two-tier ERP system, hybrid solutions allow you to combine cloud-based ERP with on-site ERP software.

An ERP system works by reducing the number of resources that you need to run your business efficiently. This is done without compromising profitability or business improvements.

ERP systems are different from single applications because they allow other enterprise modules of your company to work from one database. ERP solutions collect data from other parts of your business. This data is stored in a central location and made accessible to authorized employees.

Best ERP systems office

Which businesses need an ERP system and why?

Every business needs an ERP system. It doesn’t matter whether you’re a huge organization or a small business that’s growing, an ERP system offers many benefits.

Yes, as the name suggests, enterprise resource planning was first developed to meet the needs of large scale enterprises. However, more SMEs are now adopting ERP systems. In fact, according to Finances Online, small and medium enterprises account for an 8% growth in the worldwide ERP market. This in itself shows that there’s a place for ERP systems within SMEs.

No business is too small for an ERP solution. Even though you might be a small e-commerce business, it doesn’t mean you can’t operate like an enterprise-scale organization.

You might need an ERP solution for:

  • Sharing information: An ERP system can share key information automatically across different departments within your enterprise. This results in better collaboration.
  • Improving business performance: Departments can spend more time focusing on core business. Instead of wasting time trying to gather information, it’s readily available. For example, you could improve your sales forecasting process through better order tracking, revenue monitoring and purchase order generation.
  • Better business decisions: You can access real-time information and generate standardized reports. This makes sure everyone in your organization has access to the right information, which fosters better business decisions.

An ERP solution is essential because the biggest advantage is connecting all aspects of your business in one management system.

The best ERP systems for e-commerce and why they are rated highly

There are hundreds of ERP solutions out there. Like anything else, there are those that are used more than others – especially among e-commerce companies – including:

1. Oracle Netsuite

Oracle erp systeem

With an industry leading 5.78% share of the market, according to Enlyft, Oracle Netsuite ERP is popular with software companies (17%) and IT and services companies (11%). It is widely used by companies of all sizes, including small businesses (24%), medium-sized organizations (40%) and large corporations (36%).

Features for e-commerce businesses:

  • Cloud-based for easy management of your business processes in one place
  • Procurement, warehouse and fulfillment, supply chain management and production management features and functionalities
  • Financial planning and management solutions to engage business users and shorten cycle times
  • Order management to eliminate manual bottlenecks and accelerate your order to cash process

Benefits:

  • Highly scalable with the ability to add and customize functionality as your business grows
  • Enhanced visibility thanks to built in business intelligence, real-time reporting and analytics
  • Accelerated business performance and faster decision making

2. SAP

SAP erp systeem

SAP Business One has a 2.39% market share, according to Enlyft, and has some big name users like Lewis Inc, Lorven Technologies and Terracycle Inc.

Like Oracle’s Netsuite, SAP is an ERP favorite among computer software organizations (13%) and IT and services companies (11%). Plus, 64% of SAP’s large enterprise clients consider its ERP solution to be ‘critical to infrastructure’. More than 1,000 government organizations worldwide rely on SAP ERP products. SAP Business One is designed for smaller businesses, where SAP S/4HANA is specifically created for large, enterprise-level organizations.

Useful features for e-commerce companies:

  • Industry-specific capabilities for small, medium and large organizations
  • Automatic order entry. No more entering sales orders manually
  • Automated sales order updates to keep your customers notified
  • Create custom pricing for your products

Benefits:

  • Improved productivity through reduced manual data entry. Synchronize data between your integrated e-commerce platform and your physical business warehouse
  • Superior customer service and relationships. Every item, service and customer detail is logged so your customer service and sales teams have access to key information
  • Greater inventory control. Change prices, manage stock, generate pick and pack slips, ship out orders based on data that’s all in one place and automatically updated

3. Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central ery systeem

Ideal for businesses of all sizes, if you’re a fan of Microsoft their Dynamics Suite can be easily integrated with existing Microsoft products. You can manage a range of key business functions with Microsoft’s ERP, including sales, marketing, customer service, supply chain, human resources and finance.

Useful features for e-commerce merchants:

  • Cloud and on-site deployment
  • Dedicated mobile app to manage and create tasks on the go
  • Accounting and analytics features to manage projects and access detailed sales and project profitability overviews
  • Warehouse management and reporting capabilities

Benefits:

  • Enhanced customer service. Microsoft Dynamics 365 collects huge amounts of data from clients, allowing you to see how customers interact with your brand to give them better experiences
  • Reduced sales cycle, which lowers your costs
  • Flexible and scalable. You can scale up or down depending on your budget, project or team size

 4. Acumatica

Best ERP systems Acumatica

A cloud-based ERP, Acumatica is popular for small to mid-sized businesses and has specific retail and e-commerce functionalities. 

Useful features for e-commerce brands:

  • Omnichannel management of inventory levels, customer retention, and order management
  • Extensive network of global partners and complementary applications that can be integrated
  • International market reach with multi-currency, multi-language and multi-company capabilities

Benefits:

  • Distribution management that improves customer satisfaction while lowering costs
  • Optimize stock outs and back orders
  • Connects with almost every e-commerce platform
  • No cost for adding other system users, while other competitors charge a fee

5. Xentral

xentral-erp-logo

More than 1,200 companies worldwide rely on Xentral’s ERP software. Their ERP solution is fully cloud-based and is built specifically for small to mid-sized e-commerce companies. It automates everything from order processing to logistics. Plus, it integrates with a huge range of platforms. 

Features for e-commerce businesses:

  • Fully integrated all in one cloud solution
  • Automates product information management, warehouse management, shipping and fulfillment and more 
  • Integrates with existing tech stacks 
  • Standardized reporting capabilities 
  • Supplier management functionalities

Benefits: 

  • Fast results thanks to easy integration
  • No limitations on scalability
  • Fully automate your interfaces
  • Make your workflows more efficient, fast and simple
  • Flexible and scalable regarding the modules you need

6. Weclapp

Weclapp is designed specifically for small to medium-sized enterprises. Its ERP system equips you to manage forecasting, inventory, order management and more. With more than 4,000 customers, Weclapp has regularly been nominated for best ERP system of the year by the Center for Enterprise Research (CER). 

Useful features for e-commerce merchants:

  • Fully automated inventory management capabilities 
  • Intuitive reporting and analytics tools 
  • Huge range of third-party integration options
  • Customizable workflow management system

Benefits:

  • No implementation and maintenance costs
  • Ready to use immediately. No expensive IT infrastructure needed
  • Accelerates slow processes and identifies other optimization opportunities
  • Real-time data and reporting capabilities for forward-thinking decision-making

7. Plentymarkets

Pulpo WMS Plentymarkets Logo

Built for online stores, Plentymarkets’ ERP solution is popular among medium and large e-commerce companies. With more than 55,000 users, Plentymarkets is a versatile, cloud native platform that’s fully customizable. Its numerous interfaces are one of the platform’s main selling points. 

Useful features for e-commerce brands: 

  • Connects with 40+ e-commerce channels including major players like Amazon, eBay and Rakuten
  • Integration with a huge range of third-party logistics providers
  • Order management, PIM and CRM tools

Benefits: 

  • Fully scalable in the cloud 
  • Fixed monthly and yearly prices. Costs can be planned ahead of time with no surprises
  • Automates many areas of online commerce saving you time and money

8. Odoo 

erp systemen top 10 oodo

Odoo is the only business software company that shares its full source code for a fully customizable experience. Offering a suite of integrated solutions, Odoo connects every part of your business to prevent common e-commerce problems like too much inventory sitting in your warehouse for months or connecting your sales department to accounting. 

Useful features for e-commerce companies: 

  • Inventory auditing, control, optimization, management and replenishment capabilities 
  • Kitting solutions
  • Real time analytics, editing, notifications and synchronization

Benefits:

  • Integrates with almost any channel allowing you to run your business more efficiently in one place
  • Multiple drag and drop features for ease of use. No technical knowledge required. 
  • Open source software that allows you to customize modules based on your business needs 

Other ERP vendors worth a mention

We also must give a mention to:

  • Aptean
  • Bluelink
  • Epicor Kinetic 
  • Infor
  • Retailvista

Choosing between the best ERP systems

There is plenty to consider when choosing the best ERP system for your business. The 6 keys things to think about are:

1. Functionalities and features

Most ERP software can do most things. However, you need to make sure the one you choose has the functions and features you need. For example, if inventory and supply chain management is a top priority, you need ERP software that has robust functions to manage these processes.

Modules for accounting are nice to have, but only if your ERP system first meets your mission critical needs.

2. Integrations

Your business will be using other software solutions. Your ERP system will need to be able to integrate with specific programs used in other departments to enable key information sharing.

3. Vendor knowledge and reputation

It’s always worth researching the reputation of ERP vendors. Check online reviews and learn what other clients have to say about their experience. Plus, there are plenty of industry-specific ERP system providers that might be better suited to the needs of your business.

4. Cost

Cost will no doubt be a big factor in choosing an ERP system. Bear in mind that your expenses will need to include the total cost of the system, implementation and any other additional resources.

You will need to weigh up the cost versus the value. If you have an ERP system with lots of features that you don’t use, its value to your business operation will be low. Make sure you’re getting the most benefits and functionality for your investment.

5. Implementation

Some ERP systems are trickier and more time-consuming than others. This is often because employees require extensive training. When choosing a solution, you will need to decide which system will be easier for your business to master. It’s worth finding out if your vendor offers any implementation support. Some provide training for a smoother implementation.

6. Scalability

If your business is growing, you need an ERP system that can grow with you. Plus, your business might need ongoing support. You will need to think about practical aspects like software upgrades. 

When deciding on an ERP solution, ask questions about software upgrades, ongoing support and scalability to ensure you get the best out of the system for years to come.

In closing

There are a lot of ERP systems out there and choosing the best one for your business is not easy. We hope that the opportunity to explore some of the best ERP systems around has given you some food for thought. As we’ve said many times throughout this article, always ask yourself the right questions and make sure the ERP suits your business needs. 

Integrating the best ERP systems with Sendcloud

Once you’ve found the perfect ERP system for your business, it’s important to note that unfortunately it cannot fully automate your shipping process, which, as an online retailer, is key to your business. 

Luckily Sendcloud integrates with some of the best ERP systems out there, including Oracle Netsuite, SAP Business One and Microsoft Dynamics 365. Our direct integrations make your entire shipping process more efficient.

Looking to integrate your ERP system with Sendcloud? Then make sure to contact our shipping experts to understand how we can help you grow your business. 

Daniëlle Elbertse

Daniëlle Elbertse works as a Marketing Specialist at Sendcloud. With her expertise in the field of IT and e-commerce logistics, she helps online retailers optimize their shipping strategy.

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