What is Inventory and Accounting ERP Software?
ERP Stands for Enterprise Resource Planning
ERP stands for “enterprise resource planning” and is a business management system designed to manage all aspects of a company’s operations. This includes accounting, financials, order entry and processing, inventory management, contact management and warehouse management. ERP software replaces the need to buy and integrate multiple standalone inventory, accounting and CRM systems and works best for growing businesses looking to automate processes, increase efficiencies and reduce manual work.
From the get-go, small businesses will typically look for a software system in one of the following categories: accounting, inventory and customer management. These types of introductory systems are characterized by their ability to fulfill one specific business requirement and the first software purchase a company makes is usually to manage accounting and financials. As a company grows, many businesses will start using Excel spreadsheets or buy other systems for managing inventory to add to their technology tool set. However, there will come a time when managing multiple systems and the associated double entry and keying errors becomes too much. At this point, and as your business continues to grow, it’s time to start evaluating an all-in-one ERP system to manage all business operations and replace your existing systems.
Blue Link ERP
It is important to understand that many businesses in the industry use the terminology “ERP” quite loosely. Some businesses claiming to provide ERP software might only offer functionality for inventory and accounting – and not CRM, purchasing and warehouse management. Proper ERP software such as Blue Link ERP provides robust functionality for end-to-end business management, eliminating the need for multiple, integrated systems.
“If you’re looking for an ERP what you’re really looking for is a company to partner with and with Blue Link you’re in luck. Blue Link is designed such that we have yet to find a something they cannot do. Add to this their excellent people and you have a winning recipe.”
– Peter Smith, CEO
Introductory Systems
Introductory software systems provide basic functionality usually geared towards specific aspects of a company’s operations such as accounting. These systems are not technically ERP and are best suited for start-up and small businesses as the first solution implemented in an organization. Introductory software requires integration with multiple solutions to manage other requirements such as inventory and CRM. Introductory software typically has limitations on the size of the database, volume of transactions and number of users.
- Costs: $100 – $10,000
- Implementation: Days to Weeks
Middle Tier ERP
Mid-market ERP software is geared towards small-medium size businesses that have outgrown their existing introductory software. In the true sense of ERP, the software provides functionality for managing multiple aspects of a company’s operations and manages multiple business processes. ERP software can integrate with other 3rd party applications such as eCommerce websites and marketplaces like Shopify and Amazon. True ERP does not have a limit on number of users, transaction volume or file size.
- Costs: $10,000 – $100,000
- Implementation: Weeks to Months
- Examples: Blue Link ERP
Top Tier – Blue Chip ERP
Tier 3 systems provide full ERP functionality across all business processes and are designed for large companies with global operations, dozens of locations and hundreds of users. These systems provide the same functionality as mid-market ERP but on a larger scale and can integrate with other applications including MRP systems and WMS systems for managing large warehouses. Blue Chip ERP does not have a limit on transaction volume, file size or number of users.
- Costs: $100,000 – $1M+
- Implementation: Months to Years
6 Critical Factors for Evaluating ERP Software Vendors
This guide contains important questions that all businesses should ask software vendors in order to compare products, a handy list of criteria for evaluating vendors and other methods for gathering critical information to make the best decision for your business.
Cloud-based ERP
Often used interchangeably with the term SaaS (Software as a Service) or hosted software, cloud software is a deployment method whereby a customer accesses a software solution off-premises via the internet and pays an ongoing subscription fee to the software provider. The software itself physically lives on the vendor’s hardware and so system maintenance, upgrades and backups become the responsibility of the vendor.
- The number of users
- Level of functionality
Aside from users and functionality, business complexity will also have an impact on software costs such as multiple locations and multi-company requirements. For true ERP software, costs typically include the following:
- License Fees: License fees are calculated based on users and other factors and are typically billed on a monthly basis.
- Maintenance Costs: Maintenance costs cover annual upgrades and keep the software in warranty. For cloud-based solutions, these costs are built into monthly fees.
- Implementation Costs: Implementation costs include the time to migrate data from existing systems or spreadsheets into the new software, employee training and the costs associated with configuring the system to your specific business needs.
- Customization: Although all customers will need some configuration, for those looking for more specialized functionality, additional customization may be required.
- Support Costs: Support costs cover after-sale support, training and troubleshooting.
“I wanted to let you know that we are very happy (now that all is up and running) with ‘phase one’ of the upgrade. The new Windows program has clearly made a difference in speed within the BL environment just as you said it would. I would like to thank you very much for all your help! You patiently explain everything to us and do a great job helping us to fix issues (like the ones we had today) when we need it! It is clear that you are an expert at what you do and an asset to clients like us. Thanks again for all of your help!”
– Michelle Crossan, VP Operations
Grow Your Business. Blue Link ERP software allows your business to scale quickly, by providing advanced functionality that you can turn on at any point in time.
Automate Processes. Automate processes across all business departments – from sales, through to picking, packing, shipping and invoicing.
Reduce Manual Work. Eliminate manual data entry and tracking information in spreadsheets which is an error-prone and time-consuming process.
Better Reporting. Get access to information in real-time for insight into business health and to help you make better strategic decisions.
Additional Resources
