ERP system – streamline finance, sales, inventory, and business processes
ERP – What is an ERP system?
An ERP system brings together a company’s most important business processes and data in one integrated solution. ERP stands for Enterprise Resource Planning and is used to manage areas such as finance, sales, purchasing, inventory, production, projects, and reporting.
An ERP system brings all your business processes together
With a modern ERP system, a company gets a comprehensive overview of its business while being able to automate workflows and work more efficiently with data.
But what exactly is ERP, how does an ERP system work, and how do you choose the right ERP solution?
What is ERP?
ERP is a software solution that integrates a company’s core business processes into one system.
Instead of using separate applications for areas such as finance, inventory, sales, and purchasing, these processes can be connected through the ERP system. This allows data to be shared across the organisation, so employees work from the same data foundation.
An ERP system can manage areas such as:
Finance
Manage the company's finances with financial management |
SCM
Manage procurement, logistics, inventory, and the flow of goods. |
Employees / HR
Manage employees, payroll, and HR processes. |
Inventory management
Manage all products, inventory, and stock movements. |
Project management
Manage projects, tasks, hours, resources, and finances. |
Production management
Plan and manage production, materials, capacity, and orders. |
Service and support
Manage service agreements, tasks, support, and resources. |
Purchasing
Manage purchasing, suppliers, orders, and goods receipts. |
Marketing
Manage marketing activities, campaigns, and customer data. |
Sales and delivery
Manage sales, orders, customers, and deliveries. |
Reporting and analytics
Get an overview of data, key figures, reports, and analyses. |
Sustainability management
Manage data, reporting, and documentation. |
ERP is therefore about more than just finance. A modern ERP system provides a central digital foundation for the entire business.
How does an ERP system work?
An ERP system typically consists of different modules that are connected and share the same data.
For example, when a company receives a sales order, the information can automatically be used across multiple processes. Inventory can be updated, relevant transactions can be recorded in finance, and employees can track the order status.
An ERP system integrates all business processes
This reduces the need for manual data entry and minimises the risk of errors and duplicate data entry.
An ERP system can also integrate with other business systems and digital tools, such as CRM, e-commerce, payroll systems, EDI, payment solutions, and analytics tools.
What are the benefits of an ERP system?
An ERP system can give a company a better overall overview and create greater consistency between employees, processes, and data.
The typical benefits of ERP include:
One central data foundation
A company can consolidate key information in one system instead of having data spread across multiple solutions and spreadsheets. This provides a more unified and structured data foundation, making it easier to find, share, and work with relevant information across the business.
Automated processes
Repetitive manual tasks can be automated, reducing the time employees spend on administration. This frees up time for other tasks and can also create more consistent workflows across the business.
Better decision-making
When data is consolidated and up to date, it becomes easier to analyse the company’s finances and operations. This provides a better basis for monitoring performance, identifying trends, and making decisions based on current data.
More efficient workflows
Connected processes across departments can reduce duplicate work and manual tasks. When data and processes are connected, it becomes easier to coordinate tasks and ensure that information is available to the relevant employees.
Scalability
A modern ERP system can adapt to the company’s development and support new needs, markets, and processes. This makes it possible to expand the solution as the business grows and continuously adapt functionality and workflows.
Integration with other systems
ERP can serve as a central platform that connects the company’s other IT systems. This makes it possible to exchange data between systems and create greater consistency across the company’s different processes.
Our ERP experience – Implementation across the Nordics
Our experience with ERP projects across countries shows that standardisation can create significant value for organisations with companies in multiple markets. For the Nordic companies in the Purdue/Mundipharma/Napp Group, we have been the common ERP partner in the effort to consolidate and standardise the ERP solution across the Nordic countries.
A shared ERP platform makes it easier to report and compare data across companies and provides a stronger foundation for benchmarking. At the same time, a standardised solution creates better opportunities to work with common processes and structures across the organisation.
As the common partner for the companies, Active Business Solutions has consolidated implementation, support, and maintenance with one partner. This creates a more cohesive ERP approach while also potentially reducing the administrative resources and costs that can arise when multiple companies work with different solutions and partners.
Experience also shows that a successful ERP partnership is about more than the system itself. It requires a partner who understands the company’s needs, can act as a professional sparring partner, and supports the customer through implementation, development, and ongoing operations.
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Our Recommendation
For companies operating across multiple countries, ERP standardisation should be considered together with reporting, data quality, shared processes, and the long-term support model. This can provide a more scalable ERP platform and a stronger foundation for comparing and developing the business across markets.
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Who needs an ERP system?
ERP systems are used by companies of many different sizes and across a wide range of industries.
The need for ERP often arises when a company’s processes become so complex that existing systems, spreadsheets, and manual workflows no longer provide sufficient visibility.
An ERP system may be relevant for companies that:
- Have many manual processes
- Rely on Excel for key business processes
- Have data spread across multiple systems
- Struggle to maintain an overall view of finances and operations
- Need better inventory management
- Want to automate administrative tasks
- Have multiple companies or operations across different countries
- Are growing and need a more scalable system
The right time to invest in an ERP system therefore depends not only on the size of the company. It largely depends on the complexity of its processes and the need for connected data.
What should a modern ERP system be able to do?
A modern ERP system should do more than simply record a company’s transactions. It should support the processes employees use every day and make business data available when it is needed.
A modern ERP system should, among other things, be able to:
- Consolidate core business data
- Automate workflows
- Integrate with other IT systems
- Support analysis and reporting
- Adapt to the company’s processes
- Support multiple users, companies, and markets
- Scale as the business grows
- Support cloud-based work and mobile access
- Use AI for relevant business processes
ERP and AI
AI is increasingly becoming part of modern ERP systems. The technology can be used to analyse data, automate tasks, identify patterns, and help employees carry out various business processes.
In modern ERP solutions, AI can, for example, support finance, forecasting, order processing, customer service, and data analysis.
AI does not necessarily replace the traditional functions of an ERP system. Instead, it can act as an additional layer that helps employees work more efficiently and get more value from the company’s data.
ERP and Business Central
Microsoft Dynamics 365 Business Central is a modern ERP system from Microsoft that brings core business processes together in one solution.
The Business Central logo
Business Central can be used for areas such as finance, sales, purchasing, inventory, production, projects, service, and reporting. The solution can also integrate with other Microsoft products such as Microsoft 365, Power BI, and Power Platform, as well as external systems.
This makes Business Central relevant for small and medium-sized businesses as well as larger organisations with more complex requirements.
As a Microsoft Dynamics 365 Business Central partner, Active Business Solutions helps companies with ERP implementation, migration from Dynamics NAV to Business Central, development, integration, consulting, and support.
ERP implementation
Implementing an ERP system is a significant business project that requires careful planning, clear objectives, and an understanding of your company's processes and requirements.
A structured ERP implementation helps ensure that the solution is configured to support your business, integrates with existing systems, and provides a solid foundation for future growth.
A structured ERP implementation creates a smooth transition and a solid foundation for growth
The implementation process typically includes:
- Planning – Defining business requirements, objectives, and project scope.
- Budgeting – Establishing the project budget and evaluating total costs.
- Development – Configuring and adapting the ERP solution to your business needs.
- Analysis and data migration – Reviewing existing processes and transferring relevant data.
- Training – Preparing employees to use the new system.
- Testing – Ensuring that functions, integrations, and workflows operate as intended.
- Go-live – Launching the ERP system and supporting the transition to daily operations.
A well-managed ERP implementation creates a connected business platform that can evolve alongside your company.
How much does an ERP system cost?
The cost of an ERP system depends on factors such as the number of users, functionality, integrations, business complexity, and the scope of the implementation.
The total costs can therefore include:
- ERP licences
- Implementation
- Data migration
- Integrations
- Customisation and development
- Training
- Support and maintenance
It is therefore important to consider the total TCO (Total Cost of Ownership) rather than comparing ERP licence costs alone.
How do you choose the right ERP system?
There is no single ERP system that is right for every company. The choice should be based on the company’s processes, needs, and future development.
Before choosing a solution, it is relevant to consider:
- Business needs – Which processes should the ERP system support?
- Integrations – Which existing systems need to be connected to the ERP solution?
- Scalability – Can the system keep up as the company grows?
- Usability – Is the system intuitive for employees?
- Customisation options – Can the solution be configured to fit the company’s processes?
- AI and automation – What opportunities are available to automate and optimise workflows?
- Total cost of ownership – What are the costs of licences, implementation, operations, integrations, and ongoing support?
It is also important to approach ERP implementation as a business project rather than simply an IT project.
FAQ – Frequently asked questions about ERP
What is ERP, what can an ERP system be used for, and how much does it cost? Here you will find answers to some of the most common questions about ERP and ERP systems.
If you have questions that are not answered below, you are always welcome to contact us.
What is an ERP system?
An ERP system is a software solution that brings a company’s core business processes and data together in one system. ERP stands for Enterprise Resource Planning and can manage areas such as finance, sales, purchasing, inventory, production, projects, and reporting.
What is an ERP system used for?
An ERP system is used to manage and connect a company’s most important business processes. It can automate workflows, bring data together, improve visibility, and create better connections between different departments and functions.
What functions does an ERP system have?
Features vary from system to system, but a modern ERP system can typically manage finance, accounting, sales, purchasing, inventory, production, projects, service, reporting, and analytics. ERP systems can also be integrated with other IT systems.
Who needs an ERP system?
ERP systems are used by companies of many sizes and across a wide range of industries. An ERP system becomes particularly relevant when a company has complex processes, many manual workflows, data spread across multiple systems, or a need for better control and visibility.
What are the benefits of an ERP system?
An ERP system can bring a company’s data together, automate manual processes, reduce duplicate work, and provide a better basis for reporting and decision-making. A modern ERP system can also integrate with other solutions and scale as the business grows.
What is the difference between ERP and accounting software?
Accounting software primarily focuses on accounting and finance, while an ERP system can connect finance with other business processes such as sales, purchasing, inventory, production, and projects. ERP therefore makes it possible to connect processes and share data across the business.
How much does an ERP system cost?
The cost depends on factors such as the ERP system, number of users, functionality, integrations, and the company’s requirements. Total costs can include licences, implementation, data migration, development, integrations, training, and support.
What is cloud ERP?
Cloud ERP is an ERP system hosted in the cloud and accessed over the internet. The provider typically manages the infrastructure, operations, and ongoing updates. Cloud ERP can make it easier to scale the solution and work across locations and devices.
Can an ERP system be integrated with other systems?
Yes. Modern ERP systems can integrate with CRM, e-commerce, payroll and HR systems, payment solutions, EDI, warehouse and logistics systems, analytics tools, and many other solutions. Integrations make it possible to exchange data and automate processes across systems.
Can ERP systems use AI?
Yes. Modern ERP systems increasingly use AI for areas such as data analysis, automation, forecasting, and assistance with various business processes. AI can make it easier for employees to work with business data and automate selected tasks.
What is Microsoft Dynamics 365 Business Central?
Microsoft Dynamics 365 Business Central is an ERP system from Microsoft that brings together core business processes such as finance, sales, purchasing, inventory, production, projects, and service. Business Central can integrate with Microsoft 365, Power BI, Power Platform, and a wide range of external systems.
Can you switch from an old ERP system to Business Central?
Yes. Companies can migrate from existing ERP systems to Microsoft Dynamics 365 Business Central. A migration can include analysis of the existing system, data migration, customisation, integrations, testing, user training, and go-live.
How long does it take to implement an ERP system?
Implementation time varies depending on the company’s size, processes, data volumes, integrations, and customisation requirements. A smaller, relatively standardised solution can be implemented faster than a complex solution involving multiple companies, integrations, and customised processes.
How do you choose the right ERP system?
The right ERP system depends on the company’s needs, processes, and future plans. Factors to consider include functionality, integrations, scalability, usability, automation, AI, implementation requirements, and total cost.