oboloo FAQ's

What Are Types Of Enterprise Resource Planning Systems?

What Are Types Of Enterprise Resource Planning Systems?

Are you tired of managing multiple systems to keep your business running smoothly? Do you want to streamline your operations and improve efficiency? If so, it may be time to consider implementing an Enterprise Resource Planning (ERP) system. ERP systems are designed to integrate various business processes into a single platform, providing real-time visibility and control over all aspects of your organization. In this article, we’ll explore the different types of ERP systems available and provide tips for choosing the right one for your procurement needs. So let’s dive in!

ERP Systems Defined

ERP systems are software applications that help businesses manage their core processes in a centralized manner. These processes can include everything from finance and accounting to supply chain management, project management, and more. ERP systems typically offer a modular approach, which allows companies to choose the specific components they need based on their business requirements.

One of the key benefits of an ERP system is that it provides real-time data and visibility across all areas of your organization. This means you can quickly identify any issues or inefficiencies and take action before they become major problems. Additionally, ERP systems allow for greater automation of routine tasks, freeing up time for employees to focus on higher-level activities that add value to your bottom line.

Another advantage of an ERP system is improved collaboration across departments. With everyone working within the same platform, information sharing becomes seamless and efficient. It also makes it easier to track progress towards goals and ensure everyone is aligned around common objectives.

An ERP system can be a valuable investment for businesses looking to streamline operations, improve efficiency, and gain better insights into their overall performance.

The Three Main Types of ERP Systems

When it comes to Enterprise Resource Planning (ERP) systems, there are three main types that businesses can choose from. The first type is on-premise ERP systems, which means the software and hardware infrastructure is owned by the company and installed locally in their own data centers. This option gives companies full control over their ERP system and allows for customization based on specific business needs.

The second type of ERP system is cloud-based or Software-as-a-Service (SaaS). This means the software is hosted remotely by a third-party vendor and accessed through the internet. Cloud-based ERP systems offer flexibility in terms of accessibility from anywhere with an internet connection, scalability as your business grows, and lower upfront costs since there’s no need to purchase hardware.

The third type of ERP system combines both on-premise and cloud-based solutions called hybrid ERP. Hybrid ERP provides businesses greater flexibility in choosing which applications they want to keep behind their firewall versus those that can be run on cloud servers.

Each type has its pros and cons depending on a company’s unique requirements such as budget constraints, IT resources available, security concerns, among others. It’s important for businesses to evaluate each option carefully before making a decision that best suits their current and future needs.

Other Types of ERP Systems

Aside from the three main types of ERP systems, there are other specialized ERP systems available in the market today. One of which is Human Resource Management Systems (HRMS). This type of ERP system focuses on managing employee information such as payroll, benefits, and recruitment processes.

Another type is Customer Relationship Management (CRM) systems that focus on managing customer data and streamlining sales processes. It helps businesses to keep track of their customers’ preferences and interactions with the company.

Supply Chain Management (SCM) systems are also a popular type of ERP system that deals with supply chain activities such as procurement, inventory management, demand forecasting, and logistics planning. SCM systems help companies to optimize their supply chain operations by providing real-time visibility into supplier performance and product delivery schedules.

Some industries require specific types of ERP software tailored to their unique needs like healthcare for Electronic Medical Records or construction for Construction Project Management software.

While these other types may not be suitable for all businesses or industries but it’s important to consider them when choosing an appropriate enterprise resource planning solution.

How to Choose the Right ERP System for Your Business

Choosing the right ERP system for your business can be a daunting task, but it’s important to take the time to do it properly. The right ERP system can help streamline processes and improve efficiency across all departments.

Firstly, consider what type of industry your business operates in. Different industries have different requirements when it comes to an ERP system, so ensure that any potential systems you are considering meet those specific needs.

Next, evaluate the size of your company and how many users will need access to the system. It’s important that any potential system is scalable and can grow with your business as needed.

Another important factor is ease of use. Look for a user-friendly interface that won’t require extensive training or IT support. This will save time and money in the long run.

Also consider integration capabilities with other software systems such as accounting or inventory management tools. A seamless integration between systems can greatly improve efficiency across all areas of operations.

Don’t forget about customer support options offered by potential vendors. Ensure they offer reliable technical assistance should any issues arise during implementation or day-to-day use.

By taking these factors into account when choosing an ERP system for your business, you’ll be on track towards selecting a solution that meets both current and future needs.


In today’s fast-paced business world, having an effective Enterprise Resource Planning system is crucial for success. With so many different types of ERP systems available, it can be a challenge to choose the right one for your business.

Whether you need a procurement-focused ERP system or one that focuses on accounting and finance, there are options available to meet your specific needs. It’s important to assess your company’s requirements before making any decisions.

By taking into account factors such as budget, scalability, ease of use and customer support, you can make an informed decision about which ERP solution will work best for your particular situation.

Choosing the right type of enterprise resource planning system requires careful consideration and analysis. By selecting the appropriate software solution that aligns with specific business objectives in mind , companies are more likely to achieve operational efficiency and productivity gains while realizing their full potential in terms of growth through optimized decision-making processes thanks to streamlined workflows made possible by this technology .

Want to find out more about procurement?

Access more blogs, articles and FAQ's relating to procurement

Oboloo transparent

The smarter way to have full visibility & control of your suppliers


Feel free to contact us here. Our support team will get back to you as soon as possible

Oboloo transparent

The smarter way to have full visibility & control of your suppliers


Feel free to contact us here. Our support team will get back to you as soon as possible

© 2024 oboloo Limited. All rights reserved. Republication or redistribution of oboloo content, including by framing or similar means, is prohibited without the prior written consent of oboloo Limited. oboloo, Be Supplier Smart and the oboloo logo are registered trademarks of oboloo Limited and its affiliated companies. Trademark numbers: UK00003466421 & UK00003575938 Company Number 12420854. ICO Reference Number: ZA764971