Enterprise Architecture

Top 10 Cloud ERP Systems in 2024

Leave a Comment / Blog, Enterprise Architecture, ERP / By Sam Gupta / March 17, 2023 March 17, 2025

Cloud ERP systems exhibit a broad spectrum, ranging from those disguising outdated backends as cloud-based to extreme cases deploying on-prem code bases in data centers, asserting a ‘web link’ qualifies as the cloud. Untangling this complexity requires an understanding of diverse layers and factors that define the cloud, encompassing both technical and financial aspects. In easier terms, think of it as renting (cloud) versus buying (on-premises). However, similar to renting, diverse cloud business models exist, varying in roles and responsibilities of each party involved.

Particularly in a standard cloud solution, the provider handles infrastructure upkeep, and your responsibility is to consume services for a periodic rent, facilitating the conversion of CapEx spending into OpEx. However, this analogy has a significant limitation. Vendors can hire specialized firms for financial translation and infrastructure management, also allowing them to claim their offerings as cloud overnight. This mirrors the practice of legacy ERP vendors selling repainted cars as new—potentially fraud in the automotive sector but perfectly legal in the ERP industry.

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Thus to discern between repainted cars and new ones from the lenses of cloud-native technologies, a profound understanding of their nuances is imperative. Unlike on-prem technologies, which target a singular interface, cloud technologies must adeptly serve numerous interfaces, introducing exponential complexity with a greater number of variables. Seemingly minor issues like enterprise search or font rendering can dramatically impede operations, contrary to ERP vendors’ claims of the cloud as a “universal answer” to all business performance issues. While these drawbacks may not be immediately apparent during the selection phase, users frequently encounter frustration upon implementation. Seeking truly groundbreaking cloud ERP systems? Explore our curated list for reliable recommendations.

Criteria

Definition of a Cloud ERP System. The richness of functionality in the cloud. How cloudy is the experience? Financial? Operational? Technical? All? Replaced only the front end? Or the whole stack? User experience modernized for the cloud interfaces?
Overall market share/# of customers. A higher market share in the cloud ranks higher on our list.
Ownership/funding. The more committed management to the product roadmap in the cloud ranks higher on our list.
Quality of development. More cloud-native capabilities rank higher on our list.
Community/Ecosystem. Communities with a heavy presence from cloud users rank higher on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box cloud-native functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Cloud market share (and documented commitment of the publisher through financial statements). The higher the focus on the cloud, the higher the cloud ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with the cloud-native strategy. Acquiring legacy products to wrap in a fancy marketing package? The lower it ranks on our list.
User Reviews. The deeper the reviews from cloud-native users, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. Plex

Plex, born in the cloud, specializes in automotive, F&B, and industrial manufacturing. Ideal if MES expertise is paramount but less suitable for those emphasizing deep ERP layers and mixed-mode manufacturing. A top choice for pure-play companies within the Toyota and Ford ecosystems, generating up to $1B in revenue from $50M. This is particularly fitting for businesses with traceability and supply chain integrations, like F&B enterprises. However, not the optimal choice for companies with diverse business models. Therefore, Plex secured the #10 spot on our list, a slight downgrade from previous rankings.

Strengths:

Born in the Cloud. Built from the ground up for the cloud-native experience. Consistent design and architecture across screens and modules.
Manufacturing and MES. Designed from the perspective of automotive OEMs. Also contains supply chain and quality processes tailored for specific micro-verticals.
Automotive Capabilities. Built out of the box are the Toyota and Ford compliance and quality capabilities. Expect substantial efforts to enable similar capabilities with other similar products not tailored for automotive.

Weaknesses:

Ecosystem. Plex approaches its ERP implementations in the hand-off mode. And the consulting options might not be as prevalent due to the limited install base.
Limited Focus on the Solution. Great for pure-play automotive companies. However, it might not work for diverse business models, even within manufacturing.
Not the best fit for Companies Growing Through M&A. Not the best fit for companies in the M&A cycle, whether planning for carve-outs, mergers, or acquisitions. Primarily due to the uncertainty of the to-be business model.

9. Odoo

Odoo stands out as a cloud-native system particularly tailored for small to medium-sized businesses. As a born-in-the-cloud product, it maintains a cohesive design across screens and modules. If a cloud-native experience is your top priority, then Odoo deserves a spot on your list. However, success with Odoo hinges on engaging a seasoned business consultant experienced in ERP implementations and integrations. Caution is advised against excessive customization, generally resulting in derailed ERP implementations. We have upgraded Odoo a little bit this year due to the lack of momentum in Plex’s portfolio, jumping to the rank of #9 on this list.

Strengths:

Designed for Global Companies. Fit for smaller companies that might have entities in many different countries. Regions such as Europe and South America are likely to benefit from Odoo, generally consisting of multiple entities in many countries.
User Experience and Consistent Design. Expect one of the best UX and consistent design patterns across screens and modules.
Open Source. Despite the perception of savings with licensing, don’t forget to consider the overall costs, sometimes exceeding more than commercial options.

Weaknesses:

Out-of-the-box Capabilities to Support Larger Organizations. The open-source nature leads to a tendency to over-customize, resulting in an inferior product experience despite its cutting-edge UX.
Limited Business Consulting Expertise. Consisting primarily of developers, the ecosystem particularly doesn’t have a seasoned program, change management, and business consultants to keep the large programs on track.
Limited Last Mile Capabilities. The last-mile capabilities for specific micro-verticals are limited, requiring significant customization for their work with specific industries.

8. Sage Intacct

Sage Intacct focuses on service-centric sectors like non-profit, healthcare, financial services, software, and technology. Perfect for those particularly prioritizing contract compliance, ASC606, and subscription-based features. However, less suitable for inventory-centric businesses. If you operate in service-centric fields like non-profit, SaaS, healthcare, or financial services, then Sage Intacct could be a solid choice. It received a notable downgrade in this year’s ranking due to lacking core operational cloud functionality found in other ERP solutions, securing the #8 position on our list.

Strengths:

Deep Subscription-centric Capabilities. Sage Intacct has one of the strongest subscription-centric capabilities, particularly including ASC606, revenue recognition, payment terms at the contract line item level, intercompany accounting, and multi-element allocation.
Globalized and Localized in over 120 countries. Sage Intacct can natively support multi-entity collaboration features of over 120 countries.
Brightpearl, Procore, and Salesforce Integrations are built and Owned by Sage. Also Brightpearl, Procore, and Salesforce integrations are owned and maintained by Sage, ensuring the quality of development.

Weaknesses:

Manufacturing and Industrial Distribution Capabilities. Companies with diverse business models, such as tech companies with manufacturing or distribution needs, might struggle with the solution.
Limited Supply Chain and CRM Capabilities. Primarily an accounting solution. So the solution doesn’t have any CRM capabilities at all. As well as limited supply chain capabilities, even for indirect procurement. But non-profit and healthcare organizations needing inventory and warehouse capabilities might struggle with the solution.
Too Many Moving Pieces During Implementation. While the integration required for Brightpearl, Procore, and Salesforce is supported by Sage, there will be multiple parties involved during the implementation, increasing the implementation failure risk.

7. IFS

Positioned uniquely, IFS targets mid-to-large project and field-service-centric organizations with substantial assets. It excels when best-of-breed field service and asset management capabilities are needed, even as standalone offerings atop SAP or Oracle. However, it may not be the best fit for mixed-mode manufacturing or companies with diverse business models or those undergoing M&A cycles. Particularly suitable for companies in the MRO and airline ecosystem seeking a cloud ERP system. Thus, IFS secures the 7th position on our list as a robust cloud ERP solution for specific industries.

Strengths:

User Experience and Interface. One of the most consistent user experiences that have been rearchitected and modernized, similar to born-in-the-cloud products.
Best of Breed Field Service Capabilities. Abilities to manage the field service scheduling of over 50K field service technicians particularly with substantial R&D investments in resource optimization capabilities.
Best of Breed Asset Management Capabilities. One of the strongest asset-management capabilities for organizations with very thick asset and predictive maintenance needs, such as MRO organizations.

Weaknesses:

Ecosystem. Expect a limited presence in North America and also a lean partner ecosystem.
Limited Focus. Companies with a diverse business model, such as manufacturing or expecting changes with the model, might outgrow or struggle with the solution.
May not be the best fit for Companies Growing Through M&A. Companies involved with the M&A or the ones part of the PE portfolio might not be the best fit for IFS.

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6. Acumatica

Established in the cloud, Acumatica caters to distribution, construction, field services, and manufacturing-centric organizations, primarily suitable for companies with operations in select countries like the US and UK, with deeper operational capabilities and less emphasis on global financial requirements. It is an ideal choice for companies with revenue ranging from $10 million to $100 million but may not be as suitable for large global enterprises. Therefore, Acumatica is recommended if prioritizing a cloud-native experience is crucial over extensive operational and global capabilities. Thus, positioned as a robust cloud ERP solution, Acumatica secures the 6th position on our list.

Strengths:

One Product, Multiple Business Model. Supports several complex business models as part of the same package, ranging from construction, manufacturing, and distribution.
Consumption-based Pricing. The consumption-based pricing model might be friendlier particularly for companies with low transaction volume or seasonal labor requirements.
Marketplace and Ecosystem. Vibrant marketplaces and ecosystems with controlled procedures enforced by Acumatica for quality development.

Weaknesses:

Globalization Capabilities. Acumatica would require hosting multiple countries in different instances with an external consolidation add-on, also limiting collaboration capabilities between those entities. Not the best fit for global companies with significant collaboration needs.
Ability to Handle Larger Workloads. Primarily an SMB product and not designed to handle the workload of larger organizations.
Not a Fit for Companies Growing Through M&A. Such companies require global collaboration among entities such as those with private equity structure or part of holding companies.

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5. SAP S/4 HANA Cloud

SAP S/4 HANA is tailored for large, public-centric product organizations particularly with intricate product models and demanding MRP runs. It excels as an ideal choice for large global companies seeking consolidated management for all entities within a single system. However, it may not be the optimal solution for companies outgrowing smaller ERP systems or QuickBooks, requiring a certain level of IT maturity for successful implementation. Thus as a robust cloud ERP solution, SAP S/4 HANA secures the 5th position on our list.

Strengths:

HANA. Because of the power of HANA, SAP S/4 HANA can process very complex MRP runs with product models containing millions of serial numbers and SKUs and the ability to process millions of costing and scheduling entries much faster than most ERP systems.
Best of Breed Capabilities Pre-integrated. The best-of-breed software, such as SAP Commerce Cloud, Hybris, Concur, SuccessFactors, and EWM, is pre-integrated with the SAP S/4 HANA, potentially saving millions of dollars with integration.
Financial Traceability for Large, Global Organizations. Large complex financial organizations require end-to-end traceability of SOX compliance workflows, also built with each document and transaction with SAP S/4 HANA.

Weaknesses:

Limited Last-mile Capabilities. The pre-baked last-mile capabilities specific to micro-industries might be limited, requiring either development or add-ons on top of the core solution.
Limited Capabilities of the Cloud Version and Marketplace Options. The cloud version is behind with development in comparison to the on-prem variant. Equally limited are the marketplace options compared to other competing solutions.
Overwhelming for Smaller Organizations. The data model is designed for large, complex organizations, and also overwhelming for smaller organizations outgrowing QuickBooks or smaller ERP systems.

4. Oracle Cloud ERP

Oracle Cloud ERP is designed for large publicly traded organizations seeking comprehensive global financial capabilities. However, it may not be the most suitable option for smaller product-centric companies that are outgrowing their ERP or accounting systems. Thus positioned as a robust cloud ERP solution, Oracle Cloud ERP secures the 4th spot on our list.

Strengths:

Designed for Large Service Organizations. The embedded HCM, CRM, and CPQ processes are suitable for large service-centric organizations with leaner inventory and operational needs. Also the P2P workflows are friendlier for indirect procurement organizations.
Embedded WMS and TMS Processes. The embedded WMS and TMS processes are particularly suitable for logistics and healthcare-centric organizations. As well as any other services-centric organizations leaner on their inventory management needs.
Designed to Support Financial Processes of Large, Regulated Industries. The product architecture supports the needs of large complex financial organizations with deep sub-ledger hierarchies, the ability to close books at the subsidiary level, and also keeping user-defined books for complex branch, fund, partnership accounting, etc.

Weaknesses:

Limited Capabilities for Product-centric Companies. The P2P processes, CPQ, and manufacturing capabilities may not be the friendliest for product-centric organizations particularly with the needs for MES, PLM, and S&OP-centric processes.
Ability to Handle MRP Runs of Fortune 500. Might struggle with the complex MRP runs hitting millions and millions of costing, scheduling, and also WIP industries.
Overwhelming for Smaller Organizations. The data model and translations required to be successful with the product may be too overwhelming for companies outgrowing QuickBooks or other smaller ERP systems.

3. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance & Operations stands out as one of the most comprehensive cloud solutions, also capable of accommodating various business models within a single software platform. It is particularly well-suited for large global companies seeking integrated WMS and TMS capabilities without the need for additional add-ons. Particularly tailored for global operations spanning multiple countries, it may not be the optimal choice for smaller companies with revenue under $250 million that are outgrowing platforms like QuickBooks or other compact ERP systems. Thus, boasting substantial upgrade this year, it secures the 3rd position on our list.

Strengths:

Designed for Large Organizations. Ideal for large, global companies with complex business models operating in multiple countries, requiring one system for the entire operations.
Embedded WMS and TMS Processes. Embedded WMS and TMS processes help companies requiring end-to-end traceability including external supply chain.
Mixed-mode Manufacturing Capabilities, including Process, Discrete, and PSA. Microsoft Dynamics 365 F&O can accommodate several business models as part of the same solution, such as PSA, process, and discrete manufacturing.

Weaknesses:

May not be the Best Fit for Publically-traded Companies. The traceability requirements for publicly traded companies might not be as intuitive as the other ERP solutions designed from the perspective of the CFO.
Ability to Handle MRP Runs of Fortune 500. Might not be the most suitable for the transactional workload and the MRP run of the fortune 500 due to the heavy lifting required.
Overwhelming for Smaller Organizations. Companies under $250M in revenue or outgrowing smaller ERP or accounting systems such as QuickBooks might struggle, with limited data modeling and translation expertise.

2. Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central, fully re-engineered for the cloud, is designed for SMBs with extensive financial requirements, PSA, and FMCG distribution needs. Also advantageous for global SMBs with a presence in multiple countries. However, it may not be the optimal choice for companies in the industrial distribution and manufacturing sectors seeking intricate operational capabilities, necessitating add-ons atop MS Dynamics 365 BC. In summary, Microsoft Dynamics 365 Business Central is recommended for those seeking global financial capabilities coupled with a dynamic marketplace of developers. With noteworthy enhancements this year, it secures the 2nd position on our list.

Strengths:

Designed for Global Companies. Natively supports global regions and localizations where Acumatica, Epicor, or Infor might have limited support.
Deep Supply Chain Capabilities for Complex Distribution and Retail Organizations. The data model is friendlier for FMCG and distribution companies requiring native support for complex features such as bin tracking or license plate support.
Ideal for Diverse Companies Growing Through M&A. The global nature and the available options through the marketplace make it ideal for companies growing through M&A, regardless of whether they might be vertically integrated or globally expanding.

Weaknesses:

Limited Last Mile Capabilities. The native last-mile capabilities might be limited for industries such as industrial manufacturing or distribution.
Technical Focus and Limited Business Consulting Expertise of the Microsoft Ecosystem. The ecosystem has technical companies with limited business consulting experience, generally resulting in over-customization and overengineering of Microsoft products.
Limited Microsoft Support for Smaller Partners. Unlike other ERP companies, Microsoft doesn’t offer any support or control to its smaller products, leading to ERP implementation issues because of the lack of control over the channel.

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1. NetSuite

NetSuite is tailored for SMBs with a global footprint, particularly those in service or commerce sectors. It excels for organizations with varied business models seeking a global financial ledger and robust CRM workflows. However, it may not be the optimal choice for industrial distribution or manufacturing needs. Overall, NetSuite is recommended for service-centric or commerce-oriented SMBs, especially those undergoing growth via acquisitions or under private equity ownership. With slight enhancements this year, it claims the top spot on our list.

Strengths:

Supports both Product and Service-centric Companies. Along with the robust financial ledger, CRM, and PSA, NetSuite can support the inventory needs of commerce-centric organizations.
Marketplace and Ecosystem. NetSuite has one of the most vibrant marketplaces and ecosystems, with tons of pre-baked integrations and add-ons available.
Ideal for Global Companies Growing Through M&A. NetSuite can support several diverse and global business models out of the box, making it ideal for companies part of the private equity portfolio and growing through M&A.

Weaknesses:

Patchy User Experience. Although NetSuite was born in the cloud, the user experience is not as modern as Acumatica or Sage Intacct, making it slightly inferior for companies looking for a solution known for its user experience and cloud-nativeness.
Not friendly for B2C, Unified Commerce, and Omnichannel Experience. You might run into performance issues in storing millions of B2C customer records and transactions that should be part of the commerce or OMS layer.
Limited Manufacturing Capabilities. The BOMs and MRP capabilities are extremely limited and not really designed for the complex workflows of industrial manufacturing with busy shop floors.

Final Words

Whether or not the cloud is a priority, discerning the authenticity of cloud systems is crucial. When evaluating the cloud as a factor, carefully assess each variable based on your specific requirements. If prioritizing the cloud experience, this list can serve as a valuable starting point. However, recognizing genuine cloud solutions from fake ones demands expertise. Consider seeking advice from independent ERP consultants to ensure informed decisions.

FAQs

How is a cloud-native ERP system different from a legacy cloud ERP system?

The cloud-native ERP system was designed and architected from the ground up for the cloud-native interfaces. They have better architecture and data models that help them provide a superior organization of information compared to their legacy counterparts.

What are fake clouds, and how to identify the systems that might be fake?

The fake clouds are the systems that have partially rearchitected their systems, primarily the front-end layer, with minimum changes done to their data model. They are extremely hard to spot during the demo unless you have hired someone with a deep background in architecting and designing enterprise systems. Independent ERP consultants keep track of these vendors in their proprietary databases and can help you spot them.

Does the degree of cloud-nativeness matter if you are deploying on-prem primarily?

Yes, the degree of cloud-nativeness matters regardless of where you plan to deploy the system. Ultimately, you might be exposing this system through your data center. So the modern code base would provide a superior experience than the legacy code base designed to run primarily as desktop software.

Top 10 Reasons Why Independent ERP Consultants are Like Your Real Estate Agents

Leave a Comment / Blog, Enterprise Architecture, ERP / By Sam Gupta / February 26, 2023 March 17, 2025

Buying a house is easy. Anyone with common knowledge can buy. Anyone can figure out how many rooms or bathrooms they might need. Most people know how to select a color or texture on their own ( or maybe by making a few calls to their trusted friends). So why do we hire real estate agents (or independent ERP consultants)? Dumb move? Pure waste of money? No? By the way, the problem could be much more involved when you might have some construction or modification component to your house. Then, most likely, you are going to hire an architect as well.

Do you need a real estate agent? 90% of people would agree that you are better off hiring a real estate agent than buying on your own. With architects, you might not even have a choice as the city regulates it. They are doing this to ensure the interest of both buyers and sellers are protected. Sure real estate buying is a leveraged procurement, so you have a much higher risk. And sometimes, your bank might mandate a licensed agent to protect their investments.

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When you buy an ERP, the total cost of an ERP might be anywhere from 5-20x more in price, depending on the size of the organization, with a lot more complexity. With an ERP, sure your purchase might be completely based on cash. But wouldn’t it be in your best interest to take the same approach as an expensive procurement, just like a bank or an insurance company would? While the ERP procurement process may not be as regulated, the role of independent ERP consultants is very similar to real estate agents, architects, real estate lawyers, and a lot more. So, what are the top reasons why independent ERP consultants are like real estate agents?

10. Ability to Expedite the Process

Try buying a home on your own. Here is how the process goes. It might start with taking everyone’s opinion. Mommy is most likely to fight for the best kitchen – with the same status symbol as her friends. Kayla, the daughter, is likely to fight for the personal washroom. George, the son, might fight for the swimming pool or backyard. Daddy is probably praying that he will be more than happy if the process finishes in the allocated time and budget (with a house in one piece).

You might make several rounds of open houses – with thousands of dollars of gas poured in driving around, with family lunches. Sure, you could account for this as family bonding and time. I get it. But you are burning time and cash (and opportunity cost, if you care for that, most smart people do).

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Here is how a real estate agent would manage the process. First question. Do you guys have bank approval? No. Do you know what you can afford? Maybe $400K, based on Daddy’s income. Sorry, mommy, you might not get the best appliances. Sorry, Kayla, the personal washroom is not an option. George, let’s keep the swimming pool for the next home once you figure out how to make money on your own. You get the point! The real estate agent has saved six months (and a ton of money) – without making a single trip. The bigger the family, the more challenging it will be to manage it internally.

ERP procurement process isn’t different, except everyone struggles to articulate why you need to hire professionals to manage the process, including independent ERP consultants, even though they do this for a living. Their experience and structured approach help expedite the process exponentially.

9. Offer a Structured Framework

When buying a house or ERP, a structured framework is essential for successful procurement and adoption. Sure, you might argue that real estate agents don’t add a ton of value. What’s a big deal in creating a few listings and driving around to check a bunch of houses? Can’t you do it on your own? Is it worth paying them 3-6% of the transaction? Most of us underestimate how much thought and work goes into that process.

Think of decisions such as putting an offer on the house without knowing whether you will get approved or not. What if the seller’s agent has a clause for non-approval penalties? OK, this might be intuitive for you as you probably know how to read contracts. But there are just so many things that could fire back when you are dealing with such expensive investments. Also, just because you may be an expert at buying and negotiating another category, that doesn’t make you a qualified real estate agent. They go through years of training, certifications, and experience to develop a structured framework that makes them successful with a similar customer like you.

The more structured you are with your process, starting from developing criteria, defining success, building consensus, and narrowing down options, as well as reviewing only the options that might be relevant for you – not to overwhelm George or Kayla. Or the buying decision might be put on hold forever without making any progress for the family. A structured framework that independent ERP consultants provide is more than a bunch of spreadsheets and checklists. Creating a similar framework requires you to go through many rounds of buying and selling similar houses (or ERP), as well as incorporating lessons learned on an ongoing basis.

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8. Help Building Consensus

The ability to build consensus is more than just voting and a bunch of surveys. It requires a deeper understanding of everyone’s motivations and overall implications on the technical and financial model. What if Kayla hasn’t figured out how to understand the financial model and her demand for the personal washroom is non-negotiable? What if the addition of the washroom might throw off the financial stability of the model? And she might not listen to Daddy as she feels that Daddy never thinks twice before spending on beer. When the decision came to her preference for a washroom, everyone had a problem.

The only difference between building consensus for a house and ERP is that with ERP, you are probably building the consensus for the whole city. And not just one family or one house. There might be religious and political factors that might throw off the entire technical and financial model. What if the technical constraint of your city requires you to build a canal through the city? However, the local population would not allow it because of their religious beliefs. What if the alternate model is more expensive than what the city may be able to afford?

Once you have dealt with thousands of Kaylas and Georges, you kind of know how to negotiate with them. This expertise would not be possible internally unless you deal with them on a daily basis. Independent ERP consultants are not only your “real estate agents,” but they are also your “marriage counselors.” Unless you have gone through multiple ERP implementations yourself, it’s hard to understand why building consensus across all parties, including internal stakeholders, consultants, and vendors, is so hard with ERP implementations.

7. Ability to Negotiate Contracts

Negotiation is not about asking for discounts. It’s about reading the room and understanding everyone’s motivations. Understanding what you are going to lose by gaining something. Think of how easy you are making for the seller’s real estate agent if there is no buyer’s agent present on the other side. The ERP salespeople are professionally trained negotiators. ERP companies have hired “real estate agents” as they know how “uninformed” an average buyer is.

The seller’s real estate agents have done deep research on every one of you: how you think, what you feel, and what your weakest spot is. They are likely to hit the weakest person the hardest. The only way to counter the seller’s real estate agent is to have a “real estate agent” on your side. They need to be able to predict every move they are going to make and have a counter strategy in place. That’s where independent ERP consultants come in. Not that they are smarter than any of you. However, only a real estate agent would understand how to work and think like another real estate agent.

They know every single ERP ecosystem in and out, researching pricing and discounting on a daily basis. They also keep track of macro and micro developments with most ERP vendors. In addition to having access to thousands of quotes, they can dig to discover the discrepancies in the contract, help you save with unused software, and compare the prices at the line level. Not hiring a real estate agent on your side is the best thing you can do to help a seller’s real estate win. The worst part is that they will make you feel that you have WON – when you might have clearly lost.

6. Ability to Architect and Design

Imagine if buying a house requires a real estate agent; how hard would it be to make modifications to a house or construct from the ground up? What if Kayla’s imagination about the personal washroom does not come out to be as interesting as she thought? What if you go through the process of constructing, only to demolish and construct again? And what are the odds that you will be successful with construction if you haven’t figured out how to first design on a piece of paper before laying down the bricks? You might go through several rounds of construction and demolition by the time you realize that you are already over budget – or worse yet, bankrupt.

This is how any ERP development, customization, or integration process goes. Just because you might get the washroom that Kayla wanted, Mommy might not be happy. The color that she has chosen may not look as well as she thought. With architecture and design, it’s not just about the technical components that need to work together. Everything needs to line up: financial, technical, processes, licensing, or legal. The process of construction and demolition might go on regardless of whether the disconnect is likely to be between Kayla’s as-is and to-be misexpectations, misalignment between the process and technical model, or disconnect between the financial and technical model.

Just like construction or real estate, ERP implementation requires multi-disciplinary skills. Depth in every skill that you can possibly imagine. Your independent ERP consultant is not only your real estate agent. They also help with the architecture and design. Most importantly, I want to figure out what Kayla wants when she grows up. And that you can’t do unless you deal with thousands of Kaylas on a daily basis.

5. Ability to Uncover Your Needs By Analyzing Your Current House

What are the odds that you will be able to remember every single feature of your current house? What if the features you took for granted in your current house might not exist in the new one? Most companies would struggle to articulate 40% of their processes. Sometimes, they might reside inside a spreadsheet and other times in someone’s head. The articulation of the current house is critical as it helps Kayla and George understand how their life is going to change in the new house. However, it also helps perform the fit-gap analysis to understand the efforts required to build the to-be model.

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Unfortunately, the internal teams would always struggle with how much they might be keeping in their heads. The independent ERP consultants help you articulate the as-is model as they deal with similar Kaylas on a daily basis. Also, they do not rely on Kayla to provide input. However, you can also connect dots through multiple sources by deeply studying your processes, analyzing your data, process mining, and doing the rinse and repeat with the interviews and analysis until they get the as-is model that can stand on its feet.

4. Ability to Blueprint Your To-be House

If articulating your current needs is harder, who can forecast which house you will need in the next 5-10 years? What if you get an unexpected baby that you didn’t plan, and you might need a bigger house? What if your aunt decided to stay permanently in your house because she didn’t have a place to stay?

Articulating your to-be state requires working with similar businesses at various stages of their life cycle and having a deep understanding of how the processes evolve at each stage of growth. If your family members don’t have experience in living in a larger house, the upkeep that will be required from their side, most likely their expectation of the to-be state, will be very different. And they might not like it once they start living in the new house.

This is where independent ERP consultants help visualize how the needs change at every stage of the company’s lifecycle. As well as helping them understand the key decisions they need to keep in mind as they plan their to-be state. They have already seen the odds of unexpected babies or aunts. So they can coach you on the possibilities that you need to plan to ensure that your model has some legs and is not going to break even if the context changes substantially.

3. Ability to Manage Change

Who would remember that you are supposed to write “fragile” on the box that is likely to break during the move? Your grandmother could keep track of every single detail as moving is probably the most exciting thing she has done in her life. Let’s face it. Most of us don’t even remember 10% of what we did yesterday.

Changing an ERP is like moving the whole city. You have a lot at stake. Even a minor disruption with one process could mean millions of dollars in loss. The challenge with ERP implementation is that things are so invisible that even experts struggle to keep track of the change process.

Also, technical teams are extremely poor at documentation, as documenting a puzzle is not as mentally stimulating as solving and playing with the puzzle. The change process requires a methodical approach to managing a good state of requirements, which leads to quality tests and release plans. Unfortunately, unless moving cities on a daily basis, you are likely to forget the critical steps, causing unexpected disruptions.

2. Ability to Uncover Financial and Technical Risks

Good real estate agents have a deep understanding of their neighborhoods. They understand where the foundation issues are likely to be there in an area. They have intelligence about houses with cases of murder or suicide, which might substantially impact the financial value due to desirability issues. And they can tell you where you might need to hire a professional inspector, where the mold is likely to develop, and that it might require a very expensive repair.

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ERP Implementation Failure Recovery

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Without a real estate agent, you are likely to be concerned about getting the best deal but miss the big picture. What if you got a house that has a value of $100K because of a suicide in the house? But they sold as if you were getting a 50% discount on a house worth $400K? Only a real estate agent who is an insider would be able to uncover these deeply rooted financial and technical risks that you may not uncover even after living in the new house for a very long time.

The only difference between an ERP and a house is that the mold is so deeply spread with some of the ERP systems that you might not understand how bad it might fire back in unexpected ways, getting sick for no reason.

1. Access to Proprietary Intelligence

Real estate agents not only have access to proprietary databases such as MLS. However, they might maintain their own databases of different successes and failures based on their recent successes and failures. If you decide to do this on your own, you are never likely to have access to this intelligence. They keep track of other real estate agents, how they negotiate, and the compensation structure of different companies.

The ERP consultant keeps track of every vendor, whether reseller or OEMs, as well as consultants and their experiences with any specific ERP systems. They keep track of the vendors that are likely to white-label the consultants, increasing the scheduling risks. Or the ones that might deploy junior resources and the industries in which each vendor might specialize. Also, keeping track of any technology and data model changes. This proprietary intelligence is not possible without them. Independent ERP consultants can offer insights that you may have never had.

Final Words

The procurement cycle for each category is substantially different. The more expensive and disruptive the purchase, the more subject matter expertise you might need. It’s hard to describe why a particular real estate agent is better than the other. But if you pay attention, they have gone through years of training and cycles to master their craft.

It’s in the best interest of ERP companies not to see an independent ERP consultant on the other side, as it makes their job harder. But you are hurting yourself by not hiring one. Just like a real estate agent, the job of an independent ERP consultant is to make sure the interests of both buyers and sellers are protected. So don’t try to undertake an ERP selection by yourself when you barely understand the space.

FAQs

What is the difference between a VAR and an independent ERP consultant?

The value-added resellers (also known as VAR) are the distributors of software publishers (ERP OEMs). They are typically under the NDA of their OEM, so they are only supposed to stick to the OEM’s script. They are only authorized to talk favorably about the product they might be carrying, even if they might know that it might not be true.

What is the difference between business process and ERP consultants?

While business process consultants bring deep domain knowledge expertise, they might not have insider knowledge of the ERP industry. They barely understand the ERP space and contractual and licensing risks in the ERP contracts. They also don’t have as much architectural and design experience to build and vet different technical and financial models to be able to make an informed decision for your next ERP purchase.

What is the difference between freelance and independent ERP consultants?

There are several ex-executives in the market that claim to be ERP consultants. They may have gone through several cycles of ERP procurement as business users. But they don’t go through the same training and experience as an independent ERP consultant. The independent ERP consultants collaborate closely with the ERP industry and keep track of all the developments in the ERP space.

Top 10 Digital Commerce Platforms In 2025

Top 10 ECommerce Platforms in 2025

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Construction, Consumer Goods, Distribution, Enterprise Architecture, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By Sam Gupta / July 4, 2022 June 1, 2025

Many people still associate digital eCommerce platforms primarily with online coupons and discounts, but the scope of digital commerce goes far beyond that. Even if your business doesn’t process transactions online, elements like a website’s contact form play a vital role in digital commerce by serving as key tools for lead generation. To achieve complete visibility into customer behavior, robust digital commerce capabilities are essential, highlighting their broader strategic value.

Although understanding what eCommerce is may seem simple, selecting and implementing the right platform to support your digital goals can be complex. Critical factors include integrating payment and shipping providers, optimizing site speed, and reducing bounce rates to better attract and convert web traffic. As digital channels multiply, evaluating platforms for their pre-built integration capabilities becomes increasingly important to avoid unexpected implementation costs. Rising transaction volumes also demand advanced, enterprise-grade features such as digital asset management, approval workflows, and a comprehensive digital experience management solution. For businesses operating in regulated industries, compliance requirements add another layer of complexity that can directly impact digital transactions.

eCommerce platforms frequently overlap with systems like POS, ERP, OMS, and supply chain management solutions. Clearly defining the platform’s scope is crucial, particularly when determining how inventory is managed across systems and where pricing and discount strategies will be controlled. The role and functionality of an eCommerce platform can vary significantly depending on the industry. For example, industrial manufacturing and distribution often require more sophisticated digital workflows, whereas B2C platforms are generally more streamlined, though even they may demand capabilities that overlap with customer data platforms and loyalty systems. To address these challenges, begin by shortlisting a few of the top-performing eCommerce platforms from the list below.

10. WooCommerce

WooCommerce remains a popular choice among startups and content-centric businesses looking to add eCommerce functionality to their existing WordPress websites. Its open-source nature, affordability, and tight integration with WordPress make it especially attractive to entrepreneurs and small teams operating under lean budgets. The platform excels in content management and provides access to a vast ecosystem of plugins and developers, making it a compelling entry point for digital commerce. However, its strengths are most impactful for companies with limited eCommerce complexity, particularly those under the $5–10 million revenue threshold.

As businesses grow and their digital commerce needs evolve, WooCommerce can begin to show its limitations. Issues such as plugin conflicts, a weak data model, and insufficient security architecture for transactional reliability become increasingly problematic. These challenges are especially pronounced in B2B or enterprise-grade scenarios requiring advanced user permissions, workflow support, and seamless scalability. So, is WooCommerce the right long-term platform for your growth trajectory? Or is it time to explore more scalable alternatives? To answer these questions, download our definitive guide: Top eCommerce Platforms in 2025.

Top 15 Retail Digital Transformation Trends in 2025

9. Kibo Commerce

Kibo Commerce is a modern, API-first, microservices-based eCommerce platform designed to help enterprises deliver omnichannel experiences without relying heavily on custom development. Its architecture allows for flexible scaling and modular deployment, making it ideal for businesses looking to support high transaction volumes and dynamic customer experiences. With integrated Order Management System (OMS), eCommerce, and subscription commerce capabilities, Kibo provides a unified foundation that streamlines operations and reduces time to market, especially for brands aiming to offer subscription-based models and seamless cross-channel fulfillment.

However, despite its strong front-end capabilities and integrated OMS, Kibo faces tough competition from platforms like Manhattan and IBM Sterling Commerce, which offer deeper supply chain integration with WMS and TMS solutions. Additionally, Kibo’s backend integration can be a hurdle, particularly for businesses requiring tight financial and operational alignment. Its relatively limited consulting ecosystem and higher cost may also make it less attractive for mid-market players. So, is Kibo the best fit for your enterprise’s growth strategy, or would a more comprehensive or cost-effective platform serve you better? Download the Top eCommerce Platforms in 2025 report now to explore how Kibo stacks up against the leading platforms.

8. SAP Hybris Commerce

SAP Hybris Commerce is designed for large enterprises with complex requirements, particularly those already embedded within the broader SAP ecosystem. Its key strength lies in seamless integration with other SAP products, making it a strategic fit for businesses seeking a single-vendor solution across ERP, CRM, and commerce. The platform also offers deployment flexibility and strong CI/CD capabilities, giving IT teams the infrastructure control and governance needed for compliance-heavy industries. For companies prioritizing audit readiness and process control, SAP Hybris provides a solid, if somewhat traditional, foundation for enterprise commerce.

However, the eCommerce landscape has shifted rapidly, especially after Oracle Commerce’s expected discontinuation in 2023, raising concerns about the long-term viability of legacy platforms like SAP Hybris. While SAP has taken steps to modernize Hybris through improvements in its headless architecture, it still lags in usability, partner ecosystem, and cutting-edge features like integrated digital asset management. Is SAP Hybris still the right fit for your business in 2025? Or is it time to consider platforms with stronger native headless capabilities and broader partner ecosystems? Download the Top eCommerce Platforms in 2025 report now to see how SAP Hybris compares to emerging leaders.

7. HCL Commerce

HCL Commerce, the evolved version of IBM Commerce, brings a modernized approach to enterprise eCommerce while retaining the robust capabilities of its predecessor. By offering full API access to commerce layers—including search, cart, and digital asset management—HCL empowers businesses to build scalable, headless experiences. Its React-based composable storefront capabilities make it especially appealing to B2C brands looking to support omnichannel strategies and regional customization. With decades of enterprise-grade performance backing it, HCL Commerce offers a reliable solution for teams already familiar with IBM’s data structures and workflows.

That said, the platform still carries the weight of its legacy architecture, relying on Java and Spring frameworks that may present a steep learning curve for modern web developers. While its B2C capabilities are solid, companies with industrial B2B needs or ambitions for advanced personalization may find the platform limiting without significant custom development. Are you looking for a modern commerce solution with enterprise muscle, or is your business better served by a platform with more robust B2B and CDP features out of the box? Download the Top eCommerce Platforms in 2025 report now to evaluate how HCL Commerce compares to the top contenders.

The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

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6. Episerver Digital Commerce

Episerver Digital Commerce—now branded as Optimizely—caters specifically to mid-to-large B2B companies looking for a unified platform that delivers both content management and commerce capabilities without relying on costly third-party add-ons. Its integrated approach makes it especially valuable for industrial businesses with complex product catalogs, partner relationships, and rule-based promotional structures. Unlike many SMB-focused platforms, Episerver embeds digital experimentation and A/B testing directly into its core suite, enabling marketers and developers to collaborate on experience optimization with full traceability across channels.

However, while Episerver shines in flexibility and B2B depth, it may not be the ideal choice for smaller brands or large enterprises requiring enterprise-grade scalability and integration depth. Its ecosystem is also more limited compared to platforms like Shopify or BigCommerce, potentially leading to higher implementation costs and slower onboarding. So, is Optimizely the right fit for your B2B strategy, or do your needs align more with a lighter or more scalable platform? Download the Top eCommerce Platforms in 2025 report now to discover how Episerver stacks up.

5. Commercetools

commercetools, a rising star in the digital commerce space with backing from Accel and a valuation north of $2 billion, has made significant strides among top-tier B2C brands—especially in the automotive industry. With its commitment to the MACH principles (Microservices, API-first, Composable, and Headless), it delivers a flexible, future-ready architecture well-suited for organizations that demand highly tailored digital experiences. Its proven performance with multi-brand, high-traffic deployments has helped commercetools win clients that once relied on legacy giants like Oracle ATG and SAP Hybris.

Still, commercetools isn’t for everyone. It lacks bundled enterprise features, which can be a deal-breaker for companies looking for all-in-one solutions. Additionally, while its B2C capabilities are robust, businesses with complex B2B needs may find the platform less suitable without significant custom development. Does your organization prioritize flexibility and customization over turnkey solutions? Are you ready to build a best-of-breed tech stack around a MACH-native core? Download the Top eCommerce Platforms in 2025 report now to see where commercetools ranks.

4. Salesforce Commerce

Salesforce Commerce Cloud continues to be a go-to choice for large enterprises seeking sophisticated, scalable eCommerce workflows—particularly those already embedded within the Salesforce ecosystem through tools like CRM and Pardot. With equally strong support for both B2B and B2C models, Salesforce stands out for its deep merchandising capabilities, robust AI-driven product recommendations, and active involvement in the React and headless commerce communities. This comprehensive functionality, paired with a strong developer ecosystem, cements its position as one of the most enterprise-ready platforms available.

However, this depth comes with a tradeoff. Salesforce’s pricing model—broken out across multiple products—can be cost-prohibitive for SMBs. And while headless capabilities are available, they may feel less native compared to MACH-first platforms. Is your organization prepared to invest in a premium ecosystem to access advanced B2B and B2C functionality? Are you already leveraging other Salesforce tools and looking to unify your digital stack? Download the Top eCommerce Platforms in 2025 report now to see where Salesforce Commerce ranks.

LinkedIn - Salesforce vs Oracle Cloud CX

3. Adobe Commerce/Magento

Adobe Commerce, formerly Magento, remains a strong contender for mid-to-large enterprises with intricate eCommerce workflows across both B2B and B2C channels. Its rich data model and enterprise-grade capabilities—such as support for millions of daily site visitors, complex pricing rules, and advanced promotional workflows—make it a top choice for organizations that require scalability and flexibility. While the open-source version provides a great starting point, most serious implementations lean on the enterprise edition to unlock critical features like Return Merchandise Authorization (RMA) and granular promotion permissions. Backed by Adobe’s broader digital experience suite, Adobe Commerce continues to deliver value to organizations invested in content-rich, customizable commerce.

However, Adobe Commerce isn’t a one-size-fits-all solution. Smaller businesses may struggle with its technical complexity, and even larger enterprises may find the rigid data model challenging during customization. Is your team prepared to navigate a more prescriptive architecture for long-term stability? Does your commerce strategy demand the level of scale and flexibility that only Adobe Commerce can offer? Download the Top eCommerce Platforms in 2025 report now to explore how Adobe Commerce stacks up against the competition.

2. BigCommerce

BigCommerce is purpose-built for B2B SMBs that require robust eCommerce functionality without the burden of heavy internal IT investment. Its strong data model accommodates complex product catalogs, variant logic, and pricing structures, all essential for industrial distributors and manufacturers transitioning to digital. Unlike many SMB-focused platforms, BigCommerce provides a more scalable and user-friendly approach to B2B, with pre-baked integrations for ERP and POS systems that simplify initial setup. For B2C companies with similar operational complexities, it can also offer an alternative to more enterprise-heavy solutions without overwhelming business users.

However, as companies grow and demand more advanced features—like personalization engines, DAMs, and native experimentation tools—BigCommerce may require an increasing number of third-party add-ons. This can complicate architecture and introduce long-term maintenance challenges, especially for those pursuing an omnichannel or headless strategy. Are you looking for a platform that meets your B2B needs without requiring extensive customization? Or are you outgrowing the limitations of simpler systems and need a stepping stone before full enterprise migration? Download the Top eCommerce Platforms in 2025 report now to find out whether BigCommerce is the right fit for your digital commerce journey.

1. Shopify

Shopify is a leading choice for B2C SMBs seeking a straightforward, scalable platform to power their omnichannel and direct-to-consumer (DTC) strategies. Its intuitive data model and seamless integration with various payment and shipping providers make it ideal for brands that want to focus on growth without heavy IT overhead. Shopify’s built-in POS system ensures inventory and sales data sync effortlessly across online and physical stores, delivering a smooth omnichannel experience. Additionally, its vibrant developer ecosystem, particularly around the Hydrogen on Oxygen headless platform, offers flexibility and innovation for brands looking to customize their digital storefronts.

Yet, Shopify’s appeal comes with some trade-offs. Transaction fees and reliance on add-ons for advanced B2C and B2B capabilities can increase costs and complexity, especially for companies with more intricate needs like industrial distributors. Are you prioritizing ease of use and a vast app ecosystem, or do you require robust out-of-the-box enterprise features? How critical are transaction fees and native B2B support in your platform choice? To navigate these questions and discover which platform best fits your business needs, download the ultimate Top eCommerce Platforms in 2025 report now and get the insights you need to make the right decision.

Conclusion

Choosing the right eCommerce platform can be challenging. It requires a deep understanding of financials to accurately assess total cost of ownership, along with the insight of independent eCommerce consultants to evaluate the effort needed for custom features. Moreover, this choice influences the overall system architecture and operational efficiency, making a thorough and strategic approach to platform selection essential.

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FAQs

What are the advantages of an eCommerce platform vs. building a website from scratch?

If you are a small business, you might not have the bandwidth and resources to maintain a custom-built website. While building a website is easy, maintaining and scaling it over a period of time is hard. Also, when you build your custom website, you still pay for infrastructure and hosting.

Which eCommerce platforms are better: SaaS or Open Source?

Open source could be a great option if you want to avoid the licensing fee and instead spend those savings on maintaining your own infrastructure. Also, when you are at a smaller scale, you might be able to get managed hosting options that encapsulate the IT infrastructure issues for smaller businesses. Once you outgrow it, either you might have to manage on your own or use one of the SaaS options.

What is the difference between B2C and B2B eCommerce platforms?

The B2B and B2C business models are transactionally different. The B2B businesses have a much deeper data model with their customer hierarchies, channels, and pricing structure. The B2C business model, on the other hand, has a much higher volume in terms of the number of hits and the payment and shipping options that you need to have to support a large set of consumers.

Top 10 CRM Systems in 2025

Sales and marketing teams have traditionally relied on ad-hoc tools like spreadsheets or standalone software to manage their workflows. However, the growing complexity of modern sales and marketing operations now requires more advanced, integrated systems. CRM workflows are not only more intricate but also vary widely across industries and business models. To deliver a seamless and intuitive user experience, your CRM must be tailored to the specific data structures relevant to your sector. The true value of a CRM lies in its ability to consolidate high-quality data from multiple sources and make it easily accessible to sales teams—something that becomes difficult when the CRM’s data model doesn’t align with your customer hierarchies or transactional frameworks.

Additionally, the lines between CRM, CMS, call center platforms, e-commerce solutions, and ERP systems are increasingly blurred. Today’s CRMs often incorporate features once exclusive to ERP or e-commerce platforms, and overlap with CMS systems designed to handle industry-specific, customer-centric workflows, especially for organizations focused on tracking digital engagements. This convergence underscores the importance of clearly defining the roles and responsibilities of each system. Without a well-structured strategy, organizations risk poor user adoption and compromised data integrity.

CRMs built primarily for marketing automation may lack the robust data models required for downstream sales workflows, while those focused on sales processes might not support seamless integration with digital channels or content-driven engagement. Although some CRM platforms claim cross-industry flexibility, very few truly meet the unique demands of every business model. As a result, selecting the right CRM requires a deep understanding of your organization’s architecture and a careful evaluation of your options.

10. Oracle CX Cloud

Oracle Cloud CX stands out for its comprehensive suite of CRM tools, covering everything from sales and service to marketing, content, and advertising management. Built with large B2C enterprises in mind—particularly those in communications, media, and financial services—it offers powerful features like ad spend tracking, centralized asset management, and deep CPQ integrations tailored to complex subscription-based models. However, the discontinuation of Oracle Commerce signals a strategic shift that may limit the platform’s broader industry appeal. While it remains highly customizable, this flexibility often comes with a steep learning curve and the need for significant IT resources.

For enterprises with mature IT teams and a need for complex workflows, Oracle Cloud CX continues to deliver a solid CRM foundation. Yet, questions remain about its long-term direction and alignment with evolving market needs. Is Oracle committed to advancing CX Cloud amid its pivot toward healthcare and analytics? Can it keep up with competitors offering more agile, low-code platforms? And how sustainable is its customization-heavy model for fast-moving industries? Find out where Oracle Cloud CX stands among the top solutions this year—download the Top CRM Systems in 2025 report now.

9. SAP C/4 HANA

SAP C/4HANA, as part of the broader S/4HANA ecosystem, delivers a robust and deeply integrated CRM platform tailored for large enterprises with complex regulatory and operational needs. Its strengths lie in its seamless integration with other SAP products, making it especially valuable in highly regulated industries like utilities, finance, and the public sector. With advanced capabilities in identity management, consent tracking, and cross-channel personalization, SAP C/4HANA is particularly effective in supporting compliance-heavy environments. Its alignment with the Hybris product suite and SAP Configurator also makes it a strong fit for product-centric businesses requiring enterprise-grade quoting, territory, and compensation management tools.

Despite its deep functionality, SAP C/4HANA’s steep learning curve and complex customization requirements may deter mid-sized companies or those lacking strong IT resources. The platform’s limited flexibility and less intuitive marketing automation tools also raise questions about its adaptability to fast-changing sales and marketing landscapes. Is SAP doing enough to modernize its CRM experience for business users? Can it remain competitive in a market increasingly driven by low-code platforms and user-centric design? For a full comparison and insights into how SAP C/4HANA ranks among this year’s top CRM systems, download the Top CRM Systems in 2025 report now.

8. Zendesk Sell

Zendesk Sell is a lightweight CRM solution designed with simplicity in mind, making it an attractive option for small businesses already using Zendesk for customer support. Its origins in the Base CRM acquisition laid the foundation for a platform that supports essential sales functions like lead and opportunity tracking, calling, and emailing—features that startups with under 15 employees will find intuitive and accessible. The seamless transition for existing Zendesk users adds to its appeal, providing a familiar interface and easy integration for basic workflows.

However, Zendesk Sell’s streamlined approach comes with limitations. Larger organizations or those with more complex sales operations may quickly outgrow its capabilities. The lack of tight integration with Zendesk Support, weak marketing automation, and limited advanced features such as revenue planning and robust reporting raise important questions. Can Zendesk evolve to meet the growing demands of scaling businesses? How does it stack up against other entry-level CRMs that offer better integration and flexibility? To explore how Zendesk Sell compares to the leading CRM platforms this year, download the Top CRM Systems in 2025 report now.

Salesforce vs Zendesk, Comparison Report

7. Monday.Com

Monday.com has gained popularity among small businesses and teams already using it for project management, especially those looking to build custom CRM workflows tailored to unique operational needs. Its appeal lies in its flexibility—users can quickly set up automations, approval flows, and integrations without deep technical expertise. This makes it particularly useful for industries like real estate and non-profits, where standard CRM solutions may fall short. However, Monday.com still functions primarily as a project management platform, meaning teams must build out core CRM capabilities from scratch, which can increase complexity over time.

For organizations adopting Monday.com as a CRM, maintaining governance becomes crucial. Without proper oversight, teams may over-engineer workflows, resulting in inefficiencies, technical debt, and unpredictable costs. Additionally, the platform’s lack of built-in data integrity controls and advanced CRM features can be problematic as businesses scale. Is Monday.com truly sustainable as a long-term CRM solution for growing companies? Can it compete with out-of-the-box platforms that offer mature CRM functionality from day one? Download the Top CRM Systems in 2025 report now to see how Monday.com compares to other leading solutions.

6. SugarCRM

SugarCRM is a data-driven, sales-focused CRM platform designed to meet the needs of industrial businesses requiring strong ERP integration and complex quoting workflows. Its industry-specific CPQ capabilities make it especially effective for organizations dealing with product configurations, bills of materials, and subscription-based offerings. With built-in tools for ad creation and collaboration between sales and project management teams, SugarCRM streamlines operations for cost-sensitive companies—particularly those with in-house development resources and a preference for on-premises deployment through its community edition.

That said, SugarCRM may not be the best fit for organizations with fast-evolving or highly varied business models. The platform’s clunky interface, limited reporting, and hidden operational costs in the community edition could become barriers to growth. Additionally, while updates have been made, they haven’t significantly changed its position in this year’s rankings. Is SugarCRM evolving quickly enough to stay competitive in the modern CRM landscape? How much internal investment does it truly take to make the most of its features? Download the Top CRM Systems in 2025 report now to see how SugarCRM compares against today’s leading platforms.

5. Pipedrive CRM

Pipedrive CRM is a budget-friendly, user-friendly solution crafted for small businesses that need efficient sales tools without the complexity of enterprise-grade platforms. Its built-in CPQ functionality and document-centric workflows make it ideal for service-based or digital product companies, such as those selling online courses or subscriptions. Notably, Pipedrive offers strong support for the Asian market, setting it apart from many competitors by addressing international taxation and regulatory requirements—an often overlooked need in CPQ-enabled CRMs.

While recent enhancements, such as native workflow automation and improved data reporting via strategic acquisitions, improve usability for businesses with limited IT resources, Pipedrive still lacks the customization depth and scalability found in platforms like HubSpot. Is Pipedrive evolving quickly enough to stay competitive as small businesses scale and demand more complex features? Can it truly support B2B firms with layered organizational structures and larger sales teams? To see how Pipedrive stacks up against the competition, download the Top CRM Systems in 2025 report now.

4. HubSpot CRM

HubSpot CRM is a go-to platform for smaller, content-driven B2B companies that want a streamlined, user-friendly solution encompassing sales, service, CMS, and marketing automation. It offers a fast setup, intuitive interface, and robust tools for omnichannel tracking and marketing automation. Its strength lies in its ability to unify digital marketing and sales operations—particularly valuable for teams focused on lead generation and nurturing. The recent integration of Clearbit adds significant value by enriching CRM records with actionable data, allowing teams to personalize outreach and improve segmentation without leaving the platform.

However, HubSpot’s flexibility comes with trade-offs. As companies scale and face more complex sales structures or compliance-heavy operations, they may encounter limitations in HubSpot’s lean data model and lack of support for advanced workflows such as CPQ, territory management, or field service. Is your business ready to work around these limitations with custom development, or would a more configurable platform be a better fit? Are you prepared for how HubSpot’s evolving pricing tiers might impact your long-term budget? Download the Top CRM Software in 2025 report now to explore how HubSpot stacks up against the competition.

The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

Download Now

3. Zoho CRM

Zoho CRM has matured from a small business tool into a comprehensive platform capable of supporting large-scale service organizations. Its standout feature is the breadth of its application suite—offering everything from CRM to custom app development under a single flat-rate model. This approach makes it especially appealing to service-centric companies that don’t require deep financial integrations, as they can build and automate key business processes entirely within Zoho. The inclusion of Zoho Creator provides even more flexibility, enabling technical teams to rapidly deploy tailored applications and workflows without relying heavily on third-party tools.

That said, Zoho CRM does face limitations, particularly for multinational enterprises that require seamless global data handling or complex territory-based sales structures. Does your organization operate across multiple regions with strict data governance needs? Are you willing to invest in custom development to overcome Zoho’s narrower integration capabilities beyond its ecosystem? Download the Top CRM Software in 2025 report now to see whether Zoho CRM is the right fit—or if another platform offers a better balance of flexibility, scalability, and compliance readiness for your business.

2. Microsoft Dynamics CRM

Microsoft Dynamics 365 CRM continues to be a top choice for enterprises requiring a high degree of customization and scalability. Its strength lies in the ability to build robust, industry-specific workflows across sales, marketing, and service functions, supported by a deeply integrated Microsoft ecosystem. With advanced features like complex business object support and territory management, it’s well-suited for regulated industries and global organizations. However, deploying and maintaining multiple Microsoft apps within the platform demands architectural discipline, especially when these apps override core CRM objects and limit flexibility at the platform level.

Organizations with evolving CRM requirements must also weigh the trade-offs between customization freedom and long-term maintainability. Will your internal team be able to manage these complexities, or will you become overly dependent on third-party developers? Can your IT team handle the tighter object dependencies and integration constraints across apps and modules? Download the Top CRM Software in 2025 report now to see how Microsoft Dynamics 365 compares to other platforms.

1. Salesforce CRM

Salesforce remains the gold standard for enterprises seeking a deeply customizable and future-ready CRM platform. Its extensive data model supports a wide array of industries and business models, while its rich ecosystem offers pre-built solutions that simplify implementation and integration. Salesforce’s leadership in AI-driven automation and agentic capabilities sets it apart, empowering organizations to harness advanced analytics and predictive workflows. This robust product portfolio, combined with strong specialized capabilities—especially in telecom, media, and medical devices—helps Salesforce maintain its position as the top CRM platform in this year’s rankings.

However, the platform’s power comes with complexity and cost. Are you prepared to manage Salesforce’s sometimes challenging customization process and potentially steep learning curve? How will the investment in licensing and implementation balance against your organization’s CRM needs and budget? For sectors requiring close ERP collaboration, is Salesforce the best fit, or might another platform serve you better? Find answers to these questions and more by downloading the Top CRM Software in 2025 report now, and explore how Salesforce stacks up against the competition.

Final Words

As customer experience becomes increasingly critical to winning business, sales and marketing teams need more advanced CRM capabilities than ever before. A robust CRM system is vital for maintaining a unified view of customers throughout their entire journey, whether in pre-sales or post-sales stages. Without a centralized platform to manage workflows and interactions, staying competitive in today’s market can be a major challenge.

The CRM you choose has a direct impact on your overall enterprise architecture. That’s why it’s crucial to select a CRM that aligns well with your business model and supports your digital transformation goals. If you’re in the process of evaluating CRM solutions, be sure to weigh the factors mentioned here alongside insights from independent CRM experts. This guide is designed to help you narrow down the best options tailored to your organization’s needs.

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FAQs

What is the difference between a CRM module offered as part of an ERP vs. a standalone CRM?

In most cases, the CRM module integrated into an ERP system comes pre-integrated. However, opting for a standalone CRM provides enhanced pre-sales processes and superior marketing automation capabilities that might not be achievable through the CRM module within your ERP system.

How do marketing automation capabilities differ from the campaign management capabilities offered in the ERP system?

Usually, the campaign management features within an ERP system lack the capabilities required by marketing teams to craft the email experiences necessary for achieving optimal results in their marketing campaigns.

Why is a data model so critical to assess a CRM system?

In general, CRM systems often require integration with ERP systems for tasks like accessing pricing information, sending sales orders to the ERP, and retrieving customer details. Alignment in the data model between these two systems is crucial, as any disparities may lead to integration challenges, impacting the proper organization of information within the hierarchy.

Top 10 Systems for Your Enterprise Architecture

Enterprise architecture is more than a technical concept. But what is enterprise architecture? Think of enterprise architecture as the connected business systems that drive your operational processes with four primary perspectives. 1) business architecture, 2) process architecture, 3) data/information architecture, and 4) system architecture. Generally, most industries have two choices when building their architecture. They can either buy a system or build it themselves. But regardless of whether you buy or build, your enterprise architecture is equally important.

Also, some people might feel that ERP might be the answer to all of their system issues. They might also feel that enterprise architecture is only relevant for larger companies. However, even ERP systems require a well-defined architecture around them. So, regardless of the organization’s size, the lack of architecture results in ERP implementation failure. As well as poor adoption of digital initiatives and unforeseeable business disruptions. Understanding the enterprise architecture and each system’s role is crucial for your digital journey. In this article, we have covered major systems that your architecture might need as you grow.

10. Project Management

Which companies need to include PM as part of their enterprise architecture? In general, your enterprise architecture may not require project management software unless you execute these projects for your core business operations. For example, the ad-hoc engineering projects executed to improve processes or a CapEx building would not be part of your enterprise architecture. In other words, they can remain siloed. As far as the scope of enterprise architecture goes, these projects are applicable to businesses that sell them as their core offerings. These businesses include marketing agencies, defense contractors, sign manufacturers, or construction supply manufacturers.

Why do you need project management software? Generally, most project-centric organizations seem to be human-resources-driven. And these projects need to be estimated accurately and monitored throughout the process to avoid financial loss. So this is the core reason why PM software is critical for these organizations.
Who needs to interact with project management software? Most commonly, these projects typically serve many different stakeholders. It could include the subject matter experts or individual contributors. It could also include project managers, estimators, and financial executives interested in the financial health of the project.
Which capabilities do you need in the project management software? Typically, the capabilities crucial in project management software include resource scheduling, project governance, procurement, and timesheet management. You might also choose to go for packages such as timesheet software vs. project collaboration software.
What are the different options for project management software? Generally, there are two choices for project management software. For example, it can be standalone software or integrated with financials. In the startup phase, you might be OK with keeping it standalone. But as your project volume and scheduling complexity grow, you might need an option natively integrated with your financials.

9. Data Warehouse/Data Lake

Which companies need to include data warehouses as part of their enterprise architecture? Generally, most SMB companies might not include a data warehouse in their architecture. Because the operational systems crucial for their workflow take priority. However, once you have multiple systems in your architecture and struggle to get 360 degrees of your business due to the disparate data sources, you might need to include it in your architecture.
Why do you need data warehouse software? Typically, companies require a data warehouse when they need to consolidate insights from multiple systems, external or internal. Moreover, the drivers for data warehouses could be regulatory or forecasting. As well as for enabling decision support systems. It can also help them with historical data that is unavailable through their operational systems. Historical data typically gets lost when operational systems are replaced.
Who needs to interact with data warehouse software? In general, there are several stakeholders for data warehouse software. But the primary consumer would either be a BI tool. Or data scientists who might further augment the data and feed it back to the BI tool.
Which capabilities do you need in the data warehouse software? Depending upon the use case, several technologies are available to build a data warehouse or lake. But the most basic ones would be a separate data store. As well as ETL technology to move data nightly. The ETL technology helps avoid the impact on the operational performance due to the overhead exerted by the ETL pull.
What are the different options for data warehouse software? Generally, there are numerous technologies available to build data warehouses. But the easiest one would be to rent data warehouse capabilities, available through major cloud providers such as Azure, AWS, or GCP.

8. Business Intelligence (BI, S&OP, CPM, and ODP)

Which companies need to include business intelligence as part of their enterprise architecture? Typically, companies need business intelligence systems such as S&OP, CPM, and operational data platforms. They need it when they might have business performance issues such as inventory, cash flow, or waste in the manufacturing process. However, these systems are often siloed in SMB organizations unless offered pre-integrated with the ERP, etc. But as the complexity of your architecture and systems increase, you might need to integrate them.

Why do you need business intelligence software? Mostly, these analytical systems have pre-built workflows. These workflows can augment your datasets or allow additional dimensions such as seasonality to be added. They might also provide you with insights that might be harder with operational systems. It might be harder due to the rigidness of their data structure and impact on operations. In general, the role of business intelligence is to provide interactive analytics from data that you may have in your data warehouse.
Who needs to interact with business intelligence software? The consumers of business intelligence software are typically business users who need additional insights and KPIs for their workflow.
Which capabilities do you need in the business intelligence software? Generally, the main capabilities required in business intelligence software would be interactive analytics. And the analytical workflows to facilitate collaboration among business users.
What are the different options for business intelligence software? Typically, several options are available, with some offering their internal data store for the temporary storage of interim datasets. And the options could also be function specific. For example, a separate tool might be available for S&OP. Or the tool may offer connected planning as part of the suite.

7. Integration Technologies

Which companies need to include integration technologies as part of their enterprise architecture? Unless you have siloed systems or maintain everything in one system without additional channels, you may require an iPaaS. On the other hand, workflow collaboration would be an additional layer on top of the core operational architecture. You need it to enable master data control and ad-hoc workflows. Generally, Workflow collaboration tools don’t impact the enterprise architecture as much unless they are overused or overengineered.

Why do you need integration technologies? Essentially, integration technologies allow you to keep all your integration code in one place. Without an iPaaS, your choice would be to keep the integration code inside the source or destination system. And due to the additional overhead required, this choice may be more expensive to maintain over time. They might also be prone to bugs as the source and destination systems upgrade their interfaces. Additionally, the integration technologies allow safeguards if systems operate at different speeds.
Who needs to interact with integration technologies? Mainly, the integration technologies are used by developers or admins who need to ensure that integration flows work as expected.
Which capabilities do you need in the integration technologies? In general, the integration technologies must support various integration patterns such as HTTP, FTP, or Queue-based. It must also allow building an orchestration layer to transform and massage data in different formats.

What are the different options for integration technologies? Generally, there are several options available depending on the budget and capabilities. For example, if the company doesn’t want to utilize an iPaaS, they might host integration code in their existing data center or write it inside the source or destination system.

6. Manufacturing Software/MES

Which companies need to include manufacturing software as part of their enterprise architecture? Typically, These systems are applicable to manufacturing companies. They might use a separate MES system or a collection of tools that might serve a similar function as an MES. They also need a MES system if they have real-time integration with machines. We also need to collect and process operational data to optimize shop floor workflow. On the other hand, CAD, engineering, and R&D software typically have minimum impact on the enterprise architecture. The only cases where they might have an impact are when they need to be integrated with the operational flow to minimize data entry.

Why do you need manufacturing software? Since the shop floor is the primary cost driver for manufacturing companies, they need different tools to improve shop floor productivity. As the maturity of the shop floor and the order volume increase, they might need to integrate their shop floor technologies more.
Who needs to interact with manufacturing software? Typically, the primary stakeholders are plant floor users, supervisors, and manufacturing executives who need them for their operational workflow.
Which capabilities do you need in the manufacturing software? In general, the shop floor capabilities might include scheduling and in-process inspections. As well as real-time integration and control of the machines, and engineering and R&D workflows.
What are the different options for manufacturing software? Mostly, the options could be siloed manufacturing software if your accounting function is completely siloed and disconnected from operations. It could also include an MES in conjunction. With an ERP, or a standalone manufacturing ERP (depending upon the company’s operational complexity).

5. Supply Chain Software (P2P, WMS, and TMS)

Which companies need supply chain software? It would depend upon your business model. If you have an extremely busy warehouse, WMS might be the first system you might introduce even before an ERP system. As the complexity of your business grows and order volume increases, you will be adding several specialized systems to your enterprise architecture, including TMS and P2P. Generally, systems such as strategic sourcing may not have as much impact on the enterprise architecture and can remain siloed.

Why do you need supply chain software? Most ERP systems may not be as efficient for warehouse or transportation operations. For example, suppose the out-of-the-box processes of ERP aren’t sufficient to meet the desired efficiency. Or integration requirements with warehouse equipment. In that case, you might need a specialized warehouse or transportation system.
Who needs to interact with supply chain software? Generally, the primary consumer of the supply chain systems would be warehouse operators and supervisors, logistics managers, and operations executives.
Which capabilities do you need in the supply chain software? The capabilities could be as simple as barcode scanning, rate shopping, or full-blown supply chain control tower capabilities to monitor the entire supply chain.
What are the different options for supply chain software? You have several options for supply chain management, with some software offering end-to-end traceability, including any exceptions as goods move through the supply chain. However, as the system complexity increases, you might need to select a specialized system for each area of the supply chain where you might have the most issues in your processes.

4. Human Capital Management

Which companies need to include human capital management as part of their enterprise architecture? Most companies start with essential payroll software that might be clubbed with an accounting system. However, as the number of employees grows in the organization and depending upon the criticality of human resources and compliance needs, you might need a specialized HCM system. The HR and HCM systems can remain siloed for SMBs as they don’t impact the enterprise architecture much. However, the integration may be required if you have HCM processes embedded as part of your operation flow, such as sales comp calculation.
Why do you need human capital management software? They need a specialized HCM system to meet each state and country’s compliance and reporting requirements. Generally, HR managers have one of the most complex recruiting, onboarding, and learning workflows, which drives the need for a specialized HCM system.
Who needs to interact with human capital management software? The primary consumers of the HCM systems are employees, HR managers, and finance executives.
Which capabilities do you need in the human capital management software? The capabilities of an HCM system could include onboarding, training, skill development, performance management, and recruiting.
What are the different options for human capital management software? The options for HR and HCM could include simple payroll software or a full-blown HCM system to manage the needs of the entire HR department.

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3. E-commerce and POS Platforms

Which companies need to include digital commerce as part of their enterprise architecture? Most companies selling products or services through retail locations or virtually would require several tools to enable their sales process. For example, if the order volume is too low, they might process the orders directly in the ERP or accounting software.

Why do you need digital commerce software? If digital is your primary customer acquisition channel, you need tools designed to be efficient for the channel. For example, a POS system is designed for faster processing at retail locations. eCommerce platforms, on the other hand, have several capabilities tailored to the needs of digitally-savvy customers.
Who needs to interact with digital commerce software? These tools are primarily used by the sales and marketing teams to interact with and find customers.
Which capabilities do you need in digital commerce software? At a minimum, you need a content and commerce management system that allows you to build a decent web presence and optimize the site for search engines. Then, you might have more robust needs, such as digital asset management and a digital experience platform. It will also provide a product information management system to support experiences such as buy-online-pickup-in-store and omnichannel.
What are the different options for digital commerce software? There are several options available depending upon the digital maturity of the organization. As you grow your digital presence and revenue, you will be including specialized software such as product information management or digital experience management.

2. ERP and Accounting Software

Which companies need to include ERP as part of their enterprise architecture? The companies need an ERP system when siloed systems become a bottleneck to their growth and require substantial admin efforts to enter data in multiple systems. Companies that might be below $10 million in revenue might be able to manage without a fully integrated ERP.

Why do you need ERP software? The ERP systems are designed for a cross-departmental operational workflow where the alignment of multiple functions such as sales, finance, procurement, and operations is necessary to deliver goods and services timely. And the ERP systems offer cross-departmental insights and KPIs that would be inaccurate and require substantial efforts with siloed systems.
Who needs to interact with ERP software? Everyone who touches the operational core, including sales, operations, finance, and procurement, might interact with an ERP system.
Which capabilities do you need in the ERP software? At a minimum, an ERP system could include sales order processing, AR, AP, GL, purchase order processing, cost accounting, manufacturing, and project management. ERP systems typically don’t have operational capabilities for HR, marketers, and sales. Instead, they might use specialized software that integrates with ERP, such as HCM or CRM, for their operational workflow.
What are the different options for ERP software? There are several options available as the maturity of an organization grows, starting from essential accounting software to full-blown ERP systems. These systems might be able to manage most operational workflows where departments might overlap financially.

1. Customer Relationship Management

Which companies need to include CRM as part of their enterprise architecture? The smaller companies start with a standalone CRM system to manage their customer interactions until the point of order processing. Then, as the order volume grows, the CRM must be integrated with the ERP and eCommerce systems.

Why do you need CRM software? CRM systems manage the entire workflow for sales and marketers during the pre-sales process. It starts with marketing automation, lead follow-up, and opportunity tracking. As well as quoting, customer journey builder, and marketing spend tracking. And finally, sales planning and forecasting, as well as territory management, are important.
Who needs to interact with CRM software? The primary consumer of CRM software is sales and marketing teams.
Which capabilities do you need in the CRM software? When you start, a small CRM with primary lead distribution and account tracking capabilities may be sufficient. But as you grow, you need more advanced marketing automation, territory planning, and quote management capabilities.

What are the different options for CRM software? Several options are available, starting from standalone software for CRM and marketing automation. But as you grow, you will need at least the entire sales and marketing function to be integrated with at least light integration with the ERP system.

Conclusion

With these systems, you are touching the surface of the complexity of enterprise architecture. As the technologies mature and operational complexity increases with ever-growing customer expectations, the enterprise architecture will likely play a more significant role in the enterprise system design.

So when you are looking at a new system next time, think about how the system might fit in the architecture. And what you need to do to ensure that the data integrity across your enterprise architecture is maintained. And hopefully, this post has given you some insights into how each system fits into the digital architecture.

FAQs

Why should business executives worry about enterprise architecture? Isn’t that the responsibility of IT?

Well, think of enterprise architecture as organizational design. The enterprise architecture will also drive whether the insights and assumptions you might be operating on will be accurate or not. Think of the implications to your business if you operated on completely wrong data. For example, you might be putting significant emphasis on the territories that may not perform or produce products that might not sell well.

What do executives need to do to have the right architecture in place for their organization?

The way business plan is important to ensure the balance of supply and demand to meet growth goals. Enterprise architecture is your “digital plan” that sets the clear expectation and interaction model of each system.

Who should drive the enterprise architecture processes inside an organization?

Due to the cross-functional nature of the enterprise architecture, CEOs or cross-functional leaders such as product managers are most suited to drive. And to ensure that all departments are sticking to the enterprise architecture. And the architecture does not break because of the introduction of a new system.

Top 10 Pharma ERP Systems in 2024

Leave a Comment / Blog, ERP, Life Sciences / By Sam Gupta / June 13, 2022 March 17, 2025

Specialized ERP systems for the pharmaceutical industry provide tailored features, outperforming generic alternatives that lead to longer implementation times. Crucially, pre-baked capabilities within the system’s data model prevent add-ons from struggling with version upgrades. Opting for pre-built pharma capabilities, such as managing multiple serial and lot numbers, boosts implementation success—features often lacking in smaller ERP systems designed for single serial or lot numbers. While sufficient for other industries, attempting to implement such embedded layers might derail implementations, with unintended consequences because of the intertwined nature of data dependencies.

While pharma-specific ERP systems provide deeper last-mile capabilities, their focus is likely to be limited to a few business models, posing scalability challenges for large companies in growth or acquisition phases. Predicting future needs is complex, especially for companies engaged in M&A cycles, owned by private equity, or part of a holding company structure. While larger solutions support various models, implementing compliance-specific features can be costly. Smaller systems may also encounter limitations in global applications due to flatter architecture.

Technical expertise alone is insufficient for pharma-specific compliance; deeper subject matter expertise is essential. This includes capturing NDC codes, managing both serial and lot numbers for the same product, and handling inventory based on expiring lots. Addressing data structure nuances is one challenge, but meeting aggressive traceability demands and DSCSA compliance adds another layer. Evaluating ERP systems for pharmaceutical needs is facilitated by exploring the top 10 pharma ERP systems, providing valuable insights.

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Criteria

Definition of a pharma company. These companies in the pharma ecosystem include pharmaceuticals, biotechnologies, cannabis, and nutraceuticals. They might also have distributors, repackagers, dispensers, and manufacturers — companies of all sizes in this ecosystem.
Overall market share/# of customers. The higher the market share among pharma companies, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap for the pharma companies, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with a heavy presence from pharma companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
The pharma industry market share. The higher the focus on pharma companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with pharma companies. The more aligned the acquisitions are with the pharma companies, the higher it ranks on our list.
User Reviews. The deeper the reviews from pharma companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product like QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. Blue Link ERP

Blue Link ERP focuses on serving pharma distribution firms, ideal for those in the startup segment outgrowing QuickBooks with under $10 million in revenue. However, it lacks suitability for large pharma companies or those requiring extensive manufacturing capabilities. Without significant updates recently in its portfolio, it still maintains its rank at #10 on our top pharma ERP systems list.

Strengths:

Deep Last-Mile Capabilities for Pharma Companies. The biggest strength of Blue Link ERP would be its last-mile functionality. These capabilities include suspicious drug monitoring, CSOS and ARCOS reporting, and TI/TS/TH transmission via EDI.
DSCSA Compliance Subject Matter Expertise. The other strength of Blue Link ERP includes its subject matter expertise and its involvement with the DSCSA community. It also includes continuous updates of their product as regulatory compliance changes regarding the data elements.
Decent Technical Architecture. The final strength of Blue Link ERP would be its technical architecture, especially when you compare it with the other products in this category. For example, comparable products use a file-based database. However, Blue Link ERP contains a Microsoft SQL Server database.

Weaknesses:

Not Suitable for Pharma Manufacturers. Pharma companies that need heavy manufacturing capabilities and distribution might find it limiting.
Smaller Ecosystem and Publisher’s Financial Position. The other weakness of Blue Link ERP includes a smaller talent ecosystem. It also includes its financial standing as it is not backed by a private equity firm or a corporate investor.
Only Suitable for Smaller Pharma Companies. Blue Link ERP is not meant for companies that will be in revenue of over $10 million.

9. SAP S/4 HANA

SAP S/4 HANA caters to larger pharma enterprises, excelling in the large enterprise segment or adopting a best-of-breed approach for diversified capabilities. Its key strength is accommodating various global pharma business models within one database, but it may lack deep last-mile capabilities, relying on ISV solutions or elongating implementation times. While this reliance can be cost-prohibitive for SMB pharma companies, it aligns with the best-of-breed architecture needs required by large pharma companies, essential for transactional decoupling and accommodating diverse departmental needs. Despite these considerations, it maintains its position at #9 on our list of the top pharma ERP systems.

Strengths

Superior Financial Control and Governance for Large Pharma Companies. Superior financial traceability and the SOX compliance support required for large, publicly traded companies.
Ability to Support Diversified Business Models. Supports diversified business models whether you are a re-packager, assembler, dispenser, medical device, drug manufacturer, or any of their combinations.
Solid Best-of-Breed Options. The availability of best-in-class, best-of-breed products such as CallidusCloud for CPQ, SAP EWM for warehouse and TMS capabilities, and SAP Hybris for e-commerce for larger pharma companies.

Weaknesses

Limited Last-mile Functionality for DSCSA compliance. Limited last-mile functionality for DSCSA compliance, which might be pre-packaged with the smaller specialized pharma ERP systems on this list.
Overbloated Financial Control Processes. Overbloated financial control processes, such as compliance, allocation, and approval flows, are only necessary for large organizations.
Not Fit for Smaller and Mid-size Pharma Companies. The SMB pharma companies would find SAP S/4 HANA overwhelming and run the risk of implementation failure because of the efforts required to test and simplify the processes needed for smaller companies.

8. Oracle Cloud ERP

Oracle Cloud ERP, much like SAP S/4 HANA, targets larger pharma enterprises, excelling in the large enterprise segment or adopting a best-of-breed approach for diversified capabilities. Its strength lies in accommodating global pharma business models within one database, though it may lack deep last-mile capabilities, often relying on ISV solutions or extending implementation times. Unlike SAP S/4 HANA, Oracle Cloud ERP boasts higher penetration in the pharmaceutical verticals due to its existing install base with JD Edwards. The friendly data model and higher win rate make it a preferred choice. Aligned with the best-of-breed architecture, crucial for transactional decoupling, it secures its position at #8 on our list of the top pharma ERP systems.

Strengths:

Deep ERP Capabilities for Large Pharma Companies. Robust core ERP features such as international trade management and supply chain planning.
Talent Ecosystem and Well-adopted Product. It is one of the most adopted products and has very large communities of consultants to build custom pharma-specific functionality.
Ability to Support Diversified Business Models. Rich product model, and can natively support many distribution and manufacturing processes such as process or discrete.

Weaknesses:

Limited Last-mile Functionality for DSCSA compliance. Limited last-mile functionality for DSCSA compliance, which will require an add-on or custom development.
Overbloated Financial Control Processes. Overbloated financial control processes are needed for larger companies but might be overwhelming for smaller companies.
Not Fit for Smaller and Mid-size Pharma Companies. Finally, the SMB companies would struggle to relate to the product due to the over-bloated approval flows, allocation, commitment, and financial control processes.

7. Aptean ProcessPro

Aptean ProcessPro focuses on SMB process manufacturers, including the pharmaceutical sector, tailored for those with significant manufacturing needs. Ideal for companies with heavier manufacturing, it may not suit those with diversified business models, especially in private equity or holding company structures. However, it can serve as an effective subsidiary-level solution for large pharma companies, particularly if the subsidiary operates independently. Unsuitable for businesses with diverse manufacturing needs, it secures its position at #7 on our list of the top pharma ERP systems.

Strengths

Deep Process Manufacturing Capabilities. Including formulation management and batch manufacturing.
Financial Stability of a Private Equity Company. The financial backing of the publisher as it is backed by one of the largest private equity companies.
Deeper ERP Capabilities than Smaller Pharma ERP Systems. Much bigger product than some of these specialized ERP systems, such as Blue Link ERP or Deacom, with more profound manufacturing and supply chain capabilities similar to Netsuite, Acumatica, or Sage X3.

Weaknesses

Legacy Interface. Because it has not received the same attention in the Aptean portfolio as some other products, such as Aptean Ross.
Smaller Ecosystem. The adoption and the smaller ecosystems to get support for the product if you are not happy with the support provided by Aptean.
Last-mile Functionality for DSCSA Compliance Not as Strong. Finally, its DSCSA compliance capabilities may not be as strong as the specialized pharma ERP systems such as Blue Link ERP or Deacom.

6. SYSPRO

SYSPRO targets small food and beverage companies, Including smaller pharma distributors. Especially suitable for smaller pharma companies with diversified business models due to its native support for discrete and process manufacturing capabilities. Not as suitable for large pharma companies with multiple entities and a presence in multiple countries. It might be a great fit as a subsidiary-level solution for smaller entities if they are relatively independent in the holding company structure. Despite these considerations, it still maintains the rank at #6 on our list of the top pharma ERP systems.

Strengths

Support for Formulation Management Capabilities. Built as part of the product.
Ability to Support Diversified Business Models. Accommodates several different business models for smaller drug manufacturers, distributors, repackagers, or laboratories that might produce drugs and devices both.
Supply Chain and Finance Capabilities. Deeper supply chain and finance capabilities than its peers, including a robust unit of measure support, bin number capabilities, inventory valuation methods, and costing layers.

Weaknesses:

Only Suitable for Smaller Pharma Companies. Not a fit for larger companies with multiple entities and presences in multiple countries. Its design can’t allow data sharing between entities.
Limited DSCSA Compliance Functionality. Not as robust with its support for pharma-specific functionality, especially DSCSA compliance. As a result, it may require add-ons or custom development that might be prepackaged with pharma-centric ERP such as Blue Link ERP or Deacom.
Technical Issues with the Product. While the product has come a long way in moving away from a file-based data structure to a more reliable SQL-based data store, the users report errors with the product. And the product is not as mature as some of the other leading vendors on this list.

5. ECI Deacom

ECI Deacom targets small process manufacturing companies that might be eCommerce and DTC heavy with pharma being a key vertical for them due to its product alignment. Not the best fit for companies with revenue of more than $10 to $20 million due to its limited finance and ERP capabilities.Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But it still maintains the rank at #5 on our list of the top pharma ERP systems.

Strengths

Deep eCommerce and DTC Capabilities. E-commerce and DTC-related features built as part of the product, such as route accounting and proof of delivery.
Deep Last-Mile Capabilities for Pharma Companies. The pharma-specific capabilities that can support both distributors and manufacturers, such as master lot numbers, formulation and pre-formulation management, and weight measurement during the quality processes.
Financial Backing of Private Equity and Technical Architecture. Deacom has an SQL-based data store and a more modern interface.

Weaknesses

Only Suitable for Smaller Pharma Companies. Only suitable for smaller pharma companies with less than $20 million in revenue due to its limited financial and inventory control functionality.
Ability to Support Diversified Business Models. It’s primarily a process manufacturing product and would struggle with companies that may require both discrete and process manufacturing support.
Weaker Supply Chain and Finance Capabilities. While the operational and e-commerce capabilities are strong with Deacom, the Supply Chain and finance capabilities are weaker with limited pricing and discounting options, inadequate UoM support, and leaner costing layers for larger pharma companies.

4. QAD

QAD targets upper mid-large pharma manufacturing companies. Especially suitable for companies with the need for deeper operational functionality than the larger products such as SAP S/4 HANA or Oracle Cloud ERP. Not so suitable for the smaller pharma companies as they will find it overwhelming. Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But it still maintains the rank at #4 on our list of the top pharma ERP systems.

Strengths

Ability to Support Diversified Business Models. QAD’s data and product model allow it to serve various pharma industries with the combination of discrete and process manufacturing business models such as drug, device, and diagnostic tests.
Process Manufacturing Capabilities. Includes process and discrete manufacturing capabilities, which is an advantage compared to other similar products.
Rich ERP Capabilities to Support Mid- to Large- Pharma Companies. Has deep international trade management and Supply Chain capabilities, which gives QAD an edge over its larger peers as QAD will have deeper operational functionality for pharma along with these capabilities geared for larger manufacturing companies.

Weaknesses

Technical Architecture. It still uses a legacy programming language and is not hosted on mainstream cloud providers’ infrastructure, so finding support for QAD could be a concern.
Primarily Targeted for Discrete Manufacturing Verticals. QAD is a discrete manufacturing product, even though it targets process manufacturing. So, the pharma manufacturers and distributors may not receive as much attention from QAD as discrete manufacturers.
Talent Ecosystem. The talent ecosystem is not as prolific as SAP S/4 HANA or Oracle ERP Cloud. And because of that, you might struggle to find support if you are not happy with the support from QAD.

3. Microsoft Dynamics 365 Business Central

MS Dynamics 365 BC targets SMB pharma distributors. And it’s especially suitable for pharma companies that require depth in supply chain and distribution processes, along with the platform’s flexibility to build last-mile functionality. However, it’s not suitable for larger companies or pharma manufacturers as it does not have the formulation management capabilities to support process manufacturing. Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But we have upgraded the rankings of MS BC substantially this year due to the quality of add-ons available to support the pharma industry. And now it ranks at #3 on our list of the top pharma ERP systems.

Strengths

Availability of several add-ons with deep pharma capabilities. The biggest plus for MS BC is its ecosystem and add-ons from highly credible companies that could provide similar capabilities as Blue Link ERP or Deacom.
Native support of packaging serial numbers with lot numbers. MS BC offers a rich data model with capabilities such as support for multiple lots and serial numbers to support the scenarios of NDC and packaging serial numbers.
Deep supply chain and bin allocation capabilities. MS BC has native capabilities to support pharma distributors with multiple warehouses, centralized and decentralized supply network needs, multiple hierarchies of bins, and rich UoM support.

Weaknesses

It would require an add-on for DSCSA compliance. It would require an add-on or custom development for DSCSA compliance, such as suspicious drugs or TS/TI/TH reporting.
Does not have native support for formulation management. MS BC doesn’t natively support formulation management, a severe limitation for pharma distributors heavy in R&D and production.
Not suitable for pharma manufacturers. Limited manufacturing capabilities with lighter assembly-centric manufacturing.

2. Microsoft Dynamics 365 Finance & Operations

Like Oracle ERP Cloud, Microsoft Dynamics 365 Finance and Operations targets larger pharma companies with revenue over a billion dollars and 1,000 employees. It is not suitable for smaller to medium-sized manufacturers and distributors. Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But we have upgraded the rankings of MS Dynamics 365 F&O substantially this year due to the quality of add-ons available to support the pharma industry. And now it ranks at #2 on our list of the top pharma ERP systems.

Strengths

Deep ERP Capabilities for Large Pharma Companies. First, it is among the largest ERP products and has deep core ERP capabilities like SAP S/4 HANA and Oracle Cloud ERP, with a large majority of functionalities available in its cloud version.
Ability to Support Diversified Business Models. Second, F&O has a rich product model to support diversified manufacturing and distribution businesses, including process and discrete manufacturing capabilities needed for larger pharma companies with several divisions with different focuses.
Pre-integrated Best-of-breed Options. Finally, the F&O product also comes pre-packaged and pre-integrated with the MS Dynamics 365 CRM, known for its tight data model and transactional data integrity to support the territory planning for controlled substances.

Weaknesses

Limited Last-mile Functionality for DSCSA Compliance. Might require an add-on or custom development to support pharma-specific compliance and regulatory processes.
Overbloated Financial Control Processes. Overbloated financial control processes, such as compliance, allocation, and approval flows, which are only necessary for large organizations.
Not Fit for Smaller and Mid-size Pharma Companies. Finally, SMB pharma companies would find the product overwhelming and run the risk of implementation failure because of the efforts required to test and simplify the processes needed for smaller companies.

1. Sage X3

Sage X3 targets upper-mid to large pharma companies with less than $1B in revenue that seek a replacement for other larger products due to their weaker operational support and overwhelming workflows. Not as suitable for the smaller pharma companies that will have revenue under $50 million or the larger companies with a presence in more than 10-15 countries. Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But it still maintains the rank at #1 on our list of the top pharma ERP systems.

Strengths

Great Alternative for Large Pharma Companies. Designed for process and food and beverage manufacturing and distribution. As a result, it provides far deeper functionality for large pharma companies out of the box.
Designed for Process and Food Manufacturing Companies. Its product and operational processes are designed for process manufacturing companies with deep support for features such as product families.
Great Ecosystem of Consultants for Pharma Validation. The ecosystem includes consulting companies with deep expertise in the Sage X3 product and validation procedures.

Weaknesses

DSCSA Compliance May Require Additional Efforts. The pharma-specific capabilities might not be as robust as pharma-specific ERP systems.
Not Suitable for Smaller Pharma Companies. Its design could be overwhelming for very small pharma companies. It might not get as much value due to the configuration and integration requirements.
Limited Pre-integrated Best-of-breed Options. Limited best-in-class best-of-breed options as SAP S/4 HANA or Microsoft Dynamics 365 F&O for additional capabilities that larger companies would require.

Conclusion

Pharma companies have involved operations and reporting needs, requiring ERP systems that have native support for the data model to meet the changing regulatory requirements. The ERP systems and vendors that don’t have pharma as their primary vertical would not be able to catch up with these demands and might require you to develop them yourselves.

Due to the financial and implementation risks associated with the development efforts, you need an ERP system designed to support most pharma processes natively. So, make sure that the ERP system you choose is designed for the pharma industry. Hopefully, this list, along with the expertise of independent ERP consultants, can help you narrow down some options.

FAQs

How are pharma ERP systems different from MedTech?

Most pharma companies follow manufacturing processes similar to food and process manufacturers due to the nature of their business. However, while the MedTech and pharma businesses are closely related and may have similar regulatory and compliance needs, they are very different businesses operationally. And because of this issue, the need for their ERP systems is different.

How are pharma ERP systems different from vanilla ERP systems?

The data model requirement of a pharmaceutical company is very different from other industries as the item may have several layers of hierarchies that might be extremely difficult in a vanilla ERP system. For example, pharma companies require BOTH a lot and serial numbers for an item, which is impossible with several small ERP systems.

Which ERP system does a company need if it produces pharmaceutical compounds and medical devices?

If your business model includes both pharma and medical device manufacturing processes, your operational complexity is greater than most life sciences businesses. And you will need an ERP system that can support processes and discrete manufacturing. In addition, depending on how your revenue is segmented between pharma and med device, you might need to choose an ERP system that has superior planning capabilities to support the significant revenue driver while supporting both business models.

Top 10 Medical Device ERP Systems in 2024

Leave a Comment / Blog, ERP, Life Sciences / By Sam Gupta / May 28, 2022 March 17, 2025

The medical device industry has unique ERP needs, spanning consumable and large CapEx equipment segments. The laboratory segment, positioned in between, demands specialized integration like LIMS. Contract manufacturers handle diverse needs and support processes across multiple industries. Consulting companies within the medical device industry may share professional service processes but have distinct ERP requirements. Processes and regulations vary based on diagnostic or surgical use. Consumables align with make-to-stock, emphasizing robust distribution and eCommerce integration. Large machines reflect engineering-to-order processes, requiring support for extensive programs, field services, and both make-to-stock and make-to-order processes for consumables. Additional complexity arises from drug-centric processes, heightening ERP considerations for each device type.

Apart from pre-built compliance processes, ERP systems tailored to the medical device industry vary in terms of supported business processes, transaction volume, and operational scope—be it local or global. Those supporting global process integration may prioritize diversified business models, which is crucial for companies within PE portfolios or holding structures. The sector faces heightened scrutiny, with investors demanding comprehensive reporting, even for pre-revenue companies. Implementing systems to support reporting needs efficiently becomes imperative to minimize administrative overhead.

Key features encompass electronic signatures and device history records, sharing similarities with aerospace and automotive industries but with added constraints for medical device companies. Validation requirements, like software validation with each change, exhibit variability. CRM processes encounter complexities due to diverse market timelines affecting quoting. This overview merely scratches the surface of essential features for medical device companies. Excited to delve into ERP systems tailored for this industry? Let’s navigate the top 10 medical device ERP systems.

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Criteria

Definition of a medical device company. These are the medical device ecosystem companies, including large medical equipment manufacturers, consumable manufacturers, diagnostic companies, and CROs. The list considers companies of all sizes in this ecosystem.
Overall market share/# of customers. The higher the market share among medical device companies, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap for the medical device companies, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with a heavy presence from medical device companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Medical device company market share. The higher the focus on medical device companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with medical device companies. The more aligned the acquisitions are with the medical device companies, the higher it ranks on our list.
User Reviews. The deeper the reviews from medical device companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. SYSPRO

SYSPRO is designed for SMB medical device companies, particularly those in consumables or diagnostic segments, aligning well with distribution and commerce-centric industries. Ideal for complex consumable devices, SYSPRO supports both discrete and process industries, with a focus on food-centric sectors. However, it may not suit devices requiring engineer-to-order or field service-centric processes. SYSPRO can be a suitable solution for small subsidiaries operating fairly independently. Resembling SAP in feel and featuring solid finance and distribution capabilities, SYSPRO maintains its #10 position on our list of top medical device ERP systems.

Strengths

Inventory and supply chain capabilities. Its strengths for medical device companies include its substantial inventory and supply chain capabilities.
Medical device quality requirements. The other bonus points for SYSPRO include its ability to support electronic signature capture, CAD integration, and detailed audit trails of the transactions critical to support FDA 21 CFR 11 and GMP requirements.
Native support for process manufacturing capabilities. Finally, the other plus point for SYSPRO would be its native support for process manufacturing capabilities. These features will be helpful for companies such as contract research organizations or laboratories that might develop drugs along with devices.

Weaknesses

Fit for companies with one legal entity. Designed primarily for smaller manufacturing facilities with one legal entity.
Limited manufacturing capabilities. Deeper manufacturing features, such as line-level backflushing for both material and operations and Kanban, would be a challenge.
Not a fit for large capital equipment medical device manufacturers. Not designed for complex capital equipment devices such as radiology or cancer machines.

9. Rootstock

Tailored for smaller discrete medical device manufacturers, Rootstock is optimal for companies in the $10-$100 million range, especially those heavily reliant on Salesforce. Well-suited for large CapEx machinery with robust processes, including CPQ, project management, and field services, it is suitable for handling consumables associated with such machinery. However, it may not be the ideal choice for devices packaging drugs with their assembly. Not a potential subsidiary solution for pharma companies or research centers focused on CapEx equipment, Rootstock’s limited business process diversity makes it less suitable for large companies with varied models. Despite a limited install base, its popularity in the cloud-native segment earns it the #9 rank among medical device companies on this list.

Strengths

Native Integration with Other Salesforce Products. Such as Salesforce CRM and Field Service. As well as Salesforce CPQ and commerce are especially strong for medical device companies that care for enterprise-grade territory management and customer experience.
Cloud-native Mobile Capabilities. Inheriting native mobile capabilities from the Salesforce platform, it is strong with native cloud mobile capabilities. Its WMS mobile capabilities, such as cross-docking and license plate numbers, are especially attractive.
Mixed-mode Manufacturing Capabilities. Finally, its strength includes mixed-mode manufacturing capabilities, with the exception of process manufacturing capabilities.

Weaknesses

Finance and Accounting. Rootstock started as the MRP solution and relied on other accounting solutions. They have recently developed accounting capabilities, which are not as strong as other products on this list.
Reliance on Third-part Quality Module. Relying on other solutions in the Salesforce ecosystem, such as ComplianceQuest, Rootstock does not own a quality module.
Smaller Ecosystem. The ecosystem is relatively small for rootstock, with less than 500 installations. This could pose a risk in finding talent for future support and customizations.

8. Deacom

Deacom focuses on smaller process-centric pharma companies, emphasizing commerce over discrete-centric or large devices. It excels as a solution for diagnostic, drug, and smaller consumable devices with a strong commerce focus. While Deacom integrates various enterprise software categories like quality management and compliance, its core ERP layers have flat models, requiring ad-hoc arrangements and posing challenges with batch-centric capabilities. Ideal for companies prioritizing transactional capabilities, it may not suit those seeking mature ERP functionalities. Despite these considerations, it retains the #8 rank among top medical device ERP systems.

Strengths

Technology. Deacom’s strengths for medical device manufacturers include its technology, which has a modern interface and an SQL database. The other products in this category typically rely on file-based databases.
Process Manufacturing Capabilities. The other plus points for Deacom would be the capabilities for medical device companies that are more of a drug/chemical company than a device company.
Track and Trace and Route Accounting. Finally, its strength would also be in its native capabilities for track and trace and route accounting capabilities for medical device companies distributing fast-moving goods such as sanitizers or surgical masks on their vehicles.

Weaknesses

Not a Discrete Manufacturing Product. It will struggle with companies requiring complex discrete manufacturing features such as CAD integration or multi-layered BOMs with thousands of components with change orders.
Fit for Fast-moving Consumable Products. its native design is deficient for large capital equipment manufacturers as its costing and BOM capabilities will be extremely limited for them.
Limited Finance and Supply Chain Management Capabilities. Limited finance and supply chain capabilities, such as complex UoM, deep pricing and discounting support, and 1.N capabilities as they relate to the orders, shipments, and invoices.

7. Oracle Cloud ERP

Oracle Cloud ERP targets large, global medical device manufacturers with revenues generally exceeding $1 billion, offering consolidation in a unified database for diverse business models. Ideal for companies with varied entities, including commerce, consumables, large capital equipment, medical device consulting, contract manufacturing, and subsidiaries of hospitals or research centers. Though lacking last-mile capabilities for these models, it provide foundational ERP layers, minimizing the need for additional systems. While suitable as a corporate financial ledger, it may not be the optimal choice as a subsidiary solution. Despite these nuances, it holds the seventh position in our list of top medical device ERP systems.

Strengths

Core ERP capabilities. One of the largest ERP solutions in the market, with deep capabilities in supply chain and logistics, is provided as part of the core solution.
Diverse, global capabilities. The ability to support multiple business models in one solution globally located.
Financial control and public company capabilities. Financial control capabilities are required for larger and public companies, such as SOX compliance, financial traceability, and month-end close collaboration across entities.

Weaknesses

Medical Device Last-Mile Functionality. Limited last-mile functionality applicable for medical device manufacturers, such as device history records, reporting for FDA 21 CFR 11 and GMP, and electronic signature and skill certification processes embedded with each operational step.
Longer Configuration and Customization Time. Longer time in customizing and configuring as the software design may consist of unnecessary allocation, commitment, and approval functionality for large companies.
Not as Relatable for Plant Level Employees. Finally, the product may appear bloated for plant-level employees due to the missing operational perspective. Also, enabling this perspective may require unnecessary development and testing time.

6. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance & Operations targets large, global medical device manufacturers in the upper mid or lower enterprise market. Ideal for companies with varied entities, including commerce, consumables, large capital equipment, medical device consulting, contract manufacturing, and subsidiaries of hospitals or research centers. Although lacking last-mile capabilities for these models, it provides foundational ERP layers, minimizing the need for additional systems. While suitable as a corporate financial ledger, it may not be the optimal choice as a subsidiary solution. Despite these nuances, it holds the 6th position in our list of top medical device ERP systems.

Strengths

Core ERP Capabilities. Its strength includes the core ERP capabilities such as native support for mixed-mode manufacturing, including deep process manufacturing such as formulation management, catch weight management, approvals, and commitments.
Best-of-breed Capabilities. Its strength also includes its best-of-breed capabilities with applications such as pre-integrated CRM and field service components.
Technical Architecture. The technical architecture includes integration with other Microsoft products, such as Logic Apps and Azure Data Factory, allowing them to isolate their infrastructure for validation requirements.

Weaknesses

Medical Device Last-Mile Functionality. Its weaknesses include limited last-mile functionality applicable for medical device manufacturers, such as device history records, reporting for FDA 21 CFR 11 and GMP, and electronic signature and skill certification processes embedded with each operational step.
Customizability. Since MS products are highly technical and customizable in nature, it could pose control issues for companies if developers over-customize these products with limited visibility for financial executives.
Implementation Control. Since Microsoft sells licenses in the OEM setting with a limited governance process in place, buying these products from unqualified resellers fires back and may lead to ERP implementation failure.

5. SAP S/4 HANA

SAP S/4 HANA targets large, global medical device manufacturers with revenues generally exceeding $1 billion, especially friendly for publicly traded companies with one of the best transactional traceability for globally complex and highly regulated medical device companies. Though lacking last-mile capabilities for these models, it provide foundational ERP layers, minimizing the need for additional systems. While suitable as a corporate financial ledger, it may not be the optimal choice as a subsidiary solution. Despite these nuances, it holds the 5th position in our list of top medical device ERP systems.

Strengths

Superior Financial Control and Governance. Its strength includes the inbuilt visual workflow for each financial transaction, superior change control of the ERP configurations, and SOX compliance approval flow.
Product Model Designed to Support Various Manufacturing. SAP’s product model is rich and supports various configurations, including mixed-mode manufacturing.
Best of breed solutions. Several solutions, including SAP Hybris for e-commerce for medical device companies and Callidus Cloud for CPQ. SAP also has a robust WMS and TMS solution packaged as part of SAP EWM and SuccessFactors for HCM capabilities.

Weaknesses

Integration Challenges with Best-of-breed Solutions. While SAP S/4 HANA has one of the best best-of-breed solutions, they might not be as pre-integrated as other solutions.
Overbloated Customizations and Controls for Smaller Organizations. As with other larger products on this list, the controls provided as part of the product may feel unnecessary and overwhelming for smaller companies. In addition, they may add additional development and testing time to disable them.
Last-mile Medical Device Manufacturing Capabilities. Last-mile medical device manufacturing functionality such as FDA reports, 21 CFR 11, and device history records functionality would require expensive customizations.

4. Infor CloudSuite Industrial

Infor CloudSuite Industrial targets small to mid-sized medical device manufacturers. While a great mixed-mode manufacturing solution, it suffers from several deficiencies, requiring ad-hoc arrangements, such as WBS processes not being as detailed, MRP being limited with attribute level planning, and distribution planning not being friendly for commerce-centric companies. It could be a great fit as a subsidiary solution for large medical device companies or as the main ERP for smaller medical device companies. Given these considerations, it ranks at #3 on our list of the top medical device ERP systems.

Strengths

Designed from the Perspective of OEMs. Supports serializable units composed of other serialized components to provide a complete view of the device history.
Quality Module Owned and Pre-Integrated. The quality module is deeply integrated and maintains a separate inventory for the quality-controlled components with deep coverage for in-process quality.
Strong Field Service Capabilities. When several players may be involved in the sales and service transactions, including the scheduling of internal or external resources. As well as share compensation depending upon the level of effort from all parties involved.

Weaknesses

Poor UX and Legacy Feeling. The interface is not as cloud-native as some of its legacy counterparts, with critical limitations such as advanced search capabilities.
Not Suitable for Distribution-centric Medical Device Manufacturers. The product design is limited for manufacturers. However, the distributors that perform lighter manufacturing but may have deeper distribution needs, such as Supply Chain network planning or decentralized warehouse architecture, may struggle with the product.
FDA- and Medical Device-Specific Regulatory Capabilities Not as Strong. Its weaknesses also include the efforts required in developing regulatory compliance reports and capabilities needed for medical device manufacturers.

3. Epicor Kinetic

Epicor Kinetic caters to small to mid-market discrete medical device manufacturers, particularly those specializing in CapEx manufacturing with WBS-centric processes. It is well-suited for companies with complex inventory management, where devices may serve multiple indications, requiring planning at the product attribute level. The product’s robust distribution-centric planning is also friendly for commerce-centric medical device companies. While an excellent choice for smaller companies or as a subsidiary solution for larger firms, its limited support for financial layers may hinder scalability for larger enterprises. Despite these considerations, it maintains its position at #3 on our list of top medical device ERP systems.

Strengths

Mixed-mode manufacturing capabilities. The product model can accommodate several manufacturing processes for discrete manufacturers, such as Kanban, configure-to-order, make-to-order, and make-to-stock.
UX Experience. While legacy, the UX experience is superior in the cloud today, with support for more complex cloud-native features such as the advanced search for data or forms.
Last Mile Medical Device Capabilities. Its strength also includes the last-mile functionality for medical device manufacturers, such as electronic signature support through MES and track and trace capabilities starting from raw material through post-sale.

Weaknesses

Limited financial layers. Epicor Kinetic is designed for small to medium companies to support only three layers of financial hierarchies. More than three layers of hierarchies may need ad-hoc arrangements.
Third-party quality module. Its weakness also includes its reliance on the third-party quality module, limiting the tighter integration of the quality processes that medical device manufacturers need.
Embedded field service experience. For CapEx device manufacturers require embedded and traceable field services processes with the core manufacturing processes because the field services capabilities were part of an add-on that Epicor just bought.

2. Sage X3

Sage X3 focuses on the upper mid-market and lower enterprise sectors, making it a strong choice for publicly traded companies or those requiring robust financial control. It excels as a financial ledger for larger enterprises or as the primary ERP for smaller companies, particularly in regulated industries. Despite its effectiveness, Sage X3 faces challenges in gaining momentum due to Sage’s primary focus on accounting firms serving SMBs. Consequently, it may not receive as much attention as other products in Sage’s portfolio. While slightly downgraded this year, it maintains its position at #2 on our list of top medical device ERP systems.

Strengths

Process manufacturing capabilities. Its strength includes process manufacturing capabilities for companies such as laboratories and drug-like products instead of hardware devices.
Deep finance and supply chain capabilities. Its strength also includes deep finance and supply chain capabilities, and the product is designed from the CFO’s perspective. This is helpful for large companies that need superior financial control and last-mile process manufacturing capabilities.
Multi-entity Capabilities. Its strength also includes multi-entity capabilities that might not feel as natural with other focused products on this list.

Weaknesses

Discrete manufacturing capabilities. Sage X3 has discrete manufacturing capabilities, but these capabilities may not be robust for complex equipment manufacturers.
Third-party MES. Sage X3 does not have a pre-integrated OEM-owned MES component and would require integration and additional testing with third-party solutions with the legal and implementation risks due to multiple vendors involved.
Last-mile medical device manufacturing capabilities. The last-mile medical device manufacturing capabilities would require additional development and testing, increasing the costs and risks for ERP implementation.

1. QAD

QAD caters to the upper, mid-market, and lower enterprise sectors, providing a robust solution for companies prioritizing integrated supply chain components, particularly in planning and collaboration, complemented by comprehensive ERP layers. The suite includes several integrated components like PLM, making it ideal for companies with intensive product management processes. QAD serves well as a subsidiary solution for larger enterprises using SAP or Oracle for their corporate financial ledger or as the primary ERP for smaller companies. With the recent announcement of a technology upgrade, it has been upgraded slightly, securing the top position on our list of top medical device ERP systems.

Strengths

Supply chain perspective. Designed from the perspective of the Supply Chain and is probably the only mid-market product with deeper transportation management. As well as international trade management capabilities.
Last mile medical device capabilities. The last mile medical device capabilities include automated quality management, serialization in support of unique device identification (UDI), the Drug Quality and Security Act (DQSA), and the Falsified Medicine Directive (FMD).
Mixed-mode manufacturing capabilities. It has native discreet and process manufacturing capabilities and forward and backward recall traceability.

Weaknesses

Ecosystem. QAD is not as well adapted as some other products on the list and does not have as prolific a VAR ecosystem as Microsoft, SAP, or Oracle.
Technology and underlying technical architecture. While QAD has announced that they plan to modernize their technology, it might take a few years before the new platform becomes stable.
Not a great fit for companies developing large complex capital equipment. While the product has mixed-mode manufacturing capabilities, it’s not meant to support large complex capital equipment manufacturers’ products with thousands of dependent components and sub-assemblies.

Conclusion

Given the stringent FDA compliance and quality requirements, medical device companies have intricate operations. Comprehensive CPQ capabilities are essential for controlling the global release process of equipment. When developing combinations of drugs, devices, or consumables with capital equipment, mixed-mode manufacturing capabilities become crucial.

Choose an ERP system designed to seamlessly support most medical device processes. Utilizing an ERP system not specifically tailored for the medical device industry may lead to substantial customizations and unnecessary testing for configurations packaged with other ERP systems. Ensure your chosen ERP system is purpose-built for the medical device sector, and let this list guide you in narrowing down your options. Consulting independent ERP experts can further enhance your decision-making process.

FAQs

How are medical device ERP systems different from other vanilla ERP systems?

The medical device ERP systems prepackage the last-mile functionality required for medical device manufacturers and distributors. By contrast, the vanilla ERP systems would require substantial configuration, customizations, and testing, which increases the costs and technical risk of the ERP implementation.

Can a system designed for the life science industry be sufficient for the medical device industry?

The life science industry consists of several micro-verticals, which have different needs for an ERP system. For example, the system designed for the pharmaceutical industry would not be a right fit for the medical device industry as the medical device would follow discrete manufacturing processes, whereas pharma would be process manufacturing. Similarly, diagnostic laboratories may have discrete or process manufacturing methods depending upon the type of devices being manufactured.

Do medical device distributors have different needs for an ERP system than medical device manufacturers?

Yes, medical device distributors have very different quoting processes, levels of inventory, UoMs, and supply chain networks than manufacturers. They might also have lighter assemblies and quality of the incoming products than medical device manufacturers. On the other hand, medical device manufacturers have multiple layers of sub-assemblies with their BOMs. They would require a much tighter collaboration of their engineering, quality control, and manufacturing.

Top 10 Aerospace and Defense ERP Systems in 2024

Leave a Comment / Aerospace & Defense, Blog, ERP / By Sam Gupta / May 8, 2022 March 17, 2025

Aerospace and defense industries face unique challenges due to stringent quality and regulatory requirements. Unlike consumer-driven automotive sectors, A&D operates with long sales cycles and uncertainties, making supply chain planning intricate. The custom nature of A&D products, coupled with formal revision tracking, adds complexity, necessitating ERP systems with unique BOM structures. While collaboration with local suppliers has its own challenges, international supplier collaboration dictates trade compliance requirements at another level because of national security and geopolitical issues.

Equally challenging are manufacturing processes that vary per business model, requiring solutions tailored to each. While some ERP systems suit plastic manufacturers serving A&D OEMs, others offer versatility for diverse global business models. Despite looser margin requirements in A&D compared to automotive, stringent quality standards can impact margins. Highly engineered aerospace parts demand precise vendor collaboration and time sensitivity to avoid supply chain disruptions.

A&D companies engage in extensive pre-sales processes, involving multiple stakeholders and proofs-of-concept during R&D. This uniqueness underscores the need for ERP systems with built-in engineering and pre-sales workflows to support contract requirements. Some business models might require access to proprietary databases, integration with industry systems, and compliance requirements related to the upkeep of processes. Choosing an ERP system for the A&D industry requires a deeper study of business models and transactions, as generic solutions may necessitate significant investments in longer implementation cycles, which might be out of the range of most SMB companies. Find out which ERP systems are designed to meet the distinctive needs of the A&D sector.

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Criteria

Definition of an aerospace and defense company. These are the companies in the A&D ecosystem, including OEMs, manufacturers, and distributors. The list considers companies of all sizes in this ecosystem.
Overall market share/# of customers. Higher market share among aerospace and defense companies ranks higher on our list.
Ownership/funding. The more committed the management to the product roadmap for the A&D companies, the higher it ranks on our list.
Quality of development: More cloud-native capabilities rank higher on our list.
Community/Ecosystem. The larger the community with a heavy presence from aerospace and defense companies, the higher it ranks on our list.
Depth of native functionality for specific industries. Deeper publisher-owned out-of-the-box functionality ranks higher on our list.
Quality of publicly available product documentation. Poorer product documentation ranks lower on our list.
A&D company market share. The higher the focus on aerospace and defense companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
The acquisition strategy is aligned with aerospace and defense companies. The more aligned the acquisitions are with the aerospace and defense companies, the higher it ranks on our list.
User Reviews. The deeper the reviews from aerospace and defense companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. IQMS/DELMIAWorks

IQMS, tailored for plastics-centric operations in the aerospace and defense ecosystem, stands out with last-mile capabilities and depth in aerospace compliance. Well-suited for A&D firms supplying plastic components to tier 1 and tier 2, it may not address the intricacies of operations in OEMs or tier 1 companies. The native support for ITAR certifications adds to its appeal. However, its weaknesses become apparent when considering larger A&D companies engaged in complex aerospace projects, contributing to its placement at #10 on our list of top aerospace and defense ERP systems.

Strengths

Great for plastic manufacturers supplying to aerospace. While limited in its suite, capabilities for plastic-centric industries outshine when it comes to unique scheduling requirements.
Best for aerospace and defense companies on SolidWorks. With the same company as SolidWorks owning it, tighter and seamless integration of both products, which are built and maintained by the same vendor, is a huge plus.
Technology – This is probably the most legacy solution of all on this list, with no announcement if they plan to modernize the technology.

Weaknesses

Limited focus. The limited focus might be a challenge for aerospace and defense companies diversifying their operations and being active with M&A cycles.
Limited ecosystem. The consulting base is extremely limited with most resellers being CAD resellers, with limited experience in ERP implementation and cross-functional processes.
It is not the right fit for holding and private equity companies as a corporate ledger. While a great subsidiary solution and a solution for pure-play plastic-centric manufacturers for SMB aerospace and defense companies, it’s not the best fit for diverse A&D companies as their main ERP solution.

9. Deltek

Deltek, tailored for government contractors in the A&D sector, excels in project-centric organizations. It suits A&D companies that are heavily reliant on government revenue. However, its narrow focus poses challenges for firms equally involved in commercial and government sectors or those with diverse business models like field service and manufacturing.

Despite strengths, Deltek exhibits weaknesses in CRM capabilities, limiting suitability for organizations with extended sales cycles and collaboration needs. Manufacturers or distributors targeting government sectors may find their manufacturing and distribution capabilities lacking. Nonetheless, Deltek maintains its prominence for project-driven government A&D contractors, securing the #9 rank on our list of top aerospace and defense ERP systems.

Strengths

Last-mile capabilities for GovCon for A&D contractors. The GovCon functionality is intricate, requiring subject matter expertise and driving longer implementation time without Deltek’s pre-baked functionality.
Access to the databases and networks relevant to these industries. Deltek has access to quoting databases and industry data, making it a very strong ERP system for companies in the A&D sector.
Multi-entity capabilities. Their multi-entity capabilities are rich, making them suitable for upper mid-market and lower enterprise companies to host all of their entities in one database.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for enterprise companies active with M&A cycles, especially for business models outside of Deltek’s expertise.
Limited ecosystem and consulting base. As of today, their ecosystem and consulting base is significantly limited.
Not as complete ERP capabilities as part of the suite. Most of the ERP products in Deltek portfolio are not as complete as other solutions on this list, requiring integration and external systems for missing capabilities.

8. Rootstock

Rootstock caters to engineer-to-order centric SMBs in the A&D sector, offering robust mobile-native capabilities atop the Salesforce platform. Particularly fit for smaller A&D companies with heavy usage of the Salesforce platform for their CRM and field service solutions, it might also fit as a subsidiary solution for some entities that might be heavier users of Salesforce and might prefer a unified user experience across the enterprise. Given these considerations, Rootstock ranks at #8 on our list of top aerospace and defense ERP systems.

Strengths

Native integration with other salesforce products. Its strength Includes native integration with other Salesforce products such as Salesforce CRM and Field Service. This is especially beneficial for A&D companies with longer sales cycles with multiple stakeholders and parties collaborating during the pre-sales phase.
Cloud-native mobile capabilities. Inheriting native mobile capabilities from the Salesforce platform, it is strong with native cloud mobile capabilities.
WBS-centric manufacturing capabilities. While Rootstock might not be as strong with all modes of manufacturing as some of the other solutions on this list, it is especially strong in project-centric manufacturing with detailed WBS and milestones spanning over months.

Weaknesses

Finance and Accounting. Rootstock started as the MRP solution and relied on other accounting solutions. Their accounting capabilities are not as layered and scalable, requiring ad-hoc arrangements.
Reliance on Third-part Quality Module. With quality processes embedded at each step, using a third-party quality module might not provide as immersive an experience as products that have quality baked into their processes.
Smaller Ecosystem. The ecosystem is relatively small for rootstock, with less than 500 installations. This could pose a risk in finding talent for future support and customizations.

7. Infor CloudSuite Industrial

Infor CloudSuite Industrial caters to SMB A&D manufacturers with short-run jobs and deep layers of sub-assemblies, with or without formal product management or engineering processes.

Its embedded quality processes are especially friendly for A&D companies since centralized quality management across processes, including procurement, production, and customer services, is required for traceability and reporting. Limited operational WBS support and BOMs without dates may pose challenges for A&D companies with extended lead times. Despite these considerations, Infor CloudSuite Industrial maintains its #7 rank on our list of top aerospace and defense ERP systems.

Strengths

Support for both informal and formal BOMs and engineering processes. Infor CSI BOMs don’t mandate revision numbers, making it easier for A&D companies without formal products to implement their BOMs.
Deep Costing Layers. Compared to other products with patchy experience, the costing layers follow superior rational structure and scale well, where tracking costs for large programs such as A&D might be critical.
Field service integration with core manufacturing processes. Especially critical for A&D suppliers that collaborate with their OEMs in the post-sales phase, with multiple parties involved for servicing, internal or external, containing complex commission structures.

Weaknesses

Not fit for diverse A&D manufacturers. A&D manufacturers that might also be heavy in process-centric operations might struggle with it.
Not for A&D manufacturers but also heavy in distribution. Infor CSI suits pure-play manufacturing organizations with limited support for distribution planning and operations.
Not strong for WBS-centric manufacturing. Long-standing programs spanning multiple months require detailed WBS-centric capabilities to support both operational and financial activities as part of the project, critically important A&D OEMs.

6. Oracle Cloud ERP

Targeting large global A&D companies, Oracle Cloud ERP offers diverse solutions for complex business models. Ideal fit for large A&D companies as a corporate financial ledger while using focused solutions such as Infor LN, IFS, or Deltek at the subsidiary level. Using it as the main ERP and building last-mile A&D companies might require substantially longer implementation cycles, rendering them cost-prohibitive for SMB companies. Given these considerations, Oracle ERP Cloud maintains its #6 rank on our list of top aerospace and defense ERP systems.

Strengths

Ideal solution for publicly traded large global A&D companies. Oracle Cloud ERP is an ideal solution as the corporate financial ledger for A&D companies with multiple layers of financial hierarchies operating in multiple countries.
Proven solution with large workloads. Large A&D companies may process millions of GL entries per hour. The workload Oracle Cloud ERP is designed to handle.
Ecosystem. It has an ecosystem of experienced consultants who have the capabilities to handle the design and architecture of such complex enterprises.

Weaknesses

Limited last-mile capabilities. The last mile capabilities for specific A&D verticals, such as integration with GovCon processes and database may require solutions from third party or custom integration, making the implementation overly expensive.
Limited pre-integrated capabilities with A&D-specific ancillary systems. Integration with A&D-specific PLMs, configurators, and CPQ systems is not out-of-the-box, increasing the implementation time and costs.
Overwhelming for SMB A&D companies. It is not a fit for SMB A&D companies because the over-bloated financial layers are only relevant for large A&D companies.

5. SAP S/4 HANA

SAP S/4 HANA supports complex business models and global entities in the same database, providing end-to-end traceability for large global A&D companies. Ideal fit for large A&D companies as a corporate financial ledger while using focused solutions such as Infor LN, IFS, or Deltek at the subsidiary level. Using it as the main ERP and building last-mile A&D companies might require substantially longer implementation cycles, rendering them cost-prohibitive for SMB companies. Given these considerations, SAP S/4 HANA maintains its #6 rank on our list of top aerospace and defense ERP systems.

Strengths

Ideal solution for publicly traded large global A&D companies. SAP S/4 HANA is an ideal solution as the corporate financial ledger for A&D companies with multiple layers of financial hierarchies operating in multiple countries.
Proven solution with large workloads. Large A&D companies may process millions of GL entries per hour. The workload and MRP workloads SAP S/4 HANA is designed to handle.
Financial and transactional traceability embedded for globally complex A&D companies. SAP S/4 HANA has transactional maps embedded as part of the product, providing the traceability that globally complex A&D OEMs with large programs need.

Weaknesses

Limited last-mile capabilities. The last-mile capabilities for specific A&D verticals, such as integration with GovCon processes and databases, may require solutions from third parties or custom integration, making the implementation overly expensive.
Limited pre-integrated capabilities with A&D-specific ancillary systems. Integration with A&D-specific PLMs, configurators, and CPQ systems is not out-of-the-box, increasing the implementation time and costs.
Overwhelming for SMB A&D companies. It is not a fit for SMB A&D companies because the over-bloated financial layers are only relevant for large A&D companies.

4. Microsoft Dynamics 365 Finance & Operations

MS Dynamics 365 F&O caters to global A&D companies in the upper mid-market and lower enterprise space, supporting complex business models, including support for discrete, process, and distribution-based planning. It is especially strong with WBS-centric processes covering operational and financial schedules equally well. The challenge with MS Dynamics 365 F&O would be the best-of-breed ancillary systems critical for A&D systems, which are not owned and maintained by Microsoft, requiring third-party add-ons. Given these considerations, MS Dynamics 365 F&O maintains its position at #4 on our list of top aerospace and defense ERP systems.

Strengths

Ideal solution as a corporate financial ledger for publicly traded large global A&D companies. In conjunction with A&D-focused ERP systems at the subsidiary level.
Ideal solution for upper mid-market or lower enterprise A&D companies looking for one solution to host their diverse business models, including discrete and process manufacturing, distribution, MRO, and A&D-specific consulting services.
Ecosystem. The largest marketplace with solutions to augment most A&D business models not supported by the core product.

Weaknesses

Not proven solution with large workloads. While MS Dynamics may have been used as a financial ledger for the workload of Fortune 1000, it is not as proven for the global MRP workload in one solution.
Limited last-mile capabilities. The last-mile capabilities for specific A&D verticals, such as integration with GovCon processes and databases, may require solutions from third parties or custom integration, making the implementation overly expensive.
Limited pre-integrated capabilities with A&D-specific ancillary systems. Integration with A&D-specific PLMs, configurators, and CPQ systems is not out-of-the-box, increasing the implementation time and costs.

3. IFS

Targeting larger field service and MRO organizations, IFS is a great solution for larger A&D companies looking for best-of-breed field service and EAM capabilities atop corporate financial ledgers such as SAP or Oracle. It might also be a great fit for upper mid-market and lower enterprise companies primarily focusing on managing large A&D programs. Despite these considerations, IFS maintains its rank at #3 on our list of top aerospace and defense ERP systems.

Strengths

Unique program architecture tailored to track the costs of large A&D programs. Unlike smaller ERP systems with a 1:1 relationship between a sales order and a project, IFS is designed to handle large programs where consolidated visibility would be critical without ad-hoc arrangements.
Enterprise-grade field service and asset management capabilities. Especially suitable for A&D companies because of their need to maintain expensive assets with complex workflows and scheduling requirements for field services.
Unique financial workflows to support complex A&D programs. Expensive MRO operations require unique workflows, such as closing transactions financially at the line level, which might not be possible with ERP systems not designed to handle such transactions.

Weaknesses

Limited focus. The limited focus might be a challenge for A&D companies active with M&A cycles.
Limited ecosystem. Its presence and install base are still limited in North America compared to other solutions on this list.
It is not the right fit for holding and private equity companies as a corporate ledger. While IFS can provide the best-of-breed capabilities in a tier-two architecture or can act as one solution, IFS might not be the best fit to be used just as the corporate ledger for large A&D enterprises.

2. Epicor Kinetic

Highly effective for SMB A&D companies, Epicor Kinetic’s BOMs align seamlessly with A&D firms employing formal engineering processes, emphasizing critical traceability in change control. Specifically tailored for metal-centric industries supplying aerospace, its inventory model accommodates vital processes like nesting and includes attributes in MRP runs. Planning processes cater to complex A&D manufacturing companies with extensive distribution business models. Its WBS-centric processes adeptly handle large programs and short-run jobs. With these considerations, Epicor Kinetic secures the #2 position on our list of top Aerospace and Defense ERP systems.

Strengths

Great for formal manufacturing organizations. The manufacturing organizations with formal engineering processes with revision numbers would relate to the product more.
MRP runs are designed to support complex inventory. MRP runs support product attributes for planning, which is critical for business models such as metal parts manufacturers supplying to aerospace OEMs.
WBS-centric process to handle large programs. Detailed WBS structure containing operational and financial schedules along with large programs requiring a 1:N relationship between a sales quote/order and a project.

Weaknesses

Not a great fit for A&D companies with more than three layers of financial hierarchies. Requires ad-hoc arrangements for larger mid-market companies with more than three financial hierarchies.
Limited focus. Private equity and holding companies looking for support outside of Epicor’s core expertise might struggle with it.
Limited support for field service, process manufacturing, and scalable customer masters. The acquired field service solution is not as seamlessly integrated as today, as well as struggling with process-heavy A&D companies, such as a plastic manufacturer supplying to A&D OEMs. The customer master layers are not as detailed as with other solutions, requiring ad-hoc arrangements for consolidated insights.

1. Infor CloudSuite LN

Infor LN caters to the upper mid-market and lower enterprise A&D manufacturing companies, serving as their primary ERP, provided their business model aligns with Infor LN’s capabilities. It also excels as a subsidiary solution for large enterprises with independently operating subsidiaries. Unlike smaller manufacturing ERPs with limitations in detailed WBS processes or supporting consolidated views of large programs, Infor LN equally supports diverse A&D international business models, with companies heavily focused on process operations being the only exception. With these strengths, Infor LN retains its top position on our list of aerospace and defense ERP systems.

Strengths

Last-mile capabilities for most A&D business models. Capabilities such as contract flow-down clauses and government audit support require intertwined business objects. They might not work as seamlessly with systems not naturally designed to support these processes.
WBS-centric large programs with mixed-mode manufacturing support. Native support for large programs with superior 1:N relationships among projects, quotes, sales orders, and contracts.
A&D-centric PLM with embedded processes and configurator. PLM-ERP integration requires bi-directional data exchange. Using an external system that is not OEM-owned and maintained is technically and financially risky.

Weaknesses

Not the best fit as a corporate ledger. Private equity and holding companies requiring global solutions with a tier-2 solution at the subsidiary level might not be the best use of Infor LN’s strengths.
Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations such as process manufacturing or metal-centric A&D companies.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on very few Infor resellers for consulting and support.

Conclusion

Navigating complex operations and rigorous regulations, aerospace and defense companies demand meticulous process control. Meeting regulatory obligations often brings substantial administrative overhead, affecting profit margins.

Opt for an ERP system tailored to A&D processes, steering clear of generic solutions that may require risky customizations and add-ons, elevating the risk of ERP implementation failure. Ensure your choice aligns with aerospace and defense requirements, utilizing this list as a guide to narrow down options. Seeking assistance from independent ERP consultants is a prudent step toward ensuring success.

FAQs

How are aerospace and defense ERP systems different from other manufacturing ERP systems?

Aerospace parts are highly engineered. And aerospace and defense companies need deep project and program management processes. Unfortunately, most manufacturing ERP systems designed for highly engineered products might lack project and program management operational capabilities. Their capabilities are typically limited to the costing and budgetary tasks to cover the financial needs, but they struggle with a project manager’s more profound project and program management needs.

What are some top features of aerospace and defense ERP systems that differentiate them from vanilla manufacturing ERP systems?

The top features for aerospace and defense include the native support for the AS9100 process and the deep inventory and vendor certification process. It also contains in-depth project and program management support for larger OEMs and T1 companies. However, T3 and below and machine shops serving aerospace may not require the project and program management capabilities.

Do defense contractors have similar needs as aerospace manufacturers?

While aerospace manufacturers might be selling to the defense market, their revenue share may not be as high. And they might not be selling critical components that might go through tighter quality and regulatory scrutiny. On the other hand, the govt contractors might not be involved with in-house manufacturing. They might be selling consulting services or just supplying goods to defense companies. So their business processes are likely to be different from aerospace parts manufacturers.

Top 10 Automotive ERP Systems in 2024

Leave a Comment / Automotive, Blog, ERP / By Sam Gupta / May 8, 2022 March 17, 2025

Selecting an ERP for the automotive industry is uniquely challenging. The consumer-centric nature renders its processes exceptionally intricate and unpredictable. These behaviors have profound downstream effects on the entire value chain, necessitating constant innovation and modifications to existing products. This drives the need for tighter collaboration and joint planning, influencing compliance and global trade processes. This holds true even for smaller companies with limited global operations.

Additionally, the pressure of tighter margins necessitates heightened efficiency on shop floors, introducing distinctive scheduling challenges linked to specialized skills for each operation. Within the value chain, various players may share commonalities and differences, both equally influencing business processes. Shared aspects include adherence to quality standards and OEM reporting, as well as collaborative planning efforts. Conversely, divergent needs arise from unique manufacturing and distribution processes and planning methodologies. Consider, for instance, the contrast between a plastic supplier and a consumer-grade chemical distributor. Even the operations of a machine shop may significantly differ from those of an OEM specializing in school buses. All are generally bundled under automotive, yet their operations and processes are uniquely different.

These distinct considerations emphasize the necessity of understanding the critical success factors. As well as finding an appropriate ERP system designed to support similar transactional volume and operational processes. Choosing an ERP system not explicitly crafted for this sector might drive overengineering. And, in extreme cases, adoption and implementation challenges. Keen to discover the ERP systems fit for these market segments? Join us as we explore the top 10 automotive ERP systems on our list.

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Criteria

Definition of an automotive company. These are the companies in the automotive ecosystem, including OEMs, aftermarket service providers, manufacturers, and distributors. The list considers companies of all sizes in this ecosystem.
Overall market share/# of customers. The higher the market share among automotive companies, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap for the automotive companies, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with a heavy presence from automotive companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Automotive company market share. The higher the focus on automotive companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with automotive companies. The more aligned the acquisitions are with the automotive companies, the higher it rank on our list.
User Reviews. The deeper the reviews from automotive companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. IFS

IFS specializes in serving mid-to-large automotive companies, with its strength in MRO and aftermarket operations. These businesses, handling complex equipment for various OEMs, engage in extensive collaboration with OEMs and suppliers. However, IFS might face challenges in supporting diversified business models within the automotive sector.

In terms of automotive-specific capabilities, IFS may lack efficiency in supplier collaboration, especially compared to solutions like QAD. While it supports various business models, its performance may not match the specialized features offered by competitors like Plex or QAD, particularly in automotive program management.

In comparison to other automotive-focused solutions, IFS may face challenges with out-of-the-box automotive capabilities like MMOG/LE, ITAF, and recall management. It suits automotive companies primarily engaged in field services. Also, a good fit for those seeking best-of-breed field service capabilities for a subsidiary or integrated with a corporate financial ledger. However, due to its limited focus and struggles with diverse business models, we have slightly downgraded its ranking this year. But it still secures its position at #10 among automotive ERP systems.

9. Oracle Cloud ERP

Oracle Cloud ERP targets large global automotive companies, boasting deep capabilities in integrating customer feedback with R&D data. While excelling in mixed-mode manufacturing and international supply chain aspects, it may encounter challenges with specific automotive capabilities.

Suitable for companies adopting a best-of-breed or decoupled architecture, Oracle Cloud ERP’s role limits to finance and HCM, with other systems catering to shop floor and manufacturing needs. Larger enterprises with robust IT departments are likely to be the only ones who will be successful in developing last-mile functionality on top of the vanilla platform.

Despite these considerations, Oracle would be the best fit as a corporate financial ledger for large automotive companies. A corporate ledger, while using another system deeper in capabilities at the subsidiary level, such as QAD, Plex, Infor LN, IQMS, or IFS. Or as the main ERP system with deep internal IT maturity and subject matter expertise in implementing complex automotive requirements. Such implementation often requires help from a change management company. This helps ensure broken processes don’t get assumed as requirements. A practice generally leads to wasting millions of dollars with failed implementation and poorly adopted systems.

It is also a great fit for private equity and holding companies if harmonizing the tool and skillset is more important for them than the additional costs of building last-mile capabilities on top of vanilla ERP platforms. Despite these considerations, Oracle secures the rank of #9 among the top automotive ERP systems.

8. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 F&O focuses on mid-market to large automotive companies, ideal for those with diverse operations encompassing various manufacturing processes, from discrete manufacturing for automotive parts to process manufacturing for activities like plastic extrusion or chemical divisions. Companies with complex field service operations, extensive collaboration with entities, and needs for trade compliance and embedded TMS find this tailored solution advantageous.

Smaller solutions, even those specialized in automotive business models, face challenges managing such diversity. This complexity is particularly notable for private equity-owned holding companies. The companies engaged in M&A cycles, where predicting future business models becomes a more intricate task.

Regarding automotive functionalities, Microsoft Dynamics 365 F&O provides a streamlined automotive add-on, albeit less comprehensive than alternative solutions. Limited last-mile functionality could mandate custom development or dedicated add-ons, requiring internal IT proficiency and expertise in implementing intricate automotive compliance frameworks. The involvement of a change management consulting firm may be necessary to prevent assuming broken processes as requirements. Despite no significant updates in automotive capabilities this year, it retains its position as the #8 choice among top automotive ERP systems.

7. SAP S/4 HANA

SAP S/4 HANA is tailored for large, global, publicly traded organizations requiring collaboration across entities and possessing robust internal IT capabilities. With the ability to scale for extensive MRP runs and process millions of journal entries per hour, it offers a unified system for streamlined operations. However, its last-mile functionality may lack depth in automotive-specific features like PPAP compliance, FMEA analysis, or recall management compared to specialized solutions.

Just like Oracle Cloud ERP or Microsoft Dynamics 365 F&O, SAP S/4 HANA would be the right fit for companies requiring support for complex business models but with their internal IT and subject matter expertise to implement complex automotive capabilities on top of vanilla solutions. The only exception when this would not be required is when companies might use it for corporate financial ledger in conjunction with another operational solution such as Infor LN, QAD, Plex, and IQMS for subsidiary-level operational needs. Despite these considerations, it still maintains its rank at #7 among top automotive ERP systems.

6. DELMIAWorks

IQMS/DELMIAWorks focuses on discrete manufacturing, with a strong emphasis on the automotive vertical and mid-market companies. Similar to QAD and Plex, it provides comprehensive out-of-the-box capabilities for automotive companies, covering MMOG/LE, APQP, gauge R&R, and PPAP compliance, making it particularly advantageous for those in the Honda ecosystem.

However, unlike some competitors, IQMS retains a patchy legacy interface and lacks a vibrant community, potentially affecting talent availability and consulting costs.IQMS is a fit for companies with fairly predictable and static business models primarily focused on plastic-centric business models in the automotive ecosystem. It might also be a great subsidiary solution for large enterprises if they are run fairly independently without much need for collaboration or synergies with other entities. With the least momentum with the solution, IQMS still maintains its position at #6 among the top automotive ERP systems.

5. Infor CloudSuite Industrial

Tailored for SMB OEMs with hybrid manufacturing models, Infor CloudSuite Industrial addresses the needs of automotive companies aiming for flexibility in engineering processes. While many companies typically adhere to formal SKUs and revisions driven by automotive OEMs, engineer-to-order-centric automotive companies may lack such formality. This flexibility accommodates companies without highly formalized BoMs.

Ideal for SMB OEMs and part manufacturers with field services, it may not be the best fit for larger automotive firms or those with process-intensive operations. For example, a discrete manufacturer with a lighter process footprint may find it suitable, whereas a process manufacturer like a plastic extrusion company with a packaging line might not.

Infor CSI’s process manufacturing capabilities were added to support complex discrete manufacturers with diversified business models and are not designed for intricate process manufacturing. Other challenges may arise for automotive companies with business models akin to metal companies that require support for parts without part numbers or those needing to support processes such as nesting or incorporating attributes in MRP planning. While providing out-of-the-box automotive capabilities, they are less detailed compared to solutions like QAD or Plex, impacting implementation budget and risk. Despite being more diverse than automotive-focused solutions like Plex or IQMS, Infor CSI maintains its position at #5 among top automotive ERP systems.

4. Epicor Kinetic

Epicor Kinetic caters to SMB automotive companies that are deeply involved in shop floor activities. An ideal choice for those managing schedules and quality processes within MES, similar to Plex, it may not be suitable for those relying on ERP for scheduling and centralized quality management. Unique BOM structures make it well-suited for companies with formal manufacturing processes and revision numbers. It’s particularly suitable for automobile manufacturers with complex inventories and unique material-to-operation correlations, as well as those handling large programs with WBS-centric processes.

Epicor Kinetic offers diversified support, combining distribution-centric planning with MRP within the same software. While it has acquired advanced field service capabilities, seamless integration might take time, making its field service capabilities less robust than those of some competitors, especially for aftermarket and MRO-centric companies. While an excellent solution for the mid-market and suitable as a subsidiary solution for large automotive companies, it might not be the optimal choice as the main ERP for very large companies due to limited financial hierarchies compared to larger ERP systems.

Most automotive companies with formal BOMs and revision numbers find Epicor Kinetic well-aligned with their planning processes. In comparison with solutions like Infor CloudSuite Industrial (Syteline), Despite these considerations, Epicor Kinetic ranks at #4 on our list of the top automotive ERP systems.

3. Plex

Plex focuses on automotive companies, particularly in the Toyota and Ford ecosystems. Tailored for last-mile S&OP and compliance in these ecosystems, Plex excels as a subsidiary-level solution with robust shop-floor-centric capabilities. It’s ideal for large companies to consolidate automotive portfolios on one solution as a subsidiary-level solution while using another large ERP system as a corporate ledger. It is also a very strong fit for pure-play automotive SMBs in the Toyota and Ford ecosystems.

Originating as an MES solution, Plex struggles with diverse business models, like those requiring project manufacturing capabilities in verticals such as contract manufacturing or engineer-to-order centric companies. In architectures where the shop floor is critical, Plex, like Epicor and IQMS, is a strong fit, but less so when ERP must house quality and scheduling processes, not MES. Cross-functional supply chain processes, while not as robust, are tailored for automotive use cases.

Despite not having widespread adoption like some competitors, Plex boasts super-rich capabilities for program management, pre-integrated with PLM and CAD. With native integration of skills and scheduling, Plex MES supports shop floor needs. Recent updates include functionality for the Ford ecosystem, but diverse business models might find Plex’s scope limiting. As a result, it ranks at #3 on our list of top automotive ERP systems.

2. QAD

QAD caters to mid to large global automotive companies, suitable as a subsidiary-level integrated with a corporate financial ledger or as a pure-play SMB option as their main ERP. Uniquely combining several aspects of supply chain and ERP suites, it’s uniquely tailored for automotive-centric companies. With other solutions, these capabilities generally reside in different siloes, creating isolated boundaries for complex cross-functional mature processes such as allocation or ATP. Recent acquisitions hint at combining HCM and MES capabilities, very similar to Plex’s capabilities, which are especially valuable for automotive companies because of their need for joint collaboration and planning needs. Unique scheduling processes prioritize skillsets and certifications, necessitating integrated learning processes.

Despite not providing as detailed capabilities for Toyota, Honda, or Ford ecosystems, it’s slightly more diverse than other focused solutions such as Plex but not as diverse as other solutions such as Infor LN. Unlike Infor LN, QAD, similar to Oracle ERP Cloud and Microsoft Dynamics F&O, embeds TMS capabilities within the solution. Its user-friendly UI, contrasting with Infor LN, suits business users without requiring extensive customization.

However, QAD’s weaknesses lie in its legacy technology stack and infrastructure, lacking the agility of mainstream cloud providers. Despite the recent announcement of technology updates, which might take a while to stabilize, we have downgraded QAD slightly due to its limited vertical focus and applicability in M&A or holding company structures. Despite these considerations, it holds the #2 rank on our list of top automotive ERP systems.

1. Infor LN

Infor LN, a robust solution for global automotive companies in diverse discrete manufacturing, targets upper mid-market to large players, particularly excelling in the Honda ecosystem. Ideal as a subsidiary-level solution for large enterprises consolidating automotive operations on one solution, it also suits mid-sized companies with varied automotive-centric discrete manufacturing models. However, Infor LN faces challenges with process-centric operations for companies that might also include business operations such as plastic or chemicals as part of their automotive operations.

Unlike smaller solutions like Plex or Infor CSI that might not have as detailed capabilities for each mode of manufacturing and might struggle with complex business models, Infor LN can cover a lot of grounds with most automotive-centric discrete and distribution business models, whether long-standing large programs or aftermarket business that also has very complex distribution operations. Infor LN also has very strong global trade compliance capabilities. While Infor LN is versatile for diverse manufacturing models, Plex holds stronger pure-play capabilities for Toyota and Ford ecosystems. Infor LN, a true SAP S/4 HANA replacement for upper mid-market or lower enterprise automotive companies, offers pre-integrated best-of-breed features like Infor Nexus, WFM, WMS, and specialized PLM solutions.

With reduced implementation time and risks due to pre-integrated functionality, Infor LN stands out as a reliable solution localized and globalized in 50 countries. Despite limitations in broader capabilities compared to other vanilla solutions, recent upgrades acknowledge its broader application in various automotive business models, securing the top rank at #1 on our list of the top automotive ERP systems.

Conclusion

Automotive companies possess distinctive needs, ranging from product forecasting to supply chain demand. Unique quality and reporting standards, especially for ecosystems like Toyota and Honda, require meticulous compliance to safeguard scorecards. Failing to adapt to OEMs’ evolving demands jeopardizes success. Hence, automotive-specific capabilities are crucial, as vanilla ERPs may entail risk and cost due to longer and more expensive implementation cycles.

When choosing an ERP for your automotive company, avoid getting lost in generalized features. This list, published by truly independent automotive ERP consultants, aims to streamline your options and guide you toward a successful implementation.

FAQs

How are automotive ERP systems different from manufacturing ERP systems?

Automotive ERP systems have pre-built automotive functionality related to their planning, compliance, quality needs, customer and vendor collaboration, and scheduling. On the other hand, the vanilla manufacturing systems would require companies to either add-ons or build custom functionality on top of the core manufacturing solution, which could be risky and expensive for SMB automotive companies.

What are some top features of automotive ERP systems that differentiate them from vanilla manufacturing ERP systems?

Automotive ERP systems have pre-built certification and compliance requirements for OEMs such as Honda or Toyota. In addition, they might have richer HCM functionality integrated with the scheduling function that allows companies to schedule based on their skill sets. They also include MMOG/LE, APQP, gauge R&R, and PPAP compliance features.

Do automotive suppliers have similar ERP needs as the OEMs?

No, each company and stakeholder involved in the automotive value chain could have a different business model. And the business model drives their ERP needs. For example, the suppliers might be producing commoditized products or complex parts such as transmission or robotics. Each of these companies could follow very different manufacturing and distribution processes, and that would drive the features required in their ERP system.

Top 10 Large Company ERP in 2024

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Construction, Consumer Goods, Distribution, ERP, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By Sam Gupta / May 1, 2022 March 17, 2025

For large companies, selecting an ERP system is no longer about meeting functional specifications. Instead, it’s about their ability to handle the transactional capacity and cross-functional process throughput. Evaluating software-enabled processes’ throughput mirrors physical or human resources planning, commencing with the desired state and identifying necessary resources. Contrary to the misconception of infinite capacity in software systems, meticulous capacity planning is indispensable.

The critical determinant in cross-functional process throughput boils down to the choice between isolated and tightly integrated processes. Amidst variables like human resources interactions, reconciliation overhead, and the switchover effect, pinpointing the most financially efficient approach proves challenging. Consequently, companies adopt varied ERP implementation strategies—some favoring tightly integrated methods, others leaning towards slightly more best-of-breed approaches. Additional factors include the generation of journal entries per user interaction, driving system overhead, and the cycle time for cross-functional processes. Advocates for real-time to batch conversion exist, yet even in batch mode, time considerations take precedence. For example, an MRP run exceeding 5 hours could fracture SQL connections and disrupt planning schedules, underscoring the need for meticulous analysis and ERP selection aligned with these considerations.

Top 10 Large Company ERP in 2024 - Quadrant

While throughput assessment may seem scientific, persuading every department to use the same ERP system can cause political resistance and power struggles. Evolving desired states and extended implementation horizons are other challenges large organizations face, forcing them to treat ERP as the corporate financial ledger while allowing their subsidiaries to choose their systems. So, which systems prove optimal at this stage regardless of their choice of architecture? Let’s delve in.

ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

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Criteria

Definition of a large company. More than $1B in revenue or more than 1000 employees. Might be publicly listed. Financial controls are a must for SOX compliance and public reporting. Finance takes over operational needs. Might be present in more than ten countries.
Overall market share/# of customers. Higher market share among the large companies ranks higher.
Ownership/funding. The more committed the management to the product roadmap for large companies, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with large companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Larger company market share. The higher the focus on large companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with large companies. The more aligned the acquisitions are with the large companies, the higher it ranks on our list.
User Reviews. The deeper the reviews from large companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. Workday/Certinia

Workday, initially tailored as an HCM solution for Fortune 1,000 accounts, finds its niche in industries with sizable white-collar workforces. While Workday serves well as a comprehensive ERP for large enterprises in sectors like tech, media, telecom, banks, retail, and financial services, its suitability diminishes for product-centric industries requiring deeper transactional depth in inventory, costing, and MRP processes. However, it can excel in product-centric scenarios in a best-of-breed architecture sitting atop a corporate financial ledger.

Historically, Certinia served as an alternative for finance before Workday developed its financial module. Depending on architectural preferences, both Workday and Certinia would be fit for best-of-breed architecture in some industries or function as complete ERPs in others. Despite a lower market share as ERP, their unique presence secures the #10 position on this list.

Strengths

Enterprise-grade best-of-breed capabilities. Workday and FinancialForce excel in HCM and PSA, respectively, in their target industries, sitting atop the corporate financial ledger such as SAP or Oracle.
Proven for enterprise workloads. Both solutions have been proven for enterprise workloads where the Fortune 100 may process millions of journal entries per hour, only possible with the disconnected architecture.
Cloud-native. Both solutions are cloud-native, a huge plus for large enterprises aiming for superior cross-functional throughput.

Weaknesses

Requires internal IT maturity. The executives with limited experience in building complex architecture might struggle to hire skilled experts.
Requires discipline with master data governance. The inability to build cross-functional with master data governance and cross-functional integration workflows might be counterproductive.
Expensive. While operationally efficient, best-of-breed architecture is likely to be the most expensive of all, with substantial integration and maintenance costs in the long term.

9. QAD

QAD, a supply chain-focused manufacturing solution, caters to large automotive, F&B, and high-tech companies. Ideal as a subsidiary-level solution or as a corporate ERP for lower enterprise markets, it suits firms seeking robust functionality in supplier collaboration and international trade. Although a legacy solution, QAD has announced its plans to rearchitect the solution on a modern tech stack. However, its smaller size may pose challenges with transactional processing for larger accounts, and its niche nature could be limiting for enterprises with diverse operational models. Considering these factors, QAD secures the #6 rank among large company ERP systems.

Strengths

Pre-integrated best-of-breed suite tailored for specific micro-verticals. QAD shines in specific micro-verticals where the generalized BOMs and recipes of vanilla solutions might struggle, especially beneficial as a subsidiary solution of large enterprises.
ERP + Supply Chain Suite. QAD is perhaps the only suite that combines the capabilities of both suites, especially beneficial in architecture with disconnected supply chain planning at the plant level.
Multi-entity Support. QAD would be a great fit for enterprises that want to consolidate some entities relevant to supply chain planning while keeping the remaining integrated through the corporate financial ledger.

Weaknesses

Limited focus. The limited focus might be a challenge for enterprises planning to host all of their entities in one solution, requiring an upgrade to a more diverse solution.
Limited ecosystem. QAD’s ecosystem is substantially limited, causing issues with global rollout in countries with limited local talent.
Technology. While QAD plans to redesign its entire platform, moving away from legacy technologies such as RPG, it might take a few years before it fully stabilizes.

8. Sage X3

Sage X3 is suitable for enterprises in the agriculture, F&B, and process manufacturing industries as a subsidiary-level best-of-breed solution, sitting atop SAP or Oracle– or, as a corporate solution for lower enterprises. With one of the strongest security and financial traceability, it could be a great fit for publicly traded or audit-ready companies in the lower enterprise market. However, it’s not proven with the upper enterprise market, particularly those necessitating millions of journal entries per hour. Despite these considerations, it secures the #8 spot among large company ERP systems.

Strengths

Great for enterprise pharma and agriculture companies. Last mile capabilities for pharma, agriculture, and process-centric companies as a subsidiary solution atop a corporate financial ledger such as SAP or Oracle.
Deep ERP layers for audit-ready and public companies. Ideal as a complete ERP solution, especially in the process-centric companies in the lower enterprise market.
Great ecosystem of consultants for pharma validation. The ecosystem includes consulting companies with deep expertise in the Sage X3 product and validation procedures.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for enterprises active with the M&A cycle and using it as a corporate solution with the desire to host all of their entities in one solution.
Not proven for the larger enterprise market. While great for the lower enterprise market and as a subsidiary solution, it’s not a great fit as a corporate solution for the upper enterprise market.
Limited best-of-breed capabilities. Enterprise companies looking for pre-integrated best-of-breed options may struggle to find those options with Sage X3.

7. Unit4

Unit4, a robust ERP system, specifically targets large educational institutions and public-sector entities. Its forte lies in people-centric functionality augmented by enterprise-grade ERP capabilities. Noteworthy is Unit4’s unique standing, offering enterprise-grade functionalities for student information and teacher workflow management, setting it apart in the market. Proven in handling substantial workloads, Unit4 boasts successful implementations in some of the largest universities and public sector organizations, traditionally domains of Oracle Cloud ERP, Workday, or Microsoft Dynamics 365 F&O. Despite being rearchitected for a cloud-native experience, Unit4 remains a legacy product.

While primarily a European solution, Unit4 ensures localization and globalization for numerous countries. However, its challenge lies in accommodating diverse business models, making it less suitable for companies acquiring entities with varied business models, securing the #7 position on our list of large company ERP systems.

Strengths

Enterprise-grade capabilities for universities and non-profits. Perhaps the only solution in this space that has depth in the public sector space, requiring substantial consulting efforts atop vanilla solutions.
Cloud capabilities. While the solution is legacy, they have made substantial progress with their cloud capabilities.
Pre-integrated HCM and procurement processes tailored for service-centric industries. Solutions such as Workday that offer best-of-breed HCM and indirect procurement capabilities might be technically and financially risky.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for enterprise companies active with M&A cycles, especially for business models outside of Unit4’s expertise.
Limited ecosystem and consulting base. As of today, their North American presence and consulting base is significantly limited.
Limited best-of-breed capabilities. Enterprise companies opting to build best-of-breed architecture might not find as many pre-baked integration options, requiring substantial consulting efforts.

6. Deltek

Deltek caters to major government contractors, AE, and construction companies, serving as an ideal subsidiary solution for large enterprises or as a corporate solution for lower enterprise segment planning to host all of their global entities in one database. Tailored for these industries, Deltek offers unique capabilities, leveraging industry-specific databases and integrations, which is particularly crucial for processes like CPQ. While excelling in deep capabilities for certain industries, Deltek is not as complete as an ERP as other solutions on this list, necessitating additional integrations. Despite its focused scope, recent developments have influenced its ranking, securing the #6 position among large company ERP systems.

Strengths

Last-mile capabilities for GovCon and construction-centric verticals. Deltek has last-mile capabilities in the construction and GovCon space, making it an ideal subsidiary solution for large enterprises.
Access to the databases and networks relevant to these industries. Deltek has several products in its portfolio with industry databases and networks that would be much harder to build atop vanilla solutions because of the subject matter expertise required in these industries.
Multi-entity capabilities. Their multi-entity capabilities are rich, making them suitable for lower enterprise companies seeking a corporate solution to host all of their entities in one database.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for enterprise companies active with M&A cycles, especially for business models outside of Deltek’s expertise.
Limited ecosystem and consulting base. As of today, their ecosystem and consulting base is significantly limited.
Not proven for the larger enterprise market. While great for the lower enterprise market and as a subsidiary solution, it’s not a great fit as a corporate solution for the upper enterprise market.

5. Infor CloudSuite M3/LN

Infor LN and M3, distinct products bundled into CloudSuite offerings, share our list’s ranking due to their non-overlapping target markets. While Infor CloudSuite LN focuses on discrete-centric verticals like aerospace and automotive, Infor M3 caters to industries such as apparel and food and beverage. Both offer comprehensive manufacturing solutions for global organizations with diversified manufacturing business models, including essential components like PLM and industry-specific quality features. Positioned as subsidiary solutions for the upper enterprise market or corporate solutions for the lower enterprise market, they secure the #5 spot among large ERP systems.

Strengths

Great for lower enterprise companies as pureplay manufacturing business models. Ideal for lower enterprise companies as a corporate solution or as a subsidiary solution for upper enterprise, publicly traded, private equity-owned, or holding companies.
Most comprehensive manufacturing capabilities. Both can support the most complex manufacturing business models for global companies exploring operational synergies across global entities.
Enterprise-grade capabilities for lower enterprise companies. While most smaller solutions might require ad-hoc arrangements for global financial operations, both have them natively built.

Weaknesses

Not the best fit as a corporate ledger. Large enterprises, private equity, or holding companies requiring global solutions while using a tier-2 solution at the subsidiary level might not find the most value with both.
Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on very few Infor resellers for consulting and support.

4. IFS

IFS focuses on large enterprises in the airline, MRO, construction, oil and gas, and heavy equipment field service sectors, offering strong ERP, EAM, field service, and enterprise project management capabilities. Suited for large enterprises seeking best-of-breed solutions, IFS can sit atop financial ledgers like SAP or Oracle or serve as a subsidiary solution. Despite notable progress in North America, its install base is comparatively limited. With recent growth in enterprise adoption, IFS secures the #4 position on our list.

Strengths

Enterprise-grade field service and asset management capabilities. This is especially suitable for upper enterprise companies seeking best-of-breed capabilities with field service and asset management.
The data model is aligned with companies with large programs. Industries such as MRO, Oil, and Gas follow very different project structures and BOMs. And IFS’s data model allows them to manage complex programs without any ad-hoc arrangements.This is especially beneficial for lower enterprise companies looking for last-mile capabilities pre-baked with the solution.
Technology – While a legacy solution, IFS technology has been rearchitected and modernized using cloud-native SaaS technologies.

Weaknesses

Limited focus. The limited focus might be a challenge for enterprise companies active with M&A cycles.
Limited ecosystem. Its presence and install base are still limited in North America compared to other solutions on this list.
Not proven for the larger enterprise market. While great as a best-of-breed solution for field service or EAM, it’s not proven for the workload of Fortune 1000 companies.

3. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 F&O is perhaps the most diverse solution accommodating several global business models in one database, making it an ideal solution for lower enterprise companies seeking a corporate solution to host all of their entities in one database. While a great fit as a corporate ledger for large enterprises, it’s not as proven as other leading solutions in the enterprise market with workloads as high as millions of journal entries per hour that Fortune 1000 companies might demand. Given these considerations, it secures the #3 spot on our large company ERP systems list.

Strengths

Diverse capabilities.Supports global operations and business models and pre-baked integration for the best-of-breed CRM and field service solutions.
Ecosystem. This is especially beneficial for private equity and holding companies trying to streamline all of their entities on one solution. They can find add-ons if the core solution doesn’t meet their needs for last-mile industry capabilities.
Global capabilities. Global capabilities would help enterprise companies in countries with its limited presence or support, making it a truly global solution compared to other platforms on this list.

Weaknesses

The channel is not as regulated. Microsoft channel is very complex, without any direct support for its resellers and partners, making navigating the Microsoft channel extremely hard.
Limited best-of-breed capabilities directly through OEM. While Microsoft Dynamics 365 F&O has a vibrant marketplace to augment its core capabilities, crucial capabilities such as PLM, etc, might not be owned and pre-integrated by Microsoft.
Limited last-mile capabilities. The last-mile capabilities required in specific micro-verticals such as dairy, plastic, building supplies, or metal might require add-ons or expensive development on top of the core platform.

2. Oracle Cloud ERP

Ideal for large enterprises in service industries, Oracle Cloud ERP stands out as a top choice as a corporate financial ledger within best-of-breed architectures, whether for publicly traded or privately owned entities. While excelling as a financial ledger, its suitability as a subsidiary solution in best-of-breed setups is limited due to over-bloated global capabilities and leaner last-mile functionalities compared to other solutions on the list. Given these considerations, Oracle Cloud ERP claims the #2 spot among large company ERP systems.

Strengths

Robust finance capabilities for large, global enterprises. Capabilities include having five layers of GL restrictions, multiple layers of sub-ledgers, and book closing requirements across divisions, making an ideal corporate ledger for complex global enterprises.
Proven solution as a corporate ledger with Fortune 1000 workloads. It can handle the workload of large enterprises processing millions of GL entries per hour.
Ecosystem. Oracle Cloud ERP has an ecosystem of experienced consultants capable of handling the architecture of such complex enterprises.

Weaknesses

Global transactional and financial traceability are not as intuitive. While functionally capable, transactional and financial traceability might not be as intuitive for large, complex enterprises.
It may not be the best fit for large enterprises with complex transactions or Fortune 1000 global MRP workloads. While great as a financial ledger, complex products with serialized structures or large enterprises with very complex BOMs with operational and financial synergies among entities might struggle with the solution because of the workload requirements at this scale.
Not the best fit as a subsidiary solution. There are better solutions on this list that can offer much deeper operational capabilities at the subsidiary level without the overloaded complex financial layers of Oracle Cloud ERP.

1. SAP S/4 HANA

SAP S/4 HANA is among the few solutions with capabilities to handle the workload expectations of most complex products with global MRP runs, making it ideal as a corporate ledger for most enterprise companies, publicly or privately owned, or as a corporate ERP for globally integrated product-centric industries, regardless of their design including shared services. Despite its enterprise-grade capabilities, it is not as suitable for enterprises seeking deeper operational capabilities at the subsidiary level. Given these considerations, it secures the #1 rank among large ERP systems.

Strengths

Robust finance capabilities for large, global enterprises. Capabilities include several financial hierarchies to support complex, global organizations without requiring ad-hoc arrangements for global traceability or consolidations.
Proven solution with the most detailed enterprise-grade MRP strategy for global planning. Globally connected enterprises with shared product models and dependencies among entities, SAP S/4 HANA, can handle most complex planning configurations without the requirement of decoupling the transactions.
Intuitive global transactional and financial traceability. It is one of the most intuitive ERP products for such complex operations with its transactional maps capabilities built with the products, making debugging complex financial enterprises easier.

Weaknesses

Behind in cloud ERP capabilities. Despite advanced financial traceability and technical capabilities, the functional capabilities are not as rich as with its on-prem version.
Not the best fit as a subsidiary solution. There are better solutions on this list that can offer much deeper operational capabilities at the subsidiary level without the over-bloated complex financial and enterprise layers.
Limited last-mile capabilities. In industries where it might not be the most frequently installed as an operational solution, the other solutions are likely to have deeper last-mile capabilities.

Conclusion

Transitioning into the $1B club brings unique challenges like navigating multiple country regulations, cash flow intricacies, currency hedging, and international supply chain complexities—issues less prevalent in mid-market companies.

Deploying systems designed for smaller enterprises may lead to financial control shortcomings. Large companies should avoid squeezing into ill-fitting solutions and explore options tailored to their specific needs. Let this list guide you in narrowing down suitable ERP choices for your enterprise with the help of independent ERP consultants.

FAQs

How are large company ERP different from smaller ERP systems?

The large company ERP system offers more robust territory and production planning capabilities. They are also localized and globalized in more than 10-15 countries. On the other hand, smaller ERP systems may offer much deeper operational functionality applicable at the plant level.

Why do I not see the ERP system well-known in my industry on this list?

We compile these lists based on several criteria such as market share, community, talent base, product, and corporate strategy. So it’s likely that the ecosystem or product that might be well-known in your industry may not have a large enough market share to make a cut on this list.

What is the best approach to selecting a large company ERP system?

Larger companies require much more work aligning different functions before selecting an ERP system. They also need more profound research into the capabilities and business processes. Without this research, the larger companies are likely to go for the most popular solutions, which might fire back as sometimes even minor customizations might break the implementation or could turn out to be very expensive.

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Enterprise Architecture

The 2025 Digital Transformation Report

Criteria

ERP Selection: The Ultimate Guide

10. Plex

Strengths:

Weaknesses:

9. Odoo

Strengths:

Weaknesses:

8. Sage Intacct

Strengths:

Weaknesses:

7. IFS

Strengths:

Weaknesses:

+ Digital Transformation Change And Project Management

6. Acumatica

Strengths:

Weaknesses:

+ ERP Implementation Failure Recovery

5. SAP S/4 HANA Cloud

Strengths:

Weaknesses:

4. Oracle Cloud ERP

Strengths:

Weaknesses:

3. Microsoft Dynamics 365 Finance & Operations

Strengths:

Weaknesses:

2. Microsoft Dynamics 365 Business Central

Strengths:

Weaknesses:

+ ECommerce Supply Chain Transformation

1. NetSuite

Strengths:

Weaknesses:

Final Words

FAQs

The 2025 Digital Transformation Report

10. Ability to Expedite the Process

+ Omnichannel ECommerce Customer Experience Transformation

9. Offer a Structured Framework

ERP Selection: The Ultimate Guide

8. Help Building Consensus

7. Ability to Negotiate Contracts

6. Ability to Architect and Design

5. Ability to Uncover Your Needs By Analyzing Your Current House

+ ECommerce Supply Chain Transformation

4. Ability to Blueprint Your To-be House

3. Ability to Manage Change

2. Ability to Uncover Financial and Technical Risks

+ ERP Implementation Failure Recovery

1. Access to Proprietary Intelligence

Final Words

FAQs

10. WooCommerce

9. Kibo Commerce

8. SAP Hybris Commerce

7. HCL Commerce

The 2025 Digital Transformation Report

6. Episerver Digital Commerce

5. Commercetools

4. Salesforce Commerce

3. Adobe Commerce/Magento

2. BigCommerce

1. Shopify

Conclusion

+

Digital Transformation Change And Project Management

+

ERP Implementation Failure Recovery

+

ECommerce Supply Chain Transformation

+

Omnichannel ECommerce Customer Experience Transformation

+

ECommerce Supply Chain Transformation

+

ERP Implementation Failure Recovery