Which Industries Use ERP?

Enterprise Resource Planning, also known as ERP software, was coined in the early 1980s when IBM introduced its first product for managing information technology needs. Today, it has become one of the most common terms used to describe any enterprise software solution managing back-office systems.

Since its inception, ERP systems have added customer relationship management (CRM), supply chain management and eCommerce capabilities. The breadth and depth of functionality in ERP software makes it an appealing choice for businesses and organizations in virtually any industry.

In This Article:

• What Is ERP Software?
• Who Utilizes an ERP System Within a Company?
• Which Industries Can Benefit from an ERP System?

ERP software is an integrated management system companies use to run and automate their core business processes. The typical ERP system is a suite of applications that help companies manage functions such as finance, human resources, manufacturing, supply chain, procurement and CRM. Rather than running these functions in separate applications, organizations can use ERP software to streamline and integrate them. ERP systems also provide a centralized source of information for various disciplines across the organization.

ERP systems act as an invaluable “part of the team” with an unlimited number of benefits. While ERP systems are flexible and scalable based on each company's needs, they tend to have a few core elements in common.

Most ERP solutions provide:

• One Platform for Many Processes: With an ERP system, different departments can share information and collaborate more effectively.
• A Common Database: Because ERP systems store data in a centralized database, everyone can access one reliable source of information—often referred to as “a single source of truth.” There’s no need to enter data into multiple systems.
• Real-Time Data: ERP systems give decision-makers real-time insights into business performance so they can respond quickly to changes in the business environment.
• Automation: Companies adopt ERP systems to automate many repetitive tasks, which minimizes errors and frees up headcount for valuable activities such as customer service.
• Scalability: Most ERP solutions can grow with a business, seamlessly processing more transactions as it increases its headcount, supplier list and customer base.

In addition to providing these core features, ERP systems continue to evolve.

Over the past decade, companies have embraced cloud-based and software-as-a-service (SaaS) ERP platforms, which they can often purchase on a subscription basis and count against their operational expenses rather than capital expenditures. The cloud has made ERP more accessible to small and mid-sized businesses that don’t want to implement a resource-intensive software platform on their in-house servers.

Regardless of the implementation model they choose, organizations that implement a modern ERP system can expect higher levels of productivity and cost reduction through streamlined processes.

ERP usage isn’t confined to one team within a company. Various employees across departments may use ERP systems to increase their efficiency:

• Finance and accounting teams streamline financial planning, analysis, billing, vendor payments and financial reporting.
• Production managers and schedulers in manufacturing organizations plan production, track inventory and manage the supply chain.
• HR departments perform workforce management tasks such as payroll processing, benefits administration and performance reviews.
• Sales teams and marketing organizations manage customer relationships, process orders and run sales analytics.
• Operations and logistics teams manage tasks related to inventory, supply chain and distribution.
• C-level executives and managers use ERP dashboards and reports for strategic decision-making and performance monitoring.
• Purchasing teams manage suppliers, purchase orders and inventory.
• Customer service agents access customer data such as purchase history and order status.
• Project managers allocate resources, track projects and manage costs.

Over the past 20 years, ERP systems have become extremely user-friendly. Many provide a web interface that emulates the experience of buying consumer products online. As a result, employees at all levels of organizations are using ERP systems to enter data and access information that applies to their daily job duties.

Here’s how ERP benefits businesses in the accounting and professional services, aerospace and defense, architecture, construction, consulting, engineering, government contracting and marketing industries.

How Accounting & CPA Firms Use ERP

Accounting and CPA services firms use ERP systems to streamline their operations, improve their productivity, offer better service to clients and increase their visibility into business performance. With the automation and centralized data ERP systems provide, firms can scale efficiently and make more data-driven decisions.

Accounting and CPA firms also use ERP to:

• Allocate staff resources efficiently across projects.
• Automate core accounting functions, such as accounts payable and receivable.
• Make it easier for staff to log billable time and expenses.
• Track client interactions and communications.
• Analyze profitability by client, project and service line.
• Ensure regulatory compliance (especially for CPA firms).

How Aerospace & Defense Companies Use ERP 

Aerospace and defense companies often have unique requirements related to project complexity, regulatory compliance and supply chain management. Several leading ERP solutions on the market can help these firms manage large, complex projects from design through production and delivery. 

Aerospace and defense companies also use ERP to:

• Handle demand forecasting, inventory optimization and supplier collaboration for intricate supply chains with many tiers of suppliers.
• Manage complex manufacturing processes, including work orders, production scheduling and shop floor control. 
• Enhance quality and regulatory compliance by enabling full traceability of parts and materials from receipt through manufacturing and delivery.
• Work with complex product configurations, engineering changes and technical data by integrating them with product lifecycle management (PLM) systems.
• Mitigate risks related to supply chain disruptions, cost overruns and compliance issues.
• Support strict quality management processes and regulatory compliance requirements, such as ITAR, AS9100 and CMMC. 

How Architecture & Engineering Firms Use ERP 

For architecture firms, implementing an ERP system is a chance to improve efficiency, reduce errors, enhance collaboration and gain better control over projects. With ERP, firms can securely share and collaborate on files, blueprints and project documents. By managing complex projects effectively, architecture firms can improve their profitability and maintain a competitive edge in the market. 

Architecture firms implement ERP so they can:

• Automate data transfer between design and management systems.
• Manage workloads and prevent overbooking of resources.
• Monitor expenses and revenue for each project.
• Track leads and opportunities for new projects.
• Generate analytics and reports on project performance.
• Ensure adherence to industry standards and regulations.

How Construction Businesses Use ERP

Construction businesses can use ERP to enhance their project management by tracking timelines, milestones and deadlines. ERP helps them manage resources wisely and allocate their crews efficiently across projects. Features such as job costing help firms track and manage their project costs accurately so they can take proactive steps to improve their profitability. 

Construction businesses rely on their ERP systems to:

• Track document changes and maintain version control.
• Streamline purchasing and manage procurement of materials and services.
• Let staff access data and systems remotely from job sites.
• Compare actual costs to estimates.
• Gain insights into profitability, resource utilization and other KPIs.
• Ensure adherence to industry standards and regulations.

How Consulting Firms Use ERP

Consulting firms benefit from the efficiency and visibility that ERP systems enable. They use ERP to track the availability and skills of their consultants and to help them match consultants to projects based on expertise. Meanwhile, the financial management capabilities of ERP systems help consulting firms forecast more accurately and manage their cash flow optimally. In addition, ERP systems' built-in customer relationship management (CRM) functionality can help consulting firms manage client interactions and provide personalized service.

Consulting firms also use ERP to:

• Enable knowledge sharing across the organization.
• Manage deliverables and client expectations.
• Monitor project costs and budgets in real time.
• Make it easy for consultants to log billable hours and expenses.
• Automate invoicing and billing. 
• Support flexible and remote work arrangements.
• Track employee performance and career development.

How Engineering Firms Use ERP

Engineering firms looking for greater efficiency and better project management often achieve these goals with ERP systems. A good ERP can help firms manage complex engineering projects from design through production and delivery, making tracking milestones, resources, costs and schedules easier.

Engineering firms implement ERP systems to:

• Streamline the transfer of bills of materials and other design data by integrating with computerized architectural design (CAD) software.
• Manage revisions and track quality metrics.
• Store client information, monitor communications and manage proposals and contracts.
• Optimize staff usage and manage workloads across projects. 
• Automate invoicing, billing, expense tracking and financial reporting. 
• Track inventory in real time, manage procurement and optimize the supply chain.
• Help maintain compliance with industry standards and regulations.

How Government Contractors Use ERP

For government contractors, ERP systems are essential for meeting rigorous compliance regulations—including DCAA—and reporting mandates set by government agencies. ERP can automate compliance processes and provide necessary traceability for government reporting. Contractors appreciate how ERP integrates various business functions—such as accounting, CRM and project management—into a unified system, improving overall efficiency.

Government contractors that have implemented ERP can:

• Manage different types of contracts through contract lifecycle management, change order management, billing and contract profitability analysis.
• Automate complex billing and invoicing requirements, including cost tracking and indirect rate calculations. 
• Manage procurement, track inventory and optimize the supply chain. 
• Maintain real-time visibility into project status, leading to better-informed decisions about resources.
• Implement robust security measures to protect sensitive government data. 
• Transfer data accurately and streamline communication through integration with government platforms such as SAM, DFAS and WAWF.

How Marketing Agencies Use ERP

By implementing an ERP system, marketing agencies can run campaigns and projects from start to finish. They can track progress, allocate resources and manage deadlines in ways that increase their profitability.

Marketing agencies also use ERP to:

• Monitor project costs and profitability. 
• Connect functions such as finance, HR and project management into a single system for better coordination.
• Use real-time data and analytics to make informed decisions about campaigns and overall strategy.
• Integrate employees’ logged hours and expenses with billing processes.
• Automate routine administrative tasks, freeing up time for more creative and strategic work.
• Facilitate communication and file-sharing with clients.

How Deltek ERP Systems Power Project Success

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