Short answer
ERP (enterprise resource planning) is a system that brings together orders, purchasing, inventory, production, finance and often HR in one place. Its goal is for data to be entered once and for everyone to work with the same up-to-date information.
What an ERP usually includes
- Sales and orders — quotes, orders, invoices.
- Purchasing — orders to suppliers, delivery tracking.
- Inventory — stock levels, movements, stocktaking.
- Production — planning, material consumption, work orders.
- Finance — accounting or an integration with it.
- Reports — overviews for managers.
Why companies introduce an ERP
Without an ERP, data is often scattered: orders in e-mail, stock in an Excel spreadsheet, invoices in accounting. Every hand-off means retyping and creates errors. An ERP connects these processes.
Off-the-shelf or custom ERP
Several off-the-shelf ERP and accounting systems are available in Latvia. They work if your processes are standard. If your company’s edge lies in exactly how you work, an off-the-shelf ERP forces you to adapt to the software. Then it’s worth considering a custom system or custom modules around your existing accounting. Comparison: off-the-shelf or custom-built system.