What is ERP? ERP system definition, benefits and functionalities of a Romanian ERP software

ERP (Enterprise Resource Planning) – what it is, what such a system entails, how it works and what benefits it brings, how ERP solutions fit into the Romanian business environment, are issues addressed by this article. The explanations and definitions of ERP systems are complemented with examples and successful implementations in Romania, criteria for selecting ERP software and case studies


What does ERP mean?


ERP is an acronym for the English term “Enterprise Resource Planning” which. In the Romanian business environment, the term is usually used in expressions such as “ERP program”, “ERP application”, “ERP system”, “ERP software” or “ERP solution”.

ERP definition

An ERP system is used by companies to manage resources. The software facilitates the integrated management of processes and operations in different business areas: purchasing, sales, accounting, manufacturing, customer relationship management, project management and other activities concerning logistics.

What is the history of ERP?

The beginnings of ERP systems

The name was given in 1990 by technology analysts to the software system that handles business management, ERP – Enterprise Resource Planning. But the history dates back to 1913, when Ford engineer Whitman Harris developed the EOQ – Economic Order Quantity – model. For about 50 years, this paper-based manufacturing system has been the standard for production planning.


The evolution of ERP softawre

The evolution of technology since then has led to the emergence of similar systems covering other business activities (customer relationship management, human resource information management, financial integration), leading to a new type of business management software: the ERP system. Thus, the marketing and sales, inventorying, manufacturing, finances and accounting and human resources departments could be integrated into the system through interdependent modules.

Modern management softawre system

In order to efficiently give answer to economic developments and based on technological innovations, applications are becoming more complex, with intuitive web interfaces, which enable more efficient and comprehensive business management.
Thus, ERP systems have come to encompass different industries and types of activities, making it possible to easily integrate departments, regardless of the areas they cover. The global ERP systems market reached a valuation of $39.65 billion in 2019 and is expected to reach $65.2 billion by 2025.

What is an ERP system?

In order to find out what an ERP system is, we first have to think about the fact that in an organization, information is often dispersed. Thus, an ERP is the tool that supports the translation of all information into a single, integrated software. It is based on a single IT platform where the management, automation, monitoring and control of these processes and activities take place. Implementing Enterprise Resource Planning solutions is possible in any company. These software systems can be deployed for different types of activities: manufacturing, distribution, services, construction, retail or e-commerce.

What does an ERP software do?

The software deals with the management of business processes and activities, it provides centralized access to company data and establishes a tight link between key information, users, departments and other software systems. The software enables the automation of a wide range of operations, which results in streamlined workflows.

When we talk about such a software system, data is the main unit of measurement and the database is the central repository in which it is stored and organized. The link between the database and all functionalities that the system performs is made through the application. It is responsible for collecting, validating, processing, transferring or exporting data, which it performs through the interface.

How does data reach the application?

The ERP application can collect data using various methods:

  • Operator input: from the keyboard or directly – by scanning barcodes, for example.
  • Import from other databases or systems
  • Transfer using EDI (Electronic Data Interchange) technology

The functionalities of an ERP software


Achieves integrated management of business components through access to a common database

Automates and standardizes operational processes, reducing repetitive manual tasks

ERP software optimizes the definition of workflows and facilitates the monitoring of activities and resources

Allows restrictions and alerts to be set based on criteria entered into the system by the user

Generates multiple financial and accounting documents (invoices, statements, accounting notes, etc.) and successfully replaces accounting programs

Collects, stores, processes and centralizes useful data

Plan company resources, organize and monitor business processes

Provides access to any business information in a secure way

The ERP software platform makes it possible to define access levels based on internally defined roles

Manages financial operations within the organisation

Contributes to simplifying the process of establishing and monitoring revenue and expenditure budgets

Manages maintenance, sales, supplying and other operations.

Generate reports for company departments or different business components

erp software applications from romania

Find out more details about the ERP systems

Senior Software’s ERP solutions, with over 500 successful implementations, have a wide range of integrated functionalities that successfully cover all business components, regardless of the company’s field of activity.

What are the benefits of an ERP system for businesses?

Increases the speed of work and increases visibility over the company’s processes

Improves employee productivity and reduces costs

Ensures traceability in daily operations

Improves the organization’s data accuracy

Less time is dedicated to data processing activities

Reduced order processing and delivery times

Enables much better interdepartmental collaboration

Significantly reduces economic risks

Automates repetitive manual tasks and reduces human errors

Provides increased transparencyregarding key information (products, stocks, prices, suppliers, etc.)

Improves communication and relationships with customers / partners / suppliers

Improves cash flow and ensures increased control over the entire business

ERP systems fit for any type of business

Enterprise resource planning systems have become indispensable for optimizing operations and making strategic decisions in various industries. By choosing an ERP system tailored to their industry and business specifics, companies can benefit from specific functionalities that will help them streamline business processes and increase productivity.

Ecommerce ERP

By integrating the e-commerce platform with an Ecommerce ERP software, companies are able to connect all steps of the sales process and automate data transfers. This way, they can provide customers with real information regarding products, stocks or deliveries, thus offering a more pleasant and efficient shopping experience. In addition, for businesses with multi-channel sales activities, such a system allows them to have several different price lists, as well as easy maintenance and changes. For example, ERP for Ecommerce allows the mass update of prices related to the online sales channel and their synchronization with the e-commerce platform.

Production ERP

The Production ERP system integrates factory operations, financial-accounting and inventory management and enables companies to efficiently manage the entire production process, from raw material to finished product. Since it takes into account all costs related to raw materials, consumables, labour, as well as fixed and variable overheads, ERP for Production contributes to the correct pricing of finished products. In addition, through recipes and detailed lists of production steps, the IT system successfully manages the life cycle of products.

Constructions ERP

The Constructions ERP brings a number of essential benefits to companies in this sector. Through an integrated platform, companies can efficiently manage projects, costs and capacities, with data  regarding opportunities, contracts, schedules, budgets and other issues of interest available on a single screen. This organisation and centralisation of information optimises processes and resource management, ensuring greater efficiency and control over projects. By closely monitoring total, partial and job costs, with ERP for Constructions companies can make informed decisions and accurately estimate budgets for future projects.

Distribution ERP

The ERP Distribution Software facilitates the automation and streamlining of all processes specific to companies operating in the distribution area, from procurement, warehousing, sales, communication with suppliers and customers, to analysis, demand planning, imports and transportation. All information is available in a centralised system, offering managers visibility over the entire business. With the ability to accurately track and manage stocks, the software helps eliminate excess merchandise and reduce warehousing costs. Also, the integration of an ERP system for Distribution helps to optimise and control costs, providing accurate and real-time financial data.

Service ERP

The Service ERP is an essential tool for managing information, resources and service activities, automating and optimizing a wide range of operations. This system is aimed at companies that carry out field service operations and which aim to optimally manage specific activities. Such a solution facilitates simple recording of service needs, efficient management of customer relations and customer information, and implementation of optimal project management. With an ERP for Service program, optimal resource and team organisation is achieved, work orders are automatically generated and service operations and costs associated with each project are efficiently monitored.


Differences between an ERP system and an accounting software

ERP software systems are often confused with accounting programs, with many considering them one and the same. However, even though they have similar functionalities in some areas, the differences are major. Thus, while an accounting program is limited to the financial-accounting area of the business, an ERP software covers all components of the business, offering specific benefits to each department.

An accounting program manages receivables, payables, inventory value of fixed assets, as well as the financial-accounting reporting area. In addition to the above, an ERP system includes functionalities related to inventory management, supply chain management, sales through various channels, customer relationship management, project management, production management and more. In this way, the application covers not just one business function, but all of them, bringing them together in a single system to provide visibility and control over the entire business.


The difference between the ERP and CRM solutions

CRM is the acronym for Customer Relationship Management. A CRM software system manages all the ways in which customers interact with a business. CRM functionalities were initially focused on sales departments, but as they were developed, such solutions became capable of managing other components of a business (customer relations, marketing, service, etc.).

The fundamental difference is that the ERP system is generally aimed at managing financial data and financial-accounting departments, while CRM is aimed at customer data used by sales and customer service departments. CRM solutions generally aim to increase profits by increasing sales, and they centralise data from the following areas: marketing, sales, contact management and customer support.

An ERP software solution, on the other hand, aims to plan and manage resources as efficiently as possible in order to achieve lower expenses and provide greater control over costs and business processes. When we talk about ERP systems or solutions, they are mainly used by human resources, finance & accounting, production, purchasing, delivery departments.

Examples of ERP systems from Romania

In the Romanian ERP software solutions market there is a wide variety of systems, local and foreign, based on different technologies and covering more or less complex business flows. Thus, whether you choose a Romanian ERP or a foreign software, the selection of such a system takes into account, among other things, the degree of complexity of the company’s activities.

Types of ERP software in Romania

Take for example SeniorERP and SeniorXRP – two ERP systems offered by Senior Software. Both solutions offer specific ERP system functionalities that are indispensable for the types of companies they are addressed to. These two examples of systems – SeniorERP and SeniorXRP – although they have a wide range of similarities, have capabilities that differentiate them precisely in order to respond efficiently and accurately to the type of business they address. These are essential because companies, in turn, differ according to size, industry, length of workflows etc.

SeniorERP – for businesses with relatively standard workflows that aim to integrate and manage activities optimally.

SeniorERP is a 100% Romanian system, with flexible licensing, which allows a fast implementation and that offers immediate results. The system incorporates know-how from over 500 implementations, and the newest version has been optimized to support remote working. With a unified structure and intuitive interface, SeniorERP is a user-friendly software that easily adapts to the business needs of the local business environment.

SeniorXRP – pentru afaceri cu fluxuri complexe si diversificate de lucru, integrari multiple si posibilitati nelimitate de dezvoltare.

Flexible, integrated and mobile, SeniorXRP targets specific business processes in companies with multiple business areas and many system integrations. SeniorXRP is a web-based solution developed on a state-of-the-art platform that successfully covers a wide variety of business verticals. The application can be accessed from both a browser and a mobile device. At the same time, SeniorXRP is multilingual and multi-company.