ERP functions: how to choose the right system for you

“A good ERP system is like a company’s control room. It doesn’t just store data, it shows where everything is on schedule and where there are delays,” comments Yevhen Kasyanenko, an expert at KISS Software.

Today, we will examine which ERP system features are truly important, how off-the-shelf solutions differ from customized ones, and how to make the right choice.

What is an ERP system and why does a business need it?

ERP is a platform that collects data from different departments into a single cloud and helps manage resources at the company level, rather than in separate spreadsheets.

What tasks does ERP cover?

Each department has its own weaknesses, but the core ERP functions are as follows:

• Finance. Accounting, payments, treasury, tax reporting.
• Warehouse and logistics. Stock levels, routes, delivery times.
• Procurement. Requests, tenders, contracts with suppliers.
• Sales and CRM. Funnel, invoices, demand forecasting.
• HR. Personnel records, salaries, shift schedules.
• BI analytics. Dashboards, reports, forecasting models.

“A single system means fewer manual errors and less information loss at departmental interfaces. I remember that after ERP was implemented at a furniture factory, order confirmation time was reduced from five days to three. And the client’s retail chain reduced its frozen warehouse volume by 30% thanks to more accurate procurement planning,” recalls Yevhen Kasyanenko.

Why is it important for businesses to implement ERP?

ERP is not just a program for work, but a basic mechanism that keeps all key company processes in one control panel. Below, we will talk more specifically about what its competent implementation gives:

• Less manual routine – more time for development. Purchases are automatically checked against balances, invoices are generated in a couple of clicks, and salaries are calculated without night marathons in Excel. The team directs the freed-up resources to finding customers and improving service.
• Transparency of finances and inventory. Managers can see where money is being wasted, and logisticians can see when it’s time to restock the warehouse. Most often, companies see the effects within a few months of launching ERP.
• Reduced costs amid growing orders. Optimization of inventory, automatic analysis of actual demand, and more optimal calculation of storage costs.
• Quick response to market changes. When all data is collected in one system, it is easy to calculate new prices, launch promotions, or redirect resources to areas of demand. Decisions are made based on facts.
• A foundation for scaling. If you open an office in another region, you can add it to your current ERP without costly restructuring. The system grows with the business rather than hindering it.

“ERP is a strategic lever. By launching a unified accounting system, a company can scale faster and worry less about chaos in the numbers,” our expert emphasizes.

Key functions of ERP systems

ERP is like a construction set: it is important to select only the modules you need. A well-designed system is tailored to business tasks, for example

• If it is important for a company to keep track of money, we connect the financial block: budgets, payments, reconciliations.
• Production control is needed – we add an MES module that shows the status of each order, where the bottlenecks are, and how much is actually being produced.

No unnecessary complexity, just what helps you work faster and more accurately. We will discuss this in more detail below.

Basic ERP modules and their tasks

Below, our team has compiled a list of the minimum ERP requirements for most businesses:

• CRM. Customer base, transactions, contact history—increases the likelihood of repeat purchases.
• HRM. Staff schedule, vacations, payroll calculation—without Excel chaos.
• Financial block. Payment calendar, budgets, tax planning.
• Warehouse/logistics. Reduces surpluses, warns of shortages.
• Production (MRP/MES). Shift planning, machine utilization, cost control.
• BI analytics. Generates reports on the fly: from P&L to equipment OEE.

Modules can be connected in stages. For example, we start with finance and warehousing, and a year later we add manufacturing and analytics, but not the other way around.

Types of ERP: off-the-shelf solutions vs. custom developments

“There are dozens of ERP systems on the market today: from global giants like SAP, Oracle NetSuite, and Microsoft Dynamics to flexible solutions like Odoo or local developments. But the key question remains: should you choose a ready-made off-the-shelf solution or build a system tailored to your needs? It all depends on the scale, processes, and speed at which the business wants to change,” notes Yevhen Kasyanenko.

Since ERP systems are suitable for different business scales, it is important to consider this when choosing an approach:

• Ready-made boxed solutions are more often chosen by small and medium-sized companies that need to get started quickly, without complex modifications.
• Custom ERP is the choice of large enterprises, holding companies, and manufacturing companies with unique processes, a branch structure, and high integration requirements.

Next, we will examine the nuances of the two approaches—off-the-shelf solutions and custom development—to make it easier to make an informed decision.

Ready-made ERP systems – pros and cons

When companies come to us with requests that need to be fulfilled immediately, such as urgently closing a warehouse or putting their finances in order, we start with off-the-shelf solutions. These are ready-made standard ERP packages that can be quickly deployed according to the instructions and immediately include a basic set of modules: finance, warehouse, and procurement. They provide the necessary quick start without lengthy approvals and customizations.

What exactly makes boxed ERP systems attractive:

• Launch in a couple of sprints. With a well-prepared team and uncomplicated integration, the actual transition can take 4-12 weeks instead of months of development from scratch. But it all depends on the scale. For example, for a medium-sized business with multiple integrations, even an out-of-the-box solution can take 3-6 months.
• Guaranteed updates. The vendor takes care of legal and tax changes, so accountants can rest easy.
• 24/7 support. No need to maintain an expensive team of developers. The vendor handles any incidents.

Where surprises await:

• As soon as you want to add a custom report or change the logic of the warehouse reserve, you will be charged for consulting hours.
• Vendor lock-in. It is difficult to switch to other software, data is stored in closed formats, and the license is returned along with the server.
• You often pay for features that your company will not need even in five years.

Custom ERP development—when is it profitable?

For projects with unique processes—for example, manufacturers with mixed assembly types or holding companies with a dozen subsidiaries of different formats—we immediately go into custom development.

Where customization shows a high level:

• 100% match with business logic. The system is built around your regulations, not the other way around.
• Seamless integration. We pull data from existing CRM, WMS, and BI platforms via API, combining everything into a single dashboard.
• Savings over a 3-5 year horizon. You pay for development once, not for each new workstation or module.

When a custom ERP is not suitable:

• You need to “launch tomorrow.” The minimum MVP will take 3-4 months.
• Your budget is limited. The initial cost is higher than that of a boxed solution.
• You don’t have an IT team. Even with outsourcing, you need an internal product owner who knows the processes.

“Custom ERP is more expensive at the start, but everything inside is tailored precisely to your processes—the system works without unnecessary detours and downtime,” emphasizes Yevhen Kasyanenko.

How to choose an ERP system: key criteria

The system should help the business, not create another front of work.

Below are five questions that we at KISS Software ask our clients at the very beginning of a project. The answers to these questions almost always reveal which platform will work without any modifications and which will require additional investment.

Defining business needs

Before demo sessions and commercial proposals, we compile a mini-brief:

• Which processes are most important to resolve quickly?
• How many teams will be working in the system on a daily basis?
• What reports does management want to see with a single click?
• Which data is growing faster than others (orders, finance, HR)?

A written list of tasks is the best filter. It weeds out solutions with unnecessary modules and immediately shows what will need to be customized.

Ease of use and speed of implementation

Even advanced functionality is meaningless if employees are afraid to open the system. Therefore:

• A test drive is a must—30 minutes is enough to understand the logic of the screens.
• Turnkey implementation should fit into a realistic schedule: 2-4 months for a standard box, up to a year for a custom one.
• The fewer clicks it takes to perform a key operation, the cheaper it is to train staff.

“If a manager has to go through five screens to write an invoice, the loss of human time will eat up any savings on the license,” emphasizes our specialist.

Scalability and expansion capabilities

ERP should grow with the business, without major overhauls. A reliable sign of a flexible system is that it is easy to scale:

• new users can be added in a couple of seconds, without complex migrations;
• modules are connected as plugins, without rewriting the core;
• the configuration is stored in the settings, not in the code, which means that a business analyst can change the rules themselves, without the involvement of a programmer.

This way, the system does not slow down growth, but helps it.

Integration with existing programs

ERP system functions rarely work alone. Therefore, we immediately clarify:

• whether there are ready-made connectors to your CRM, accounting, and warehouse system;
• how REST / GraphQL API works—useful for future services;
• whether a data bus is possible if the company has dozens of applications.

The broader the standard set of integrations, the less budget will be spent on custom settings.

ERP cost: hidden expenses that are often overlooked

The license price is just the tip of the iceberg. The calculation includes:

• The more complex the role model, the higher the training estimate.
• Support. 24/7 SLA is usually paid separately.
• Future modules: you will have to pay extra for each new feature – check the price list in advance.

“At KISS, we always prepare a summary TCO table for three to five years ahead. Such a forecast helps the client choose not the cheapest, but the most profitable platform,” notes Yevhen Kasyanenko.

Mistakes when choosing ERP and how to avoid them

An ERP project can propel a company forward for years or bog it down in endless refinements. Below are five mistakes that we at KISS Software encounter most often during audits—and our way of neutralizing them before signing a contract.

Unclear requirements

Very often, customers buy a big-name vendor but don’t check their own list of tasks. As a result, half of the modules sit idle, and the system doesn’t generate the necessary reports.

How we do it:

• We start with express process mapping—two or three interviews and screenshots of key operations.
• We compile a checklist of must-have functions and cut out everything unnecessary.

“Clear technical specifications at the start save up to 30% of the implementation budget,” comments the expert.

Too complex a system

If the interface is overloaded, then ERP becomes a problem rather than a solution. For example, to make a payment, an accountant has to click ten times and search for the right button in three different menus. As a result, people return to Excel because it is faster and easier to understand.

In such cases, we do the following:

• We ask the vendor to provide live demo access and sit down with future users at the same table.
• We measure the time for a typical operation. If it takes longer than before, we refuse or demand improvements.

Lack of staff training

Sometimes the system is deployed, but the team does not know where to look for reports and how to close the month. Productivity drops, and distrust of the project grows.

We do the following:

• In parallel with the configuration, we write concise regulations and record screen casts.
• We appoint an internal superuser who collects questions and forwards them to us so as not to slow down the work.

So, convenience is by no means a trifle, but a matter of efficiency and acceptance of the system within the team.

Ignoring technical support

It often happens that during peak season, the server goes down and the response time of technical support is two business days. As a result, operations are halted and customers are angry.

We solve the problem this way:

• We clarify the SLA at the tender stage, including response time, communication channel, and backup team.
• We test the service in practice. We create a test ticket and see how quickly it is resolved.

Focusing only on price

Our customers often make the mistake of choosing the lowest price and then buying additional modules, integrations, and user spaces, resulting in a final cost that exceeds that of a more expensive solution.

This is what we do:

• We calculate the TCO for three to five years. This includes licenses, implementation, training, and upgrades.
• We show the customer two or three financial models that show the real price tag, not just the initial cost.

“Those who plan are not afraid of mistakes. Describe the processes, test the interface, set aside money for support, and 80% of the risks are eliminated. At KISS Software, we run projects this way, so customers get a working ERP, not an endless construction project. If you want a system that will help, not hinder, come and discuss your tasks with us!” says Yevhen Kasyanenko.

What ERP offers – in scale and in practice

Strategic effects of ERP:

• ERP becomes the basis for scaling – opening branches, launching new directions, and growing becomes easier.
• All processes are brought together into a single system: financial, warehouse, production, HR, and CRM functions work as a single mechanism.
• Managers gain real-time control – company-wide metrics are visible in a single window in real time.

Operational benefits:

• Invoices are generated in a couple of clicks – no more Excel marathons.
• Employees see only the necessary fields and actions; the interface is not overloaded.
• Integrations with telephony, the website, accounting, and the BI panel eliminate manual labor and reduce the likelihood of errors.

“ERP should help both management and each user. One wants to see the plan-fact, the other just wants to quickly write out an invoice. A good system can do both,” emphasizes Yevhen Kasyanenko.

What prevents successful ERP implementation: pitfalls

Even with the right choice of platform, ERP implementation can face real difficulties. Here’s what we at KISS Software have encountered most often:

• Employee resistance. A new system means a new order, and not everyone is ready to change their usual way of working. Without the involvement of the team, even the best ERP will remain “foreign.”
• Data transfer. Old CRMs, Excel spreadsheets, and internal databases often store information in a fragmented way. If migration is not planned in advance, data loss or errors are almost guaranteed.
• Process review. ERP implementation is not just “digitization,” but a chance to reorganize outdated or duplicated processes. But this requires effort and openness to change.
• Hidden costs. Support, training new employees, updating modules, and integration. All of this should be taken into account in the budget before the project starts.

So, for ERP to really help, you need to rethink your mindset and processes and get your team involved. Otherwise, you’ll end up with a pretty shell without any results.

Why is it important to turn to professionals?

Implementing a resource accounting system is not just about installing software. You need to break down your business processes into their constituent parts, convert them into digital form, synchronize them with existing services, and keep your operations running without interruption. Any miscalculation, and instead of growth, you will end up with unnecessary expenses, missed deadlines, and a demotivated team.

What you get when you work with KISS Software:

• We start with an express audit, look at the order path from request to shipment, and identify bottlenecks. You receive a process map and a list of priorities—at this stage, it is already clear what really needs to be automated and what can be left “as is.”
• There is a task—there is a module. We don’t impose unnecessary functionality that you will then have to pay for and maintain. If the standards are not sufficient, we design a custom block for your specific needs.
• We connect your ERP with your CRM, warehouse systems, accounting, and BI panel through ready-made connectors or APIs. Everything works as a single mechanism, and data is not lost in transitions.
• We record step-by-step videos, conduct live workshops, and assign a coach within your company. Employee questions are answered not in a chat with friends, but directly with a KISS support specialist.

“A good implementation is when management sees savings and users say that things have finally become easier,” comments our specialist.

Conclusions

ERP system functions cover CRM, finance, warehousing, manufacturing, HR, and analytics. The right platform:

• reduces operating costs;
• speeds up order fulfillment;
• gives managers a real-time picture of the business 24/7.

A ready-made solution will be good for fast, typical processes, while a custom solution will be good for unique and fast-growing businesses. The main thing is to choose a system for the task, not the other way around.