You’ve heard of ERPs and have a general understanding of what they do but aren’t sure how they actually work or if they can contribute to your current business process.
Don’t worry—here we’ll give you an explanation of ERPs, talk about who uses them, and break down how they work. We’ll also demonstrate how companies can benefit from an ERP using real-life examples.
First, let’s quickly run through the basics of an ERP software system.
What Is An ERP?
Enterprise Resource Planning (ERP) software systems are used by companies to oversee, customize and automate time-consuming daily activities of the business operation.
This includes business functions such as:
- Financial management
- Human resources
- Project management
- Warehouse management
- Supply chain management
- Risk management
- Inventory management
ERPs utilize a central database to store information regarding the above processes, offering valuable business intelligence capabilities to help you streamline business processes and reduce costs.
Who Uses ERP Systems?
Any business or organization that wants to benefit from the integration of business processes can benefit from an ERP solution—this includes mid-market and small businesses.
Industries in which ERPs are commonly utilized are healthcare, pharmaceutical, manufacturing, e-commerce, and non-profits/governments.
According to digitalistmag.com, as a business grows in complexity with new products and service offerings, financial functions can quickly become overwhelmed.
Because of this, small and mid-size businesses experiencing these growth complexities should consider an ERP system.
How Does ERP Software Work?
Instead of separate standalone systems, ERPs use one common database, either local or cloud-based, to store business information and a suite of modules to manage each individual process.
An ERP implementation merges various applications, such as accounting software and inventory management, into one system that creates an easier flow of information and can improve data security.
This also reduces time and errors and offers powerful business tracking and forecasting capabilities using real-time data from the different departments.
ERP platforms like Netsuite ERP, SYSPRO, and Epicor allow users to automate workflows and reduce time-consuming daily tasks like data entry or running reports from multiple systems.
ERP systems also work with Material Resource Planning (MRP) products. Netsuite.com defines MRP as a standard production planning system to help businesses understand inventory requirements while balancing SCM (Supply Chain Management).
ERP solutions can also be combined with Customer Relationship Management software (CRM). CRMs manage interactions with customers and potential customers and contain basic information like names and contact details.
While traditionally ERPS have been on-premise, modern cloud-based ERPs and SaaS (Software as a Service) systems like Acumatica remove the need to manage complex hardware.
3 Real-life ERP System examples From
Now let’s take a look at three well-known companies and discuss the ERP vendors they use. We’ll review the name and history of the system and show you examples of what the software actually looks like, to help you choose what’s the best fit for your business.
1. Amazon
Amazon uses an ERP software called Systems Analysis and Program Development (SAP).
SAP was created in Germany in 1972 by five former IBM employees who envisioned a software integration of all business and data processing in real-time.
By 1975, the small company had built applications for:
- Financial accounting
- Invoice verification
- Inventory management
SAP has continued to grow and transform from a small startup company to a global leader in business software, so it’s no surprise Amazon chose this system to help streamline its business processes.
Now SAP business customers can manage their…
- Finances
- Logistical business needs
- Human resources
- Order management
- Sales
...and more through just one database.
SAP S/4Hana Cloud is the most modern version of SAP ERP with built-in AI, machine learning, and advanced analytics.
Here we have an example of a SAP customization:

On the left, a menu allows users to choose which area of business they’d like to view – from marketing to third-party order fulfillment, all aspects of the business are provided
Here’s an example of a SAP ERP with a focus on shipment:

This customized solution provides shipment details, a tracking tool, and the ability to view reports.

The interface above allows the user to choose options on the left panel – these include production metrics, MRP, service, Human Resources, customized reports, and the ability to use an Interactive Analysis.
2. Starbucks
Starbucks uses Oracle ERP – a cloud-based software solution used to automate back-office processes and day-to-day business activities. It’s a business management software suite that includes financial management, supply chain management, project management, accounting, and procurement.
Oracle E-Business Suite provides users applications for customer relationship management (CRM), enterprise resource planning (ERP) and supply chain management (SCM) processes.

The Oracle ERP above shows revenue analyses and includes information you need to know at-a-glance including:
- Revenue
- Expenses
- Sales data
- Inventory management
- Operations updates
Check out this next Oracle example – it demonstrates the way you’re able to have all business needs listed in a Navigator section, allowing users to view all areas of a business on one screen:

3. Toyota
Toyota Industries Corporation is Toyota’s head company. It wanted to expand its reach globally to offer high-quality services like improved operational management accuracy, a paperless system, reduction of work hours, and increase in overall efficiency.
So, Toyota chose Microsoft Dynamics 365 for the job. Dynamics helps manage the after-sales service skills and operations for distributors offering services to their products to customers all over the world.
Here’s an example of a Dynamics Summary page. This section allows the company to view budget information, opportunities for sales, and timelines.

Here’s an example of a Microsoft Dynamics Sales page – notice the ability to create a timeline of events and a customer relationship rating.

Check out our other articles on ERP Systems:
Choosing The Best ERP For You
With multiple options among enterprise resource planning systems, it can be tough to decide which is best for your specific needs.
Companies and technology are always growing and expanding, and new companies coming on board provide competition for the old. For example, Infor, a new ERP solution, appears to have recently surpassed all three ERP giants we discussed above – SAP, Oracle, and Microsoft.
To get the latest, check out our guide to the Best ERP Software on the market today covering functionality, usability and pricing.
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