The Top SaaS (Software as a Service) ERP Systems

Enterprise Resource Planning (ERP) systems have long been the foundation of managing large organizations. They integrate various functions, such as finance, human resources, supply chain management, and operations, under one platform to streamline processes and information across the organization.

The shift towards cloud computing has given rise to Software as a Service (SaaS) delivery models for ERP. SaaS ERP solutions offer a more flexible, scalable, and cost-effective alternative to traditional on-premises systems.

What Is SaaS Enterprise Resource Planning?

SaaS ERP is a subset of cloud services that provides organizations access to ERP software over the Internet. In this model, the ERP provider centrally hosts the ERP software and its associated data.

Businesses can access this service on a subscription basis, typically including the software license, support, and other related services.

Why Choose SaaS ERP?

SaaS eliminates the need for substantial upfront capital investment and complex hardware setups, providing access through the Internet to manage business operations.

The adoption of SaaS ERP systems has accelerated across various industries due to their ability to adapt quickly to changing business needs. The provider continuously updates these systems to offer the latest features and security enhancements, ensuring companies operate with the most current technologies.

Additionally, SaaS ERPs can be accessed from anywhere, facilitating remote work and global collaboration. The subscription-based pricing model also allows businesses to pay for only what they use, adjusting their usage as business needs change.

Data security and regulatory compliance remain top priorities for SaaS ERP providers. To protect sensitive information, they employ robust security measures, including data encryption and identity management.

Regular updates ensure the systems comply with the latest regulations and standards, reducing businesses’ compliance burden.

At Top10ERP, we continue to see increasing demand for SaaS ERP systems among businesses. We’ve observed this trend through the requests we receive from companies looking for their first ERP system or wanting to upgrade their existing legacy systems that no longer serve their business needs.

Key Benefits of SaaS ERP

SaaS ERP offers numerous advantages that transform how businesses manage their resources and operations. Key benefits of SaaS ERP include:

1. Cloud-Based Delivery: SaaS ERP is delivered via the cloud, meaning the software and associated data are hosted on remote servers managed by the ERP provider. Users access the system through web browsers, eliminating the need for on-premise software installation and hardware management.
2. Subscription-Based Pricing: Instead of paying a high upfront cost for perpetual licenses, SaaS ERP typically follows a subscription model. Companies pay a recurring fee, usually monthly or annually, based on the number of users or usage level. This model offers more flexibility and lower initial costs than traditional on-premise ERP.
3. Scalability and Flexibility: SaaS ERP solutions are highly scalable, allowing businesses to easily add or remove users, modules, or features as their needs change. This flexibility enables companies to adapt quickly to growth, seasonal fluctuations, or changing business requirements without requiring extensive IT infrastructure changes.
4. Automatic Updates and Maintenance: With SaaS ERP, the service provider maintains the software, including regular updates, patches, and security enhancements. This relieves businesses of the burden of managing software updates and ensures they always have access to the latest features and improvements.
5. Accessibility and Mobility: As SaaS ERP is cloud-based, users can access the system from anywhere with an internet connection, using various devices such as laptops, tablets, or smartphones. This enables remote work, real-time data access, and improved collaboration among team members, regardless of location.
6. Data Security and Backup: SaaS ERP providers typically invest heavily in data security measures, such as encryption, multi-factor authentication, and regular data backups. They often adhere to strict security standards and comply with industry-specific regulations, providing more data protection than many on-premise solutions.
7. Integration Capabilities: Modern SaaS ERP systems are designed to integrate seamlessly with other cloud-based applications, such as CRM (Customer Relationship Management), e‑commerce platforms, or business intelligence tools. This allows for streamlined data flow and enables businesses to create a connected ecosystem of applications tailored to their specific needs.
8. Faster Implementation: Compared to on-premise ERP, SaaS ERP often has shorter implementation times. As the software is already installed and configured on the provider’s servers, businesses can avoid lengthy installation processes and hardware procurement, allowing for quicker deployment and faster time-to-value.

Cloud ERP vs. SaaS ERP: Are they the same?

Cloud ERP software and SaaS ERP software are often considered synonymous, but they define different aspects of ERP software.

Understanding these distinctions can guide businesses to make informed decisions that align with their specific requirements.

Cloud ERP represents ERP systems that operate on remote servers and are accessible online. This model hints at the software being off-premises and offers the flexibility of online access.

Conversely, SaaS ERP signifies a usage model where organizations access applications on a subscription basis, managed by an external provider.

The critical difference lies in the licensing and delivery mechanisms. While Cloud ERP focuses on where the software is hosted, SaaS ERP emphasizes how the software is accessed and paid for, usually through recurring subscriptions.

Most solutions offered today fall under the SaaS ERP model due to its growing popularity, which has led to the common interchangeability of these terms.

Nevertheless, it’s essential to recognize that while all SaaS ERP solutions are inherently cloud-based, the reverse is not always true; some cloud ERPs might not adhere to the SaaS subscription model.

By appreciating the nuances between the two concepts, businesses can ensure they select the appropriate system to meet their operational needs.

SaaS ERP vs. On-premises ERP: A Brief Comparison

When considering an ERP solution, businesses must choose between a SaaS (Software as a Service) model and a traditional on-premises system. Consider these factors:

Benefits of SaaS ERP:

1. Cost Efficiency: SaaS ERP offers a subscription-based model that reduces initial capital expenditure and shifts costs to predictable operational expenses.
2. Reduced IT Overhead: The provider handles maintenance, updates, and support, reducing the need for extensive in-house IT resources.
3. Scalability: Businesses can easily scale their SaaS ERP usage up or down, accommodating growth or changing needs without significant investment.
4. Flexibility: SaaS ERP can be accessed from anywhere with an internet connection, offering operational agility and support for remote work.

Potential Drawbacks of SaaS ERP:

1. Internet Reliance: Constant internet access is required, and connectivity issues can disrupt system use.
2. Customization Limits: SaaS ERPs may offer fewer customization options than on-premises systems, potentially not meeting the specific needs of some businesses. But beware of the hidden cost of customizing on-premises systems incorrectly.
3. Security and Compliance: Data hosted offsite may raise security and regulatory compliance concerns, depending on the provider and industry.
4. Long-term Costs: Over time, subscription fees can add up and, in some cases, may surpass the investment required for an on-premises system.

Each business must weigh these factors based on its unique requirements, considering the immediate and long-term implications of choosing a SaaS or on-premises ERP solution.

Our Top SaaS ERP System Recommendations

Looking for the best SaaS ERP system to manage your business processes? 

Look no further than our top picks based on years of experience connecting clients with the ideal systems for their business needs. 

These top SaaS performers are known for their robust features and scalability, making them ideal for many businesses. Without further ado, here are our top SaaS ERP system recommendations.

SaaS ERP for Manufacturers

Manufacturers and distributors can benefit from specialized SaaS options like Epicor, Cetec, and Acumatica that provide tailored software solutions for essential business functions.

SaaS ERP Cost Considerations

When considering implementing a SaaS ERP system, businesses must consider the various expenses associated with a subscription-based model. 

Here’s a streamlined overview of the primary expenses associated with SaaS ERP:

• Subscription Fees: Charged regularly (monthly or annually), these fees can vary based on the number of users, selected features, and service levels.
• Per-User Licensing: Costs are often calculated per-user basis, providing flexibility to scale with organizational changes.
• Tiered Pricing: SaaS ERP providers may offer a range of packages, each with a different set of features and services to match various business needs.
• Implementation Costs: Although generally lower than on-premises solutions, SaaS ERP implementation may still include charges for data migration, system customization, initial setup, and training.
• Operational Expenses: Running costs can include extra data storage needs and premium customer support options.
• Upgrade Fees: While many SaaS ERP providers include updates within the subscription, some may charge for major upgrades or new feature releases.
• Data Management and Security: Ensuring robust data security and regulatory compliance might be included in the subscription or could incur additional costs.

Understanding this cost structure is essential for businesses to budget accurately and consider the long-term financial impact of integrating a SaaS ERP into their operations.

Key Modules and Features of SaaS ERP for Manufacturing

SaaS ERP systems offer essential modules tailored to the unique needs of manufacturing businesses:

• Production Management: Production planning, shop floor control, BOM management, and quality control.
• Inventory Management: Raw material and finished goods tracking inventory optimization and warehouse management.
• Supply Chain Management: Procurement, supplier management, demand planning, and distribution.
• Financial Management: General ledger, accounts receivable/payable, cost accounting, and financial reporting.
• Sales and Order Management: Quotation processing, sales forecasting, order tracking, and pricing management.
• Quality Management: Inspection, corrective actions, compliance, and supplier quality management.

Today, Enterprise Resource Planning systems have become essential tools for manufacturing businesses’ operations. These systems must have all the necessary features integrated into a single and cohesive structure, enabling companies to efficiently carry out all aspects of their operations.

SaaS ERP Implementation and Integration

A successful SaaS ERP implementation requires careful planning and a strategic approach. Organizations must choose between two main deployment strategies:

1. Phased Rollout: Gradual, staged implementation that reduces risks and allows for learning and refinement between phases.
2. “Big Bang” Approach: Immediate, comprehensive transition offering faster deployment but with higher risk.

Seamless integration with existing systems is equally important. This involves developing a detailed integration plan that maps out data flows and identifies integration points. Leveraging vendor-provided tools like pre-built connectors, APIs, and customizable solutions can streamline the integration process.

To maximize the chances of success, organizations should adhere to several best practices:

• Set clear goals and objectives
• Involve key stakeholders and end-users
• Conduct thorough data cleaning and migration
• Provide comprehensive training and support
• Monitor progress regularly

By considering deployment strategies, planning for integration, and following best practices, organizations can navigate the complexities of implementing and integrating a SaaS ERP system. With the right approach, businesses can achieve a smooth transition, seamlessly integrating with existing infrastructure and maximizing benefits while minimizing disruption.

Our ERP implementation checklist is also a handy resource for this process.

Ensuring Security and Compliance in SaaS ERP

Security and compliance are paramount in SaaS ERP systems to protect sensitive data and adhere to regulations. Key aspects include:

Data Security in the Cloud

• Encryption at rest and in transit
• Advanced techniques like end-to-end encryption
• User authentication, often with multi-factor processes
• Role-based access controls (RBAC) for managing data access
• Regular security audits and proactive threat detection

Compliance with Regulations

• Adherence to regulations like GDPR, HIPAA, and PCI DSS
• Regular internal audits and third-party certifications
• Transparency in compliance reporting
• Maintaining detailed logs of data access and system changes

SaaS ERP providers prioritize data security through encryption, authentication, access controls, and threat detection. They ensure compliance with relevant regulations through audits, certifications, and transparent reporting. The system’s data management capabilities facilitate maintaining detailed logs for forensic analysis if needed.

Customization and Upgrades

SaaS ERP systems offer a range of customization options and the convenience of efficiently handling updates and upgrades, aligning with specific business needs and technological advancements.

Customization Options for Specific Needs

SaaS ERP systems provide robust customization options to address different businesses’ unique processes and workflows. Customers can often tailor applications through configuration settings or use APIs and SDKs to create deeper customizations. Here’s a brief overview of customization capabilities:

• User Interface (UI) Personalization: To streamline operations, users can adjust layouts, fields, and functions.
• Modular Add-ons: Businesses can enhance functionality by adding modules specific to their industry.
• Integration with Other Systems: APIs allow for seamless data exchange between the ERP system and other software.

Managing Updates and Upgrades

Updates and upgrades are critical to maintaining the ERP system’s effectiveness and security. SaaS providers manage these processes to ensure systems stay current without substantial downtime.

• Automatic Upgrades: SaaS ERP solutions often include automatic updates, freeing customers from manual installations.
• Update Notifications: Providers typically inform customers about upcoming updates, detailing the changes and potential impacts.
• Customer Support: If issues arise during updates, prompt customer support is available.

Choosing the Right SaaS ERP Vendor Made Easy

Selecting the perfect SaaS ERP vendor is crucial for seamless integration and long-term success. To make an informed decision, consider the following:

Side-by-Side Comparison Tool: Use our comprehensive side-by-side comparison of top SaaS ERP systems to evaluate the best options available to you.

Evaluate Vendor Offerings Assess ERP vendors based on the following:

1. Functionality that aligns with your business processes
2. Customization options to tailor the system to your needs
3. Scalability to accommodate future growth
4. Robust security measures to protect sensitive data

Vendor Support and Customer Service Look for vendors offering:

1. Accessible support during critical business hours
2. Comprehensive training resources and user communities
3. Timely issue resolution backed by clear SLAs

Request Free Demos and Custom Price Quotes Take advantage of free demos and custom price quotes for all the SaaS ERP systems listed here in our comparison. Experience the solutions firsthand and understand the investment required.

Need Help? Try Our Selection Help Service If you need extra guidance, our Selection Help Service provides expert recommendations based on your unique requirements and goals.

By leveraging these resources and considering key factors, you’ll be well-equipped to choose the ideal SaaS ERP vendor for your organization’s success.

Frequently Asked Questions

This section addresses common inquiries regarding SaaS-based ERP systems, highlighting their benefits, differences from traditional systems, and considerations for implementation.

What are the primary benefits of implementing a SaaS-based ERP system?

SaaS-based ERP systems offer cost savings due to lower upfront expenses, as there’s no need for substantial hardware investments. They ensure streamlined updates and maintenance since the service provider manages these aspects.

How do cloud ERP solutions differ from traditional on-premises ERP systems?

Cloud ERP solutions are hosted on the provider’s servers and accessed online. This eliminates the need for businesses to maintain their own IT infrastructure. In contrast, traditional on-premises systems require significant internal hardware and ongoing maintenance.

What should businesses consider when transitioning from an on-premises to a SaaS ERP model?

Businesses should evaluate their current processes, data migration needs, and employee training requirements. They must also consider the integration capabilities with existing systems and the security measures of the SaaS provider.

Which key supply chain management processes can be optimized using SaaS ERP software?

Inventory management, procurement, and order fulfillment are key supply chain processes that can be optimized with SaaS ERP software. These systems provide real-time visibility and analytics to improve decision-making and efficiency.

In what ways does SaaS ERP provide scalability and flexibility benefits to growing companies?

SaaS ERP systems offer scalability to support business growth. This allows companies to easily add users, functionality, and additional services. They also provide flexibility with a subscription-based model, which can be adjusted as business needs change.