Best ERP Systems for Midsize Companies: A Guide for Mid-Market Businesses

What’s the Best ERP for Mid-Market Businesses?

When you’re purchasing software, you only want the best. Especially when it comes to ERP programs that’ll be managing your company’s finances. Options are basically limitless for enterprise-level entities, and small businesses have countless options that proudly label themselves as small business friendly. But what is the best ERP software for mid-market businesses? Medium-sized businesses require specialized ERP systems that cater to their specific operational needs and scale.

In the dynamic landscape of business operations, mid-market companies are uniquely poised: they have a good amount of experience and resources under their belt, and they still have a plethora of opportunities to grow. As they grow and expand, the need for streamlined processes and efficient management becomes paramount. This is where Enterprise Resource Planning (ERP) software comes into play. ERP systems integrate various aspects of business operations, from finance and HR to supply chain and customer management, into a unified platform. These systems facilitate business growth by providing insights for market expansion and ensuring that operations can grow in line with business objectives, thereby enhancing overall market share and efficiency. However, selecting the right ERP software for mid-market companies requires careful consideration of their unique needs and constraints.

The ERP Systems Landscape: Challenges and Opportunities

Mid-market companies, typically defined by their annual revenues ranging from $50 million to $1 billion, often find themselves in a position where they’ve outgrown their existing software systems but aren’t ready to adopt the robust (and expensive) solutions tailored for large enterprises. These companies require ERP systems that offer a balance between functionality, scalability, and cost-effectiveness.

ERP systems enhance the understanding of overall business performance for mid-market companies, fostering interdivisional communication and providing insights that drive better decision-making. However, this middle ground can sometimes be difficult to find. Mid-market companies often have limited staff, resources, and budget to manage a full-scale ERP implementation. Additionally, the ever-changing nature of business operations requires an ERP system that is agile enough to adapt quickly and proactively to market shifts.

Key Considerations for Choosing The Best ERP Software for Mid-market Businesses

1. Functionality and Customization: Mid-market companies have diverse operational needs, so the chosen ERP system should offer a range of functionalities, from financial management and inventory control to manufacturing, CRM, and business intelligence tools for enhancing reporting efficiency and data analysis. Additionally, the software should allow for customization to adapt to the company’s specific processes. Customer relationship management is a crucial component for improving customer experience and streamlining business functions, while effective inventory management is essential for streamlining operations and increasing efficiency.
2. Scalability: As mid-market companies aspire to grow, the ERP system must be able to accommodate increasing data volumes and users without significant disruptions. A scalable solution prevents the need for costly migrations down the line.
3. Ease of Integration: Seamless integration with existing software systems is crucial to minimize disruption during the implementation phase. Look for ERP solutions that offer APIs and connectors to facilitate integration with commonly used tools.
4. User-Friendly Interface: ERP systems are only effective if they’re adopted by the workforce. An intuitive and user-friendly interface is vital to ensure that employees can efficiently navigate the system without extensive training.
5. Cloud vs. On-Premises: Cloud-based ERP systems are becoming increasingly popular due to their flexibility and reduced infrastructure costs. However, some mid-market companies might still prefer on-premises solutions for data security or compliance reasons.
6. Cost Considerations: Mid-market companies need to balance the benefits of ERP implementation with the associated costs. The total cost of ownership, including software licensing, implementation, maintenance, and training, should be thoroughly evaluated.
7. Vendor Reputation and Support: Choose ERP vendors with a track record of successful mid-market implementations. Adequate customer support and post-implementation services are crucial for ongoing system maintenance and issue resolution.

Best ERP Options for Mid-market Businesses

1. Sage Intacct: One of the strongest and most versatile ERP solutions on the market today, Sage Intacct offers automation tools designed to take the headaches out of financial work. Configure workflows, screens, and preferences—without the costly coding or scripting associated with other programs. This cloud-based ERP is great for keeping your business agile and on the move.
2. Microsoft Dynamics 365 Business Central: With its user-friendly interface and deep integration with Microsoft’s suite of products, Business Central is a popular choice for mid-market companies. It offers finance, sales, and customer service capabilities, along with customization options.
3. NetSuite: Acquired by Oracle, NetSuite provides a cloud-based ERP system that covers a wide range of business functions, including supply chain management. It’s known for its scalability and flexibility, making it suitable for mid-market companies aiming for growth.
4. Sage 100** & Sage 300:** These two solutions are an excellent fit for those looking for an on-premise solution. One of them is likely to have what you need, whether it is customizable UI, integrated workflows, mobile access, or asset inventory tracking, Sage 100 or 300 likely has something of value for your team.
5. Acumatica ERP: Complete with easy integrations, top shelf efficiency, and endlessly customizable, Acumatica is a true cloud ERP tool. Easy access from any device means that your team is never far from the data they need for the important decisions.

Choosing the best ERP software for mid-market companies involves a thorough assessment of their operational needs, growth plans, and budget constraints. The software must strike a balance between comprehensive functionality and scalability while offering ease of integration and user adoption. ERP solutions like Sage Intacct, Microsoft Dynamics 365 Business Central, NetSuite, Sage 100/300, and Acumatica ERP have gained traction in the mid-market segment due to their ability to meet these criteria. Ultimately, the right choice depends on a company’s unique requirements and long-term vision.

Need more information about ERP systems? We have you covered! Our team of ERP experts has diligently pooled their collective resources to create several in-depth, comprehensive comparison guides. Read about the pros, cons, and best usages for individual systems:

• Sage 100 vs. Sage Intacct
• Sage 300 vs. Sage Intacct
• NetSuite vs. Sage Intacct
• Sage Intacct vs. QuickBooks Online
• Sage Intacct vs. Acumatica