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ERP vs POS: Which is best for your business?

Whether it’s POS or ERP, business owners always need a dedicated system that can smoothly manage their business operations. But, it depends on the business requirement which system type is best for retailers. Some retailers seek solutions only to manage in-store activities, but some businesses need a more complex and powerful platform to manage different aspects of their operations more deeply. Point of sales (POS) & Enterprise resource planning (ERP) are two different systems that are being widely used in many businesses. In comparison, between ERP Vs POS, retailers must understand the difference between both systems and their usages in different business scenarios.

Most organizations use ERP systems to manage their day-to-day operations such as accounting, project management & compliance. On the other hand, the POS system is widely used by the retailer to record all the sale transactions executed in their business.


POS and ERP’s difference is significant as they target different markets while offering similar features. The online POS system is designed to handle retail operations where the retailers sell products directly to customers who are visiting the physical store or using a business e-commerce website. The system is also beneficial for B2B businesses and helping retailers who are working as a distribution company.

ERP software has all the management modules with the required features to handle all the business operations on a large scale. The concept of ERP system is to replace all business software packages and manage enterprise data from a single database, including orders from various channels.

In this blog, we will compare ERP vs POS in different industries so that readers can decide which system is most suitable for their business.

Use in Different Industries

Retail Industry

Retail is one of the fastest-growing industry sectors around the globe. Due to the increase of competition in this sector, businesses are now facing challenges in managing their operation. For this purpose, they’re switching to modern solutions like POS applications and ERP systems, which help them to become more organized and ultimately result in boosting sales.

POS applications are now coming with many essential features which are crucial for the retailers to manage business operations like inventory management, customer relationship management, analytical reporting, and more, which were missing in the traditional POS system.

Using the online POS application, retailers can easily access their business data anywhere globally by using the basic internet. The retailer can easily track and manage their inventory between multiple warehouses and stores. Many online POS applications like CISePOS are available for the retailer, offering various features other than only recording sales transactions.

On the other hand, the ERP system offers almost the same options provided in the modernized POS application; however, some ERP modules offer extra features to handle complex challenges that big organizations have to face in their operation. ERP system also provides an employee management system to handle the organization’s HR operations.

The system is handy for the stakeholders because it will help them assign new tasks to the employees, track the job assigned to the employees, and monitor their performances, which is challenging to manage without a dedicated system where there are many employees.

Auto Industry

The automotive industry is divided into two parts which are retail and production. Both business requirements are different, and ERP or POS implantation requires thorough research according to needs.

A cloud-based POS solution, like CISePOS, is the best system for business owners handling the retail section of the automotive industry. Using the POS solution, retailers can smartly manage inventory of auto parts that are in huge quantities. They will have quick access to reports which will help them in taking an immediate business decision. The retailer can run a more effective targeted marketing campaign based on the data generated by the CRM module of the POS application.

ERP implementation in the Auto industry sector is also beneficial and very important when it comes to handling the challenges companies have to face. Using the ERP system in the auto industry will help businesses in studying the latest trends, streamlining important functions like procurement, human resource, sales, and more.

Pharmaceutical Industry

The challenges of the pharmaceutical industry are very different as compared to other sectors. The production side of medicines is a very lengthy process that includes purchasing raw material, distribution, marketing, quality control, inventory management and many more, which requires a robust system for tackling it. ERP software in the medicine production line can be beneficial because it is designed to manage all the processes.

On the retail side, the business owner has to deal with many customers who are purchasing medicines. Most of the time, retail outlets are crowded with customers and handling them without an automated system for sales transactions, and inventory management can become very challenging. A cloud-based POS system like CISePOS can be beneficial for retailers who are dealing with medicine sales. Using the CISePOS, retailers can easily manage medicine inventories, keep track of the stock near expiry, create targeted marketing for loyal customers and more.


If we closely analyze both the ERP system and the POS system, we will find many similarities in features, but their usage depends on different business requirements. It is mandatory to conduct proper research before selecting any system because they are both sizable investments. Without adequate utilization of the software, a business owner can’t achieve efficiency in their operations.