--- description: Project-Based ERP systems are changing how companies use IT. So what does that actually mean? They have special components to help you complete projects. title: What Is Project-Based ERP? Overview and Features --- # What Is Project-Based ERP? Overview and Features Last Reviewed: March 16, 2026 9 min read [6 comments](https://www.selecthub.com/enterprise-resource-planning/project-based-erp/?noamp=mobile#comments) [ ![Khaleel Hayes](https://www.selecthub.com/wp-content/uploads/2020/07/Khaleel-96x96.jpg) ](https://www.selecthub.com/author/khaleel-hayes/) [Written by Khaleel Hayes](https://www.selecthub.com/author/khaleel-hayes/) Technical Content Writer [ ![Hunter Lowe](https://www.selecthub.com/wp-content/uploads/2023/11/cropped-Hunter-Headshot-96x96.jpg) ](https://www.selecthub.com/author/hunter-lowe/) [Edited by Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) Content Editor Table of Contents * [Overview](#Overview "Overview") * [Project-Based vs. Traditional](#Project-Based%5Fvs%5FTraditional "Project-Based vs. Traditional") * [Primary Benefits](#Primary%5FBenefits "Primary Benefits") * [Thorough Project Accounting](#Thorough%5FProject%5FAccounting "Thorough Project Accounting") * [Flexible Inventory Management](#Flexible%5FInventory%5FManagement "Flexible Inventory Management") * [Improves Resource Management](#Improves%5FResource%5FManagement "Improves Resource Management") * [Sells to Target Customers](#Sells%5Fto%5FTarget%5FCustomers "Sells to Target Customers") * [Offers Project-Based KPIs](#Offers%5FProject-Based%5FKPIs "Offers Project-Based KPIs") * [Key Features](#Key%5FFeatures "Key Features") * [Project-Based Accounting](#Project-Based%5FAccounting "Project-Based Accounting") * [Human Resource Management (HRM)](#Human%5FResource%5FManagement%5FHRM "Human Resource Management (HRM)") * [Supply Chain Management (SCM)](#Supply%5FChain%5FManagement%5FSCM "Supply Chain Management (SCM)") * [Customer Relationship Management (CRM)](#Customer%5FRelationship%5FManagement%5FCRM "Customer Relationship Management (CRM)") * [Project Management](#Project%5FManagement "Project Management") * [Last Words](#Last%5FWords "Last Words") Software experts continually ask, “Is ERP dead?” But frankly, this question isn’t beneficial. As the disruption cycle shortens, [ERP software](https://www.selecthub.com/c/erp-software/) vendors frequently add features and functionality tailored to their customers. For example, a traditional ERP may not suit project and resource managers. Instead, they could look toward project-based ERP, aka ERP project software. [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ![Project Based ERP Guide]() This article will define project-based ERP and examine its top benefits and features. ## Overview Project-based ERP is an enterprise software type that utilizes project management features. It supplies a holistic view of company processes, unlike a traditional ERP. This solution suits [construction](https://www.selecthub.com/c/construction-management-software/) companies, project-based manufacturers, service-based organizations and more. ## Project-Based vs. Traditional Traditional ERP systems have a taste-of-everything appeal with [functionalities](https://www.selecthub.com/enterprise-resource-planning/key-erp-functional-requirements/) for [manufacturing](https://www.selecthub.com/c/manufacturing-software/), [accounting](https://www.selecthub.com/c/accounting-software/), [customer relationship management (CRM)](https://www.selecthub.com/c/crm-software/), [inventory management](https://www.selecthub.com/c/inventory-management-software/), etc. Project-based ERP software focuses on project and resource management workflows. Traditional systems are great options for manufacturing businesses with simple practices. They offer the tools necessary to manage straightforward production and overall finances. However, organizations with many departments and other moving parts need comprehensive analysis to remain highly competitive, which a traditional ERP can’t provide. In fact, before the rise of ERP-based projects, many businesses compiled reports without ERPs. They leveraged spreadsheets or other disparate systems to keep records of past milestones and timelines, order fulfillment strategies and other complex planning tasks. Project-based ERP centralizes these tasks for increased productivity and less stress. Additionally, project based ERP can collect and analyze data on all project-based processes. This analysis enables users to track metrics surrounding labor costs, customer retention and inventory turnover. Greater KPI visibility improves a project-based firm’s ability to plan projects, assess progress and collaborate. Current ERP vendors offer individual modules dedicated to specific operation aspects. This method allows buyers to configure their ERP software to their needs instead of buying an inflexible, centralized system. Modular ERP systems enable companies to get as much insight into their operations as possible. In other words, companies can configure a system to focus solely on manufacturing, or they could adopt several unique applications for an inclusive system. ERP modules make the distinction between project-based and traditional ERP systems slightly less significant. [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ## Primary Benefits This platform comes with several benefits to streamline workflows and ensure you’re meeting your project expectations. ![Project Based ERP Benefits]() ### Thorough Project Accounting Instead of looking at a company’s overall financial standing, you can leverage project accounting tools to ensure your projects are on budget with thorough reporting and forecasting. You can also check your numbers and determine if the project is worth your time and money or if you need to cut your losses and find a new venture. ### Flexible Inventory Management Whether you’re looking for specific raw materials or need to replenish items, the ideal inventory management tools can help. Some handy functional [requirements](https://www.selecthub.com/inventory-management/inventory-management-software-top-features-requirements/) include: * Shipping * Purchasing * Demand Forecasting * Inventory Tracking * And more! ### Improves Resource Management Knowing which resources to use for specific projects is paramount in ERP projects and the entire project management industry. Ideal [resource management](https://www.wrike.com/blog/what-is-resource-management/) tools help resource managers determine which employees, machinery, tools, materials and other assets are vital to best complete specific projects and garner the best results. Think of resource management as sports coaches knowing each player’s strengths and when to put them in the game to increase their chances of winning. ### Sells to Target Customers Thanks to the ideal CRM tools, you can ensure specific projects and services appeal to the perfect clients. You can review client feedback and collaborate with customers to ensure their products and services are up to par. Some necessary [CRM features](https://www.selecthub.com/customer-relationship-management/crm-requirements-checklist-and-downloadable-template/) include: * Database Management * Client Interaction Tracking * Mobile Support * Knowledge Management * Sales Automation ### Offers Project-Based KPIs Measuring KPIs, especially those regarding business and project health, are essential. You could invest in good [business intelligence (BI) software](https://www.selecthub.com/c/business-intelligence-tools/) or reliable analytical modules to ensure you’re meeting your target values regularly. You can also catch downtime and fix any visible obstacles to reach your quotas. A few [project management KPIs](https://www.clearpointstrategy.com/important-project-management-kpis/#sect3) to consider tracking include: * Number of Schedule Adjustments * Resource Conflict Year Over Year (YOY) * Budget Line Items * Cost Performance Index * Customer Complaints * Employee Churn Rates [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ## Key Features One of the most extensive additions a project based ERP brings is an emphasis on people. This purpose moves ERP away from a system that only focuses on manufacturing tangible goods to one that also includes services (and the people who provide them). ![Project Based ERP Features]() Especially in the US, the manufacturing age has given way to an age where people — the sales and transaction agents — are critically important to every business. To better accommodate this shift, project-based ERPs contain several critical features. ### Project-Based Accounting Project-based accounting allows users to see projects’ financial state. These tools enable your accounting staff to record project-related costs and revenues regularly. This recording process makes your financial reporting far more helpful, providing in-depth insight into your operations. ![Project Accounting Module Example]() An example of a project accounting module. If a project isn’t hitting its milestones on time, you can quickly look into your project-based accounting records and see if this project has been under-resourced. Or maybe you see it costs your company more money than the average project, leading you to reassess this task. This tool helps you understand the financial health of your business on a more granular level, allowing you to hone in on your most problematic areas. ### Human Resource Management (HRM) This component typically has recruiting, training, payroll, time tracking and attendance tools. You can employ HRM to understand specific employee history, and when incorporated with an ERP, it also shows more significant [HR trends](https://www.selecthub.com/hris/hr-trends/). ![Zenefits Payroll Management]() A preview of a HRM module. These trends can aid project leaders as they designate workloads for specific projects. This tool can help users see team productivity during particular timeframes, when employees take time off and labor forecasts. This visibility is advantageous during project planning and resource management. It can prevent your business from taking on too many new projects when your resources are tied up while reducing low productivity cycles. [Get our ERP Software Requirements Template](https://pmo.selecthub.com/erp-requirements-template-site-vers/) ### Supply Chain Management (SCM) [SCM tools](https://www.selecthub.com/c/supply-chain-management-software/) provide project-based manufacturing software with a better way to manage an iterative supply chain. Newer platforms offer end-to-end supply chain management to gain a deeper understanding of your products’ lifecycles. ![SAP SCM Gantt Chart]() An example of a supply chain module. First, modern ERP systems have advanced [supply chain collaboration (SCC) software](https://www.selecthub.com/supply-chain-management/supply-chain-collaboration-software/) to simplify business partner collaborations. SCC provides all parties with ERP space to pool resources and communicate. Transmitting all essential information through a single channel helps prevent miscommunication and lost data. Additionally, SCM capabilities can help users gain complete supply chain visibility via tracking tools, such as barcodes, [RFID tags](https://www.techopedia.com/definition/24273/radio-frequency-identification-tag-rfid-tag) and serial numbers. These tools give real-time insight into where inventory and equipment are at all supply chain stages. This transparency can further assist with resource management, as you now have a precise understanding of how you utilize tangible components. Lastly, project ERP software can provide analysis and forecasts. Demand forecasts are beneficial for project-based organizations because they support production planning and resource management. ### Customer Relationship Management (CRM) Managing customer relationships is essential for project-based businesses. Customer relationship management (CRM) tools supply users with complete customer data and history, such as previous conversations, pitches and purchase history. Many CRM tools give customers a designated portal, enabling them to communicate with your team directly ![Project Based ERP CRM Dashboard]() A preview of a CRM interface. Instead of tracking dozens of email threads, CRM customer portals allow your team to manage all customer-related issues and inquiries in one system. Moreover, CRM software is especially adept at managing marketing campaigns if you choose the correct solution. The tools involved in marketing management allow users to create campaigns while tracking potential and current clients’ progress through the sales cycle. Understanding where your leads drop off and what kinds of clients return is invaluable when planning your next project. ### Project Management The bulk of project based ERP systems’ benefits should come from the system’s ability to centralize and integrate different processes. However, some systems also provide standard project management tools to further aid project-based organizations. One of the most popular are [Gantt charts](https://www.atlassian.com/agile/project-management/gantt-chart). ![Project Management Interface]() An example of a project management interface. These visual reports communicate project timelines concerning available resources, overlapping projects and milestones. They give users an idea of which activities to complete in a specific sequence, who’s involved and what other concurrent tasks they’ll finish. Project management tools also enable users to manage invoicing, billing, proposals and contracts to optimize payment collection protocols. The best project-based ERP software systems should provide a great deal of flexibility regarding these tools to accommodate different payment methods and schedules. [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ## Last Words To review this and other solution types for your business, we suggest looking at our [ERP comparison guide](https://pmo.selecthub.com/top-erp-software-site-vers/). ERP project software takes information out of silos and puts it into centralized systems to analyze wholly. Integration is vital with project ERP, which may take stand-alone programs like CRM and manufacturing floor analysis modules and put them together for cross-departmental evaluation. The bottom line is that ERP based projects provide a package of tools to help project managers complete tasks from start to finish. Do you think your business would ever implement a project-based ERP system? Or do you prefer a more straightforward solution that focuses on manufacturing? 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Contributions from Khaleel Hayes, and Hunter Lowe. ## About the Contributors The following team members helped research, create, and review this content. [ ](https://www.selecthub.com/author/khaleel-hayes/) Written by [Khaleel Hayes](https://www.selecthub.com/author/khaleel-hayes/) Technical Content Writer Khaleel Hayes is a Technical Content Writer for SelectHub, with over 4 years of experience crafting content for manufacturing, PLM, ERP and technology selection audiences. He's also a freelance writer in his spare time. His body of work includes poetry, short plays, feature articles and film reviews either self-published or in Denver publications. He graduated with a B.A. in Journalism and an English minor from Metropolitan State University of Denver in May 2018\. When not writing, he enjoys classic movies and music, tasty burgers, tasteful bookstores, and breathtaking art and photography. [See Full Bio](https://www.selecthub.com/author/khaleel-hayes/) [ ](https://www.selecthub.com/author/hunter-lowe/) Edited by [Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) Content Editor Hunter Lowe is a Content Editor, Writer and Market Analyst at SelectHub. His team covers categories that range from ERP and business intelligence to transportation and supply chain management. Hunter is an avid reader and Dungeons and Dragons addict who studied English and Creative Writing through college. In his free time, you'll likely find him devising new dungeons for his players to explore, checking out the latest video games, writing his next horror story or running around with his daughter. [See Full Bio](https://www.selecthub.com/author/hunter-lowe/) Khaleel HayesSAP vs. Oracle: Which ERP Software is the Winner in 2026? * ‹ * › ### Conversation (6) ![Avatar](https://secure.gravatar.com/avatar/281d3616cf761f3582c0d76c23517846?s=32&d=mm&r=g) Write a response [Cancel reply](https://www.selecthub.com/enterprise-resource-planning/project-based-erp/#respond) Your message Your name \* Your email \* Website Save my name, email, and website in this browser for the next time I comment. Δ * ![Avatar photo](https://secure.gravatar.com/avatar/8d86c3e45e28b9a91f8cfef496ed9e3ac6094b761d617dcfe98807553bc5558c?s=96&d=mm&r=g) #### **Brian Plunkett** \- January 15, 2022 Our Team Selected Encompix as a project based erp system in 2005\. We are currently shopping for ERP systems…can anyone recommend a good project based erp? **[Reply](#comment-110300)** [![Avatar photo](https://www.selecthub.com/wp-content/uploads/2020/07/Khaleel-48x48.jpg)](https://www.selecthub.com/author/khaleel-hayes/) #### **Khaleel Hayes** \- January 17, 2022 Thanks for reading, Brian. You may contact our sales team for ideas: [sales@selecthub.com](mailto:sales@selecthub.com) or 855.850.3850 **[Reply](#comment-110596)** * ![Avatar photo](https://secure.gravatar.com/avatar/749dddd4d6f897cc34490dc179fa9deeb63c0bcb9d3d58da12a916e927f4c13c?s=96&d=mm&r=g) #### **Ziyah** \- June 18, 2021 Thanks, great to see a comprehensive guide. **[Reply](#comment-76200)** [![Avatar photo](https://www.selecthub.com/wp-content/uploads/2020/07/Khaleel-48x48.jpg)](https://www.selecthub.com/author/khaleel-hayes/) #### **Khaleel Hayes** \- June 21, 2021 Thanks for reading, Ziyah. **[Reply](#comment-76652)** * ![Avatar photo](https://secure.gravatar.com/avatar/4bfb51e095d65147825de1279bca8035e4ae5eeb36dc086ca5584fb03b244566?s=96&d=mm&r=g) #### **Danny LeBlanc** \- October 26, 2018 Thanks for sharing the great post! Project ERP is more than ERP, more than project portfolio management. It is really an enterprise software solution built not around predictable processes like repetitive manufacturing, but rather one-off projects like engineering construction and fabrication, prototyping and services. **[Reply](#comment-13538)** [![](https://secure.gravatar.com/avatar/aa3a61ac7e38580003de0d2fb4e71e8281ec6d7b9d0266351a38b2459e313e82?s=48&d=mm&r=g)](https://www.selecthub.com/author/kim-oshaughnessy/) #### **Kim O’Shaughnessy** \- October 26, 2018 Exactly. Project-based ERP takes certain variables into account that traditional systems simply aren’t able to. Thanks for reading! **[Reply](#comment-13542)** [ Go to mobile version ](https://www.selecthub.com/enterprise-resource-planning/project-based-erp/?amp=1) **Tier 1:** Fully/moderately supported out-of-the-box allowing for quick and easy deployment. Fully or moderately supported out-of-the-box with industry-leading capabilities and is immediately available after installation without needing any add-ons, integrations, or custom development. **Tier 2:** Supported with workarounds or add-ons that may require additional costs. Not directly available in the software, but can be accomplished using other built-in features, workarounds, or add-ons/products from the vendor with or without any additional cost. **Tier 3:** Requires partner integrations or custom development that is often at an additional cost. Requires additional integrations, plugins, marketplace applications from a third-party vendor, or custom development using the APIs, libraries, extensions, and development framework supported by the software, with or without any additional cost. 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