IMS vs. ERP - What are they, and which software is right for your growing CPG/eCommerce business?
HigherRing knows that growing CPG and eCommerce businesses eventually arrive at the same challenges: managing inventory, orders, and operations efficiently. We’ve seen it many times. The solution often comes down to two options: an Inventory Management System (IMS) or an Enterprise Resource Planning (ERP) software. In this post, we’ll explain the key differences between these systems, when to choose each, and how the right choice can accelerate growth for your purpose-driven business.
What is the difference between IMS and ERP software?
Think of it this way: An IMS is a specialized tool for managing one critical aspect of your business (inventory).
These systems include products like Cin7, Fishbowl, Zoho Inventory, Sortly, Square, and Katana. In comparison to an IMS, an ERP provides a comprehensive, integrated suite of tools that manages nearly every aspect of your business, and it often includes an IMS or has robust inventory management capabilities as part of its broader scope. For a larger, more integrated system like this, many businesses use Acctivate, SAP, Microsoft Dynamics 365, Oracle, or Odoo.
While an IMS focuses on the "movement of goods," an ERP aims to manage "overall resource planning," encompassing everything from finance to personnel. For CPG and ecommerce brands, understanding this distinction is crucial for choosing the right solution to optimize their operations and scale responsibly.
There are instances where, if you have other software you prefer or simply need a way to manage your inventory, an IMS is ideal. For most growing CPG and eCommerce brands, an ERP platform offers the scalability, integration, and efficiency needed to centralize inventory management, financial operations, and customer relationships in one powerful system. The biggest pain point for both these kinds of systems, though, is the cost of investment and any future customization. When you start needing custom solutions or API connections to other software, these systems can become very expensive very fast.
One of the biggest regrets we often see is scaling to a system too big to manage and upkeep without the volume of customers or orders. While the immense power of massive, customized ERP systems is undeniable, their heavy maintenance and prohibitive initial costs create an unnecessary burden for growing, brand-focused companies. The true power lies not in complexity, but in purpose-driven simplicity and immediate value.
While the immense power of massive, customized ERP systems is undeniable, their heavy maintenance and prohibitive initial costs create an unnecessary burden for growing, brand-focused companies. The true power lies not in complexity, but in purpose-driven simplicity and immediate value.
Platforms like Acctivate and Microsoft Dynamics 365 excel here. They offer robust, enterprise-grade functionality—from complex inventory and warehousing to seamless order management—performing exceptionally well right out of the box. This is the essence of a smart scaling decision: acquiring necessary operational muscle without expensive customization or a never-ending maintenance cycle. They deliver the foundational structure needed for streamlined operations and predictable, sustainable growth.
Other Purpose-Driven Platforms for Growth
The market is rich with other alternatives that follow this philosophy, each with a distinct purpose to support different growth models:
| Platform Category | Example Tools | Purpose / Best Fit for Growing Brands |
|---|---|---|
| Comprehensive ERP / Cloud-First | Acumatica, SAP Business One, Sage Intacct | Offers a full-featured, cloud-native ERP experience. Acumatica is known for its flexible licensing model that scales easily as a business grows. SAP Business One serves mid-market companies needing robust finance, manufacturing, and distribution functionality from a global vendor. |
| Modular & Open-Source | Odoo, ERPNext | Ideal for tech-savvy businesses wanting control and customization at an affordable price. Odoo’s modular design lets brands start small (e.g., CRM or accounting) and add inventory or manufacturing modules only when needed—keeping systems lean and cost-effective. |
| Sales & CRM-Focused | HubSpot CRM, Zoho CRM, Pipedrive | Best for growth driven by sales and marketing. These tools are simple to adopt and great for visualizing pipelines, automating workflows, and scaling lead management. Zoho stands out for its high customization and affordability. |
| Inventory & Manufacturing-Specific | Katana, Fishbowl | Tailored for product-based brands—especially small manufacturers and e-commerce businesses—needing real-time visibility into inventory, stock levels, and production. Bridges the gap between basic accounting tools and full ERP systems. |
Whether you choose an Inventory Management System (IMS) or a full Enterprise Resource Planning (ERP) solution, implementing the right software is far better than trying to grow without one. Real-time visibility into your inventory, customer base, and forecasting comes with the advantage of avoiding overstock or stockouts, along with the ability to communicate all of this from a single system. By making this investment now, you equip your business with the tools to make faster, data-driven decisions, optimize operations, and scale sustainably—ensuring you’re ready for the next stage of growth.
How HigherRing Can Help
Choosing software is just the beginning. At HigherRing, we support CPG and e-commerce brands with the operational side of implementation—from coordinating with manufacturers and warehouses to managing inventory transfers. Our fractional or full-time operations support helps you make the most of your investment, so your team can stay focused on growth. Get in touch with us today to see how we can help you!
#HigherRing #EthicalOutsourcing #BCorp #CPG #Ecommerce #IMS #ERP #InventoryManagement #BusinessGrowth #TechForGood