How to Choose the Right ERP: SAP vs Xentral vs Microsoft Dynamics 365

Have you ever drowned in spreadsheets, juggling multiple software tools, and wondering why your inventory management feels like solving a Rubik’s cube blindfolded.

Sound familiar?

Every growing business hits that point where their current systems just can’t keep up anymore. The manual processes that worked when you had 10 customers suddenly feel impossible when you’re managing 1,000.

That’s exactly why you’re here, researching ERP systems to finally get your business operations running like a well-oiled machine. But with so many options out there, choosing the right ERP can feel overwhelming.

Today, we’re breaking down three major ERP’s: SAP Business One, Xentral, and Microsoft Dynamics 365 Business Central. By the end of this guide, you’ll know exactly which one fits your business.

What Makes a Great ERP System?

Before we dive into the comparisons, let’s talk about what you should actually be looking for in an ERP system.

Think of an ERP as the central nervous system of your business. It should connect all your departments. They should connect from sales and inventory to accounting and customer service. This helps in the information flow between them.

The best ERP systems share these key characteristics:

Now, let’s see how our three contenders stack up.

SAP Business One: The Enterprise Powerhouse

SAP Business One has been the go-to choice for established mid-market companies that need serious horsepower for complex operations.

Who it’s perfect for: Companies with 50-500 employees and €5M-€100M in revenue. Think established manufacturing, distribution, and professional services businesses with complex, multi-location operations.

The Good Stuff:

• Incredibly robust financial management
• Handles complex manufacturing and distribution
• Excellent for multi-currency and international operations
• Strong batch tracking and advanced inventory control
• Mature platform with global support network

The Reality Check:

• Implementation takes 6-12 months (sometimes longer)
• High complexity requires dedicated IT resources
• E-commerce integration needs third-party middleware
• Price tag: €150,000-€400,000+ over three years
• Steep learning curve for your team

Xentral: The E-commerce Champion

Xentral is specifically designed for e-commerce and omnichannel businesses. If online sales are your bread and butter, this one deserves serious attention.

Who it’s perfect for: E-commerce focused SMBs with 5-200 employees and €500K-€20M in revenue. Perfect for online retailers, direct-to-consumer brands, and businesses selling across multiple marketplaces.

The Good Stuff:

• Native e-commerce integration (especially strong with Shopware)
• Real-time inventory sync across all sales channels
• Quick implementation (2-4 months)
• Intuitive, modern interface your team will actually enjoy using
• Excellent warehouse management features
• Total cost: €25,000-€100,000 over three years

The Reality Check:

• Newer platform (less mature than SAP or Microsoft)
• Limited advanced manufacturing features
• Smaller partner ecosystem
• Less suitable for very complex enterprise operations
• Geographic availability still expanding

Microsoft Dynamics 365 Business Central

Dynamics 365 Business Central sits perfectly between SAP’s enterprise complexity and Xentral’s e-commerce focus, offering serious functionality for businesses already invested in the Microsoft ecosystem.

Who it’s perfect for: SMBs with 10-300 employees and €1M-€50M in revenue, especially those already using Office 365, Teams, and other Microsoft tools.

The Good Stuff:

• Seamless integration with Microsoft Office 365 and Teams
• Excellent CRM capabilities built right in
• Strong APIs and Power Platform for customizations
• Familiar Microsoft interface reduces training time
• Good balance of features and complexity
• Flexible deployment (cloud, on-premise, or hybrid)

The Reality Check:

• Can get expensive with add-ons (€50,000-€200,000 over three years)
• E-commerce features require additional apps
• Complexity increases significantly with customization
• May require Microsoft-specific expertise
• Licensing structure can be confusing

Real-world example: A mid-sized consulting firm uses Dynamics 365 Business Central integrated with Office 365 to manage client relationships through the built-in CRM, track project profitability, and generate invoices directly from Teams conversations. The seamless integration means consultants spend less time switching between systems.

The Head-to-Head Comparison

Here’s where the rubber meets the road. Let’s compare these three systems across the factors that matter most to your business:

E-commerce Integration

If you’re selling online, how well your ERP integrates with your e-commerce platforms can make or break your operations. Let’s understand how this works when it is between SAP vs Xentral vs Microsoft Dynamics 365.

SAP Business One and E-commerce:

• Requires third-party middleware or custom development
• Integration complexity: High
• High ongoing maintenance effort

Xentral and E-commerce:

• Native Shopware connector and real-time sync
• Integration complexity: Low
• Minimal maintenance effort

Microsoft Dynamics 365 BC and E-commerce:

• Good APIs and Power Platform connectors
• Integration complexity: Medium
• Moderate maintenance effort

Making Your Decision: The Decision Framework

Here’s the thing – there’s no “best” ERP system. There’s only the best ERP system for your specific situation.

Choose SAP Business One if:

• Your revenue exceeds €10M with complex operations
• You have heavy manufacturing or distribution focus
• You need advanced financial reporting and multi-currency support
• You have dedicated IT resources
• Your budget allows for €150K+ investment
• You can handle 6-12 month implementation timeline

Choose Xentral if:

• E-commerce represents more than 50% of your revenue
• Your revenue is between €500K-€20M
• You need quick implementation (under 6 months)
• You’re using or planning to use Shopware
• You want a modern, intuitive interface
• Your budget is €25K-€100K range

Choose Microsoft Dynamics 365 BC if:

• You’re already using Microsoft ecosystem (Office 365, Teams)
• You need strong CRM integration
• Your revenue is €1M-€50M
• You want flexibility through Power Platform
• You have Microsoft-skilled IT team
• Your budget is €50K-€200K range

Feature Deep-Dive: SAP vs Xentral vs Microsoft Dynamics 365

Financial Management:

• SAP: Best-in-class financial reporting, complex multi-currency handling
• Xentral: Good basic financials, built for e-commerce accounting
• Dynamics 365: Excellent financial management with familiar Microsoft interface

Inventory Management:

• SAP: Advanced batch tracking, complex location management
• Xentral: Excellent real-time sync, automatic reorder points, marketplace integration
• Dynamics 365: Solid inventory features, good for basic to moderate complexity

CRM Integration:

• SAP: Good B2B customer management, requires additional modules for advanced CRM
• Xentral: Basic CRM focused on e-commerce customer data
• Dynamics 365: Excellent built-in CRM, seamless B2B and B2C management

Manufacturing Features:

• SAP: Comprehensive manufacturing modules, excellent for complex processes
• Xentral: Good for light manufacturing and assembly
• Dynamics 365: Decent manufacturing features, good for moderate complexity

Conclusion

Choosing the right ERP system isn’t about finding the most features or the coolest technology. It’s about finding the solution that fits your business like a well-tailored suit.

At 2HatsLogic, we’ve helped hundreds of businesses navigate the complex world of ERP selection and implementation. We don’t just recommend software – we partner with you to understand your unique challenges and design solutions that actually work for your business.

Whether you’re leaning toward SAP Business One for your complex operations, Xentral for your e-commerce focus, Microsoft Dynamics 365 for your Microsoft ecosystem, or still exploring your options, our team of experts can help you:

Ready to make the right choice for your business, when you are confused between SAP vs Xentral vs Microsoft Dynamics 365? Get in touch with our team for a free consultation where we’ll help you:

• Determine which ERP system truly fits your business needs
• Get accurate cost estimates for your specific situation
• Create a realistic implementation timeline
• Identify potential challenges before they become problems