LIMS vs. ERP: The Critical Decision Your Lab Can’t Afford to Get Wrong

Choosing between LIMS and ERP is not easy as both solutions offer decent features to streamline your operations. But what if you don’t have to choose between them? Below, we’ll take a closer look at these systems to help you decide which one, or both, works best for your needs.

Philipp Osterwalder
CEO & Co-Founder of 1LIMS. Transforming Labs for sustainable added value 🚀

Running a quality control (QC) laboratory is tough. Samples, data, compliance, and reports – you’ve got a lot to manage. Luckily, we live in a world where software can take a huge load off your shoulders. And when it comes to QC labs, there’s no shortage of options. The main thing is to pick the right one. Digital solutions play a crucial role in modern lab management by automating workflows, managing data, and improving efficiency.

On one side, we have Enterprise Resource Planning (ERP) systems, which handle everything in one place, including finance, inventory, HR, sales, and more. Then there’s LIMS, the Laboratory Information Management System (LIMS) that covers data workflows in laboratories. ERP and LIMS are both digital solutions for lab and business management, but they serve different purposes and are designed for distinct workflows. Both systems seem like a reliable option, but what should you choose for your business? LIMS and ERP aren’t interchangeable, so getting the wrong solution could cost you a lot.

But pick it right, and you will streamline your workflow and boost revenue. For example, labs using 1LIMS cut human error by 87%, increased sample throughput by 32%, and saved 48% on costs in the first year.

Key KPIs achieved with 1LIMS

To get results like these (or even better), you need the software that fits your lab’s operational and business needs. And to help you out, we’ll compare LIMS and ERP to see whether they have features to cover your specific workflow.

One system runs tests, the other runs numbers

As said, LIMS and ERP are two distinct systems that serve different purposes. LIMS is built for managing and tracking data within a QC laboratory. It helps labs automate their workflows, reduce human error, and ensure that data is accurate for audits and quality control. The primary functions of LIMS revolve around supporting laboratory operations, while ERP systems focus on broader business management tasks.

LIMS is specifically designed to handle lab workflows, such as managing scientific data, specimen tracking, and testing procedures unique to laboratory environments. Additionally, LIMS automates and streamlines lab processes, improving efficiency, data integrity, and regulatory compliance.

ERP, in turn, is a broader software system that manages core business processes across multiple departments, like accounting, supply chain, sales, and more.

Once you clearly understand the differences between the two, a final decision will come to you without hesitation. Here are the areas where LIMS and ERP take different paths.

Focus areas

As we’ve pointed out, the big difference between LIMS and ERP is that they focus on different things. LIMS is tailored for laboratory environments with sample tracking, workflow automation, data integrity, and regulatory compliance. LIMS excels at test management by organizing, tracking, and automating laboratory samples and tests to ensure data integrity and workflow efficiency. It also automates and validates testing procedures, which is critical for maintaining compliance and accurate scientific data. Additionally, LIMS allows you to track samples throughout their entire lifecycle, improving efficiency and accuracy. For example, with 1LIMS, you can fully automate your lab workflow. The software also uses calculated risk factors to automatically adjust testing frequency, ramping it up in high-risk areas and scaling it back where needed.

Compared to LIMS, ERP handles the bigger picture of operations across the entire organization and can support labs to some extent. ERP systems can assist with lab management by tracking samples, managing inventory, documenting test results, and supporting laboratory operations. They can also monitor testing projects, helping plan and oversee laboratory testing activities to ensure quality and efficiency. For example, ERP can handle employee payroll, invoice clients, or track the progress of research. However, it lacks the specialized tools necessary for managing lab-specific workflows.

Features

LIMS is built for laboratories, so everything it offers is focused on that. Here are the key features you’ll get with a typical LIMS:

  • Sample tracking and chain of custody
  • Test result management and reporting
  • Integration with lab instruments for automated data capture (instrument integration), enabling seamless workflow automation and real-time data collection
  • Built-in compliance support like FDA or ISO standards (role-based permissions, and electronic signature)
  • Audit trails for data integrity and traceability
  • Historical data retrieval for efficient access to stored lab data, supporting compliance, reporting, and auditing needs
  • Streamlined workflows to improve efficiency, sample tracking, and regulatory compliance

ERP covers all departments within a company and comes with the following key functionalities:

  • Financial reporting and budgeting
  • Inventory management and procurement
  • Employee management (HR) and payroll
  • Customer relationship management (CRM)
  • Project management and resource allocation
  • Ability to manage data across departments, supporting organization and streamlined information flow

Use cases

Clinical labs, food and beverage safety labs, and pharmaceutical companies are examples of businesses that rely on LIMS. Laboratory information management systems are essential in specialized lab environments where precise data tracking and regulatory compliance are critical. It’s also used in environmental testing, like monitoring air, water, and soil quality. A LIMS can streamline a lab's operations by organizing workflows and centralizing data management, improving overall efficiency. If your business involves testing, research, or any kind of scientific analysis, LIMS is a powerful tool to keep your data accurate and compliant. For example, 1LIMS serves clients across various industries, including food and beverage, packaging, mining and metal, and more.

When it comes to ERP systems, they are helpful in businesses that need to manage a wide range of operations. You’ll see them in retail, healthcare administration, logistics, financial services, manufacturing, and more.

Choosing the right system or integrating LIMS and ERP can lead to seamless operations and is crucial for maintaining productivity in both laboratory and business environments.

Users

A typical LIMS user is a technician, scientist, researcher, or QC specialist focused on lab operations. An ERP system, in turn, has a much bigger reach. It covers everyone from executives and finance teams to sales, marketing, HR, and project managers.

Output

When comparing the output of LIMS and ERP, the key differences lie in the types of data and results generated, as well as the scope of their reporting capabilities. The primary output of LIMS is test data and results that are crucial for quality control, compliance, and scientific analysis. LIMS solutions incorporate features like audit trails and electronic signatures to ensure data integrity, maintaining accurate, consistent, and secure laboratory data. This is essential for meeting regulatory requirements, as LIMS reporting supports compliance with industry standards such as FDA, ISO, and GLP. For instance, 1LIMS provides traceable logs of every action taken within the system, including test procedures, sample handling, and any changes made to the data. Plus, you can auto-generate and print QR or barcode labels straight from the system.

ERP outputs focus on the overall financial health of the organization, like profit and loss statements, balance sheets, and cash flow reports. ERP systems also generate reports on inventory levels, stock turnover rates, procurement schedules, and more.

Here’s a brief comparison of these systems.

It’s not easy to choose the right software based on a quick comparison, so let’s give you more details.

Data Capture and Management: The Heart of Lab Efficiency

In today’s fast-paced laboratory environments, effective data capture and management are at the core of operational success. Every sample, test result, and workflow step generates valuable laboratory data that must be accurately recorded, securely stored, and easily retrievable. This is where a Laboratory Information Management System (LIMS) truly shines. As a specialized software solution, a LIMS is designed to manage samples, automate data capture, and centralize all laboratory information, ensuring data integrity and supporting regulatory compliance at every stage.

A key difference between a LIMS and an enterprise resource planning (ERP) system lies in their focus. While ERP systems are built to integrate and manage business operations across various departments - such as financials, human resources, supply chain, and customer relationship management, a LIMS is tailored specifically for laboratory operations. LIMS provides advanced features like sample management, workflow automation, and audit trails, all of which are essential for maintaining compliance and streamlining laboratory workflows.

However, the real power emerges when LIMS and ERP systems work together. LIMS ERP integration enables seamless data connectivity between the lab and other business functions. For example, when a new batch of materials is received and logged in the ERP, that information can be instantly available in the LIMS, allowing lab staff to begin quality control testing without delay. This integration reduces manual data entry, minimizes errors, and accelerates decision-making by providing real-time access to critical information across various departments.

ERP systems can also play a valuable role in laboratory environments by managing inventory, tracking samples, and monitoring testing projects. They help labs manage inventory levels, coordinate supply chain operations, and oversee resource planning. Yet, without the specialized features of a LIMS, ERP systems may fall short in areas like sample tracking, data capture from laboratory instruments, and maintaining detailed audit trails required for regulatory compliance.

By implementing a laboratory information management system, labs can improve efficiency, reduce the risk of human error, and ensure that all data is accurate and traceable. This not only supports compliance with industry regulations but also empowers labs to make data-driven decisions that drive operational success. Meanwhile, leveraging ERP solutions for broader business functions - such as quality control, environmental testing, and customer relationship management, ensures that the entire organization operates smoothly and efficiently.

Ultimately, the integration of LIMS and ERP systems offers laboratories the best of both worlds: specialized management of scientific data and laboratory workflows, combined with the robust business process management of enterprise resource planning ERP. This holistic approach enables labs to streamline operations, maintain productivity, and stay ahead in a competitive landscape.

LIMS vs. ERP: key differences and why it is not a simple pick

LIMS and ERP are not rivals, but you wouldn’t want a software system that doesn’t fit your workflow. We won’t make that happen. Here’s a checklist to see which one ticks all your boxes.

Choose a laboratory information management system (LIMS) if:

✅ Your business relies on laboratory-centric operations.

If most of what you do happens in the lab, then LIMS is the way to go. Let’s take a look at our client Micarna, a leading producer of meat, poultry, fish, eggs, and seafood in Switzerland. To keep up with their high-quality standards, Micarna runs an in-house QC lab. But for years, the lab relied on outdated, paper-based systems and manual data management, which slowed things down and created chaos.

Realizing the need for change, Micarna decided to boost efficiency in its QC operations and turned to 1LIMS. After implementing 1LIMS, Micarna:

✔️processed 50% to 60% more samples

✔️reduced per-sample analysis costs

✔️cut administrative work in half

✔️streamlined audit preparation with full traceability

LIMS also enables data-driven decision making by providing end-to-end visibility and leveraging lab data for better management and operational outcomes.

So if your business revolves around a QC lab, the choice is clear – you need LIMS.

✅ Regulatory compliance is important for your lab.

Labs in industries such as pharmaceuticals, food safety, or healthcare must comply with strict guidelines, including FDA regulations, ISO standards, and GLP. If your business is in one of these industries, consider LIMS.

With LIMS, all data is accurately recorded, time-stamped, and traceable. It automatically generates reports and logs, which reduces human error and the chances of missing important regulatory documentation.

✅ You require integration with lab instruments.

Spectrophotometers, pH meters, titrators, balances, and microscopes. You’ll find all sorts of devices in a typical QC lab. Surprisingly, many QC lab managers still rely on paper records and manually log data from these devices. It’s slow, error-prone, and … there’s a better way.

A solid LIMS connects directly to your lab equipment and automatically captures data straight into the system. For example, 1LIMS works seamlessly with a variety of instruments, including Metrohm devices. It can integrate through standard APIs, serial interfaces, or file transfers.

✅You need robust reporting capabilities to generate reports on test results and audits.

Building reports by hand is a painstaking process. It eats up your time, and one tiny error can turn into a big problem, especially during an audit. But it’s not a problem at all when you have LIMS.

As all your data is already in the system, you can generate clean, accurate reports in several clicks. And you have nothing to worry about when an audit comes. Every action is tracked, and you’ve got a full audit trail ready to go. Let’s look at a real-life example.

Polygal is a Swiss company specializing in natural hydrocolloids for various industries like food, pharmaceuticals, personal care, and more. The company uses 100% renewable, plant-based raw materials and meets strict industry standards. Before switching to 1LIMS, lab employees at Polygal worked with an outdated database and piles of additional spreadsheets which took much time and effort. To optimize laboratory data management, Polygal searched for a system that would automate lab operations, eliminate manual work, and accelerate data analyses.

1LIMS successfully coped with these tasks. We helped Polygal centralize its data into one platform and improve data accessibility. Specifically, 1LIMS simplified the generation of Certificate of Analysis (COA) reports. Now, the system automatically creates reports so lab managers don’t have to do it manually in Word.

But there are times when ERP is a better solution than LIMS. Here’s when it makes sense.

It’s better to have an enterprise resource planning (ERP) system if:

✅You need enterprise-wide integration.

Many companies run standalone systems for each department, like finance, HR, inventory, and more. These tools might work well for their departments but still lead to inefficiencies, miscommunication, and errors for the organization as a whole. An ERP system can unite these functions into a single system.

As a result, you get a 360-degree view of your operations while everyone across the organization is on the same page.

✅You want better resource planning across departments.

When you’ve got several departments with at least a couple of people in each, managing staff, budgets, and assets becomes complex. To allocate resources effectively, you need to keep everything in sync so that every team member knows what’s available, what’s needed, and what’s coming next.

Imagine your production team needs raw materials, but the purchasing department isn’t aware that inventory levels are running low. Without real-time visibility, you end up with delays or last-minute rush orders. An ERP fixes that. It helps track inventory levels in real time and automatically notifies purchasing when the stock drops below a certain point.

✅You want to automate manual tasks.

In a world where AI can drive cars and write code, it seems almost silly to ignore the potential of tried-and-tested automation. Why manually count stock and enter numbers into Excel when an ERP system can do that faster and more accurately? It automatically updates inventory when products are received or sold. And that goes for any repetitive task across your company.

So, if your employees still manually enter data, manage paperwork or update spreadsheets, it’s time to switch to ERP software.

✅You’re preparing for business growth.

It’s always good to grow. But with growth come new challenges, like more customers, more transactions, more everything. However, scaling up is not a problem with a good ERP system.

ERP helps you grow with confidence. You know that your operations, communication, and data are all in check and you can scale smoothly without losing that tight control you need to succeed.

To help you collect your thoughts, here is a brief summary of a LIMS vs. ERP checklist.

Partner with a LIMS provider that integrates with your business

It might be difficult to decide whether you need LIMS or ERP, as both solutions are useful for any company. What do you do if you’re running an enterprise with multiple departments and an in-house QC lab? What should you choose then?

Luckily, you don’t have to choose. If you need both systems, you can have them both. Integrate 1LIMS with your ERP and enjoy seamless data flow between laboratory operations and other business units. For example, when a new material or product is added to the ERP, it’s automatically reflected in 1LIMS. This way, lab employees can start quality testing immediately without waiting till data is manually put into the system.

In case some questions are left unanswered, contact our team or book a demo to see 1LIMS in action.

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Philipp Osterwalder
CEO & Co-Founder of 1LIMS. Transforming Labs for sustainable added value 🚀

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