The topic of the thesis is the role of the ERP system in the medium-sized company Gracin usluge d.o.o. The first part describes the development, modules and types of ERP systems. After reviewing the ERP system, the advantages and disadvantages of the ERP system in small and medium-sized enterprises are described. The is an analysis of the current state of production and the used system of Gracin usluge d.o.o. and the selection and application of a new appropriate system. The company Gracin usluge d.o.o. faces significant challenges due to reliance on outdated communication methods and paper-based documentation for production management leading to inefficiencies and delays in decision-making related to raw material procurement, manufacturing and product sales. The current use of the Luceed ERP system, which according to the type of license is a proprietary system with a monthly fee depending on the number of modules and licenses used, organizes only retail operations at an increased cost and does not integrate the entire business. Dissatisfaction with excessively high usage costs and existing system integration emphasizes the need for an appropriate ERP solution that can be implemented throughout the company's operations with minimal additional investment. The requested ERP system would be gradually adapted to the specific needs of the company, improving data sharing, decision-making and overall productivity, with reduced monthly usage and maintenance costs. This transition would enable the company to redirect the previous costs of using the proprietary system towards the modernization and improvement of the production processes themselves. A successfully implemented ERP system would improve control and operational efficiency in different departments with the help of a common database, which would enable the company to effectively respond to market challenges. Access to precise and usable data would enable the company Gracin usluge d.o.o. stock rationalization, capacity optimization, increasing liquidity and maintaining a competitive advantage in a dynamic business environment.