What is ERP and why does your company need to integrate it?

More and more companies are looking for ERP systems for their businesses, but do you know what exactly an ERP is and why your company should have one? Let’s get to it!

What is ERP software

An ERP (“Enterprise Resource Planning”) is a program used to plan and manage various internal operations of a company: central supply chain, manufacturing, services, accounting, production, human resources and other areas of an organization. They are used to automate and simplify individual tasks in a company, such as: finance and procurement, project management, customer service, risk management, regulatory compliance, etc.

In short, an ERP is a process that companies use to manage and integrate the important parts of their business. They connect all aspects of a company!

How it works

As we have said, an ERP system integrates activities and automates business processes. Its main purpose is to increase an organization’s efficiency by managing, improving and/or reducing the way in which resources are used, without sacrificing quality and performance, key aspects for business growth and profitability.

These systems typically cover all aspects of business operations and usually provide:

  • An integrated system.
  • A common database.
  • It operates in real time.
  • All applications and systems are supported.
  • It has a common user interface across all applications and systems.
  • Deployment is local (hosted in the cloud or SaaS) SaaS ).

An ERP system is able to collect and compare metrics across departments and provide different types of reports based on job type or user-defined characteristics. Therefore, on the data collected, reports are generated very quickly that provide a complete view of business performance, with detailed information on how resources are being used and spent.

With the help of these combined reports, valuable decisions can be made for the company, such as where to reduce costs and streamline processes. All this in real time.

Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises

What are the benefits of this system?

  1. Cost savings and improved ROI efficiency. Increased productivity and efficiency as a result of the integration and automation provided by ERP software.
  2. Improved business perception. Better decision making from a single, aggregated source of reliable and up-to-date data.
  3. Regulatory compliance and safety management. Monitoring compliance with regulatory standards and setting up non-compliance alerts. In addition, the existence of different levels of access and authorization makes it more difficult to steal information.
  4. Mitigates and reduces risk. Automates core business operations, manual tasks and reporting. Reduces human error and frees up time for higher value tasks.
  5. It enhances collaboration. Increases communication for efficient collaboration and coordination to improve work efficiency.
  6. Scalability. The infrastructure dedicated to optimized operations can grow as your business grows.
  7. Optimizes customer and partner management. Improve services, customer and supplier relations and the management of information shared between partners.
  8. Avoid duplication. Locate and reduce duplicate records.
  9. It adapts to the specific needs of each business. At the time of integration or change of ERP, the supplier company can configure the application to suit the user’s particular needs.
  10. Control and traceability. ERP programs collect data about the organization, thus controlling the flow of products through all elements of the value chain.

What are companies’ reasons for purchasing an ERP system?

  • 58% due to hardware and software obsolescence.
  • 54% for process integration.
  • 50% to solve problems with order processing.
  • 38% to resolve errors and avoid duplication.
  • 35% to minimize their excessive inventory holdings.
  • Others:
    • Integrate financial information.

In short, the usefulness of these systems is undeniable. In addition, to implement it you can always count on the help of a specialized company, which will not only lead its integration, but will also train the team and offer maintenance services so that you do not have to worry about the technical part.

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