What is ERP? Benefits of implementing an ERP in your company

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The widespread use of business software has made the ERP program the axis on which any type of business revolves. Its adaptability and its functions are only two of its most outstanding features, but before commenting on them, it may be necessary to explain what it is and how it can help improve the results of our company.

What is ERP?

An ERP (acronym for ‘Enterprise Resource Planning’) is a set of integrated software applications, which allow us to automate most business practices related to the operational or productive aspects of our company, facilitating and centralizing the information of all the areas that compose it: purchases, production, logistics, finance, human resources, marketing, services, projects, and customer service.

Some of the main characteristics of an ERP are its modularity and scalability, that is, the possibility of implementing those functionalities that our company needs at all times without limiting or mortgaging growth or future needs, ensuring from the beginning the investment.

It is essential for the success of the implementation of the ERP, a previous consultancy that reviews our business model, its strategy, the processes that govern it and the necessary information flows between the different departments that form it, taking advantage of this change to review, model and improve all those aspects and processes that we consider.

The basic and essential premise of an ERP is to centralize and unify the data coming from the different areas of our company, avoiding its duplicity and facilitating the fluidity of the information: single data policy.

Main benefits of an ERP

  1. Optimization of management processes

The coherence, homogeneity of the data and interaction between the different areas of the company from a single tool, allows improving the performance (efficiency and effectiveness) of the organization.

  1. Improves the decision-making process

The centralization of information, increasing its quality and availability in real-time, speed up and greatly improve response times.

  1. Data security

All company data is in a single container (database) and its access protected and restricted by user, facilitates and simplifies maintenance and backup.

  1. Modularity and Scalability

The use of any management tool should never put a brake on the growth or evolution of the company. A good ERP must cover current needs and have additional modules to be deployed or incorporated at any time.

  1. Adaptation to real needs

Through a prior consultancy where the requirements and needs of the company are defined, the ERP must be fully configured and adapted to it, although it is true that during this phase the main triggering processes of the main activity of the company must be questioned and reviewed.

  1. Greater control and traceability

Any interaction in the ERP is recorded, allowing exhaustive monitoring or audit of the data, processor document.

  1. Task automation

Periodic or repetitive tasks (reports, follow-ups, communications, claims, etc.) can be automated to minimize the dedication of resources and focus on the most productive ones.

The increase in efficiency achieved, the decrease in errors and the reduction of tasks, allow to reduce business costs and gain in competitiveness.

Through a comparison you can find the best ERP software . There are many ERP software in the market. Some are very good.

Why do companies need management software?

Fundamentally because you can not continue working “as always” with the only excuse that “this has been done for a lifetime and it works.” We do not doubt that this is the case, but we can compete on equal terms with the competition.

The primary objective of an ERP is not so much to change the way of working to respond to customers in a short time. Being able to report where an order is or what has happened with the expected merchandise is an essential virtue for both parts of the sales process.

Many may wonder if this investment is worth it or not. The answer is a resounding yes since:

  • Faster work, better opinion about your company and a greater volume of orders
  • The investment recovers in a few months.
  • The time savings mentioned above are directly proportional to an improvement in the effectiveness of each worker.
  • Its use is very simple and easy to understand.

conclusion

The digitalization of strategic business processes includes one of the fundamental areas of digital transformation. The use of ERP software in a company will mean the beginning of a new stage in which it will be possible to anticipate the problems that may arise in commercial activity. With your help, it will be much easier to plan for the future, strengthen those departments that could offer better results and mark a line to follow that ends in success.

An ERP program can, and should, become the skeleton of our business. Relying on their benefits you can achieve good results and pave the way to make a company more competitive and flexible. The business will begin to adapt to customers and not vice versa. The more of the same and obsolete ways of working are left behind to never hamper the development of the company.

 

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