When a company reaches a certain size, the introduction of enterprise resource planning software is inevitable in order to remain competitive. However, if you work with Excel spreadsheets or width variety of other softwares, then at some point the overhead will be so high that a large number of people are only concerned with managing their own business rather than being productive. This article shows you what companies need an ERP for & what the benefits are.
WHAT IS AN ERP SOFTWARE?
An enterprise resource planning software (ERP) has the entrepreneurial task of mapping and controlling resources such as operating resources, personnel and capital. All required data (material quantities, ordered products, working time, money, etc.) are automatically or manually entered into the system and are not only available to the various ERP areas, but also influence each other.
Automatic, semiautomatic and manual processes are constantly changing this information and data, so that a current status quo is always available. On this basis, entrepreneurial decisions are made, which in turn influence real-time data and processes (production of goods, purchase of materials).
ONE SOFTWARE FOR ALL PROCESSES
Companies that use 10 different software know about the effort that needs to be made to keep everything running smoothly. They should look after their services, products and, of course, their customers, not the various company softwares and everything related to them. And many different software usually mean many problems: IT specialists, updates, interfaces, costs, development, etc. The use of an ERP software that combines everything is in most cases the first and best solution (medium and large companies).
Companies that can not properly map their processes today are at a disadvantage compared to the competition. For example Production processes are not evaluated or the control of material purchasing is not aligned with the production. The simplest example is products: the number of products sold, purchased or stored is always visible in the ERP, as well as the materials needed for production, or the quantity of products available to the supplier (integrated). All this helps to order, produce and deliver "just in time" and thus keep the business running. But it as recently as becomes interesting when companies have processes that are not reflected in the standard. Here ERPs who are customizable can play out their full strength.
The mapping of processes is closely linked to optimization. A simple example is automation. If, for example, products are sold, sales and shipping confirmations can be sent automatically or semi-automatically by mail or trigger the generation of delivery notes, invoices or shipping documents. These are standards in the trade, but nonetheless important elements that save a tremendous amount of time. To use these types of automation is in almost all areas and companies is possible.
Inserting, updating, and overall data maintenance is easier if only one system needs to be maintained. It also avoids redundancies that cost a lot of time. The whole thing also concerns the digital archiving: The data storage in only one software is in the long run more advantageous, since with the use of many softwares the IT need lots of time to do, to keep the systems running - what also the archiving of the data and backups concerns.
Collaboration in the enterprise is greatly facilitated when working with the same datasets, for example: When changing the price of a product, this information is immediately available in purchasing, sales or finance. The documentation of processes also helps in the cooperation. Information is not distributed in countless software, but stored in central locations in the ERP so that all employees can access and use it. Furthermore, employees who already work with the ERP, can be quickly used elsewhere because they are familiar with the system - which is usually cumbersome for different software.
REAL TIME DATA, ANALYZES & EVALUATIONS
For many companies, having accurate, real-time data is vital to making quick, informed decisions. This applies, for example, to areas such as warehousing, sales, purchasing or special processes such as production in the area of MRP or production planning. Also in the financial sector, analyzes and evaluations in real time are important because often accurate data is needed. Transparency is the magic word here.
TIME SAVINGS & COST REDUCTION
Many of the previously mentioned benefits of an ERP are related to time savings & cost reduction. The entrepreneurial task is therefore to use software in such a way that all processes can be mapped and controlled, with maximum cost reduction. This is exactly what ERPs have been developed for: Enterprise Resource Planning Software bundles processes from different areas of the company into one software.
Cumbersome, labor-intensive & complicated processes are nothing that motivates employees. If companies can minimize this with ERP software, not only will the company's profits benefit, but the employees as well - and again, the company will benefit: employees will enjoy their work, increase their productivity and their willingness to work for the company, and aditional this reduce costs and disease states by overload.
CUSTOMER & SUPPLIER RELATIONSHIP
The customer is the focus of all companies - at least it should be so. For this reason, an ERP, which has an integrated CRM, is the first choice to achieve this. But not only the CRM is suitable, but all processes in the ERP make the customers and suppliers more satisfied. We are talking about creating and sending automatic confirmations, invoices, delivery notes, vouchers, returns and much more...