Benefits of ERP to your business
Recently, the term ERP is often heard in the business world. What is ERP?
In English ERP is Enterprise Resource Planning System. It is a system and software package used to monitor day-to-day activities such as reporting, procurement, project management, risk management and production. The nature of such software is to manage all departments and business processes of the company through a single system.
Enterprise resource planning (ERP) is basically integration of key business processes using real-time software and technology.
ERP systems are similar to each other and define many business processes and ensure the flow of data between them. Collecting operational information shared by an organization from multiple sources, ERP systems eliminate duplication of data and ensure data integrity with a "single source of truth."
ERP systems are critical to managing thousands of jobs in a number of areas.
Benefits of ERP systems
Now let's take a look at the benefits we can get from application of ERP systems in our company.
Business processes such as accounting, sales, marketing, production and inventory are integrated into a single ERP platform. This allows you to quickly collect and coordinate data at organization level. At the same time, ERP automates tasks such as data entry and reporting. Duplicate processes are eliminated by ERP systems.
For example, marketing technology can perform daily web traffic reporting without bugging, or accounting can access a weekly sales dynamic directly without tracking sales director. ERP also provides fast search for administrators and key stakeholders. Dashboards allow decision makers to review key indicators of an organization.
ERP demolishes walls between sections. Data silos are integrated and the process connects supercharged local workstations. This setup enables easi collaboration with other teams within ERP platform.
In addition, SaaS ERP expands collaboration between remote teams and departments through Internet.
Increases data security.
There is a security button and restriction control for ERP solutions to be protected against data loss. Having a single data warehouse means intensive monitoring of access points and adding to security.
ERP solutions also show user activity, so you can easily detect unauthorized actions or suspicious activity patterns in the system.
Enables making accurate forecasts.
Advanced ERP solutions with business intelligence tools use machine learning and forecasting algorithms that allow users to access large amounts of information. Companies with complex data sources can use ERP for confidential information and provide a competitive advantage.
SaaS ERP is also a tool to improve serviceability.
First, it helps you integrate existing applications into your system and to export your ERP data to other business applications for more efficient workflow.
Second, most of them allow you to add more modules as your business develops, so you no longer have to replace your system with new software.
Finally, SaaS ERP allows you to log in frequently on any device while connected to Internet.
Reduces operating costs.
Any company can take advantage of ERP to reduce costs. In this case, processes and key indicators are closely monitored, violations, delays and failures are prevented in advance or its effects are better managed.
Thus, it is faster to solve immediate problems using ERP. Operating expenses are kept within budget.
A typical ERP system covers key business processes and includes the following modules:
HRM. This module has standard HRMS tools such as timesheets and databases for employee records, job profiles, and skills matrices. HRM module also includes performance appraisal and payroll system. Second, it is closely linked to financial management module to manage salaries, travel expenses and payments. Some ERP solutions also offer training or the LMS function within HRM.
Financial management. This module covers standard Accounting and Financial Transactions.
Sales and Marketing + CRM. In an ERP structure, CRM is closely linked to Sales module for fast sales conversions.
Production. This module helps businesses become more productive in areas such as product planning, logistics, daily production monitoring and product forecasting. The module is closely integrated with SCM and inventory modules, especially in areas such as product planning and inventory control.
SCM. This module covers key aspects of your supply chain, including purchase order management. It controls the flow from product to product to the consumer, and sometimes vice versa, to return or recall. Main feature of SCM module is process automation, which adjusts the entire supply chain and adapts to sudden market changes.
Inventory. Also known as material management module, it helps measure stock targets, standardizes updates, and defines other inventory goals. Product serial numbers are used to track and locate elements within organization. This module is closely related to Procurement module.
Procurement. This module controls processes involved in procurement of materials. These include: supplier lists; quotation inquiries and analysis, purchase orders, stock updates. If so, works closely with SCM or Inventory modules.
In addition to these key features, there are more advanced ERP platforms, including business intelligence, asset management and e-commerce.
The latest ERP trends include SaaS and On-Premise Hybrid, Cloud ERP, Double ERP, Social ERP, Mobile ERP.
Big Data and ERP
Over the past few years, Big Data and ERP systems have worked well together. Advances in Big Data applications have also played a big role in their integration and success.
Big Data Analysis in ERP applications can provide faster data and reliable forecasting using tools such as Hadoop.
Hadoop is a free distributed ftramework and is the best tool for analyzing big data.
As a result, integration of Big Data and ERP is currently used to obtain the majority of ERP data to make business decisions better and more productive.