Enterprise Resource Planning Software is an information system model that allows organizations to automate and integrate their main business processes.
ERP breaks the deadlocks of traditional functional barriers in organizations by facilitating data sharing, various information flows, and introducing common business practices among all users in the organization.
Hearing ERP or Enterprise Resource Planning, it is very clear to talk about enterprise resource planning. In general, this is a concept where companies can make plans to make maximum use of resources.
The resources in question emphasize aspects of finance, accounting, human resources, supply chain and so on.
Companies use ERP to be able to produce efficient work and provide the best service for consumers which leads to maximum profit for the company.
ERP system implementation can be a massive undertaking that can take up to several years.
Due to the complexity and size of ERP systems, only a small number of organizations are willing or able to apply various physical and financial resources and take the risk to develop an ERP system themselves (in-house).
Therefore, basically all ERP systems are commercial products like SAP, Oracle, Baan, J.D, Edwards & Co., and PeopleSoft Inc.
Some common ERP modules include:
- Asset Management (Asset Management)
- Financial Accounting (Fico or finance)
- Human Resources (HR)
- Industry-Specific Solutions
- Plant Maintenance
- Production Planning
- Quality Management
- Sales and Distribution
- Inventory Management
Enterprise Resource Planning Function for Your Business
Enterprise Resource Planning Software has many benefits to make your business grow and progress. Therefore you must know what are the benefits of ERP.
1. Company Data Becomes More Secure
There is an admin who manages the data to be able to provide limited access to interested parties. ERP software can also show user activity data to be able to see what activities are running on the software.
2. Creation of Cooperation
ERP software can be a communication link between divisions to access data because of its centralized information system.
Your business development can be carried out by accessing data from other divisions in real time.
3. Save Operational Costs and More Efficient Performance
ERP software reduces the company’s operational costs because ERP works automatically and quickly. So the company does not need to incur labor costs to do it manually.
Activities such as ordering, shipping, supplier performance, quality checks, company cash. So can become more efficient at one time.
4. Simplify Operational Activities
The company’s operational activities will be connected to each other so that updates in one activity will be automatically updated.
For example, the activity of entering transaction data does not need to be entered in various modules, but only once. A centralized database system will help companies store data securely.
5. Open Up Business Opportunities
ERP software can provide complete, accurate and real time reports such as material resources, human resources, machines and so on to assist management in planning future business.
So that management can easily make decisions about the company’s business development. You can easily take advantage of the ERP software above by starting to try to implement an ERP system.
Whatever type of company you are running an ERP system can adapt to the business processes in your company.
The most important thing is the ability to integrate between applications or modules, so that in the future you can easily use each other’s data with ease.
Benefits of ERP Software
After discussing the functions of the ERP system. Next, we will discuss some of the benefits of using such a system:
1. Manage Human & Resource (HR) Needs
There needs to be a system or party related to the process of managing human and company resources.
By using this system, it is expected to be able to assist the task of an HR in monitoring all activities related to the company.
2. Make Various Reports Precisely and Centrally
After successfully releasing and creating the latest service product, the last benefit is that it can help to create a report with faster and more efficient processing time.
3. Speed Up the Software Development Process
Then, the benefit of Function of Enterprise Resource Planning Software is that the application development process can be done well and quickly.
This system has an advantage in the proper planning process, so that it is able to compete with other companies or competitors.
4. Can Integrate Financial Data
When a company is engaged in finance, of course, administrative reports will be very complicated to do. But by integrating the needs of an ERP application.
5. Account Management and Customer Data
The need for data will always increase, so there is a need for a good and integrated system management.
This is because the process of managing customer-related data and information will take quite a long time, if it is not accompanied by the right database design system.
