what is ERP system? why is it important to for your business?

January 24, 2023
what is ERP system? why is it important to for your business?

The advance in technology is affecting every aspect of our lives, especially business. Technology always aims to improve productivity and speed up the work base. In the past, we replaced papers and notes with excel and google sheet, and now it is the time to for them to be replaced

ERP system definition

An enterprise resource planning system (ERP system) is a software solution that provides assistance to organizations in the management and automation of many aspects of their business. It is a centralized database and a collection of tools that many departments and functions inside an organization may use to access and share information, expedite operations, and make choices based on data. A typical enterprise resource planning (ERP) system is made up of a number of modules, each of which caters to a certain kind of company function.

By delivering real-time data, automating manual operations, and promoting improved cooperation throughout the company, ERP systems enhance corporate efficiency, cut costs, and boost profitability. They are often accessible using a web interface, and they may be installed either on the local network or on the cloud. In addition, they may be tailored to the particular requirements of a company and connected with the systems and programs of other vendors.

ERP advantages: how can an ERP benefit your business

Using an ERP is a game changer. A good enterprise resources planning system can take your management to a whole new level. The moment you start utilizing it in the business you can notice the difference. Here are some of the benefits you gain from Odoo ERP systems:

Enhanced productivity

ERP systems automate numerous manual operations, such as data entry, reducing errors and saving time. They also provide real-time visibility into important performance indicators, allowing organizations to make better decisions and adapt to market developments faster.

Improved data management

An ERP system provides a centralized, integrated platform for managing business processes and data, which aids in ensuring data correctness, consistency, and completeness.

It also enables diverse departments and functions within a firm to access and share information in real-time, enabling improved organizational collaboration.

More profitability

ERP systems can help firms improve efficiency, cut expenses, and boost profitability by providing real-time data, automating manual operations, and fostering better cooperation across the organization.

Improved reporting

An ERP system provides a consolidated data repository and robust reporting features that may be utilized to generate accurate, consistent, and up-to-date reports on various business processes.

Enhanced collaboration

ERP systems provide a consolidated platform for managing business processes and data, enabling diverse departments and functions within an organization to access and share information in real-time, fostering improved collaboration across the organization.

A Unifor framework

An ERP system provides a uniform infrastructure for the business. The front end will be in alignment with the back end throughout the way. Having everyone on the same page makes the business head to its goals faster.

Reduced risk

ERP systems reduce the risk of errors and enhance data accuracy due to the automation of manual operations. Furthermore, by giving real-time access to important performance metrics, ERP systems can assist firms in responding more swiftly to market developments, lowering the danger of being caught off guard.

How can an ERP Help you Business

An ERP or Enterprise Resource Planning is a powerful tool that can help businesses manage and automate various aspects of their operations. Implementing the system changes the way companies operate. Here are some examples of what are they capable of

Enhanced data security

An ERP system has extensive security measures that help protect sensitive corporate data and prevent unauthorized access.

Better decision-making

Businesses that implement ERP systems have access to real-time data. With fast access to the data, they can measure the market indicators to make better decisions and improve their operations.

Lower operational costs

An ERP system automates and simplifies corporate activities, resulting in operational cost reductions in areas such as inventory, accounting, and supply chain management. Surveys show that implementing an ERP system can reduce operational costs by more than 20%.

Improved inventory management

An ERP system provides real-time visibility into inventory levels, allowing organizations to make more intelligent purchasing and production decisions. They can also prevent any

Boost client satisfaction

An ERP system can improve customer service and satisfaction by making it easier to see how customers interact with the company and what they like.

Popular ERP providers

There is a variety of ERP providers of ERP systems in the market. Some of them are familiar for sure, like Odoo, Oracle, and Microsoft. To help you make up your mind, here is a comparison between them.

Odoo

Odoo has been in the market since 2005. It has been providing solutions for businesses ever since. The main advantage of Odoo is that it is open-source software; thus, it offers a broader range of customization with a store that has over 7,000 apps. Another advantage is the price. Implementing an ERP from Odoo is much cheaper than SAP Business One or Microsoft dynamics.

SAP Business One

SAP business is one of the popular choices for large-sized enterprises. It is their primary choice because it has a higher ability to handle a large number of processes at the same time. However, SAP business one is by far more expensive. You could pay up to 14 times the price of Odoo ERP with the same features.

How to choose an ERP system

When choosing an ERP system for your business, you must first realize that there is no bad and good ERP system. For you, a good ERP system is one that can meet your need and provide the features that are essential to your work.

To figure out the correct ERP system that can fulfill your needs, ask yourself:

How much data does the system need to handle: ERP systems are designed differently. Some of them are made with the capability of handling millions of orders per day, while others are made to handle a few hundred or thousands.

How easy to use should it be: If you need all your employees to use the system and adapt to it, then complexity is the enemy. Look for an ERP with a clear and simple user interface that anyone can learn ­fast.

How flexible do you need the system to be: do you need the ERP system to adapt to your needs or the other way around? Open-source ERPs are more customizable and can adapt better to your needs.

Can it adapt to changes: If there is a possibility of change in the future, you should go for an open-source ERP.

Implementing an ERP system is an important decision for your business. If you need help or an advice from an expert, you can WhatsApp and talk to one of our team members who can answer all your questions and tell all about what you need to know about ERP system.