What is an ERP System and what is it for?
ERP stands for “Enterprise Resource Planning” (Enterprise Resource Planning System). This relatively new system is based on the virtual planning and organization of the different business areas: Production, logistics, accounting, inventory, shipments, among others.
The purpose of using the ERP System in business is to support the different clients and entrepreneurs to help sudden problems that may appear in your company and seek the most immediate solutions. As well as minimizing costs in the management of business information. In this post we will explain in detail everything you need to know to apply this great system and all the benefits it can offer you.
Characteristics of an ERP system
- Access a centralized database to capture all the qualities and weaknesses that a company may have.
- You will be able to structure all the work of the company through modules that facilitate the assigned tasks, being one less burden for those in charge of the business.
- By means of the software codes of the program you will be able to configure each module of your company as it suits you best.
- Good interaction between the components of the ERP system.
- Through previous knowledge you will be able to synchronize all the departments of your company with each other.
Objectives of an ERP system
- It allows timely access to all company information, in addition to being restricted to a certain extent depending on the type of user in your company.
- Help optimize your business processes.
- Eliminate unnecessary company processes that require high costs.
Important note
For an ERP system to work correctly, it must be adjusted to the needs of the company.
But… How to know? In Millennials Consulting We offer a free 30-minute consultation, which will help us determine which ERP system suits your needs, customizing the ERP to the maximum for its easy implementation and management of your company's employees.
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Advantages and disadvantages of the ERP System
Advantages:
- Minimize costs: At the time of implementing all the strategies of the ERP system, the reduction of costs in several areas of the company will be noticed, since the System allows the tasks to be fulfilled by some departments to be simplified in one place.
- Availability: By means of configurations you will be able to access the control of the platform from several devices at the same time in order to work for the benefit of your company wherever you are.
- Can be integrated: It is one of the most important qualities of the system, since it offers the ability to integrate different sections and departments of an entire company into a single program. When all these areas come together, you can work more easily with them and at the same time save money.
- Visibility: With this system and the collaboration of some people in the company, work and tasks can be assigned much more efficiently and quickly. The ERP System analyzes all business areas so that you make the best decisions for the benefit of it.
- Customizable: The ERP system is capable of working with any type of company without any problem, so you can order the modules that suit you best without worry.
- Planning: Being in real time and studying the accurate and proven information offered by the ERP system helps improve decision-making in the face of any problem that may arise in your business.
- Effectiveness: The way to carry out work and control the different areas of your business has never been as easy as with this ERP System.
Disadvantages:
- Start of costs: The ERP System is not compatible with all the equipment, to have them you must train yourself with some new equipment since the software requires it. Otherwise, the program may be what was not expected and not provide any type of benefit to the company.
- Training: The ERP system program is not difficult to manage but its training time for workers can become tedious and time consuming. Although it is an exhaustive process, it is necessary to avoid inconveniences and damage to the program.
- Time: Updating and configuring enterprise modules to meet business needs can be time-consuming, as can implementing the entire program structure for all areas and workers throughout the business environment.
What companies need an ERP System?
- Clinics and any health center, whether public or private.
- Companies related to the distribution and sale of pharmacy products.
- Companies of any type of product transport: Couriers, warehouses and carriers.
- Producers of any type of material good (manufacturer of cars or parts for them, electrical appliances, technological equipment, packaging and containers, toys, stationery, clothing, among others).
- Departments that work with human rights and resources.
- Companies linked to money and finance: Marketers of products in terms of finance, vendors, banks and digital operators.
- Restaurants, hotels, car rentals, sports centers, video game rooms, festive events and any company that is dedicated to entertainment.
- Sellers of products, clothing, home, virtual stores, telephony, cars, household items among others.
- Real estate and real estate companies.
- In general, we could say that practically all large companies and SMEs need an ERP to maximize and optimize workflow, saving costs and allowing the company to be more productive.
An ERP is intended to reduce response times in terms of decisions that mark a turning point in the future of your company, as well as 100% effective information management to improve customer interaction and costs in terms of operations. business.
The perfect ERP for your company must be capable of having configurable modules according to the roles and tasks that each business user who uses it fulfills. It is recommended that this system can also be used from the cloud, in order to avoid possible loss of vital information for the company.
Ask your free consulting 30 minutes and find out which ERP is the one that suits your needs.
