How to manage all this?

ERP-system – Enterprise Resource Planning – this is the central nervous system of any small, medium and large business. It unites all processes occurring in the company, binds them to one database and can answer the question “how it happened” best of all.

From a software point of view, ERP is a set of modules, the list of which can vary depending on the size and type of business. The standard set looks like this:

  • Personnel Management
  • Stock
  • Sale
  • Customer Relationship Management (CRM)
  • Procurement
  • Finance and accounting
  • Supply Chain Management (SCM)
  • Production

Transformation of the company that risked to purchase ERP is comparable to a miracle. And the reasons are further.

Advantages of ERP usage:

  • Access to the information

ERP collects relevant information and thereby improves communication between departments. So, when you receive an order, the customer service, production and logistics department simultaneously accesses the necessary data, which greatly simplifies the coordination of the process.

  • Practical usage of data

Previously, business analysts consisted of reducing the heap of reports and spreadsheets. The days, nights and tons of caffeine were spent on getting results. Thanks to the huge technological leaps, modern BI applications are more interactive and effective than ever.

  • Quick decision making

Heads of departments quickly identify shortages in the warehouse, delay in delivery or staff shortages. Based on this, they solve current problems. The top management, who is not ready to go into all details, sees the big picture and evaluates the trends, and especially savvy ones hit in business analytics.

  • Costs reduction

When the process of assimilation will end (and with competent support it will end sooner), all the turmoil associated with the fulfillment of the same task, the failure to fulfill it in principle, the search for the guilty wil be eliminated. As well as spending time and money on restoring peace throughout the world.

  • Productivity increase

… lies in the automation of any (and, better, maximum) number of business processes. The system itself will notice the lack of documents. The system itself will notify you about the shortage of materials. For many, it will be a surprise to see how independent ERP is in individual issues.

  • Security and organization of data

ERP simplifies data management and provides instant access to it. In addition, the data can be organized in a way that is more user-friendly. And the built-in backup module prevents heart attack in case of problems with electricity.

Disadvantages can be found even in ERP:

  • High initial investment

The wider the ERP functional, the more complex (and frightening) its first implementation is. This requires the transfer of all data from the existing system to the ERP, partially depleting the money and time resources.

  • System can be complex

The team working on the implementation project should be well trained and clearly understand how ERP modifies the business structure. After implementation, training may be required for the employees of the company.

  • Lack of immediate results

On the first day, week, even month, management will ask “Does it worth all the resources, investments?”. Definitely yes. But this will become clear much later.

  • Additional expenses are possible

In addition to purchasing the software itself, its implementation and training services, it may be necessary to update the IT infrastructure.

Make wise business decisions.

Summing up, we can say the following: in order not to turn the introduction of advanced technologies into a disaster, make sure that the chosen ERP system is suitable for your profile, budget and technical specialists. And remember that ERP is cool.