Today, it is almost impossible to compete in the market without a well-functioning ERP system. That is why no one questions the usefulness of the system today. But do you know what the real benefits of implementing such an ERP system are? In this post, we’ll explain the terms and present the many benefits of implementing an ERP system so you can decide whether your company needs one. We don’t want to get too ahead of ourselves, but the answer is almost inevitable.
The meaning of ERP
Let’s start with what ERP is! It’s an acronym that comes from the English equivalent of the term Enterprise Resource Planning. An ERP system is a software package or system companies and organizations use to integrate, automate, and optimize various business processes. Its purpose is coordinating and managing data and processes in different business areas (such as finance, purchasing, warehousing, manufacturing, sales, human resources, etc.).
The ERP system is not just a software, it’s a central hub that links the different business functions and processes. This seamless integration allows information to flow easily and efficiently between different departments, ensuring everyone is on the same page. It also empowers managers to make decisions confidently by providing real-time and coordinated data.
Implementing ERP systems is often a complex and costly process. However, it can bring several benefits in the long term, as outlined below.
Evolution of the system
ERP systems have evolved considerably over the years. In the 1960s and 1970s, early systems focused primarily on basic production processes. In the 1980s, they covered a wider range of business processes, including finance and human resources. In the 1990s, with the rise of the Internet, the availability of ERP systems expanded, and more companies started to offer cloud and web-based solutions.
Since the early 2000s, ERP systems have been on a journey of continuous improvement, becoming more complex and adaptable. They now integrate all of a company’s processes and provide analytics and business intelligence functions. The rise of smartphones and mobile applications has further simplified user access and management, making them future-proof and ready to adapt to changing business needs.
With the rise of artificial intelligence and automation, modern ERP systems can support decision-making through forecasting and data analysis.
The benefits of implementing an ERP system
The benefits of implementing Bitrix24, our company’s business software, are illustrated using the example of Bitrix24:
Process integration
The ERP software links and integrates different business processes and functions, such as purchasing, production, sales, and finance. This allows for unified data management and easy information flow between departments.
Data integrity and accuracy
ERP is based on a central database. This increases the accuracy and reliability of data, helping you to make better decisions.
Efficient processes
Automates most business processes, reducing manual labor and the potential for errors. This increases efficiency and productivity.
Transparency
It provides real-time data on company performance and processes. This allows business managers to better understand the company’s current state and react quickly to changes.
Simplify decision-making
Aligned data and processes allow managers to make decisions with the right amount of information, and the tools help with strategic planning.
A cost-effective solution in the long term
Although implementing an ERP system may involve higher one-off costs, it can save high costs in the long run by optimizing processes, reducing errors, and improving workforce utilization.
Parts of the ERP system
The ERP system consists of several parts covering different business areas and processes. They allow business processes to be integrated and managed more efficiently. The most critical parts are described below:
Finance module
Accounting: financial transactions, cost tracking, revenue management, etc.
Invoicing software: invoicing, payment management, invoice statistics for cash flow management, and reporting
Purchasing module
Procurement process management: tracking orders, suppliers, quotations
Stock management: stock monitoring, optimization of stock levels
Sales and sales support module
Customer relationship management (CRM): Customer information management, communication management
Sales processes: Sales orders, quotations
HR module:
HR automation
Personnel data and attendance recording
Payroll and payroll management
Workforce planning and recruitment
Project and task management module:
Project management
Task and workflow tracking
Project analytics and reporting
Logistics and transport module:
Planning and monitoring logistics processes
Management of transport and shipping documents
The main steps in the system selection process
Requirements and objectives definition
Definition of the project requirements
Analysis of suppliers and software
Check references and user feedback
Assessing customizability and scalability
User experience
Data protection assessment
Final decision and implementation plan
If you want to ensure that your business is in safe hands, please get in touch with us and confidently contact our colleagues!