ERP system: everything you need to know

An ERP system helps you integrate all areas of your company. In this article, we tell you everything you need to know.

What is an ERP system?

ERP software or also known by its acronym in English as Enterprise Resource Planning, is a type of software used by companies to manage their daily activities, among them are: procurement, supply chain operations , accounting, both compliance such as risk management and project administration.

Complete ERP Suite

The complete ERP suite is characterized by including the Enterprise Performance Management, with this software it is possible to plan, budget, predict and report the financial results of any business.

In other words, an ERP software is in charge of unifying different types of processes that are carried out in a company and allows a centralized understanding of the flow of data that exists between them to improve your competitiveness and know in which areas of your company focus

When data is collected from multiple sources, it is possible for information to be duplicated; however, the ERP system is responsible for eliminating them to provide complete information with only one true source.

Is ERP designed for large companies?

Actually, an ERP system is essential when managing different types of businesses with different sizes; that is, both multinationals and SMEs. Added to this is the fact that, thanks to its different customizable modules, any business, regardless of the sector it belongs to or the processes it carries out, will be able to customize its own ERP.

There are providers specializing in the installation of specific ERP software for different companies, either by product or sector, which undoubtedly makes them improve in specific aspects and obtain better indicators.

Main characteristics of an ERP system

In different ERP systems, the scope, functionality, and scale can vary considerably. Despite this, features such as enterprise-wide integration, a common database, and real-time operations can be found in most of these systems.

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Integration of all company processes

The integration of all the processes of the company is in charge of doing it from the most important process to the one of less relevance between departments and business units.

Common database of an ERP

The common database is another advantage of an ERP system. It will allow you to record data only once and any department can access this information. This allows you to:

• Manage the same data throughout your company;
• access information from different departments at any time;
• optimize time thanks to the fact that you find the information quickly;
• save physical storage space;
• avoid loss of information about your company and your collaborators;
• among other advantages.

Real-time operations of an ERP

Knowing the operations in real time is possible thanks to the fact that different processes of a company can be carried out within a few seconds of receiving an order; this can allow problems to be identified quickly and give the seller more time to correct this situation.

Main benefits of an ERP software

An ERP software with benefits, which improve the performance of a company in different ways because they have a global reach of all the areas that comprise it, among the main benefits of an ERP software are:

• Internal efficiency: This is because with an ERP system, companies can reduce the time they spend doing any business process.
• You can make better decisions: the ERP system is characterized by promoting collaboration by sharing the data obtained from the organization. This data allows the different departments to analyze it in order to draw conclusions and improve their decisions.
• It makes companies faster: simplification and standardization generate less rigid structures, meaning that your business will be more agile and will quickly adapt to different situations.
• Improve the security of your information: although the security of information in a centralized database is critical, an ERP software makes it more efficient and easier to control compared to scattered data on different servers, desktops and any other storage location where your business information is at higher risk.

Why should you implement ERP software?

Currently, there are many companies that need ERP software to improve the effectiveness and efficiency of their procedures , this will be easy to achieve because with an ERP system you will have the following benefits:

Integrate financial information

Without the integration of financial information, different departments such as accounting, sales, human resources, among others, would have to use computer systems for their work independently.

These separate systems generate different revenue and expense figures, which means more time is spent analyzing the overall figures for your business.

You can integrate your orders and their following procedures

The ERP system is responsible for coordinating the registration of orders, inventories, manufacturing, accounting issues and distribution. This means that, if you use an ERP, the execution and monitoring of these tasks will be simpler, more organized and you will have less chance of making mistakes.

Provide insights based on your customer information

There are many ERP systems that have a CRM to properly monitor interaction with customers.

By combining the interactions with other information, such as orders, deliveries, service requests, returns, etc., you will have valuable information about the behavior and needs of your customers.

Manufacturing is accelerated and standardized

In the manufacturing sector, there are often several business units that produce similar items, but use different information systems and methods.

With an ERP system, it is possible to automate and standardize processes such as manufacturing and support. In other words, standardization will save you time, increase the productivity of your business and use less staff.

You standardize your supply

Thanks to the absence of integrated procurement systems, analyzing and following a company’s purchases becomes a great challenge.

Large companies frequently show that their different business units buy the same product in considerable volume without receiving discounts for these purchases. With the purchasing tool of an ERP system, it is possible to identify which services and products are most used in your company in order to negotiate the price with your suppliers.

Your human resources information is standardized

There are many companies that do not have an ERP system to standardize and simplify communication with their employees, especially those that have several business units; the latter generally have difficulty keeping track of the hours and expenses they generate.

With an ERP software, which has self-service portals, it is possible for your employees to manage both their personal and work information. Another aspect that an ERP system facilitates is the creation of reports, requests for permits and vacations, tracking of expenses, training, etc.

You can have the reports you need

As the ERP system is integrated with the different areas of your company, generating reports will be a simple task.

Another very important aspect is that, in order to comply with the different tax obligations, the generation of accounting reports will be easier and faster, thanks to the use of an ERP.

If in 2022 you are looking for ERP Software solutions in Dubai to better manage your business, you should take into account all the aspects that we relate in this article.

We have the ERP system that best suits the needs of your business; we also have a specialist team to answer all the questions you have when you need it most.