What is an ERP system?
Enterprise resource planning (ERP) is an integrated software solution applied for regulating vital business-related processes including finance, labor resources, logistics network, production, distribution, and accounting. These automated systems operate as a central hub coordinating a dataflow within the enterprise. ERP software systems rely on the latest advancements of artificial intelligence and machine learning.
Benefits of an ERP system
By utilizing a well-developed ERP solution, you will experience considerable advantages:
Efficient operational plans and resource allocation
ERP system implementation gives you opportunities for effective planning of manufacturing schedules and forecasting the required amount of resources. Therefore, you may take reasonable decisions, eliminate unpredicted downtime, and avoid production disruptions.
Fruitful business cooperation
Enterprise Resource Planning consolidates internal data from various departments into one hub, ensuring the accuracy of regularly transmitted data. It also helps decrease a number of human errors that occur because of invalid information.
Enhanced productivity
Automated operations like tracing inventory or generating invoices help save time and concentrate on more important issues. ERP software solutions allow your staff to perform more revenue-generating tasks, deliver better customer services, and contribute to the company’s success.
Improved customer relationships
By applying ERP you can accumulate clients’ private data and purchase history in one place. Consequently, the customer experience will be improved
Better monitoring
ERP systems offer you a comprehensive vision of the company’s progress as all the departments are operating under one roof.
Increased data security
Most ERP systems come with a built-in security control fostering data protection.
Predictability
Every ERP solution enables an enterprise to be more prognostic bringing better results and ensuring scalability. It also keeps you abreast of market fluctuations allowing you to adjust product development strategy.
ERP modules
Regarding the type of business, a customized ERP system may embrace the following modules:
HR management
Human resources module suggests such essential features as time, attendance, and payment management.
Finance
This ERP module ensures automation of financial tasks allowing companies to monitor payable and receivable accounts, compile financial reports, meet the revenue recognition requirements, and reduce financial risks.
Sales
A sales module controls interactions with customers providing valuable information that helps boost sales and increase leads.
Manufacturing
As an important planning element of an ERP solution, a manufacturing module makes the production process easier and more importantly adjusts it to the demands.
Supply network management
A supply chain module oversees how goods are supplied within a supply network of the company. The module instruments ensure effective inventory control, warehouse operations, and efficient transportation.
Customer Relationship Management
Quite often, a CRM module is intertwined into a sales module to grant better customer service and establish close relationships with clients which results in enhanced sales opportunities.
Types of ERP deployment models
The main modes of deploying the ERP systems include cloud, on premise, and hybrid scenarios:
Cloud ERP
When utilizing a cloud ERP, a software system is hosted in the cloud. A provider is responsible for maintaining, updating, and protecting the software. Cloud method offers lower expenditures, bigger scalability, and smooth integration.
On-Premise ERP
This model of deploying ERP software gives you the opportunity to oversee everything. The ERP system is usually installed in a data center of your company. Your staff is accountable for software and hardware support.
Hybrid ERP
A hybrid model means bringing together cloud and on-premises solutions. Such an ERP approach may decrease costs, uplift the responsiveness of business needs, and simplify business operations.
ERP system examples
Finding an effective solution that meets your business goals is vital to its successful implementation.
Here are the best examples of ERP software available in the market today:
Oracle Cloud ERP
This system can be deployed by businesses of various sizes operating in financial, healthcare, manufacturing, educational, and retail sectors. Its most noted advantages involve affordable upfront cost, automatic upgrade, scalability, modern UX, and third-party integration.
NetSuite ERP
This robust solution automates various business operations related to managing finance, revenues, and billing. Its warehouse administration instruments enable users to control their inventory applying fulfillment data which is regularly updated.
Acumatica
It is a cloud-based planning system that assists companies in building sustainability and becoming more efficient in the modern digital economy. Acumatica offers a powerful set of ERP tools that ensure uninterrupted operations and keep businesses growing even amid market changes.