How an ERP system works and what are the benefits for companies

The ERP system proves to be very effective, a great help and essential for managing the activities as well as the organization of a company via a single software. It is also a source of savings and profitability, if and only if it meets the needs of the company and provides it with the key indicators necessary to optimize its operations.

So much praise for this innovative tool, but is its performance really beneficial to the person using it? We tell you all about how it works and the benefits of using it.

What is an ERP system?

An ERP  (Enterprise Resource Planning) or PGI (Integrated Management Software) is, as its name suggests, software that allows a company to manage and plan its resources efficiently. It aims to integrate the various functional components of the latter within a single information system.

Unlike CRM  (Customer Relationship Management) which focuses on optimizing sales, the ERP system consolidates data from different departments with the aim of improving the company’s productivity. Thus, his role is to deal with different tasks within the various branches of the company, namely purchasing management, inventory management, commercial management, production management, customer relationship management, etc.

How to integrate ERP software into the computer system?

The integration of an ERP system requires increased skills in the field of IT, so it is best to contact a professional to do it. The process takes place in a few steps which are as follows:

  • Before starting any project related to the activities or the organization of a company, it is necessary to take stock of its needs. The same goes for the integration of an ERP system. This therefore consists in identifying the main challenges of the company, formalizing its processes, defining the needs in specifications.
  • Choose the solution best suited to the needs of the company whose functionalities meet the requirements of the latter. The software must therefore be able to evolve over time at the same pace as the company itself. You have the choice between an on-premise ERP  (the software is installed on the company’s servers and hardware) and a cloud ERP (the data is stored in the provider’s cloud and is accessible on the web).
  • Do an audit and process analysis to see if the chosen ERP system is in line with the needs of the company.
  • Set up a dedicated team that will be in charge of deploying the ERP system. Once done, it will be necessary to transfer all the initial data of the company, that is to say all the information relating to customers, suppliers, invoices, orders, accounting, but also its structural statistical data.
  • Carry out the settings as well as the necessary tests by people who understand both the company’s activities and above all who master the techniques and handling of the ERP system.

For the ERP system to be operational and efficient to use, users must be supported in the medium term by integrators.

ERP system: what advantages for companies?

An ERP system comes in the form of a platform. It is made up of a dashboard in which the various performance indicators relating to the company’s activities are displayed. For a real growth strategy, the ERP system is the essential tool to obtain concrete and satisfactory results. In addition to being a multifunctional device that centralizes the management of business operations, the use of an ERP system offers several advantages, namely:

  • A centralization of reliable data from the various services of the company in a secure data warehouse in order to prevent against data loss and so that the latter are available, consultable and exploitable by all the teams.
  • Automated data entry, which avoids entry errors, whether voluntary or involuntary, as well as duplicates.
  • Regular synchronization of the company’s data allowing the evolution of its performance to be monitored in real time.
  • Optimization of business development planning processes.
  • A considerable saving of time in the management of company data, allowing employees to focus on high value-added tasks for better profitability.
  • Responsive sales power and customer support. Thanks to the data collected on customers, the company can thus identify the needs, expectations, trends of its customers and thus guide its decisions in relation to this information.

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