What is ERP? – How does it Work? and More

What is ERP?

ERP stands for the concept Enterprise Resource Planning, would be Enterprise Resource Planning. However, its often called ERP management software, because the truth is that it is a software, which is made up of different modules of other software, making this a system consisting of a single integrated interface.

In other words, if we use an ERP in our company, we will have a software module for planning, another software module for manufacturing, another for distribution, another for accounting. And so on, which will converge in a management system, which is called ERP.

How does ERP work?

Erp offers the possibility of configuring the system according to the needs of each company, and therein lies precisely the main characteristic of ERP systems, since that is why large companies, including SMEs, use them, and even up to micro-enterprises.

So the truth is that an ERP system encompasses several departments of the same company. Still, also, sometimes an ERP can go beyond corporate limits. Since it can incorporate partner and supplier systems, with which add additional actions to the platform. Such as supply chain management.

Precisely, an ERP system is genuinely vast and can cover all the areas of a company. We can guarantee you that it is a simple piece of software as ultimately, each application or software module that is a unique piece as it has designed to provide solutions to the different specific business process.

Also, keep in mind that the implementation of this new tool in a company will also require a significant investment in terms of training employees. Who must not only learn to use the latest software but must also learn to cope with the new processes.

It should have to make a note that regardless of the way a company uses to implement an ERP system. Either g0radually or entirely
The fact is that being able to have this type of tool in an organization will allow for notable improvements in the way that the company does its business

since it provides effective management of workflows. At the same time, it alters and accommodates processes to adjust them to real needs.

Advantages of Implementing EPR Solutions

In short, when the ERP system has implemented and adjusted to the requirements of the company. It will bring significant advantages
The development of business, since as we mentioned. It is a platform made up of several modules linked together, so each area The organization can share their information more easily and quickly.

Thanks to this, the workflow that is taken place out between the regions is also significantly improved. And the tasks can become more automated,

Which ultimately also makes it possible to provide a better service to customers. As the employees in charge of directly attending Clients will have immediate access to real information on each transaction

conclusion

For this reason, there are vast reasons why the money a company must invest in the implementation of an ERP management system is justified. Although the initial costs may be somewhat high. Especially in the case of SMEs and micro-enterprises, the truth is that in the short term. The reward that the organization experiences through this tool translates into a real competitive advantage.