ERP, which means enterprise resource planning, is a system that companies have been implementing for many years to be much more efficient. With the development of technology, important variables such as artificial intelligence were added to the ERP system. Let’s take a closer look at what ERP is, what it does, what its advantages are.
Managing a company, especially a large one, is extremely difficult. Therefore, administrators use systems to control the movements of all on-premises units. One of them, ERP, seems like a new concept, but it has actually been used for many years. Since cloud technologies and artificial intelligence are also used in the ERP systems used today, all these processes are now much healthier.
ERP, which means enterprise resource planning, is a must for every company. Because within these systems implemented and used, a company both carries out today’s work and plans for the future. Thanks to these systems, all basic business processes are brought under control and steps to be taken for the future are foreseen. Let’s take a closer look at the questions such as what is ERP, what is it for, what are its advantages.
What is ERP?
Enterprise Resource Planning, ERP for short, enterprise resource planning with Turkish; finance is a system that ensures the healthy functioning of the basic business processes carried out by in-house units such as human resources, production, supply chain, services, procurement. In recent years, ERP has become an automation-supported software system.
What does ERP do?
Basically, the number one task of ERP systems is to control resources and ensure the healthy progress of the processes carried out accordingly. ERP systems; provides control over finance, accounting, human resources, sales, procurement, logistics, and supply chain points.
The sales unit manages customer orders through ERP. The logistics unit controls the delivery process of the products via ERP. The finance department manages payments through the ERP system. Management checks all these variables through ERP to make new decisions accordingly. Such instances can be replicated. In short, it is possible to say that ERP provides the functioning of a company.
Modules used in ERP system:
- The finance and accounting module forms the basis of the ERP system because all financial transactions are managed through this module.
- Thanks to the human resources module, all personnel work is carried out through the ERP system.
- The supply module provides the company’s control over the products.
- Sales module; controls the entire sales process, before and after.
- The production module provides control of products that are not supplied produced and sold by the company.
- The logistics module ensures that all these transactions are done with the right timing.
- Customer relations are organized through the service module.
- With R&D and engineering modules, the company makes future planning.
- Thanks to the enterprise asset management module, the company retains its existing value.
All these modules are an integral part of the ERP system that the company is using. Even if they’re important separately, if there’s no one, there’s no other. Therefore, it is extremely important that all these modules are controlled by a single ERP system. In other words, the modules both feed the system and are controlled by the system.
Advantages of using ERP:
- Thanks to the use of ERP, the productivity of the company increases.
- Ensures that everyone has accurate information about the company.
- The reporting process moves much faster.
- Maximum gain is achieved with minimum risk.
- The existing ERP database makes it easier for the IT unit.
- Business processes go much faster and more efficiently.
There are some of the advantages that companies that use the ERP system will get, but it is possible to add many more positive substances to them. On this basis, things go much easier thanks to the ERP system. Because there is only one source where all the data is present, and all the volumes feed on it. Thus, all processes become fast and efficient.
Erp system must-haves:
- A centralized, common database that covers the entire system.
- Compliance and reporting tools connected to the built-in analytical system.
- Visualization of data that will speed up the process.
- Automation systems are supported by artificial intelligence and machine learning.
- A stable and convenient interface.
- easy-to-integrate software package.
- The ability of the existing system to comply with new technologies.
- A platform with little code or, better yet, no code.
- International compliance in currencies, language support, and so on.
- Convenient deployment model.
Although it varies according to which sector the ERP system will be used in, these features are essential in an ERP system that we can call basically successful. It would be more appropriate to say: these features must be in an ERP system, there may be more, but there can be no less.
In which sectors are ERP systems used?
In what sectors is it not used? If you are not a self-selling tradesman in your neighborhood, you definitely need an ERP system. In today’s world, it is no longer right to take notes with pen and paper or to carry out such analyses and checks by human hands. Man always has a margin of error, but an automation-powered ERP will not make such mistakes.
Public institutions, manufacturers, wholesalers, law firms, accounting offices, engineering companies, IT companies, retail vendors and many more can and should use the ERP system. In any sector, supporting the operation process of a company with the ERP system means a much more planned process of operation.
It is extremely important to choose a distribution model that is suitable for the size of the company in which the ERP system will be used. Relatively small companies can use the traditional system called on-premises ERP. When things get a little bigger, the cloud-based ERP system will be much more efficient. Hybrid ERP, where both distribution models are used together, is the right choice.
We answered the questions such as what is ERP, what is it for, what are its advantages, and we talked about the details you need to know about the issue, which makes the operation of companies much faster and more efficient. If you are going to use an ERP system in your company, you should definitely consult with the experts.