What is an ERP management system and its 8 benefits to an enterprise?

Business management plays a key role in business efficiency. Therefore, business owners are always trying to find themselves an optimal management system. And one name that cannot be mentioned in this area is the ERP management system.

ERP is an acronym for Enterprise Resource Planning Software, a software solution that has been around for a long time with the purpose of supporting the management of a company. This software is not for personal use but will help the business in its daily activities. The main function of ERP is to integrate all departments and functions of the company into a single computer system for easier monitoring, but at the same time flexible enough to meet many other needs together. In other words, you can imagine ERP as a huge piece of software, it is capable of doing financial, human resources, manufacturing, supply chain management, and a lot of other things.

Also Read: SAP Certification

So, to learn more about ERP and ERP, which benefits do enterprises and the most popular ERP software today? Join us to answer the questions

What is ERP management system?

ERP stands for Enterprise Resource Planning. It is known as the enterprise resource planning system.

Accordingly, the EPR management system is considered as an integrated system for enterprise management. Instead of before, the enterprise’s database is divided into many departments, software such as accounting, human resources, administration, production management, etc., ERP will integrate all in one system only.

Using the ERP model in the business is outstanding because it helps businesses manage all key activities such as accounting, human resources, salary, inventory management, import and export, financial analysis, guest list. goods, production management, order management, logistics, customer care … Ensure that the parts are still closely connected with each other.

Thanks to ERP, business owners can quickly grasp the business performance of each department. By planning and planning tools. Business owners can use the team of businesses, financial supplies, budget finance to bring the most optimal efficiency. The current ERP software helps businesses increase their competitiveness, reduce costs, and maximize profits. It can be said that ERP is the world’s leading management system today because of its applicability and efficiency. Applicable for all businesses large and small, in all diverse industries.

History of ERP formation and development

Forerunner of ERP management system is the production resource planning application (MRP) combined with integrated computer manufacturing (CIM). Over time, the system gradually expanded and perfected to form ERP.

The concept of ERP first appeared in 1990 by the Gartner Group, or called SAP. SAP was founded in 1972 in Walldorf, Germany and now has offices around the world. Originally known for leadership in enterprise resource planning (ERP) software, SAP has evolved to become a market leader in end-to-end enterprise application software, database, analytics, intelligent technologies, and experience management.

With the efficiency that ERP systems bring, this system is increasingly popular. By the 1990s, not only serving the manufacturing sector, ERP software systems were widely available to businesses. ERP has also gradually crept into both government agencies and non-governmental organizations.

Since about 2000, the EPR management system has been improved by gradually getting out of the internal management mode. The term “ERP II” was used to refer to the ERP system that can be accessed and used on the web interface. Now, besides the employees of the company, partner customers can also access ERP to monitor the parts related to their interests (e.g. tracking orders, tracking inventory).

More importantly, “ERP” is a generation that enhances the interaction and enhances the level of cooperation between businesses and their customers. Besides you can learn more about the best CRM software for startups & all businesses. Sales CRM software is very useful to increase business efficiency, run the business as well as the ability to collaborate between businesses and their customers. With CRM tools for businesses, you can securely store customer databases and drive more transactions. Moreover, there are many special CRM coupon codes that help you save money more.

The functions of the ERP management system

ERP management system is extremely versatile, bringing many benefits to businesses. Building an ERP system, you can easily visualize and outline the basic functions of ERP as follows:

Production manager

Manage inventories, sources of raw materials and assets of the business

Sales Manager

Product quality control

Customer list management

Human resource management of businesses

Market research and development

Business planning

Financial management

Supply chain management

Especially, not all businesses use all the functions of ERP with a huge system. Depending on the specific characteristics of the business, as well as the needs of the business, an ERP software vendor may be required to integrate appropriate features.

Differences between SAP and ERP

You hear a lot of people mention SAP and ERP to refer to the enterprise management system. Many people confuse these two concepts together. So what is SAP, what is ERP and what is the relationship between them?

As analyzed above, the ERP model refers to the enterprise resource planning system. Meanwhile, SAP is a German company specializing in providing software and industrial applications leading the world. And the ERP management system is a typical name among such software.

Thus, if the full SAP ERP call is to refer to the ERP software provided by the SAP company. Currently, many people use the phrase “” SAP software “to refer to the software provided by SAP company, but SAP itself is not a software.

Benefits of ERP management systems to businesses

Applying ERP business processes will bring benefits to businesses? If your business is not yet using ERP, consider it as soon as possible to standardize your business operations, both to be more professional, and to increase business efficiency through ERP.

Here are the benefits that ERP will bring to businesses:

Support effective customer information control: Customer information is an important resource. Including people who have been dealing with businesses. Therefore, it is necessary to keep updating completely and accurately.

Through the synchronization of the ERP management system, all customer information will be gathered clearly and specifically so that all departments can update, supplement or check.

Business owners can easily know which customers, what to buy, how much, and how the transaction status is.

Promote the process of production, service provision and goods. The purpose of ERP software is to help automate part or the whole of an enterprise’s manufacturing, service, or goods production process.

Through the planning of production and sale. From evaluation, preparation of raw materials to the production of finished products, storage, storage, packaging, transportation, delivery, output management and many other parts. Only the proper operation of the ERP system can take on many different tasks and bring tremendous efficiency.

Meanwhile, previously enterprises had to disperse forces and costs for many separate software, asynchronous management. With unified administration, everything becomes faster. ERP management system helps businesses save time, costs, and personnel while ensuring high productivity, even increasing work efficiency compared to previous times.

Project management and quality control: ERP applications help you control the quality of products and services. For each specific project, ERP will help plan, allocate human resources and the most appropriate capital.

With its “intelligence”, the ERP management system is capable of self-assessing the staffing of employees in the data system. From there, analyze and suggest to the business owner the optimal personnel allocation plan.

Financial information management: Issues related to corporate finance will be summarized and collected by one ERP, so that business owners can easily control and make the right assessments. the most about the performance of the business. In addition, ERP is also capable of making financial statements.

Better inventory management: More or less inventory, which area it is in, what its status, which goods sooner expire or need to ship soon, which ones are favored. When all information accurately captured and reported to the business owner. Business owners can make appropriate import and export decisions. Contribute to increasing business efficiency.

Professionalizing work ethic: ERP requires every employee to work more professionally and devote more, due to the close and scientific supervision. The purpose of the software requires every part to have strict cooperation and compliance. Information about working hours, KPIs, and job quality of employees is collected and evaluated by ERP.

Quick and synchronized communication: Interaction, exchange and support among departments and employees becomes much faster and easier thanks to ERP. Because all issues have been synchronized in the system, without waiting for the feedback that took time as before, ERP makes the exchange faster and more convenient. Since then accelerate work efficiency.

The current ERP software:

Packaged ERP software: Packages that are available and often have the most common basic features. Any business can use and is the cheapest method.

Write-on-demand ERP software; flexible and diverse ERP applicable to many sizes and business sectors.

Foreign ERP software: The most modern technology, standard process, high quality. And of course the high price

With many outstanding features, the ERP management system has gradually affirmed its position and influence on the operation of the business. This is an expensive option if your business intends to synchronize and thrive in the future.

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