ERP system - Enterprise resource planning

What is an ERP and what is it used for?

Enterprise Resource Planning (ERP) software standardize, streamline and integrate business processes across all departments of a company.

What is an ERP?

An ERP (Enterprise Resource Planning) is a software for managing. The enterprise system consists of several modules that manage each area of a company and automate its internal processes. The data generated is shared with all departments, resulting in a unified system.

An important objective of an ERP system is to integrate all the back-office processes of a company and to facilitate the flow of information within an organisation so that business decisions can be based on data.

ERP systems are designed to record and organize data, and link the activities of all departments within an organization. A comprehensive approach to ERP helps standardize and automate business processes and improve the efficiency of operations. In addition to saving time and money, it ensures that everyone works with the same data and observes the same key performance indicators (KPI).

The best ERPs are those that are in SAAS mode and use the cloud.

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Which companies need an ERP system?

An ERP system is suitable for all types of companies, whether multinationals or SMEs. Moreover, thanks to the different customizable modules, any company, regardless of the different processes it has or the sector to which it belongs, can customize its own ERP. There are suppliers who specialise in implementing certain ERPs, either by product or by sector, and who achieve better results after the ERP has been acquired.

History of ERP

In 1990, Gartner created the term ERP to describe the evolution of the material requirements planning and manufacturing resource planning. Enterprise resource planning systems evolved rapidly during the 1990s in response to the Y2K problem and the introduction of the euro. Most companies saw the Y2K and euro changeover as a good opportunity to adopt enterprise resource planning systems. (ERP) and thus replace the multiple existing systems with one standardised set that could also solve these problems.

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What are the main features of ERP systems?

ERP systems vary in size, scope and functionality considerably. However, most ERP software has following characteristics :

Enterprise-wide integration. The business processes are integrated end-to-end in all departments and units commercial. For example, a new order triggers automatically a credit check, checks the availability of the products and updates the distribution program. Once the order shipped, the invoice is sent.

Real (or near real time) operations Such as the processes of the above example take place within seconds of the Upon receipt of the order, problems are quickly identified, which is why the
which gives the seller more time to correct the situation.

A common database. A common database is one the advantages of the ERP system. It allows you to record data one only once and make them available to every department.

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