What is ERP?

Enterprise Resource Planning (ERP) is a system that ties together and automates many processes within a given enterprise.

When created and used properly, a good ERP can:

• decrease the time spent performing everyday tasks;
• improve the workflow across departments;
• give a good overview of all company operations.

ERP is usually comprised of smaller, custom modules. Each module completes a particular task within the organization, such as managing employees, taxes, finances, paperwork, etc.

Each module can be customized and modified to meet all needs of an organization. Therefore, an ERP is an invaluable tool that can be tailored to the specs of any company.

Does your company need ERP?

Just because ERP can work for most companies, that doesn’t inevitably mean that every company needs one. How can you tell if you actually need an ERP?

#1: Company processes are run using several different software.

While a small company might be able to work within 5-6 programs well, a growing company will face a number of issues as more needs will have to be met. Making sure that all software works well together can become a challenge. Especially if your company is growing and/or doesn’t have an IT department.

If your company will have an ERP, you will be able to greatly improve your company’s performance. In addition, you will also able to save a lot of IT management costs by using ERP. 

#2: Data management is difficult.

A constant problem for enterprises is the continuous creation of data. As a company grows, more clients and more employees mean that more data gets created and needs to be handled efficiently.

An ERP can improve the flow of the internal documentation procedures and can automate most of the data management processes.

#3: Сollaboration between departments needs improvement.

In a company that has a couple of departments, smooth communication and effective exchange of information are key to success. Being able to view data from other departments easily can save time and help a company move quickly.

Having an established workflow through an ERP means that employees are able to perform their duties a lot faster and with much less stress.

#4: Complex inventory management is necessary.

A company that sells goods, to other companies or directly to consumers, needs to have its inventory in check. There have to be enough items in stock, and they need to be shipped on time to make all clients happy.

With an ERP system, management becomes much easier since all departments, locations, and employees are able to track inventory and input all necessary information in real-time.

Remember: ERPs are not a magic bullet.

Before implementing an ERP that automates all of your business processes, you must make sure that all of the processes are already organized. Therefore, an ERP makes sense only if your company’s workflow is established, but it takes too much time to manage it effectively.

Do you need ERP of your own?

If you’re interested in finding out more about what an ERP can do for you or you want to develop an ERP for your own business, please contact us for more information.

Want to start your own startup?