Managing a company, especially a large one, is extremely difficult. For this reason, managers use systems to control the movements of all units within the company. ERP, which is one of them, 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 work much healthier now.
ERP, which stands for enterprise resource planning, is a must for every company. Because within these systems implemented and used, a company both carries out today’s business and plans the future. Thanks to these systems, all basic business processes are taken under control and the steps to be taken for the future are foreseen. Let’s take a closer look at questions such as what is ERP, what is it good for, what are its advantages.
What is ERP?
Enterprise Resource Planning, in short ERP, in Turkish, enterprise resource planning; It is a system that ensures the healthy functioning of basic business processes carried out by internal units such as finance, human resources, production, supply chain, services, and purchasing. 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; It provides control over finance, accounting, human resources, sales, purchasing, logistics and supply chain points.
The sales unit manages customer orders via ERP. The logistics unit controls the delivery process of the products via ERP. The finance unit manages the payments through the ERP system. The management controls all these variables over ERP and makes new decisions accordingly. Such examples can be multiplied. In short, it is possible to say that ERP ensures the operation of a company.
Modules used in the 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 over the ERP system.
- Procurement module gives the company control over products.
- Sales module; controls the entire sales process, before and after.
- The production module provides control of products manufactured and sold by the company, not supplied.
- Logistics module ensures that all these movements are done with the right timing.
- Customer relations are organized thanks to the service module.
- The company plans for the future with the R&D and engineering module.
- Thanks to the corporate asset management module, the company preserves its existing value.
All these modules are an integral part of the ERP system used by the company. Although they have separate importance, one cannot exist without the other. For this reason, 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.
- It is ensured that everyone has correct information about the company.
- The reporting process goes much faster.
- Maximum profit with minimum risk.
- Thanks to the existing ERP database, the work of the IT unit becomes easier.
- Business processes are much faster and more efficient.
These are some of the advantages that companies using the ERP system will gain, but it is possible to add many more positive items to them. If we look at the basics, things go much easier thanks to the ERP system. Because there is only one source with all the data and all units are fed from this source. Thus, all processes become fast and efficient.
The essentials of the ERP system:
- A central, common database covering the entire system.
- Compliance and reporting tools based on internal analytics.
- Visualization of data that will speed up the process.
- Automation system powered by artificial intelligence and machine learning.
- Stable and useful interface.
- Easy to integrate software package.
- The existing system’s compatibility with new technologies.
- A platform with little or better no code.
- International compatibility in terms of currency, language support.
- Handy deployment model.
Even though it varies depending on the sector of the company in which the ERP system will be used, these features are indispensable in an ERP system that we can basically call successful. It would be more appropriate to say: These features must be in an ERP system, it can be more but not less.
In which sectors are ERP systems used?
In which sectors is it not used? If you are not a tradesman who sells on his own in his neighborhood, you definitely need an ERP system. In today’s world, it would not be right to take notes with pen and paper or to make such analyzes and controls by human hands. Humans always have a margin of error, but an automated ERP will not make such mistakes.
Public institutions, manufacturers, wholesalers, law firms, accounting offices, engineering companies, IT companies, retailers and more can and should use an ERP system. Regardless of the sector, supporting the operation process of a company with the ERP system means a much more planned operation process.
It is extremely important to choose a distribution model suitable for the size of the company where the ERP system will be used. Relatively small companies can use the traditional system called in-house ERP. When things get a little bigger, the cloud-based ERP system will be much more efficient. Hybrid ERP, in which both distribution models are used together, is the right choice.
We answered questions such as what is ERP, what it does, what are its advantages, which makes the operation of companies much faster and more efficient, and we talked about the details you need to know about the subject. If you are going to use an ERP system in your company, you should definitely consult the experts.
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