What is an ERP?
ERP is the abbreviation of "Enterprise Resource Planning", it is a software that allows you to manage the processes of a company by integrating all of its features into modules that run on a unique data basis.
Nowadays, ERP is considered as the backbone of companies. It is a software that allows the management and daily monitoring of all operational services of a company including human resources management, accounting and financial management, sales, distribution, supply, electronic commerce , production management.
How does an ERP work?
The principle of an ERP is to centralize the database of the company. In fact, ERP is software designed to unify the information system. That is, adding or modifying data in one of the modules (Sales, Inventory, Production Management, etc.) impacts all other modules: the database is updated and applies the change to the entire company. For example, when a vendor sells items on an ERP and obviously uses the sales module, the system will automatically apply this operation to the stock module by changing the stock quantity of that item, the accounting module and on other modules that are related to this operation.
Why should the company use an ERP?
Before the introduction of "integrated management software", the processing of information and data was manual in the various departments of the company. This led to data duplication as it did not have centralization. The data can be entered by different users, which has also caused a loss of time and sometimes loss of data related to human errors. With ERP, all this is solved processes are optimized, the time spent on data management is reduced and in this way the ERP has increased the overall performance of the company.
How to choose an ERP?
In fact, the decision to choose an ERP should not be taken lightly, before choosing a solution from the existing on the market, you need to specify your needs. Most companies that make the decision to use an ERP, are looking for a generalist software. This type of ERP requires adaptations to the requirements of the company. Adaptation is not easy, it depends on the complexity of the needs which affects the cost, the delays and the risks.
Finally, ERPs are known to provide generic solutions that serve businesses. According to figures on the world market, this product is a success, it offers great stability for companies given its ability to drive.