What is ERP?
In the global job market, every business has goals in its industry. Most of the companies can manage their own business with simple applications when they are first established. But when businesses grow, they need a system that can streamline critical business processes and provide more accurate, faster, and seamless interactions between employees and the overall organization. This is where ERP systems come in and create a solid organization to help businesses achieve their goals.
What is ERP?
Let's start with the expansion of ERP first. ERP is the abbreviation of "Enterprise Resource Planning".
ERP is a solution that allows companies to manage all aspects of their business with a single interface. This solution consists of a combination of different modules that are independent but integrated with each other.
This means that information from all departments within a company is collected and a department uses this information from other departments that can serve its own needs. ERP is a set of business software tools that allow this whole process to be done under a single system roof. Providing information and integrating processes, this ERP bridge increases the efficiency and effectiveness of all operations.
Although ERP software was originally designed for large and corporate companies in the manufacturing sector, ERP solutions have also been created for small and medium-sized businesses in most industries today. These companies also use ERP systems to automate their business processes.
What are ERP Modules?
Although ERP systems vary according to the companies selling this system, they contain some basic modules that are present in all of them. We will briefly share with you some of them and what they do.
Production : This module helps to manage production and other production-oriented processes.
Human Resources: In the human resources module, companies follow the processes from job applicants to recruitment. In addition, processes such as personnel salaries, raises, layoffs, performance management can be tracked here.
Accounting : This module monitors the entire financial situation of the company. Examples of these are income and tax management, budget and expense planning, and managing payables and receivables.
Customer Relationship Management : In the CRM Module, customer-oriented operations such as sales, marketing and customer services are managed. In the module where customer information is kept, the relationship between the business and the customer is monitored.
Supply Chain Management: It monitors the entire process from the production of the product produced by the company to the delivery to the warehouse and distribution to the market or retailers. Supplier planning, purchasing, shipping, product tracking and product returns are some of the features of this module.
Business Intelligence : Business intelligence modules mean collecting and analyzing data from multiple sources and presenting data in reports. Business intelligence is a module that helps the firm make better business decisions with real-time data access.
Who Uses ERP Software?
ERP software has traditionally been created for large and corporate businesses because these companies house multiple departments with different data and different needs. However, ERP software also targets small and medium-sized businesses to help automate business processes. ERP software sold to small companies contains more basic modules. Examples of these are finance, customer management, purchasing.
What are the Benefits of ERP Software?
The biggest benefit of ERP software is that it eliminates the need to work with multiple data in multiple systems. Users do not need to manually enter data for each department or create separate reports. This allows business processes to become more automated. Employees can devote more time to their own work, which helps productivity and efficiency.
ERP software prevents the company from purchasing separate software for its own business. It reduces cost by not having to purchase and maintain multiple software.
Departments such as Finance and Human Resources need to work in compliance with some government regulations. ERP helps all these efforts to comply with legal requirements. It can also automatically update on any compatibility changes.
With an ERP, managers, senior managers and decision makers can access all information according to the role assigned to them. They can have a complete picture of all the processes in each department and how the process affects the entire company.
What is Cloud ERP?
It is an ERP system, also known as SaaS (Software as a Service), where data and application maintenance is done in the cloud environment, instead of the traditional in-house ERP solution where data is stored on the company's servers and maintenance is still the responsibility of the company. In this model, the application is not installed on computers, updates are not dealt with. The ERP system is used through the internet browser.
In the Cloud ERP system, only the company providing the service is paid monthly or annually in proportion to the number of users.