Management software is part of the technological tools that improve the performance and organization of your company. These management systems usually offer customizations according to the needs of the company, the departments involved, or the ongoing project.
Within these software systems, there is a type that, thanks to its integration capability, manages all the processes of a business, saving costs and time throughout the value chain. Have you ever considered implementing an ERP system in your company?
If you’re thinking about implementing an ERP planning system, Centre Gestor can help you have software that allows you to control your business from anywhere, whenever you want.
What is ERP?
Enterprise Resource Planning (ERP) systems are tools for the integrated management of core business processes (they interconnect all areas of a company’s business). They typically operate in real-time through software.
An ERP system manages and integrates essential parts of a business, such as accounting, procurement, projects, risk management, compliance, and the supply chain. It can also integrate activities from other departments involved in decision-making, such as marketing, human resources, sales, and finance.
Step by step: How ERP programs work
Each department inputs its information into its specific software. The ERP program collects, stores, manages, and integrates all this information and organizes it to make it understandable to all areas. This information is available in a large database organized under ERP management criteria. It will especially show a tracking of business resources and the status of commercial commitments: orders, purchase orders, and payroll.
Therefore, ERP facilitates the flow of information between all business functions. Some software even allows managing connections with customers and suppliers.
Features associated with an ERP
If you ask someone from the 21st century what an ERP is, 20 years ago they would have told you that this software should be integrated into the company’s hardware, in its server room. Currently, one of the most important features is its storage space. Cloud ERP is the new way to save space and ensure efficient management.
Other characteristics of a good ERP system include fluidity in accessing information, transparency between departments, and facilitation in conflict resolution.
Advantages of using ERP management software
Among the main advantages of implementing an ERP in a company are the following:
ERP systems allow creating a common database with reliable and centralized information. This enables making more realistic estimates and forecasts, anticipating future scenarios.
Duplications are avoided.
In companies, departments often act somewhat independently from each other, leading to the generation of duplicate records and reports. Thanks to the integration and centralization provided by ERP software, those responsible for different departments have real-time access to the same information. This reduces duplicate records and duplicate operations.
Scalability and modular design of ERP systems.
ERP systems are modular, meaning your company can contract only those features it needs at the moment. If the organization evolves and grows in the future, your ERP can grow with it if you want to add new functionalities. For example, starting with departments directly involved in the supply chain and then including the rest.
Total adaptation to the specific needs of each company.
When implementing or changing ERP, the provider will conduct a preliminary analysis of your organization’s needs, ensuring that the application fits perfectly.
Greater control and traceability.
ERP systems collect all data related to the organization’s activities. This allows tracking the movement of products through all elements of the value chain (traceability).
Improved information security.
ERP systems make it difficult to steal information due to different user access or authorization levels on the platform. Additionally, all our information is centralized with automatically generated backups to protect against potential errors.
Greater resource availability.
Cloud-based ERP systems allow platform users to access information anytime and from anywhere, as long as there is internet access.
Improved efficiency and operational capacity.
Automation of activities that were previously done manually or almost manually (such as generating invoices, purchase orders, etc.) significantly reduces the possibility of errors associated with the human element. This allows the company to focus on more productive tasks that truly add value.
Increased efficiency, reduced errors, and the elimination of duplications significantly reduce the level of business costs.
At Centre Gestor, we provide guidance to help you use your ERP to optimize your costs.
Improved long-term profitability and benefits.
Given the advantages of ERP systems, we can conclude that implementing an ERP represents a substantial improvement in performance, offsetting the initial investment in the long term.
SMEs and ERP
It may seem that management software of this caliber is intended for large companies. In today’s highly competitive world, having a system that aids in the proper organization of everyone involved in the business and allows for greater efficiency is, at the very least, worth considering.
The working philosophy of many SMEs focuses on avoiding tactical distractions to focus on medium and long-term strategy.
An ERP system, thanks to its scalability, can help with the strategic and productive processes of any company, regardless of its size. Therefore, an SME can enjoy all the advantages mentioned above: cost optimization, improved profitability, duplication avoidance, enhanced decision-making, and more.