Whats an erp system?

Whats an erp system and why it is important for your business? Well, the ERP systems are stands for Enterprise Resources Planning. This is a system that refers to software packages and systems that used to manage business activity include accounting, project management, manufacturing, and procurement.

The fundamental keys from an erp system

The ERP system is designed around general, defined data schema that common has a general database. The ERP systems allow across to enterprise data from multiple business elements and activities use general constructs and the definitions by general experience from users. The key principle on ERP systems a fundamental becomes central data collection from wide distribution data.

Who needs an erp system?

In the past, the ERP systems legacy is often too expensive to run in small or medium size business. However, in recent day, with Cloud technology, it has broken the barrier. The SaaS solution, the small company can leverage the same industrial power with ERP systems same with larger companies that have been using for years. The cloud-based ERP systems can be quick implementation, without investment CapEx. For the small and medium business that find quick innovate and seize the new business opportunity, the Cloud-based ERP systems offer flexibility to add new users quickly and support for the business need change.

Advantages and disadvantage from ERP systems

The advantages

1.    The ERP systems allow better control in organizational, especially for large companies where the information data number is more rather than the small one.
2.    It prevents the duplication from the information and data because the information data is in a single system.
3.    It improved the communication between the departments.
4.    The company can react better with the problem or situation.

The disadvantage

1.    Most of ERP systems is considered the as high cost for implementation and the maintenance. This is a type of High Initial Investment that you really need to think about the budget if you want to implement.
2.    Integration with the existing application in the enterprise will be needed.
3.    It needs training for the employee in the company and needs cost and time to do this.

Do you really need ERP systems?

In some point, when your business grows, you may need to find technology that you need to use to manage the system start from the bottom. What is the reason when you do not need ERP?

•    When the system is too complex for your business.
•    When it becomes too rigid and cost you much. The ERP systems have a reputation that offers an inflexible solution to the business problem.
•    It takes too long to adapt to the existing system. Commonly, large business needs ERP systems to manage a lot of supply chains extensive rather than small organizations. Any change or additions to the supply chains will need extensive adaptation. The small organization needs to integrated new sales channel and the fulfillment process in fast and of course effective cost. The company also should maintain the visibility of the supply chain when they grow. The ERP systems do not provide the light manufacture and small to medium business solution.

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