The main tasks encompassed in the broadly defined management of a company can include the pursuit of increased productivity, gaining a competitive advantage or optimising costs. In such a process, an appropriate IT system will be crucial. ERP software is a term that often comes up in the context of business management. What is an ERP system?
ERP - what is it?
What does ERP mean? The term comes from the English language (Enterprise Resource Planning) and accurately means enterprise resource planning. It is most often associated with a computer system designed to support the implementation of individual processes in production and to enable its efficient management. In practice, the most popular ERP systems refer to strategies for controlling the production process to maximise its utilisation and profitability.
Every company that employs staff, sells and buys services or products needs to manage its finances. To support such business processes, special software is generally used. 
In most companies, the work of individual departments is based on separate programmes that are not interconnected, so all information is stored in separate databases, which contributes to inefficient management. This makes interdepartmental work difficult for the company, with frequent errors and infrequent data synchronisation. It is also often necessary to handle the flow of data and information between individual programmes.
An ERP information system operates on the basis of a single database, in which information from all areas of the company's operations is collected and processed. ERP covers such aspects of the company's operations as production, accounting and finance, customer service, or warehousing and logistics.
This type of software allows users to handle all these areas. This means that different departments will be able to use the same system, but most likely with different levels of access. When a company uses this type of system, it is assured that information is stored in one place and that all employees have access to up-to-date and integrated data.
What is the ERP programme used for?
Now that we know what an ERP system is, it is worth finding out what it is specifically used for. Above all, the software increases business efficiency and assists management, so implementing such solutions can help a company to organise and keep its data in order. What does the software offer?
- Increasing the efficiency of manufacturing processes - ERP systems for manufacturing enable the standardisation and automation of processes that support production as well as maintenance services. This makes it possible to increase productivity, as well as reduce the costs that are associated with the operation of the business.
- Overview of the company's customer information - most ERP systems include a CRM application to track customer interactions. This provides valuable information about their needs.
- Integration of financial information - all information is contained in one place, so employees will not waste time looking for data in different places. Thanks to integration, there is a reduction in errors and this has a positive impact on the performance of all departments within the company.
- Standardise orders and integrate purchasing - coordinating information that relates to orders or their posting makes the system much easier to use and reduces the number of errors that can occur when transferring data between different applications that are not integrated.
- Organise human resource information - the ERP system is equipped with a self-service portal that is accessible to users, making it easier for them to enter information on tasks performed and time spent on them.
- Streamlined report generation for government agencies - ERP software facilitates the creation of reports that comply with regulations.
Functionalities of the ERP system
What functionalities should entrepreneurs pay attention to when choosing ERP software? Before implementing a system for companies, it is necessary to determine what type of activity the companies in question perform. Those who are interested in ERP software must first establish expectations, i.e. the specific objectives to be met by implementing the software. Next, it is worth focusing on the functions that are most important in terms of implementing the business strategy. Examples include better management of the financial area of the company, or reduction of warehousing costs.
An ERP system is a solution that will take over many processes and accurately respond to current needs. When it comes to production, it can be responsible for planning or budgeting. In the case of human resources, it can support in planning training, rosters or accounting for working time. In terms of product manufacturing, it controls the production schedule, timeliness and helps implement quality management systems. And when it comes to financial analysis, it collects and analyses data.
ERP system implementation - benefits
The implementation of an ERP system streamlines the activities of employees at all levels, with a significant role played by a common database that integrates all the information in the company. What benefits does an ERP system offer? These include lower labour costs, a higher level of work organisation, full control over the company, or higher productivity and efficiency of employees. This system is the ideal solution for companies that require structured data and smooth operation of the entire plant.
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