ERP: What is it? What are the benefits, and how do you implement it in your company?

By: Serge Janssen Daalen, 28 June 2023

ERP is becoming a necessity in business over the past few years, and for a very good reason. ERP streamlines your business processes and saves time and resources. But before you switch to an ERP System, it is important to understand what ERP really is and what it can bring to your business.

What is ERP?

Enterprise Resource Planning (ERP) refers to business automation that incorporates and manages the key processes and functions in a company in one single system, such as bookkeeping, procurement, project management, risk management, customer management and logistical activities. It operates as a centralised system in which all day-to-day activities are aligned, enabling more efficient operations and improving overall productivity. A complete ERP Package also consists of Performance Management Software for planning, budgeting and reporting on financial operating results.

What are the benefits?

The main purpose of an ERP System is that you have one single integrated and coherent overview of all data and processes of your company. By merging information from the different departments and functions into one database, it creates one integrated database that all employees work from. Most importantly, there is no more duplicate or inconsistent data, which previously could occur because different departments were working with different standalone systems.

Other benefits

Less errors – Because of the automation and improved flow of your processes, fewer errors will be made. For example: manually transferring data from one system to another. With ERP, all information is stored in one database.

Improved efficiency – Because of the automation and alignment, everything will also run a lot faster. All data and information is in one system. There is no longer any need to perform or repeat tasks manually, because you receive notifications from the system, when action is needed.

Up-to-date overview and insight into finances – With the financial modules within an ERP System;  tasks like bookkeeping, budgeting and financial reports can be completed much faster with precise data from the system. That provides you a clear overview and insight of the company’s financial situation.

Efficient supply management – ERP maximises inventory levels. As a result of the automation, the system knows exactly what is still in stock and which items need to be re-ordered. Procurement gets a signal that orders need to be placed. The warehouse gets a signal that an order is arriving. On top of that, ERP supports production planning and monitoring. Operations run more smoothly and goods are ordered, delivered and produced in time.

Customer Relationship Management (CRM) – CRM is integrated into most ERP Systems. CRM is primarily important when dealing with old and new customers. With this ERP integrated functionality, you can manage customer interactions, sales activities and marketing campaigns. You get a better understanding of the  preferences of customers, and as a result, your customer service and the customer satisfaction will increase.

How do you implement ERP?

In a nutshell, it comes down to this:

1. Map your needs and wishes;

2. Get to know the different ERP Systems;

3. Engage with different providers;

4. Compare different providers and systems;

5. Make a choice.;

6. Implement the system step-by-step together with the provider;

7. Ensure that your employees are involved in the process;

8. Evaluate frequently.