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What is ERP and why is it so important to adopt this into your business? Think efficient, be efficient!

 


By: Angelique Toorians, 16 June 2023

What exactly is ERP and why would you even consider using it? ERP is the abbreviation for Enterprise Resource Planning. If you were to interpret it, it would simply mean, planning the resources in your company. The purpose of ERP is to maximize productivity, to minimize and control costs, and optimize the level of customer focus.

How does ERP work?
An ERP system is basically a company-wide software system, where the administrative, financial, commercial and logistics processes are centralised in an automated database. ERP automation connects the various business processes within an organisation. The ERP system integrates all data related to the various business processes in one central database. As a result, all employees within your company can always have access to all the latest information.

Why implement ERP?
Often, each department in a company has its own system and processes. This can range from a specific software solution to administrative processes, or even Excel spreadsheets. These tools do not always work well together, even though departments need to be able to have access and use the same data. For example, department A needs data from department B. Subsequently, an Excel file is generated and sent, or even printed. The data is then transferred into Department A’s system (sometimes even manually). This is incredibly time-consuming, inefficient and error-prone. It would be much more efficient if department A and B would work within the same software system, whereby all relevant information is freely accessible to all employees, at any time. That is exactly what ERP software systems facilitate: one database for all the important business processes in your organisation.


Working with ERP

ERP software brings together all business processes and activities. An ERP software system consists of different modules that support specific tasks and/or departments. In day-to-day practice, this means that each department works with its own module(s) and tools within the ERP system. For example, an employee in the warehouse works in the warehouse module and this data is recorded directly and in Real Time in the ERP system. Another employee, from the financial department, works in the financial module and has at that very moment immediate access to the latest information related to, for example, an incoming order in the warehouse. All modules in the ERP system are connected directly, in Real Time, and are using the same source of data.


Overview and insights

Working from one data source creates a relationship between the various departments and processes that is better aligned  and more transparent. This allows you to discover what is not functioning faster, what could be done more efficiently, and gives you better control over all departments and processes in your company.


Choosing the right system

Choosing the right system for your specific company is essential. The most important thing is that you get a clear insight on how all the processes in your company are run, and what the purpose of the possible switch to an ERP system would entail.

Spiresolutions can assist and support you in this process. Book an appointment and together we can determine what suits your organisation best.


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