Certainly, if you have an online store, you have come across the term ERP, which is due to the fact that it is one of the most common automation systems for a wide range of operations. But what exactly is an ERP system?
ERP (Enterprise Resource Planning) software is based on a unique IT platform that deals with the integrated monitoring, control, and management of all activities, processes, and operations carried out within an organization. The software system can be used in a variety of fields and activities, including manufacturing, distribution, services, retail, e-commerce, and so on.
What exactly does an ERP system do?
This software’s role is to manage business flows and activities, ensuring centralized access to company data while also allowing for an integrated flow of data exchange between departments and other software systems used in the organization. As a result, an ERP system enables workflow automation and efficiency across a wide range of business operations.
In a nutshell, the ERP application connects the database to the functionalities that the entire system provides. As a result, data is collected, validated, processed, transferred, or exported. And all of these operations are carried out via the interface. Data is entered into the application through a variety of methods, including operator input, import from other databases or systems, and transfer via EDI (Electronic Data Interchange) technology.
Such systems play an important role in eliminating data duplication by providing data integrity through a single true source. An ERP solution, in essence, is a method of connecting systems, processes, and technologies, as well as the people who use them.
What are the benefits of an ERP system?
- It is a unique, transparent system capable of integrating all of an organization’s departmental activities.
- The management team benefits from complete real-time reports and information, which improves its ability to make business decisions.
- Employee productivity is increased by automating, standardizing, and optimizing all work circuits, resulting in a significant reduction in manually performed operations.
- Inter-departmental collaboration and data transfer efficiency are automatically improved with a single common database.
- Factors such as stability, security, and control over data accuracy benefit business operations.
- An ERP system aids in the improvement of the supply process by ensuring better stock control.
- The delivery time is short, resulting in higher customer satisfaction.
- Furthermore, the rapid transfer of data between departments mitigates losses and optimizes work processes, which helps to improve cash flow and profit.
By implementing an ERP system, a company benefits not only unified data and real-time statistical information, allowing all departments to be more integrated and efficient, but also the accuracy of this data, allowing the financial team to make the best business decisions.