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Ways to improve information flow and operational efficiency with erp solution

As companies manage large amounts of information and processes, whatever their size, and where every day the volume of data and the complexity of the processes they have to handle is greater, business solutions are emerging on the market that helps the process of managing the companies. One of these information technology-based solutions is ERP systems.

What is an ERP System?

An ERP System (Enterprise Resourcing Planning) is a business management system that fully integrates the operations and information of all a company's operational and administrative areas, automates business processes, and allows the control and allocation of resources to the activities that create value for your company.

This ERP program offers one place where all parts of the company are naturally interrelated, avoiding re-captures and re-processes in the daily operation, eliminating unnecessary costs and achieving high productivity levels.

Organizations redirect their strategies when they understand that the greatest impact in the planning effort is achieved when all the tools are integrated into a unified set and in harmony to achieve important synergies, thus improving the effectiveness of the total effort of business management.

Benefits of an ERP System

An ERP Enterprise Resource Planning System offers the following benefits for the management of your company:

  • Information in a single data source includes all areas and processes of the company.
  • Simplification of the flow of information between the different departments of the organization and the possibility of establishing controls and notifications in real-time.
  • More efficient operation by eliminating re-work and re-capture data, lowering the company's administrative burden and obtaining cost savings.
  • Quick access to reliable information in real-time for decision-making.
  • Future planning of your business: production, purchases, payments, and inventories, among others.
  • Online financial statement reports at any time.
  • Access to the best business practices through other international ERP manufacturers such as SAP and Oracle.
  • Customization and adaptation of the system according to the industry or size of the corporation.
  • Quality of service and attention to customers.
  • Improvement in employee productivity when performing tasks that generate value.
  • Drive to grow rapidly and orderly.

How does ERP software help businesses?

By integrating all the areas and processes of the company, an ERP Enterprise Resource Planning System becomes an important ally in the daily operation of the company, bringing with it significant benefits and improvements that will help it achieve a higher level of efficiency and cost-effectiveness.

An ERP for SMEs like SAP Business One allows you to unify information and improve the management of the different operational areas of your business.

  • Sales and CRM
    The generation of new clients is vital for the growth and success of the company; however, just as important as maximizing the relationship with existing customers.
    Manage your sales process more efficiently from prospecting, sales and after-sales service with a level of service of excellence.
  • Production planning and control
    SAP Business One has robust processes for planning and controlling production, handling bills of materials, production orders, optimization of workstations and production routes, control of products in process and finished products, and quality control, among others. . With SAP B1, optimize your production process, make it more efficient and reduce your costs as a result of good planning and control in your processes.
  • Inventories
    Improve the visibility of your stocks and your costs by providing better customer service to achieve the profitability you are looking for in your company. Manage multiple online warehouses, price lists, supplier lists per item, detailed information on your items, and physical inventory control, among others. All this is fully integrated with production, purchasing, sales and accounting.
  • Shopping
    Increase your cash flow by having an efficient supply process thanks to the dynamic planning of your purchases. Generate purchase orders automatically based on maximums and minimums, track and follow up on your orders, and obtain real-time information that allows you to negotiate better with your suppliers.
  • Accounts payable
    Significantly reduce your administrative burden and control your expenses and economic commitments by having budgets and more effective management of your suppliers and creditors.
  • Accounts receivable
    Optimize the management and monitoring of your client portfolio through controls, alarms and authorizations, which will increase your liquidity.

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ERP Types

As we have already seen what ERP software is, now we must understand the types that exist:

  • ERP by size
    These are classified by the size of the businesses they serve. Holded is designed for SMEs, but other software has been created exclusively for large companies.
  • ERP for small businesses
    This ERP can vary in complexity but will always cover the needs of a local business, especially in enterprise resource planning. Those who manage business information in a specialized sector also fit here.
  • ERP for small and medium businesses
    It is a more scalable ERP than the previous one since it is designed for growing companies that can cover the business processes of more than one industry.
  • ERP for large companies
    These are the most powerful ERPs on the market and are designed to handle the complexity of a larger company, as they can span multiple industries and business units. ERPs for startups also fall into this category as they can scale with the business.
  • ERP per facility
    Regarding ERP, we have the option of installing it on our systems (on-premise) or accessing it through the cloud (cloud), and each option has its advantages and disadvantages.
  • ERP locally (on-premise)
    This option allows the user to have more control over their company data. It also means that he is in charge of its security and updating. Requires extensive staff training for best performance.
    Typically, a larger company opts for on-premises software as they prefer to keep their information private from third parties and have the resources to keep it up to date.
    cloud demand bar diagram
  • ERP in the cloud (cloud)
    The ERP in the cloud is the one that is accessed through the internet. It does not require installation; you can use it after creating an account.
    With this system, the user does not have the same level of control as with the 'on-premise' program, but it saves a lot of time and business resources since they do not have to worry about maintenance, security or updates. Another benefit is that they do not require a lot of training since, normally, these solutions offer a support team.

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What are the most important ERPs?

It would be impossible to define which are the 'most important.' Many ERP systems are on the market, but not all are the same. Many companies believe that implementing a planning system is enough. Still, they need to know that they could be integrating an outdated program that has yet to adapt to the needs of a modern business.

For this reason, we recommend gathering all the necessary information and following the steps below to find quality software that suits your company's needs.

  • Define the plan
    In the first phase, a company must define the areas in which they will use the new software, the objectives to be achieved, what information will be collected and which team will work with the ERP.
  • Discover your needs
    In this step, the teams will need to collect data and identify the current problems that they hope to solve with the ERP. For example, low productivity in a specific area. Having clear problems will make it much easier to choose software that suits your needs.
  • Seek opinions
    Implementing new software will affect your company and those who work with you. Relations with advisors, distributors and suppliers may be affected by this change, so it would be good to send them a proposal for the ERP system you are considering adopting.
  • Select your ERP
    By now, you are clear about your needs and the goals you want to achieve with your new ERP software. Now you can select the one that suits your company.

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