What is an ERP?

Enterprise Resource Planning (ERP) systems are information management systems & lt; / strong & gt; that automate many of the business practices associated with the operational or productive aspects of a company, basically it is a software for companies architecture that facilitates and integrates information between the functions of manufacturing, logistics, finance and human resources of a company.

In most online businesses, this refers to the whole issue of billing, order management and shipping, as well as data from customers, staff, distributors and others. Currently, an ERP has become a fundamental aspect in the development and management of a business strategy. & Nbsp;

The main objectives of the ERP software are:

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  • Optimization of business processes.
  • & nbsp; Access to information.
  • Possibility of sharing information among all the components of the organization.
  • Elimination of data and unnecessary re-engineering operations.

  • Are ERP programs suitable for all companies? Even for online stores?

    An ERP software can be a great boost to the economy of a company, being adapted with certain standards of quality and structure to the market in the competing That is, it helps to better understand the true capacity of the company, and structure around it.

    The benefits that a ERP program can bring is summarized in the resolution of the accounting, mercantile or fiscal problems of the company. Likewise, it can allow greater control of accounting, fixed assets, bank reconciliation, tax settlement, etc ...

    The outstanding features of ERP systems are:

    • Centralized database .
    • The components of the ERP interact with each other.
    • In an ERP system the data is captured and must be consistent, complete and common.
    • Companies that the implant usually have to modify some of their processes to align them with those of the ERP system.

    Benefits, advantages and disadvantages of the ERP software

    As you have already guessed, there are many advantages to implementing an ERP software. & nbsp; Of course not only allows to better coordinate operations within an organization but at the same time make decisions in an informed and fast way. & nbsp; The use of this type of management tools facilitates the following benefits:

    • Provides integration between the supply chain, production and sales
    • Creates shared databases
    • Enables redesigning, improving processes and avoiding bottlenecks
    • Improves communication and coordination at a local and global level between business units.
    • Facilitates the function of analytical and business report.
    • Increase the security and consistency of data.

    By integrating several systems into one the consolidation of all the information of a company is facilitated avoiding duplicates, obsolete databases and differences in the information handled. At the same time all the information generated is recorded and stored in a single site facilitating access. This means that anyone in sales can access a customer's billing information or vice versa.

    Despite this there are also disadvantages to consider seriously. And is that not everything in the world of the ERP programs 's is perfect.

    Main Disadvantages:

    • Your purchase is very expensive and its personalization even more.
    • Its implementation may require major changes in the company and its processes.
    • It is so complex that many companies fail to adapt to it.
    • Its implementation implies a continuous process, which may never end.
    • The experience in ERP is limited and assigning staff represents a constant problem.