ERP software – what is it and how to use it in a company?

Successful business management is all about prudent planning. This would not be possible without systematically collected and logically organized data. While direct management is possible in a company of a few people, it is difficult to operate without tools in larger operations. The solution to this situation is to purchase comprehensive ERP software. What is an ERP program, what is it used for and how to choose the best option?

ERP software – what is it?

ERP software is used to plan and manage enterprise resources. The acronym ERP itself comes from the English language and stands for Enterprise Resource Planning – Enterprise Resource Planning. An ERP program is really a collection of different functionalities that, if broken down, could be separate applications. And so – for example – in ERP software you will find HR and payroll modules, warehouse resources, tools related to transportation and logistics or purchasing. The general idea behind ERP programs – regardless of the service provider – is to gather key information for the company in one place. Importantly, this information is not unified with each other, but is a separate set of data. This allows employees in the departments concerned to focus exclusively on what pertains to their areas of expertise.

What can you do in an ERP program?

It is impossible to list all the elements of ERP programs – each service provider has its own functionalities prepared. Focusing on the most important and common modules, in the ERP program we can manage departments such as:

• Bookkeeping – maintaining accounts, invoicing, issuing accounting notes;
• Human Resources – issues related to employee activity and their compensation;
• DMS – otherwise known as document management system, secure document workflow;
• Warehouse – inventory control, transfers, reservations and releases;
• Production – optimization and organization of production line tasks;
• Controlling – issues related to business intelligence and financial analysis;
• Purchasing – managing the ordering process and company purchases;
• Marketing – undertaking and controlling promotional activities related to the company;
• Projects – implementation of issues and orders grouped into successive projects;
• Logistics – internal movements of goods and transportation management.

How to choose the best ERP program?

A misconception is that the best ERP software has the most modules. When choosing the best program, we need to be sure that it will have exactly the functionality we need in the company. Service providers will not need a storage tool, while the lack of a projects module will prove problematic. In addition to being tailored to a company’s needs, ERP software should be intuitive and easy to use. The program’s lack of transparency, chaotic appearance, illogically arranged functionalities or the abundance of information is certainly not conducive to business management. In case we have two related systems, it is worth considering whether we care about online software in the form of SaaS or offline, as an installable application. We explain the details on this issue in the paragraph below.

ERP software – SaaS service or installable application?

Current ERP software solutions allow you to choose between two types of applications. The first works offline and is installed on selected units. How many computers you can install such a program on is determined by the license key, which you buy outright. The key alone is an expense of hundreds or even thousands of zlotys per post. Much more convenient is an online solution in the form of SaaS, or Software as a Service. Access to the functionality of such a program is by subscription and represents a cost of several tens of zlotys per month. It’s like using a rental service like Netflix instead of buying all the movie productions. The difference is that any person in the company authorized by you can log in to the ERP program, and the login can be done from any device. It is not difficult to see that SaaS service is much more convenient and affordable than buying a license.

Advantages of ERP software

By utilizing the full potential of online ERP software, an entrepreneur is able to gain a number of tangible benefits. Among the most important of these are:

• Greater control over the company – as a multi-area program, ERP collects key data from all areas of the company;
• Increased efficiency – understood both in the form of improved quality of work of employees and improved efficiency of processes;
• Reduce costs – ERP software makes it possible to identify areas that are less efficient or generate above-normal costs;
• Standardize operations – with a single set of guidelines, processes will be standardized, allowing for greater transparency within the company;
• Improved information flow – ERP contains a single database generated from actual company events, there is no disruption of information;
• More accurate decisions in the future – the ERP program collects historical and current data, allowing you to plan better, more efficient operations;
• Increased data security – ERP uses a cloud-based system, an encrypted, secure method of storing data online.

Is it worth it to equip the company with ERP software?

Most entrepreneurs should consider the purchase of ERP software as a necessary tool for their work. This audience in particular will include:

• Companies whose main business is based on retail and wholesale trade;
• Companies present in the e-commerce sector, including those with listings on sales portals (e.g. Allegro, Aliexpress, OLX, Otomoto, etc.);
• Entities employing at least 9 people (SME and corporate sector);
• Operations where partial or full process automation is present or where precise production planning is required;
• Companies that care about detailed and holistic economic analysis;
• Companies looking for ways to optimize their finances, combining cost minimization with profit maximization;
• Businesses where it is necessary to quickly adapt to market realities;
• Entities that have subsidiaries, warehouses or branches in different cities or countries, especially when they organize transportation and logistics themselves.

Wondering if ERP software will live up to its expectations in your business? Contact us, introduce us to your company and tell us what tools you are looking for. We, on the other hand, will tell you which solutions are best to use and what we can offer you.