What is ERP Software?

ERP software enables you to manage your business's daily operations such as accounting, purchasing, project management, risk management, and supply chain. With software developed specifically for your business, you can plan your company's financial results, make budget forecasts, and perform corporate performance management through reporting.

You can link numerous business processes with ERP software for the holistic management of your business and achieve data flow between different business processes. It collects shared data from various departments from multiple sources, thus preventing data redundancy.

Proper use of data is crucial for the management of a business. Small or large businesses can carry out the corporate management process seamlessly with the help of specialized software.

A significant portion of the software used by operational businesses only helps you perform your daily tasks. This software cannot help with your future business growth.

As your brand's needs evolve and expand, your systems must also adapt to this process. In this journey, smart software like ERP will be very efficient for your company.

Why is ERP Software Important?

ERP software is not a complete solution for all business processes. However, your business can use this software to make data-driven decisions and make business processes more efficient. ERP software can offer effective solutions in many of your business processes:

• Finance: ERP software always allows you to make qualified assessments of your business's financial situation. With these systems, you don't need to waste time manually entering daily financial information. This software is very effective in tracking data related to your brand's legal compliance.
• HR: Human resources is becoming more digital every day. Since HR is a data-driven field, ERP software is highly functional in this area. It provides effective results in all HR processes like data management, payroll, and recruitment. It is also effective in many other HR areas, such as tracking employee performance.
• Production and Manufacturing: It allows you to see the extent to which your business will meet customer demands. By accessing real-time production and manufacturing data, you can manage your resources effectively. This enables you to implement processes like production planning optimization, cost management, and project management.
• Supply Chain: If you're still trying to track your warehouse inventory by entering it manually, you are far behind. With ERP software, you can automate this process and save time and money. You can easily manage inventory with this software.

Why Are Businesses Afraid of Using ERP Software?

Even though ERP software is very efficient and functional for businesses, some companies hesitate to adopt it. The main reason is that these companies have some misconceptions about ERP software.

Here are the common misconceptions businesses have about ERP software:

1. They Believe They Can't Choose the Right ERP Software for Their Business

Some businesses hesitate about whether the ERP software they choose will be the right fit for them. However, you don't need to find the perfect software for your business. This is because ERP systems can be customized to your industry and business needs. An ERP system provides you with the convenience of bringing all your existing business processes onto a single platform.

2. They Think ERP Revisions Are High-Cost

The reason many businesses do not prefer ERP software is the belief that revisions to this software are high-cost. This is a very wrong perception. The modules in ERP software are purchased entirely based on your business needs. Thus, you don't have to spend large amounts on extensive software without knowing if it will be useful.

3. They Are Afraid of Losing Their Current Systems

One of the fears of businesses that do not want to adopt ERP software is that they don't want to give up the systems they are currently using. However, these systems are often ineffective for future growth. ERP software offers great solutions for future growth.

How Do You Know If You Need ERP Software?

Are you struggling to decide whether your business needs ERP software? If you're constantly struggling with your current system and can't get efficiency for your future, then you need ERP software.

The main factors indicating you need ERP software are as follows:

1. Your Current Foundations Don't Allow for Growth

Your current business might be very profitable, and your business processes might be working perfectly. However, you also need to think about your business's future. If your existing systems and software don't allow you to expand in your market, it's time to let them go. If your current systems are starting to put limits on your ability to grow globally, it's time to meet ERP software.

2. You're Tired of Dealing with Different Systems

In parallel with technological advancements, systems are also changing. Due to developments in marketing and many other sectors, existing systems gradually become dysfunctional. Is your accounting software not compatible with your old HR system? Can you not interpret your supply chain and HR processes together? In this process, it would be wise to turn to ERP software to avoid wasting time and resources and getting exhausted unnecessarily.

3. You Can No Longer Meet Your Customers' Expectations

Your customers' needs will change over time. When your current system can no longer meet these changing customer needs, it's time to invest in new software. Don't forget that if you don't meet your customers' needs, you'll lose them to your competitors. Therefore, you should switch to ERP software as soon as possible to meet customer expectations.

4. Your Staff's Work Efficiency Has Decreased

One of the biggest dangers facing your business is a decrease in staff work efficiency. In this situation, you should do something to help your staff succeed. If your current system is slowing down your business processes and costing your staff time, you should start trying ERP software and give your employees the success they want with your own hands.

If you as a business owner, your managers, your staff, and your customers want a new system, it means the time has come to switch to ERP software. Struggling and avoiding innovations would be a mistake. As the Kumsal Agency team, we can plan a demo ERP software for you to see its efficiency.

ERP Examples from Around the World

If you are still undecided about switching to ERP software, we will give you some leading examples of ERP software from around the world.

Before effectively entering a broader corporate market in the early 2000s, Oracle Corp obtained a relational database integrated with ERP software developed by SAP. The company had the chance to instantly detect accounting errors related to its inventory. By evaluating its financial records, it saved money by eliminating the costs associated with employing third parties.

Fulton & Roark, a producer of men's grooming products, successfully implemented ERP software to track its inventory and financial data more effectively. The North Carolina Company, like dozens of other businesses, began using electronic spreadsheets to record its financial data and monitor its inventory and accounting software.

Cadbury, a global confectionery manufacturer, also chose to successfully implement custom ERP software for its needs. Dozens of systems that could not keep up with the rapid growth process and inefficient warehouse management systems were causing financial losses. In addition, their previous systems were causing them to produce excess products. The company that switched to ERP software was able to standardize and unify thousands of different applications across 16 locations. As a result, it gained profit by more successfully managing production planning and inventory.

If you also want to purchase ERP software for your business, you can get support from the Kumsal Agency team. Write to us now with your questions about ERP software.