What is ERP? | What Does It Do? | Usage areas

What is ERP? | What Does It Do? | Usage areas

(This article has been translated with google translate.)

ERP can be defined as software developed to manage many processes of an enterprise such as routine accounting, purchasing, risk management, compliance with the legislation. ERP stands for Enterprise Resource Planning and in Turkish it is referred to as "Enterprise Resource Planning". Businesses prefer it as a database that allows keeping data in different fields in a single environment.

There are many components in an ERP system, including hardware and software. It enables all data and processes in your business to be integrated at a single point. In other words, this system can be defined as an integrated management system for the efficient use of many resources such as labor, machinery and materials in order to produce goods and services in an enterprise. Enterprise resource planning systems designed specifically for brands are practical software to use.

You can combine all the resources and data of your business with ERP systems and use them in the most efficient way. Enterprise resource planning systems are not just for commercial businesses; It can also be used by state institutions, non-profit organizations and non-governmental organizations.

what is erp what does it do usage areas

What Does ERP Do?

ERP systems are completely planned according to your corporate needs. You can combine two or more software on a system and purchase it as a software package. You can manage all business processes from a single center with software according to your industry and corporate needs.

The advantages of ERP software are as follows;

  • With an ERP system, all services of your business can be recorded with a high quality standard.
  • Enterprise resource planning prevents situations that may cause problems for your business, such as incorrect entry in business processes, data loss.
  • Data on the ERP system are collected in a single area. In this way, the possibility of the financial situation of your business to be at risk is reduced.
  • Reporting is very practical and easy as many modules in different fields are collected in a single system. You can print out about different departments in your business and make quick decisions in management processes.

Which Modules Are Included in the ERP Software?

There are applications that work independently from each other in the ERP software. The modules that can be included in an ERP are as follows;

  • "Stock Management", which shows the stock process from storage to sales of the products your business will sell.
  • "Sales and Distribution Management", which includes the sales, distribution, management and delivery processes in orders received from your customers
  • "Quality Management" that ensures production in accordance with quality standards
  • "Human Resources Management" that tracks HR processes such as recruitment, career planning, training planning and implementation.
  • "Production, Planning and Control Management" in which the number of products planned to be produced, production time cost, customer orders are followed
  • "Financial Management", which follows all financial processes of the company such as receivables, debts, futures, general accounting transactions, costs.
  • "Supply Chain Management", which enables the flow of information about stocks and the effective management of capacities such as logistics chain between the business and business partners.
  • "Purchasing Management" that allows the company to follow up the processes such as determining the material demands, forwarding it to the vendor, tracking and delivery process.
  • "Project Management", which gathers all processes such as documents, purchases, resources, costs under a single roof for some operating companies.
  • "Customer Relationship Management", which enables the customer and business management to become flexible and minimizes customer dissatisfaction.
  • "After Sales Service Management", which enables the management and execution of processes such as technical service and warranty provided after the sale of the products and services of the enterprise

Modules in ERP systems can be diversified and multiplied according to brand needs. Module planning and integration into the ERP system are made specifically according to your corporate needs.

Why Should You Use ERP?

ERP systems are preferred by many small, medium and large enterprises. It is a system that provides great convenience to businesses serving in every sector and facilitates the management process.

Some of the reasons for your business to use the ERP system are as follows;

You can gather the financial information of different departments in your business together and easily manage the financial systems integrated into the general system.

Thanks to the module that contains customer order information, you can collect very different information in a single system. You can forward these systems to companies in different regions and follow up their orders and work flows.

You can implement and follow many processes such as production, supply, sales, shipping, loading, invoicing in a coordinated manner.

ERP software systems ensure that standardization and manufacturing processes run faster and more qualified in your business.

By arranging the work flow with the stock module in the system, you can easily follow the current stage of the orders and provide instant reports to your customers on this issue.

The entire work flow of the human resources department is integrated into a single system. The human resources system standardizes HR information for multi-departmental businesses that are not under one roof, and presents them in a single module. Processes such as personnel rights, information, training plans can be developed according to the sector and company specific situations.

what is erp what does it do usage areas

What are the Advantages of ERP System Usage?

Researches reveal that in eight out of 10 companies in a sector, ERP systems are used for corporate resource planning. The advantages it offers for businesses that want to digitalize with the ERP system are as follows;

  • It helps to increase performance by optimizing all business processes.
  • It allows you to leave your competitors behind in the competitive environment in the sector.
  • It ensures that the processes in your workflow become the fastest.
  • It enables you to establish an organized and institutional working system.
  • It provides a strengthened cooperation between departments in the business.
  • It reduces management costs in your business and increases your earnings.
  • It changes data processing processes that are inefficient and cumbersome isolated for your business.
  • It is an integrated system that covers the whole company.
  • It provides effective, fast and first-class communication between different departments.
  • It can be planned according to your corporate needs on local, mobile or cloud systems.

What are the Disadvantages of the ERP System?

ERP systems are a very efficient and advantageous system for corporate businesses. However, there are some disadvantages for small businesses. The ERP system should be well planned, implemented strategically and developed by a professional team.

ERP system disadvantages are as follows;

  • ERP system may require high investment costs for your business.
  • It may require you to spend regularly on purchasing, system maintenance, staff training and different items.
  • Similar systems are difficult to integrate. That's why design for your personal needs is a must.
  • It increases the investment cost so that it can be used among suppliers.

How Much Are ERP Prices?

ERP prices vary according to your corporate needs and demands. First of all, in ERP systems, the needs are determined according to the sector and business needs and business processes. Modules for all your business processes are developed according to your needs and an ERP system suitable for your corporate structure is developed.

Many factors such as the number of modules to be developed, the environment in which the system will be accommodated, the size of the ERP system affect the prices. It should not be forgotten that the ERP system should be developed specifically for corporate needs and should be written by a professional team. ERP systems, which are very cheap, ready and do not meet your corporate needs, are a wasted investment.

You can contact us for ERP system price information.

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