What are ERP systems?


Today, the brutal and fierce market competition leads companies to improve their services every day, and conducting an adequate resource planning is a matter of life or death to the company, the best way to achieve this is through so-called management information systems such as the ERP.

The planning system called ERP, short for Enterprise Resource Planning, arose from the need to encompass all information relating to the entire chain of production enterprises, in order to provide reliable information in real time.

What are ERP Systems

Through the ERP systems you can get a monitoring the various areas of a company, from the manufacture of a product, logistics, distribution, inventory control, accounting of the organization and many others important tasks.

The ERP systems are basically a software developed for the effective management of business information, allowing make the right decisions at the right moments, thanks to the veracity of the data handled by the ERP.

For this reason, usually ERP systems are known in the business environment as Back Office systems, and only found him involved in different sectors of the company.

On the other hand, the so-called Front Office systems or more commonly known as CRM (Customer Relationship Management), are those which as its name suggests allows a direct relationship with customers, such as business of electronic commerce, among others.

What are ERP Systems

Thanks to the use of ERP, all departments of an organization manage to be communicated and integrated in order to improve the productivity of the company, since by providing specific information in real time decision making, it enables the decision is much smarter.

The fundamental characteristic of ERP is that it contains different parts, each aimed at different areas of the company, and integrates them into a single program to compile the information that can be used simultaneously by any of the sectors that make up an organization.

Therefore, one of the most important objectives of ERP systems is to achieve further optimization of all the processes in a company. This is possible because the ERP allow permanent access to the information generated by each area of ​​the company, allowing always be based on reliable data and timely manner.

Furthermore, optimization information is accomplished by removing irrelevant data that could cause performing unnecessary operations and bad decision-making.

What are ERP Systems

Through the interaction between different sectors of the company that is achieved with the use of an ERP system, the operations performed resulting in significant benefits for companies, since using such systems is possible the effective management of information, which will allow not only the effective completion of the operation, but also get immediate solutions to the problems that may arise and a significant decrease in costs of operations answers.

While sometimes the ERP systems can be erroneously defined as a suite of business management, leading to misuse of the software, the fact is that it is a single application that works using diverse libraries, and information entered it is compiled into an extensive and organized centralized database.

Therefore, the fundamental characteristic of this type of software lies in gathering and maintaining information, updated information they can use all sectors of the company, at the time as required.

What are ERP Systems

Moreover, it is noteworthy that among the alternatives that exist today in the field of business management tools, ERP system is undoubtedly the one that offers greater opportunities and better suited to the different needs of each company.

If you want more tools for business management, please refer to the article “What is SAP”, which you can access by clicking on this link.

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