Planning helps minimize potential disruptions as one of the most important elements of a business management process. It is seen that the number of businesses that want to benefit from the benefits of technology in their planning processes is increasing day by day. Regardless of the scale of operations, many businesses and industries are turning to digital solutions. ERPs (Enterprice Resource Planning), known as Enterprise Resource Planning, which includes planned business management, is one of the digital solutions sought by companies as a system where all physical and financial resources, human resources as well as customers and suppliers can be managed comprehensively. For example; Thedistance between the factory where the production takes place, the warehouse where the distribution takes place and the store where the sale takes place creates the need for planning and follow-up for companies. To measure whether stocks are sufficient, raw material needs, the status of products, profit and loss tracking, and the need in warehouses and stores, reporting may no longer be enough as one of the old methods. Especially the use of ERP software by large-scale enterprises is no longer seen as a choice but as a need.
What is Enterprice Resource Planning (ERP)?
ERP, which stands for Enterprise Resource Planning, is a software that carries out almost all the operations of companies. The ERP system, which organizes the management process as measurable, controllable and plannable, is an advanced system from MRP (Material Requirements Planning), which is material management. Production planning, the need to carry out appropriate inventory control have created the Material Management System. Adding more production processes to the originally developed system required a new system. The ERP system, which is formed with the logic of combining the management of material needs and production management in the MRP system, offers effective management to enterprises as a management process of resources. While the complexity of the production stage creates the need for planning, ERP systems have been developed to follow up financial resources and prevent disruption in production. All sectors where the operational process is complex and where there is little margin for error can benefit from ERP solutions.
How Does ERP Work?
ERP software, which works by dividing the system that needs to be managed as a whole into modules, is increasing day by day according to the needs of companies. ERP software, which is diversified and personalized according to the service area and sector, facilitates resource management at the most basic point. In the first days of its development, ERP software, which was preferred especially by factories carrying out production activities, later attracted the attention of the service sector . Recently, ERP software is one of the systems that attract attention from the private sector to the public and from non-governmental organizations to many companies whose fields of activity vary . ERP software, which is especially preferred by companies with a large number of departments and facilitates the operation process, facilitates the follow-up of units such as stock tracking, production, human resources management, supply chain management, customer relationship management. Companies that demand different solutions according to their field of activity may prefer to customize the software according to their management processes. Thanks to ERP solutions, businesses can use a single ERP infrastructure for all units within their structure. Using a different software for each department instead of ERP software solutions can be quite costly considering the IT support process. Using different programs for each department can alsobe a choice that hinders management in the lack of up-to-date data, as it will not allow the work carried out within the enterprise to integrate with each other.
ERP Software Provides a Competitive Advantage in a Long Run
ERP software systems, which make their managerial contribution by keeping data in an up-to-date flow between departments, increase efficiency by reducing delays that may arise from lack of internal communication. Easy access to a lot of data and reporting capability enable new strategy development. It can contribute to resource planning while offering the possibility of gradual growth and contraction by comparing existing needs with company conditions. Accessing customer relationship history from a single place makes it easier to follow up the demands to be met in a timely manner with the right collected data. All these benefits provided by ERP software solutions provide a competitive advantage as a mechanism that provides the business with the good performance it needs in the long run.
How to Get a Good ERP Software?
There are steps you can follow and mechanisms you can get support for integrating an ERP software that can meet your needs and works smoothly into your business. It is very important to determine the needs of the company and choose the ERP solution according to the company scale. You should consider the experience of the company that supplies you with ERP software. Choosing a system by considering the modules you may need in the future and the fact that the supplier can meet them can alleviate your future workload. ERP is very advantageous in terms of not being purchased as a package. You can buy only the modules you need. An ERP system that cannot integrate with existing systemsmay be contrary to its purpose of existence by failing to perform holistic operations management. Finally, choosing an ERP solution that is suitable for your budget and resources is very important in terms of affording the costs such as maintenance and support you may need to continue using the software in the future. On the other hand, consultants you can get support from ensure that you have access to a good ERP software. ERP consultants come into play to facilitate the installation of ERP software, which produces a solution with a wide range of operations, in the first place. ERP consultants responsible for coordinating all unitsof the companies choose the appropriate ERP software to save time, guide and advise on the market, as well as develop the ideas produced by the customers and integrate them into the ERP system. Consultants help to better understand the process by providing user training to the personnel in the enterprises they support.