The issues within your company that can be improved with ERP

ERP software: Definition and technical issues

ERP software tools have become widespread in companies in recent years, both for internal units and for the cloud. These are the main points you need to be aware of:

What is ERP? Enterprise resource planning system

ERP for SMEs, or Enterprise Resource Planning (ERP), is a module-enabled corporate software that enables multiple functions to be performed. ERP is suitable for all types of companies. Free solutions are available, but a paid version is recommended.

What is ERP and what is it for? Basic definition

When asked what ERP is and its usefulness, it should be noted that it is business software to perform multiple functions of tracking, planning and executing actions. There is ERP with modules for Accounting & Finance, Inventory & Distribution, Reporting & Administration, Sales & Customers and Procurement & Operations.

What are ERP's main features?

There are four main ERP features to highlight. Firstly, ERP has several modules to be activated according to the customer's needs. The second feature is automation to perform instantaneous actions. Third, it is important to highlight real-time queries. Finally, ERPs can be adapted to different types of company.

How to implement ERP software in a manufacturing, distribution or marketing company?

Knowing how to implement ERP software in manufacturing companies is relevant for several reasons. The process must follow the following steps:

● Assessment :It is important to carry out a prior analysis of the needs of companies. It is all about knowing what you need to improve according to your sector of activity and the characteristics of your company.

● Choice: The choice of software is relevant because not only do you have to incorporate quality software, but you also have to check that the supplier offers good support.

● Implementation: Software implementation has to be carried out in phases in order to test its performance.

● Training: Workers have to be trained to learn how to manage the new software.

The main issues within your company that can be improved with ERP

ERPs can easily solve a wide range of problems in your company. If you have a growing or complex company, it is in your interest to use these tools. The most obvious cases are the following:

1. Duplication

One of the problems of non-integrated systems is that of duplication in the use or capture of information. Have you never had two workers looking for the same information? It is true that the structure of the corporate organisation chart also plays a role, but lack of automation is a problem.

The centralisation of these software tools makes it possible to control several aspects simultaneously and thus avoid wasting time. Although ERPs are modular solutions, they have a single sign-on, so you have a variety of information at your fingertips in an instant.

2. Lack of coordination

Lack of coordination is one of the main drawbacks that SMEs encounter. This often happens because the information is not properly centralised in the same software. Organisational issues go a long way but centralised software provides facilities for simultaneous working and access to information.

When using the software, you will improve your business with ERP, and that will undoubtedly have an impact on productivity. It makes a difference when every department in the company can access the information they need without having to make multiple enquiries.

3. Wasting time

Malfunctions waste time and a software tool such as SAP helps to avoid this situation. The ability to do more in less time through instant access to data will facilitate day-to-day operations. This allows you to be more competitive in all areas of your work and make a difference because automation will do many operations for you.

The objective is clear, that the profitability ratios are better thanks to the advantages of automation. There are queries or calculations that you will no longer have to make because the software will do them for you automatically.

4. Lack of information for planning

Information is crucial for medium and long-term planning and lack of information is one of the main problems for entrepreneurs. Productive activities cannot but be rational, and even more so in the face of the reality of Big Data. If you don't have data to analyse, you will be left behind. This is a problem that increases in the process of internationalisation of companies, when they have to work in multiple countries.

One of the advantages of the software is that you will be able to make comparative statistics, so not having that data makes you less competitive. ERP will solve this problem because of its ability to manage a huge amount of data.

5. Inefficient use of the work factor

The work factor is used inefficiently when IT management and planning tools are not used. Today there is already an opportunity price when you do not use ERP, so this issue should be avoided. Specialised software for SMEs will help a worker to waste less time on automated tasks.

Any company must make the most of human capital and use it in those functions in which it is essential. Using ERP will allow the worker to be freed from tasks that can be performed automatically. As a result, a more efficient use of the work factor will be made.

6. Loss of resources

The loss of resources due to inefficient use of stocks, purchases from suppliers or payroll is a competitiveness problem. ERP allows full traceability of processes, from start to finish, which identifies problems.

The use of ERP will help you to optimise your resources and thus avoid unnecessary losses. This is vital when a company's survival depends on low profit margins.

7. Lack of updating

The software has to be updated automatically, and sometimes some tools are not. The update is essential to avoid computer attacks and to check vulnerable points. It is therefore essential that the supplier is reliable and reputable.

On the other hand, ERPs provide for the updating of operations because the process is automatic. This means, for example, that you don't have to repeat operations or worry about time mismatches.

The possibility of improving your company with ERP is there and at SEIDOR we offer several ERP solutions with SAP. Do you have an SME and want to introduce this tool to be more efficient? Do not hesitate to contact us to find out more about our products.