What is ERP? Enterprise resource planning system

What is an ERP and what is it for?

ERP stands for Enterprise Resource Planning. The functionalities are varied, depending on each modality and the company that is going to use it. Depending on the case and the company in question, it can be used to manage inventories, documentation, accounting, suppliers, sales, schedules and traceability of goods.

Why implementing ERP software in your company is necessary for success

Implementing ERP software in any company, large or small, is necessary for success as a matter of opportunity cost; not having ERP software is a real disadvantage. In such a competitive economy it pays to reduce costs, and this tool helps to do just that. In addition, consulting the actual state of a warehouse or inventory is essential to avoiding stock shortages.

Why change your current ERP?

There are several ERP software packages with different features, and a company can change for different reasons. It may seek to incorporate new functions such as customer relationship management (CRM) because its software has become obsolete. A company may not have a quality technical service. Finally, a company can change software for security reasons.

What are the features of an ERP?

There are five main characteristics of an ERP. The first of these is automation in data capture. The second element is its modular structure, which allows functions to be activated or deactivated. The third feature is its configuration capability. The fourth is the interaction between modules, while the fifth is the centralisation of data.

The use of a warehouse management system in different industries

Warehouse management systems are commonplace in industries that have to keep products in stock. This happens in sectors as diverse as retail, fashion and accessories and food and beverages. Such tasks are routinely performed by specialised software such as ERPs (Enterprise Resource Planning).

The problems faced by an SME without an ERP system

There are three main disadvantages for SMEs without an ERP. The first is organisational, because the decentralisation of information has a negative impact on the functioning of the company. The second important disadvantage is that the company will spend more time to complete the same functions. Thirdly, the company will lack the information to plan and make efficient decisions.

Organisation

Data dispersion is a problem that forces you to duplicate efforts or to work harder to achieve the same result. It is difficult for an industrial company today not to not have an ERP. Not having one creates chaos. Spending hours trying to find a certain piece of information creates dysfunction within the company, especially if it has several departments.

Wasting time

Not having an ERP wastes time because it requires more effort to find the necessary data. In the long run, this leads to a lack of professional efficiency that makes you less competitive. Time is money and we cannot waste it trying to find something.

Lack of information

In the era of Big Data, an ERP is essential to having access to real-time data and to making rational decisions. Not having this tool puts you a step behind your competitors because you will not be able to exploit the potential of your data. And this goes beyond information being correct or not. Scarcity of information is just as much of a problem.

Issues within the company that can be improved with an ERP

Companies using an ERP can improve a number of problems. They find it easier to control stock and thus reduce losses and inefficiencies. They are also able to keep track of sales, purchases, employees, customers and suppliers. They have all the information centralised in the same system.

Benefits that a business management solution provides to the company

There are several advantages of implementing a business management solution in your company, but the most important are the savings in time and resources by centralising information in a single system. In any case, the following can really make a difference:

It provides an overview of sales management

Business management systems allow us not only to monitor sales, but to collect general statistics for sales management. It is therefore easier to know how much you have sold in a given period and which customers generate the most value to your business, quantifying this in absolute and relative terms. You will also be able to make comparisons with other years.

This helps to easily plan an inventory

Business management systems facilitate the control of all inputs and outputs of the company. This means, for example, understanding the flow of goods and being able to make an inventory quickly. In the end, this makes it easy to plan an inventory several weeks or even months ahead. This allows you to save costs and optimise your investments.

Time saving

Centralisation of information means saving time. As you don't have to search in several places, you get real-time data. This means your workers will have more time to carry out other tasks. And being more efficient with human resources is a great way of generating value, especially in an SME.

Savings

Long-term financial savings are another reason to implement an ERP. This kind of saving affects all aspects of the company, from purchasing to sales, personnel management to documentation. And the information provided by our tool definitely promotes efficiency. This is the main reason these solutions have become so widespread.

Reasons to organise a company with an ERP system

There are three main reasons for setting up an ERP within a company. The first is to improve communication between the different areas of the company. The second is to reduce human error associated with a lack of oversight of goods. Third is the ability to make more rational business plans.

The importance of an ERP in a distribution industry

The use of an ERP in the distribution industry is important for three reasons. Firstly it allows you to directly manage the flow of goods, which is the basis of this kind of business. The second is that you can manage documentation directly. Thirdly, this tool facilitates the financial oversight of a company.

ERP software with CRM for customer management

ERP software with CRM for customer management is a tool that allows you to manage all your interactions with customers. There are some ERPs that do not have a CRM, but it is always recommended to incorporate one. This allows you to find out the last purchases, prices or contact details at a glance. It is an essential module for SMEs.

How to manage an ERP for distribution companies: which companies we work with

ERP software is ideal for companies in distribution, production, fashion and accessories, retail, food and beverage and services. The ERPs for these different areas each offer specific solutions to specific problems. Not all companies need the same modules. In a production industry, for exampe, the warehouse is central, whereas it is less so in other sectors.

The features of SAP Business One

ERPs have different functionalities depending on the modules you wish to integrate. In any case, the software provides for Accounting and Finance, Inventory and Distribution, Reporting and Administration, Sales and Customers, and Purchasing and Operations. These modules can operate as an integrated whole or separately.

Free ERP vs. Paid ERP

Although both free and paid tools exist, there are significant differences between the two. Free applications tend to have less functionality and fewer modules enabled. A fee-based ERP that works with SAP software provide greater versatility because it is tailored to all types of businesses. If you can, it is always better to use specific paid software.

Production planning: The importance of ERP

The incorporation of ERPs is essential if you want to plan your day-to-day production and operations wisely. Firstly because you will know what you have at any given moment and what supplies your company needs. Secondly you will be able to make comparisons with previous years based on flows and turnover. This has great advantages for the company.

What is sales management and why is it important?

Sales management encompasses everything relating to administration, organisation, implementation and communication as these relate to the sales process. It is fundamental because, without good sales management, the chances of business success are exponentially reduced. Corporate software facilitates good management.

Stages of ERP implementation

The successful implementation of these devices requires five basic phases. First of all, it requires a plan of what you need and the product you are interested in. It then requires migration from the old system to the new one. Following this, staff must be trained. The software then has to be implemented and, finally, its performance has to be monitored.

Types of ERP modules and their features

ERP modules are tailored to the needs of each company independently. There are four types of SAP ERP modules: logistics (for incoming and outgoing goods and inventories), finance (for accounting and flow control), human resources management (personnel and payroll) and multi-application functions (projects).

How does ERP work in the food, retail, fashion and services industries?

ERPs operate in each industry with their own idiosyncrasies and functionalities, but always require hands-on installation and training for employees. This is why systems such as SAP offer specific solutions for each sector of professional activity. These are the main specific products you can find on the market:

Food industry

The SAP Business One for Food and Beverage solution is designed for any industrial company in the food sector. It is possible to monitor warehouses, factory operations, production costs, customers, sales and other processes. In short, you will have the exact software you need to improve your performance ratios.

Retail

Retail companies rely on the SAP Business One Retail solution. The tool provides a comprehensive solution for retail distribution. Functions it performs include stock management, accounting, product labelling and overall commercial management. Of course, in direct sales, stock is of decisive importance for your margins.

Fashion and accessories

The SAP Business One Fashion solution is specific to the fashion and accessories sector, and allows you to perform vertical management by products, sizes and colours. You can import information from Excel or process it automatically, as well as print documents. This makes it easier for you to adapt to changing patterns of market demand.

When is the best time to purchase an ERP system for a company?

Adding an automation tool is always advisable for your SME, but the best time to buy an ERP is often due to two reasons. The first is if you experience significant growth in sales or volume. The second is if you want to carry out a restructuring or reorganisation of your departments.

What is the cost of incorporating ERP for an SME?

The cost of an ERP for an SME varies, depending on the vendor. €15,000 is a ballpark figure for an SME. Depending on the complexity of the company, the price may increase if more modules are integrated. There are also partial solutions for micro-enterprises that are free of charge, but they are not very functional above a certain volume.

Incorporating enterprise resource planning software is essential for any business. At SEIDOR Business One, you will find several SAP software options for production, distribution and services, as well as tools adapted to companies in different sectors.