Enterprise Resource Planning System is an integrated management system of the company that combines the resources of the enterprise in different departments. That is, all the necessary resources, departments, functions, and other tools necessary for effective work are located in one computer system. All divisions in the enterprise gain access to information, which greatly simplifies the work and ensures the exchange of information.
How can the ERP system improve company performance?
What is ERP? This is the optimal solution for enterprises, regardless of their size, presence of branches, and distance. The system allows:
- significantly speed up document flow between departments;
- get quick access to information;
- effectively manage the work of remote departments, branches, employees.
Companies choose ERP based on the solution’s key benefits and practical considerations.
The ERP is often confused with other applied solutions and software products that help in solving certain business problems. For example, unknowingly, ERP is considered an analog of a CRM system or an alternative to accounting and tax accounting programs. The main difference of the ERP is that it allows you to manage all the resources of the enterprise, and not its parts.
Connecting financial data
When a company manager needs to get financial data, he can study many reports, where the indicators will be different, but they all turn out to be correct. After all, each department keeps its records and makes a certain contribution to the common cause. And it is not always clear how effective the costs in a particular department are, and using 1C ERP it will be much easier to determine. The database is unified, so it is almost impossible to manipulate information.
Setting standards for manufacturing processes
This is especially true for large enterprises whose branches are remote from each other (located in different cities or even countries and continents). So, in such units, various accounting methods and computer systems can be used, and in order not to get confused in all this, the ERP is used. It is easy to get access to the necessary information through the Internet, and the unified multi-currency system helps to reduce the number of working personnel and simplify accounting processes.
Setting standards in the personnel system
ERP 1C Enterprise can combine all tasks related to personnel – selection, retraining, development prospects, and more. With the help of the system, it becomes easier to track the work of each employee and track the effectiveness and its benefits for the company.
When is it necessary to implement an ERP system?
At the first stages of the enterprise’s existence, there is no need to implement the ERP system. Employees develop all the necessary documents in-office programs, and the exchange of information is quick (just contact the right employee). But as the company grows, when different departments are formed (personnel, accounting, and others), each of them forms its database. This subsequently complicates the exchange of information between departments, which slows down the work.