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What is ERP? How to solve business problems by ERP?

May 14, 2021

Nowadays, businesses increasingly demand more agile hybrid IT services and agile networking capability and getting the user experience right. That’s why digital transformation is essential. Especially, it must include the ERP, it should be considered by any organization looking to grow and stay ahead of the competition in today’s digital world in Viet Nam.

We’ve created this article to help you figure it all out.

1. What does ERP mean?

erp

ERP is the integrated management of main business processes. ERP stands for:

  • Enterprise
  • Resources
  • Planning

Firstly, we are going to explain resources (R), which is the word used by the information technology industry to describe core resources that can be software, hardware, or other types of data used on the database system. Implementing resources requires a fundamental change in the organization. The organization needs to be able to convert human resources into resources. Must ensure your implementation goes as smoothly as possible across all departments.

ERP implementations are successful depending on the consultant. An experienced implementation consultant will have seen it all before and can circumnavigate problems before they arise. Besides that, some of the most expensive aspects of an implementation ERP are resources. That the explanation resources (R) are mentioned initially.

Second, we are going to explain planning (P) to understand what ERP implementation plan is suitable for businesses?

ERP forecast featuring enables you to prepare demand forecasts by customers, products, geography…which often stem in the future. An ERP inventory management system provides real-time inventory information to the entire organization. Salesman can monitor the entire sales cycle from lead to post-sale follow-up. The next step is to use this insight to develop stronger marketing campaigns, make prudent procurement decisions, and schedule production operations to increase profit.

In addition, planning can help businesses become more time-efficient and improve productivity by human resource management, sales management, customer service management even…

The last but not least, after having resources and smooth operation, the connection between the departments is the purpose of the E – enterprise. This means that all business operations are optimized in a single system and managers can easily review and analyze the performance of each department.

2. What are the modules most used in ERP systems?

what is erp

All-in-one ERP manufacturing software offers industry-specific functionalities to help companies boost operational efficiency, manage day-to-day business activities.

  • Human Resources Management
  • Sales Management
  • Customer Relationship Management
  • Asset Management
  • Project Management

Here is our ERP modules list of the top tools offer to midsize companies, that businesses find useful and valuable

  • Human resources management module: Businesses can use this tool for management, recruitment, payroll, evaluations, and job offers. All of this integrates into a single module which makes general management and decision-making easier
  • Sales Management: The challenges in the sales management process are fully optimized in ERP systems when businesses integrate sales, purchase, inventory software, or connect delivery systems, and peripheral applications in the same place.  In addition, sales modules help businesses to handle inventory management issues such as track shipping, inventory, etc.
  • Customer Relationship Management: In the context of growing market competition, the ERP system doesn’t only stop at the sales module but also is connecting the client’s life cycle through Customer Relationship Management (CRM). In this module, the system records customer feedback quickly to help to increase sales, productivity, people, and pricing. Moreover, ERP systems collect a lot of data about an organization’s operations to examine the business situation, answer the complete most intuitively to make timely adjustments.
  • Asset Management: Asset Management: organizations that rely on assets need an ERP system when they scale up their business. ERP systems provide an important asset management module that brings unique value to your organization through purchase, provides, transfer, etc. This module can help you schedule, plan, and execute work, asset costs, depreciation, and capitalizations are handled in the ERP as a whole. Asset management modules will give you insight into the lifecycle of your assets which can improve predictability and help you avoid costly breakdowns.

When business approach digital transformation, ERP provides the foundation to share and connect the information across departments that keeps employees working in sync to better manage

3. The advantages of ERP system for small and medium-sized businesses

We can’t deny that the digital era opens a new gate for businesses to run more smoothly and professionally. ERP is indispensable when middle and big businesses have a desire to expand exponentially.

Advantages thanks to the above administrative modules, core values of implementing ERP are:

  • Connecting the internal effectively instead of each software for each department, making it difficult for businesses, especially when it comes to quick decision making.
  • Managers can check activity details, task information in a single interface, and a variety of reports.
  • Businesses can customize their software based on each department’s needs to fit, in sync with the procedure.
  • Each department can measure employees’ performance in detail on the system.

ERP System brings a comprehensive solution for businesses to manage more closely, increase productivity and business efficiency. Please follow us to catch up with lots of useful information.