Enterprise Resource Planning (ERP) is software designed to manage businesses by incorporating various applications. The ERP software is composed of functions which an organization requires depending on the need and work of the company. For example, a company that deals with public relations will purchase an ERP that will be in line with PR jobs. The ERP concept was developed by the JD Edwards company that developed the first software solutions including one world, world and JD enterpriseOne.
Because ERP is technology-based, choosing the right business software will require careful analysis in order to come up with something that will be helpful to your organization. There are different criteria that can be used to evaluate the functionality of any ERP system.
- Size of the company – A small organization of 20 will develop an ERP that is very different from that with 200 employees.
- Job specification – If your organization deals with manufacturing, then your ERP will be different from that of human resource management in terms of performance and structure.
- Development – Some ERPs are made within the company i.e. (custom made) by IT personnel within the system, while others are sold ready made by organization like the Oracle Company. Custom made software is best as every aspect of the organization is catered to.
Depending on your company, JD Edwards ERPs will provide a variety of services. These will cover production, supply, financial solutions, managing, planning, data entry, invoicing services and marketing.
Benefits of Enterprise Resource Planning
There are a number of organizations using ERPs. The organizations are categorized into small micro enterprises, medium and large organizations. Depending on the size, there are benefits that can be realized.
- Better management of the organization – Smaller and medium organizations that have minimal resources can use automated ERPs in managing work. Keeping many records will be easier for companies with a smaller workforce thus easing the workload.
- Better and improved services to clients – Big companies have a huge client base that must be attended to efficiently. Instead of dealing with customers directly, the ERP software can be automated to serve the customers fast and efficiently. The customers will get accurate information hence be satisfied, thus developing good relations.
- Reduces the amount of work – If you are operating a medium sized company with many departments, the ERP software can be interconnected within the organization and reduce transfer of documents.
- The ERP is faster and increases revenue – In the past, large organizations attended to clients at a slow pace because of minimal resources. As a result, there was reduced amount of revenue generated. ERPs work faster, some take seconds to generate information within the shortest time possible.
- Expansion is possible – If you are in a small organization, then you can easily expand your ERP to cater for more work. This will help when you are looking for new customers. This will boost the quality of services and products offered.
Choosing your ERP vendor
Different vendors are on the market offering solutions for ERPs. While choosing them, observe the following points.
- Expertise – Some vendors provide better services than others and are better in the market.
- Work method – Depending on the need of your company, choose one that better suits you.
- Benefits accrued – Different ERPs will offer different services to your clients; choose the most beneficial.
- After sale service – Choose vendors that offer the best services in terms of competition. Look at their credibility in the market.
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