One of the most effective methods of improving the efficiency of the enterprise is the ERP system, which allows you to coordinate all functional subsystems into a single system to optimize decision-making. This article will consider the functionality of ERP and the best ERP software solutions.
ERP: why is it important?
In modern business conditions, business entities are an important driver of economic development. The possibility of expanding the country’s commodity market is determined by the ability of enterprises to maximize production capacity and continuous improvement of their activities.
The efficiency of the enterprise depends on the level of its financial security. In the process of ensuring the financial security of the business entity, special attention should be paid to the resource potential of the enterprise, because the management of resources, their optimal use, distribution, and reproduction determine the efficiency of the business entity and create conditions for its further activity and development. One of the possible methods of enterprise resource planning can become an ERP software package.
ERP system is more than just software; it is a system that consolidates and concentrates all information of the enterprise, allows to manage its flow, and provides simultaneous access to it by a number of users of the enterprise who work in the system and have appropriate access rights, resulting in improved customer service and staff efficiency.
ERP systems are not universal. Their implementation should take into account industry specifics and other features of the activity.
Pros and cons of using ERP systems
Advantages of using ERP systems as a method of enterprise resource management are:
- Using one integrated system instead of several;
- Automation of planning and management methods;
- Diagnosis and efficient use of enterprise resources;
- Constant data relevance speeds up decision-making;
- The program is equipped with safety and quality control systems;
- ERP is aimed at maximizing the needs of the enterprise;
- Ability to update ERP, instead of a complete replacement.
Despite the fact that the ERP system has a number of advantages for business, its implementation is accompanied by certain risks that embody the disadvantages of these systems. If not managed properly, ERP projects can be more expensive and time-consuming than expected.
Best options of ERP software
An important condition for the implementation of an ERP system and the choice of the appropriate software product is an in-depth analysis of the specifics of the enterprise, its organizational structure, business processes, relevant information flows, and, most importantly, information needs and requests of users of this system.
ERP-class software helps control many economic activities, including sales, delivery, billing, production, quality control, and human resource management. Such programs allow users to interact within a single interface, exchange information, and provide cross-functional collaboration.
The list of the top 10 best ERP software 2021 offers the following variants:
- Microsoft Dynamics GP
- Oracle ERP Cloud
- NetSuite ERP
- Brahmin Solutions
Large enterprises do this more strategically, choosing safer and more reliable software solutions that can be easily transformed and updated as they grow.
In addition, when calculating the cost of implementing an ERP system, it is important to consider all costs, not just the cost of licenses and services of companies that implement them, in particular: costs related to technical support (cost of equipment on which the ERP system will be installed, or costs for purchase (rent) of the server and its administration); costs for the reception of specialists engaged in implementation; training costs of employees of the enterprise; further maintenance and completion of the installed system, etc.