Advantages of ERP systems for companies

To make a company more efficient and increase sales, it is essential to invest in solutions and processes that organize and manage key business data more effectively, such as an ERP system.  ERP is the abbreviation for Enterprise Resource Planning. Its main function is to manage various processes and areas of the company. With ERP, the company keeps track of inventory, financial transactions, income and expenses, payroll and all other necessary data and key figures.

A good ERP system fulfills the company's needs through various basic and standard modules as well as through additional extensions. The basic functions of an average ERP system include

• Issuing electronic invoices for products and services
• Financial control (accounting)
• Production
• Inventory management
• HR
• CRM
• Reporting
• POS management etc.

By centralizing all information in one central location, the ERP system contributes to the following:

• Control of the sale
• Shipment tracking
• Payment management
• Analysis of goals and performance
• Storage of information from different areas of the company
• Tax obligations
• Simple data exchange between employees
• Agility of the management
• Productivity increase

Is the ERP system suitable for every company?

Certainly! ERP can (and should) be used by companies of all sectors and sizes, including small and medium-sized enterprises. As it aims to automate and organize processes, every company can benefit from it.  What varies from case to case are the needs, requirements and financial capabilities of the company to invest in an ERP system. Currently, it is possible to rent cloud systems, where information is provided on online servers. In this case, the deployment costs are lower, less physical infrastructure is required by the company and the system can be accessed from any device.  Another option is on-premise ERP. In this case, the software is installed on the company's server. This allows the functions of the system to be adapted to the needs of the company. However, this requires server maintenance, physical space for these devices and a team to take care of any infrastructure issues.

What advantages do companies have when they invest in an ERP system?

• Firstly, ERP software helps to organize business processes, as the time spent on performing manual tasks is reduced and you can focus on more important things. In addition, errors are minimized as it uses automated data.
• Using an ERP system centralizes all the necessary data and makes it easier to manage. It also supports the control of internal processes, as all managers and employees work according to standardized rules.  
• It ensures easy and quick access to information. Depending on the size of the company, finding the information you need in a spreadsheet or notebook can take valuable time. With an ERP solution, data access is much faster. 
• The reduction in management errors combined with better management of company resources leads to cost savings. The use of ERP enables employees who previously worked with countless spreadsheets to now focus on strategic activities and generate added value for the company.  
• An ERP system helps with inventory management - controlling the amount of products that are in stock, which facilitates management and can therefore generate savings for the company. In addition, it is also possible to analyze the seasonality of the market, the average purchase and the regions with the best performance. All this contributes to the growth of the company.  
• Productivity is increased. When employees stop performing repetitive activities and start working on strategic projects and actions, their productivity and performance increases. This contributes to business development, process improvement, focus on innovation and professional development of employees.
• One of the great advantages of an ERP system is that it is fully integrated with the online store for better and more efficient management. This eliminates the need to have multiple spreadsheets to manage e-commerce sales, for example. It facilitates the strategic planning of the company and the management of the online store.  - When the online store's sales increase, it takes longer to issue invoices and monitor sales. The ERP enables invoices to be issued quickly and easily, whether physically or electronically. You can check customers' payments, view unpaid invoices and create payment reminders. This process is therefore considerably simplified and automated.    - If the customer receives the wrong order or the delivery is delayed, they will not buy from the company again. This has a complete impact on customer loyalty. With an ERP system, it is possible to collect various customer data that influences the company's relationship with them and helps to avoid abandonment in the future. You have accurate information about the best-selling products and consumer behavior and can use this information to develop more effective marketing strategies.  There are several ERP software on the market, e.g. Navision or Weclapp, which we recommend to our e-commerce customers, you have to choose one according to your company's requirements, which also supports business development. The introduction of such a system brings numerous advantages for the business, gain a conviction!  Our agency Kenner Soft Service GmbH offers you services related to setting, customization, integration and synchronization of Weclapp, Navision or other ERP systems with Shopware, Magento, JTL and xtCommerce online store. We are happy to support you with the onboarding of the ERP software and help with data migration. Contact us for detailed information.

FAQ

• What ERP systems are available?

There are different ERP systems. The best known are SAP S/4 HANA, Microsoft Dynamics Navision, Sage, Oracle, and Odoo.

• How many modules does a typical ERP system include?

Typically, an ERP system includes 6 to 12 modules, depending on needs and industry.