What is ERP?
Integrated Management Software Packages (ERP), better known as ERP, are computer programs that streamline business processes, improve the traceability of information, manage references (products, articles, stocks) and third parties (suppliers and subcontractors). The fundamental difference between an "integrated management software package" and a management "software" is the sharing of a single database by all business modules. The centralization of data and its exploitation via the various modules make it possible to manage the various activities of the company (stocks, suppliers, invoicing, customer relations, accounting, etc.).
To manage the information system (IS) of an organization seamlessly and consistently, ERP software remains the ideal tool.
How it works ?
Traditional ERP solutions rely on a logic of managing products and articles. They are therefore acclaimed by companies selling goods and less used by service SMEs and smaller companies. These primarily want to centralize their information (data integrity) and simplify their IS in order to save resources. An ERP consists of modules that fulfill a "business" mission as would conventional software:
- business management
- procurement management
- production and supply chain management
- project management
- customer relationship management
- inventory management
- supply Management
- payroll and human resources management
- accounting management and financial management
These modules work in an integrated way (we pass from one module to another by a tab) and rely on one and the same centralized database. ERP needs to be parameterized in depth to be adapted to the processes and specificities of the user company that is why they use integrators who will do this work of deployment and optimization with them.
Since 2005, new, more agile ERP systems have been developed under the name of "management software". They offer the following advantages:
- Reduction of initial investment
- Less technical effort for the benefit of the functional
- Significant increase on ROI
- Better scalability
- Better ergonomics and collaborative functions thanks to the Cloud
Modules and features of ERP software
The ERP tool contains functional modules that use the same data in a single centralized database. It is a set in which all the parts work harmoniously with each other. The information is therefore unique (coherent ERP information system). Modular applications of ERP interlock like Lego blocks.
The ERP architectures distinguish the finance module, the logistics module and the e-commerce module. As for the finance module, it is divided into 5 sub-modules and carries out management control and forecasts on all of the company's directives. Also, it manages the third party accounting, analytical and general. He also controls investment management, human resources, travel expenses and everything related to payroll management and working time. To use this module, you need to have a thorough knowledge of accounting.
The logistics module, more sought after by companies, is used for sales / purchasing management, especially inventory management, which is always expensive for companies. If this module is also used to manage sales orders and deliveries, it must of course mean its greatest asset: the optimization of the workflow process. The precise management of quality controls and invoices are all assets of the ERP software that coordinates and triggers corrective measures. As for the e-commerce module, it allows to sell online. Officially, it is considered a Customer Relationship Management (CRM) software still known as Customer Relationship Management (CRM). This module allows to perform the desired statistics and on any database. In this module, a reporting tool is associated. Just right, because in the end the e-commerce module is just as well used to make marketing offers as e-mailing.
What kind of companies use an ERP?
Given the importance of e-business in all businesses, the use of tools based on information and communication technologies remains essential. For this, the ERP is the most used software package to integrate all the functions of the company. The tool has the particularity of building computer applications around the information system and this, in accordance with each function of the company and in a modular way. While not all modules are dependent on each other, they share a truly unique and common database. An ERP-like solution is also the use of a workflow engine. Thanks to the latter, when a piece of data is recorded in the ERP information system, it is at the same time propagated in the appropriate modules while respecting a strict programming. Generally accumulated in an oracle database, ERPs are often in the client / server order. They are well suited to the PowerPoint and Excel office pack. The latter is widely used to make data imports / exports.
Why using an Enterprise Resource Planning Software?
The objective of an ERP (Enterprise Resource Planning) is to automate the processes of your company: purchasing, commercial management, production, payroll ... This management software has the principle of centralizing all the information of your company in a database unique data. In concrete terms, a sales representative who registers a sale in his online application will be integrated into the ERP. Automatically, this sale will impact inventory management, sales journal and accounting. Earn performance in the management of your processes and data of your company!
The new generation of ERP in SaaS mode knows how to adapt to the needs of SMEs thanks to the following functions:
- Ergonomic environments accessible from a mobile terminal
- Collaborative functions (sharing of documents and knowledge)
- Valuation of data by marketing and commercial functions
- Objective 0% integration versus 100% configuration
- Never re-enter data (they are shared by all modules)
The ERP limits for SMEs are:
- Structure too rigid
- Setting up too complex and expensive
- Under-valuation of data
- How to choose an ERP?
- The integration effort
- The relationship with the publisher and the integrator
Popular ERPs for startups, small businesses and SMEs
The traditional ERP market is trusted by SAP, Oracle and PeopleSoft, which together account for half of the market share.
Here are some popular ERP software: Akilaé, Zephir, Dolibarr, VSA, Sylob, Gestimum, Monday Morning Business, Everwin SX, Everwin GX, Iovision, childhood, yourcegid y2 on demand, odoo, ogust manager, SAP by design.
Complementary solutions of ERP
Business Process Management (BPM)
Field Service Management
Vendor Management System (VMS)
Product Information Management (PIM)
Product Lifecycle Management
Business Performance Management (BPM)
Project Portfolio Management (PPM)
Governance, Risk & Compliance (GRC)
Computer-Aided Design (CAD)