What is ERP Software?

Enterprise Resource Planning

ERP stands for Enterprise Resource Planning. That's what it means, but it doesn't really say what ERP is yet. Basically, an ERP system (or ERP software) is an integrated business software solution. A software package in which all activities of a company can be registered and managed.

But what is an ERP system really?

Various business processes take place within an organization. Here you can think of: Accounting, Sales Management, Purchase Management, HR, CRM, Inventory Management, Quality, Logistics, Marketing, Project management, Manufacturing, etc.

Automation is often used in the execution of these processes. Many organizations use multiple software packages for this. There are often several separate systems in circulation, such as MS office, accounting software, relationship management software or custom software. As a result, data is stored in many different places and ways. Departments often have their own working methods with their own forms, lists and approval processes.

An ERP system is software that can automate the entire company in one go, bringing all data and all business processes into one package. This can yield great benefits in efficiency and profitability. 

Advantages of an ERP system

The main advantages are that all data is stored centrally and all business processes are standardized. As a result, data from different business processes only need to be entered once and everyone works according to a predefined process. All kinds of analyses can also be carried out easily, resulting in a much better insight into the quality and efficiency of processes. As a result, the management of a company can get a much better grip on the organization and steer towards better quality and efficiency. With an ERP system, companies become more efficient and therefore more profitable. There is less waste, productivity and quality go up while costs go down. This ensures higher customer satisfaction and thus a better competitive position.

An ERP system improves your process

When implementing an ERP system, together with highly experienced business consultants, we closely examine the business processes and how they can be improved. A professional ERP software package contains thousands of best practices for many different industries.

A good consultant can therefore provide management with insight into how other companies in the industry perform certain processes and explain the advantages and disadvantages of this. This helps management to think carefully about the business processes and how they can best be set up within their own organization.

A successful ERP implementation therefore almost always results in a better organizational structure. Good ERP systems can adapt to an existing business process, but can also provide an organization with structure to optimize processes. Also read the 5 important steps in implementing ERP System.

Why doesn't everyone have an ERP system?

Het is waar dat ERP-systeem organisaties efficiënter en winstgevender maakt en het geeft het management optimale middelen om het bedrijf goed te sturen. Maar wanneer begin je met ERP-systeem? Ieder bedrijf klein begonnen en schaf je alleen aan wat je op dat moment nodig hebt. Vaak begint dat bij de Accounting. Naarmate het bedrijf groeit worden vaak veel processen beheerst en gecontroleerd in Excel of andere programma programma's voor specifieke processen, zoals projectmanagement. Op dat moment begint de inefficiëntie in een bedrijf zich te manifesteren.

Of course, ERP systems are also known to be expensive and complex. This discourages people from choosing ERP software. Unfortunately, invisible costs are often preferred over the visible costs for an ERP implementation. It is a wrong choice and delay often leads to more and more resistance. Inefficient ways of working are considered the only right ones. Duplicate data always leads to more errors in the end. Change is difficult and takes a lot of energy. The costs for an ERP system can no longer be the problem. 

Do you want to know everything about Odoo, but simple?

With Odoo you keep it simple! We'll send it to you by email 😊

What is ERP Software?
Erwin van der Ploeg September 18, 2015
Share this post