Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is a concept for planning and managing company resources formed in integrated program application packages and multi-modules designed to serve and support various functions within the company. The purpose of ERP is to make it easier for businesspeople to manage their businesses because ERP provides many modules in it, such as SCM to control the division of Supply Chain Management and CRM to record customer data and establish good relationships with customers. Below are the advantages provided by ERP:

• Better Business Integration & Data Accuracy.

ERP helps companies map the divisions in their business because ERP provides many modules according to their clients’ needs to minimize problems such as Data Loss, messy data, and other stuff.

• Information System Planning & Management System

Combining Information Systems and the Humans who control them can help companies make their business more organized.

• Improved Efficiency & Productivity

ERP can assist company management in making reports on Resources, Raw Materials, Shipping, Delivery, and other stuff related to business processes and is integrated between one division and another. Of course, this will save the company’s expenses.

• Establishment of Standardized Procedures

If the company has the “Model” business process, it will create a new system that establishes new procedures for everyone involved in the business process.

ERP also has several weaknesses that must be considered, such as:

• High cost

When a company wants to implement ERP, the company must provide training to the employees so that the ERP would be implemented properly without any defects, because one of the important processes that must be carried out when you want to implement ERP is to take training on the introduction of ERP. Because before using ERP, users must first fit into the system. If the company doesn’t do/follow the training, it is certain that the ERP implementation will fail.

• Changing business processes

When ERP is implemented properly, the way of company business processes can change, this is because all the previous systems will be replaced with ERP.

• Adaptation takes time

If the business process has changed, it will be necessary to adapt changes from the previous business process to be integrated with ERP. If the users fail to adapt, then the ERP implementation can fail.

The conclusion I can take from writing this article is that ERP is a very feasible system for companies; huge companies want data that is neatly according to their divisions. However, on the other hand, companies must pay attention to several important things before the ERP implementation process. Otherwise, the ERP implementation process may fail.

References:

Enterprise Resource Planning (ERP)

https://promise.co.id/apa-itu-erp-erp-adalah-alat-bantu-planning-yang-penting-untuk-manajemen/