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What is ERP System and How Can ERP Solutions Benefit You?

Many small and medium-sized enterprises (SMEs) have emerged during the pandemic and because of this, many people became business-minded, too. That said, it is of paramount importance to get to know systems, such as ERP systems, that will help in minimizing the time spent in handling business processes. Because instead of management, business owners should instead focus on leadership and enriching the company’s productivity and profitability.

Read more to know about what an ERP system is and how it helps existing business owners, and even aspiring ones.

What is ERP or what does ERP stand for?

ERP stands for enterprise resource planning which is a process that simply automates your business processes and integrates different business functions all in one place. This includes the supply chain, project management, inventory management, data migration, financial reporting, and others. It gives access throughout the organization across all mobile devices in real time as well as it is cloud based. This allows the people behind the business to monitor the business performance in real time.

Basically, it gets the task done and faster because it facilitates different operations through its different applications all from the manufacturing down to accounting activities, deployment options, regulatory compliance, and others.

An ERP software is what’s mostly used in many businesses of all sizes because it raises their management’s productivity and also increases their business’s profitability by giving more room to formulate business plans with its analysis feature. It is a new system that is cloud based which serves as a common database for all business personnel.

The ERP System Meaning

The Enterprise Resource Planning (ERP) System is a software that contains the different processes and activities that take place in a business. Among these processes and activities are lead generation, crowdsourcing, production, sales, and many others. It is simply like a table that contains all the other data that you need to manage your business. In fact, it contains sets of data in one place that allows you to not only decide effectively but also efficiently.

Simply put that ERP software system allows you to analyze your metrics more effectively and efficiently because it is in one place, which gives you more chances of formulating a business plan or making a business decision that affects the business positively. It helps you to have the best practices for the systems and management. Core business processes that include customer relationship management (CRM) are also part of the many business processes that are included in the ERP implementation.

Per Industry ERP System Type Examples

An ERP (enterprise resource planning) system comes by different definitions but despite that, they are rooted in one simple thing—making management more manageable for business owners of all levels. On that note, there are various types of enterprise resource planning in Singapore and in other places that are suitable for different business niches. Among the industries and companies that need a specified ERP are the following:

Colleges/School Institutions ERP

Any business, school institutions included, needs automation whatever their services or products are for. That said, there are also ERP solutions for these business units right from the student’s monthly to annual bills down to redeeming their vouchers which for example is the ESC voucher in the Philippines that is either deducted from the student’s tuition fees or is given by cash at the end of every school year.

Fashion Stalls ERP

The clothing styles of people vary from cottage core to grunge to soft baddie, etc. and that is one of the main reasons why there is also an ERP type for this certain category. Different trends come by every season, or every more often than when the season changes, that’s why ERP is of help to the fashion industry may it be in terms of the business process that is analyzing current fashion trends and also in predicting future ones because of its scalability.

Healthcare ERP

As the world shut down because of the COVID-19 virus, the need for different medical supplies burgeoned. That said, various medicine-related institutions such as pharmacies, hospitals, and pharmaceuticals were in great need of an ERP system that allows them to track where all their supplies went and where all their supplies are from. They need extra business intelligence and artificial intelligence which the system ERP can help them with. The common database in the ERP cloud can be accessed in the internet of things (IoT) so processes are way easier.

Every existing business or company either needs or is already using an ERP system that allows them to manage their day-to-day operations more effectively and efficiently. Besides, A2000 ERP deployment is very easy. That said, it is not impossible for you to not find a system or various software that will work specifically according to your needs. In fact, ERP modules are also provided to help you make the most out of it, and it is friendly to businesses of all sizes.

Per Model ERP System Types

There are different types of ERP systems for different industries that are of different models or formats as well. But what is an ERP system and what models do they take forms of? There are different ways upon which ERP system is to be delivered and implemented, and listed below are among the different formats or models of ERP systems that may work for you:

On-premise ERP software.

This type of ERP solution is used onsite, which means that this is mostly and widely used pre-pandemic in different businesses and companies. It is a system that is controlled in the business or company’s computers and servers, and other on-site devices. Put directly at the company’s on-site devices, this type of ERP software is mainly designed for full support and control and is more advised to be used for small and medium-sized enterprises (SMEs).

Cloud-based ERP software.

This type of enterprise resource software is web-based and cloud hosted, which means that it is a Software-as-a-Service (SaaS) model that is available through a Cloud-hosting service as compared to the on-premise software that is hosted on the company’s own devices onsite. Mainly, its difference from the on-premise software is that this is cloud hosted by a third party while the on-premise is hosted directly. Thus, this type of software is mostly advised for remote companies that need real time data management.

Hybrid ERP Software.

This type of ERP business software, true to its name’s etymology, is a mixture of both on-premise ERP software and cloud-based ERP software. Basically, it can be used by businesses and companies that are conducting both on-site and remote work, most especially during the pandemic. The software is hosted directly in the company’s own devices all while being available through online access wherever there is an internet connection. Because of that, this is what’s preferred by most businesses because of the flexibility that it provides and the benefits that it gives by the shared privileges of the combined software model types.

Different models or deployment types work for different companies, and even industries, so before having software that will help you in your business’s decision making in the long run, make a decision now and choose what software to implement.

How to Select the Perfect ERP Systems for Your Business

In selecting the perfect ERP software solutions for your business, you need to first get your priorities and goals straight. Know what you are keeping an eye on now and determine what you want to be keeping an eye on in the long term. This is because it is the main determining factor of what ERP system you should avail as the more suitable and specified it is, the better and cost-effective the implementation will be. Here are some of the points to keep in mind in selecting your perfect ERP software solution:

  • Cost. This is among the top priorities of businesses in choosing what ERP software and system to purchase that’s why this factor is at the top of our list. Look for ERP systems that are suitable for your needs and budget without sacrificing functionality. If you are looking for one, you may check A2000’s ERP system with different specified applications that are suitable for your common needs.
  • Functionality. There is no such thing as one, perfect system. That said, it is important to choose the perfect systems to integrate to better your performance and increase your company’s productivity. The functions then of the systems that you should choose are complementary to one another so that you will not be having a hard time navigating through them.
  • Scalability. Here in A2000, we don’t just think of the now. We think of the future too as we aim to make solutions for every problem you may have. And that is one of the things that you should consider upon selecting your ERP software. The trends in the market right now are fluctuating so choose a system that is flexible and functional enough to go with the possible surge of your metrics.

Remember that there is no such thing as one, perfect system so choose systems that are complementary to one another, or simply choose a system that has all the applications that you might need to manage your business. (Writer’s Note: Hopefully the underlined becomes a clickable text that leads to the last part where I talked about A2000’s package.)

Benefits of ERP System to small business owners and business owners of all levels

An ERP system is mostly of great use to small business owners because of their need to enrich their business for greater profitability. That said, an ERP system is not only for already-existing conglomerates but also for aspiring ones as well. Below are some of the benefits of an ERP system:

Time

It cuts down the manpower’s time in navigating through different platforms in peeking through different data sets as an ERP system is like an all-in-one table that contains different business metrics available.

Space

The enterprise planning solution saves not only space but also energy in the devices and manpower’s end as the ERP system is like a one-stop shop where you are able to look at different department’s metrics. This also helps in increasing the productivity of the company as this makes collaboration more effective and efficient.

Analysis

Having all the data in one place gives more room for not just better but easier analysis for business management, decisions, and planning. It allows businesses to analyze the metrics more and predict what the figures would look like in the long term. 

All that said and all those factors considered, check out A2000’s Enterprise Resource Planning Software that was delicately designed in Singapore to effectively and efficiently aid with your business management and operations. That said, determine, discern, and decide, and choose A2000 where your success is our progress.

Author

Zen Choo

Zen has worked in business software solutions since 2013. His expertise and knowledge are often called upon by colleagues and customers alike. He is passionate about sharing the benefits and values of implementing an ERP System for SME businesses. He has also consulted thousands of companies across Singapore and Malaysia. He has worked with some of the most well-known companies in Asia Pacific Region where he provided guidance on how best to leverage technology for business success. Zen specializes in Sharepoint implementation as well as dynamic CRM Online implementations - both are enterprise-level software solutions that help businesses grow their sales pipeline.

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