Improved Enterprise Operations with ERP
In the dynamic world of business, to look after every aspect of the business becomes very challenging. From finance and accounting to inventory management to human resource; it is important for businesses to guarantee the collaboration between all these departments to achieve business objectives and growth. Enterprise Resource Planning is a solution designed to facilitate the effective management of an organization’s operations. This blog will help the readers understand how ERP can improve enterprise operations to various scales of growth.
ERP Software System for Business Management
Enterprise Resource Planning software is an all-in-one solution for the business enterprises which helps to manage all the functions in one unified platform. ERP systems help businesses to optimize their operations, automate routine tasks, and enhance departmental efficiency.
How does the ERP System Work?
Let’s take a look at an example : A company that designs, produces and distributes a wide range of footwear like athletic shoes, casual footwear, formal shoes, sandals and crocs for men, women and kids. The company sources raw materials such as leather, rubber, other accessories to make this footwear from multiple suppliers. The manufacturing process may involve cutting, stitching, assembling, quality check, packaging and many more stages.
If this company adopts new technology of ERP system, it integrates it with suppliers’ systems, automating material’s procurement process, tracking movement, and delivery. ERP will also help in preparing production schedules with real-time progress methods, manages inventory, human resources, ensures quality check standards under one roof by avoiding multiple dashboards. Through ERP implementation, the company can achieve enhanced collaboration, coordination, improved visibility, and stays up with the trend to market demands by ultimately increasing competitiveness in an ever-evolving industry landscape.
Growing ERP Market:
Enterprise resource planning (ERP) technologies undoubtedly play a greater role in business operations. According to a report, 64% of businesses intend to deploy ERP within the next three years. The ERP market in the Asia-Pacific region is experiencing rapid growth, projected to achieve a compound annual growth rate of 9.8% by 2027.Concurrently, global ERP usage statistics indicate a sustained growth trajectory with a compound annual growth rate exceeding 8% over the next five years.
What are different Types of ERP?
There are three primary types of ERP systems: on-premise software, cloud-based software, and hybrid software.Â
The choice of a particular system for any organization depends upon factors such as the enterprise’s size, the availability of computing devices, and the system’s capacity to fulfill the specific needs of the enterprise.
Let’s see all this different types of ERP systems:
1. On-premise ERP System
As the name describes, on-premise ERP software is installed and operated directly at your business site. It is managed by your enterprise post-installation or under the guidance of an ERP consultant. Adopting this ERP solution ensures complete control over your system’s security. However, implementing this type of ERP application requires dedicated on-site IT resources for the ongoing management of both the application and server maintenance.
On-premise ERP software has a few advantages:
- Your sensitive data remains under your direct control, eliminating the involvement of third parties.
- Each ERP module can be tailored to meet the specific needs of your business.
- It offers robust integration options with other systems, including your CRM software.
The On-Premise ERP system is made for small to medium-sized businesses. It provides a complete set of tools to make important business tasks easier, like managing finances, sales, customer relations, and inventory.
2. Cloud-Based ERP System
Cloud ERP systems work on a company’s internet platform which is managed by a third-party vendor and not on their own system network. It allows the organization to use it over the internet. The ERP software helps businesses by giving a combination of automating financial and operational tasks. This system acts as a center for handling data of inventory, orders and supply chain management as well as procurement, production, distribution and fulfillment. Since it is hosted by the ERP vendor and offered as a service, businesses can access it online with a connection and a web server. Cloud ERP provides the same or even better functionality as on-premises systems, but one of the most important drawbacks is their upfront licensing fees.
Available cloud ERP modules include:
- Financials and accounting
- Human capital management (HCM) and/or Human resource management software (HRMS)
- Customer relationship management (CRM)
- Inventory management
- Order management
- Procurement
- Supply chain management
- Project management
- Material requirements planning (MRP)
3. Hybrid Software System
Hybrid ERP is a merger of both the systems – On-premises and Cloud ERP. It involves a two-tier ERP system, where a company maintains it’s on-premise ERP at the main office and utilizes cloud ERP system for subsidiaries or specific regional branches. These solutions are then connected and coordinated with the on-premises system. Some of the companies may adapt for cloud solutions for specific business requirements while depending on the on-premises system for other functions. Regardless of the application, it’s essential to connect the cloud system to an on-premise system to ensure smooth flow of information, although integrating the both can be a challenging task.
How to select the right ERP System?
Choosing an appropriate ERP for your enterprise is a significant decision that shouldn’t be taken lightly; it marks a very crucial move toward growing and scaling up your business. This process demands a thorough examination of your operations, data, and business procedures. By thoughtful consideration, ERP solutions will not meet the current business needs but also help the company to expand. By involving stakeholders from various departments in the ERP selection process will prove to be an essential step for setting up and growing your business.
- Identify the Features and Functions Your Business Requires.
- Secure Executive and Team Support.
- Check ERP Integration with Your Existing Software.
- Evaluate the Functional Fit of the ERP System in Your Organization.
- Examine the Reputation of Potential ERP Vendors.
- Factor in Costs and Associated Expenses.
- Outline the Implementation Process.
- Plan for Ongoing Support Requirements.
Jupical.io’s Success in implementing various ERP across the globe!
Jupical.io has been involved in implementing ERP solutions for its clients for over a decade. We have successfully assisted small, medium, and enterprise businesses in meeting their specific business needs, contributing to their growth. The following are industry-specific case studies showcasing how our ERP implementations have played a crucial role in helping clients expand and scale their operations:
Why is Jupical.io is the best for your business?
In the contemporary business world, adopting digital transformation is a choice but a necessity. Jupical.io is here to assist you in revolutionizing your business by guiding you in the right direction to select an ERP to scale your business. Selection of ERP merely depends upon the size and complexity of the business operations. With a team of experienced and dedicated experts, Jupical.io ensures that you make an informed decision on the most appropriate system for your business. Rest assured, we have all your needs.