Using ERP systems. Why are they so important and how easy is it to expand them?

Enterprise resource management systems enable full automation of most company processes and are effective across all industries. When integrated with other solutions, they constitute key software for a company's or institution's IT infrastructure. What are the benefits of implementing a reliable tool based on planning and forecasting mechanisms?

Using carefully tailored ERP systems allows for comprehensive enterprise management across all areas. Users can choose from available modules for areas such as finance and accounting, HR, production, warehouse management, document flow, process automation, CRM, logistics, trade, fixed assets, and analysis and reporting.

What is the essence of ERP systems?

When considering the essence of ERP systems, it's worth understanding what business process integration tools are actually responsible for within an organization. The solution optimizes transactions across the entire company and collects information into a single, coherent database. Connecting individual IT subsystems within a company allows for full integration, for example, of the supply chain, contributing to efficient operation and mutual interaction. There are two types of integration: internal and external. Internal integration refers to the synthesis of tools used within the enterprise, while external integration refers to software that operates more closely within the company's environment.

What are the benefits of implementing an ERP system?

Modern ERP systems, properly implemented, bring numerous benefits to businesses. Key benefits include access to a common, unified database for all or selected positions and departments. This unified database allows for the recording and processing of transactions both internally and externally, providing a source for comprehensive reporting. Implementing an ERP system allows for:

  • Improving production processes. Companies with ERP systems can comprehensively manage production. The system's functionality simplifies production planning by enabling the creation of schedules, calculations, and the attachment of charts. The full integration option enables direct connection between the production department and engineering, facilitating employee access to information such as inventory levels, order fulfillment times, and purchase costs.
  • Improving business processes. Companies with ERP systems don't have to worry about consistent actions across all levels of employees. Employees in both management and line-of-business positions can access current data, which directly impacts workflow. Using a modern system also increases employee productivity and efficiency while reducing costs.
  • Expediting order fulfillment. Implementing an ERP system is crucial for those responsible for procurement and logistics. The collected data allows for ongoing inventory monitoring, eliminating the need to worry about sudden production downtime due to raw material shortages. Optimizing the quantity of ordered semi-finished products reduces warehousing costs. Optimization of warehouse management processes. Among the benefits of implementing an ERP system, the most important is the ability to manage inventory. Properly implemented software allows for the reduction or increase of raw materials required for production. Optimal inventory levels directly impact the time required to produce a given product, allowing for meeting contractual deadlines.
  • Furthermore, implementing an ERP system allows for better utilization of warehouse space and eliminates the possibility of producing finished goods from materials known as "warehouse sheds."
  • Improving customer service levels and the quality of services provided. Implementing an ERP system has a positive impact on sales processes in companies. Accelerating individual tasks increases customer satisfaction, leading to increased customer engagement with specific companies and establishing long-term relationships. Implementing a resource management system reduces the potential for errors by employees responsible for tasks.
  • Proper human resources management. Maintaining a high level of human resources management also means maintaining a high level of personal data protection and user security are key issues that should be addressed. Maintaining accounting processes under control. Using ERP systems allows for streamlining analytical and accounting automation activities. Finance managers can successfully utilize a wide range of available functionalities, speeding up workflows.

Low-code platform as a tool for ERP expansion

There are situations when a company needs to expand its ERP system's functionality, which unfortunately isn't supported by its current standard. Expanding it, for example, with additional modules designed to handle ERP-related processes requires costly and, above all, time-consuming customization. A much better choice is to integrate the existing solution with a low-code platform that can meet the specific needs of the company. A low-code platform integrated with an ERP system provides full access to collected data, making process management easier. From a business perspective, companies can implement planned projects faster.

Summary

ERP systems are among the most complex and extensive tools used in enterprises. Since their inception in the mid-1990s, they have evolved to become an indispensable tool for managing company processes. When appropriately supplemented with selected functionalities, they enable the management of significantly more processes in a shorter time. Companies that decide to expand their ERP functionality using a low-code platform can quickly expand their existing solution, allowing them not only to remain competitive in the market but also to respond to changes in the business environment.


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