4 Advantages Of Using An ERP System In Companies

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Thursday, 14 July 2022

ERP (Enterprise Resource Planning) is a cross-functional or information system intended for manufacturing and service companies to integrate and automate business processes in manufacturing, logistics, distribution, accounting, finance, and human resources.

ERP is used to manage standardized business processes, so that they run according to what has been targeted, by managing data centrally so that you only need to enter data once to be used by various business processes within the company.

Better Business Integration and Data Accuracy   
The use of an ERP system allows companies to be aware of changes to each module and submodule because updates in the program are real-time. In addition, the program can also minimize duplicate or data theft which is usually caused by user error. With ERP, business integration will run better and the accuracy of the data in company reports can be accounted for.

Integrated Information System Planning and Management   
By using an ERP system, the company will have an integrated planning and management information system. ERP can assist in managing resources such as humans, materials, and machines to operate more precisely and optimally. In addition, ERP can provide accurate reports to management as a basis for making decisions. 

Increase Efficiency and Productivity  
In addition to providing better planning and management of information systems, ERP systems can also increase efficiency in the company's routine operational activities. These activities include ordering, delivery, supplier performance, warehouse management, quality management, cash management, and sales realization.

ERP systems have the flexibility to adapt to future needs. Better integration, performance, and flow of information can improve a company's ability to plan and control so that they are ready to face challenges in the future.  

Establishing a More Regular SOP 
Using an ERP system, the existing work will be more structured so that the Standard Operating Procedures (SOP) related to work can be improved. A good SOP will make employees work more optimally because they know their work's exact steps and details.

Therefore, if management has a good SOP, management can measure the value of the employees' Key Performance Indicators (KPI). So that management can evaluate each employee's performance.