Do you know what an ERP is? Enterprise Resource Planning is a management system that allows easy, integrated and reliable access to a company's data. Based on the information collected by the software, it is possible to perform in-depth diagnoses on the measures needed to reduce costs and increase productivity.
While many managers are still unaware of this solution, what its features are and how it can contribute to the business, it is essential to understand it. Why? Basically, because the integration it provides increases efficiency and facilitates communication between sectors .
Technology still favors the analysis of data and processes. With this, the manager makes better decisions, with the aim of increasing the growth and profitability of the company. To better understand, we have prepared a guide with the main information on the subject. In this text, you will read about:
What is ERP?
How does ERP work in companies?
Relationship between ERP and data security
Modules of this system
Options available for hiring
How management software is divided
How to use the solution in companies of different sizes
Customizing tools
Advantages of having an ERP
Assess the need for an ERP in the company
Deployment process
Differences between cloud and on-premise options
ERP Subscription
Strategic integrations
Trends for the coming years
Why choose a TOTVS ERP
Interested? Read on!
What is ERP?
The acronym ERP stands for “Enterprise Resource Planning” or integrated management system . This technology helps the company manager improve internal processes and integrate activities from different sectors, such as sales, finance, inventory and human resources.
By centralizing information on a single platform, corporate data flow becomes more fluid and is easily shared. At the same time, these solutions eliminate duplication of information.
This creates a single, comprehensive solution. The brazil whatsapp data result is access to valuable insights that help you make the right decision.
History
ERP system development began over 100 years ago. Ford engineer Whitman Harris created an EOQ (economic order quantity) model for scheduling production. It was used for decades until tool manufacturer Black & Decker adopted another solution for planning material requirements.
The new method became known as MRP (Materials Requirements Planning). In practice, some concepts of EOQ were used and integrated into a computer. This tool was used for many years until a new methodology was developed in 1983, MRP II (Manufacturing Resource Planning).
In this evolution, different modules and components of the software architecture were adopted to integrate the company's activities related to purchasing and contract management. MRP II also allowed for data integration and information exchange between the company's various departments to improve production and reduce waste.
The technology evolved in the 1970s and 1980s, as did MRP II. Its concepts were used in different business activities. So much so that the new tool began to incorporate the finance, HR and sales sectors. In 1990, this system was called ERP.
It is important to understand that technological solutions are constantly evolving to offer more and more functionalities and benefits to the business. Therefore, the tool tends to undergo frequent updates to keep up with market changes.
How does ERP work in companies?
Now that you know what ERP is and its development history, it is important to know how it can be applied to the business routine. Initially, the system helps the manager to: manage accounts payable and receivable, monitor sales, and follow up on purchase orders.
The tool also contributes to people management , providing information on team productivity, for example. In this way, the ERP system facilitates the management of information from various sectors of the organization.
This feature increases control and monitoring of processes. After all, if each department uses different software, errors in information can occur that compromise production capacity.
In turn, data integration increases management efficiency and streamlines procedures. Communication between teams also becomes more effective and problems can be resolved quickly. The consequence is fewer deadlocks with customers or suppliers.
Do you want to understand how this process works in practice? For example: the ERP identifies that a raw material has been sent to the production department. This item is automatically removed from stock and the information in the purchasing department is updated. This makes it easier to control the need to purchase materials.
In addition, the system can support HR and finance departments. For example: the HR manager enters employee data, while the finance manager enters payment information. In this process, the solution controls the entire cycle to avoid errors in the transmitted values.
Finally, the marketing sector can also use management software. When you notice that a product is experiencing a drop in sales, you can run a targeted campaign to turn things around and avoid losses. There are still other features that ERP offers, including:
simplification of operational processes;
union of intelligence and quality for information;
inventory and cost control;
integrated data management;
control and compliance with deadlines;
increased productivity.
In this way, it is clear that all sectors benefit. However, knowing what ERP is is only the first step. More than the applications already highlighted, this solution also provides more transparency to the actions performed.