JAKARTA – ERP is an Enterprise Resource Planning which can be interpreted as a set of software that provides many benefits for businesses, one of which is in managing and integrating business operational activities. This software is able to facilitate business with real time financial report information, so it is very helpful and also makes it easier for you to make the right decision.

Initially this ERP software was only known in companies that were quite large in scale. However, along with the rapid development of the digital world, this ERP can also target SMEs and its functions are also increasingly broad for business interests ranging from procurement, financial report management, projects, production, HR and all systems engaged in business.

History of ERP Software

If seen from history, ERP has existed since 1990. However, the first concept was in 1960. At that time it was only used for control in the manufacturing sector and inventory management. In 1970, this ERP software changed to MRP (Material Requirements Planning) which functions as a production process scheduling.

Then in 1980, MRP expanded again to include more manufacturing processes, and changed its name to MRP-II. In the 1990s, ERP experienced many developments not only as inventory management but has spread to back office functions, such as managing financial reports, project management, machinery, to HR. And in this year too, this ERP software began to be used.

ERP Software Uses for Business

Of course, when you want to choose a system you must first find out what can be provided from the system? Here are the uses or benefits that this software has for you.

1. Optimizing Efficiency

ERP software is able to make various activities in your business more efficient. All office activities such as the division of tasks to employees, inventory management, to the management of financial reports can all be done automatically, so it doesn’t take much time to carry out such complex business activities.

The automated management that the ERP system does gives you much more time to pursue your business goals. You can focus on developing marketing strategies and so on. ERP software is also able to provide fast data access for company officials. So, it will be much easier for you to monitor developments that occur in your business, all the data you need for an ERP system are displayed in real time.

2. Save Operational Costs

With all the sophistication that ERP software provides, it is able to turn all forms of manual activities into automatic ones. Of course it saves your business operating costs. This is because companies do not need to spend a lot of labor costs because ERP software is able to complete manual work automatically.

In addition, as discussed earlier, when viewed from the myriad benefits or uses that ERP software offers, of course this ERP system will greatly save your operational costs because it is able to minimize the occurrence of obstacles that are actually detrimental.

3. Assist in Making the Right Business Decisions

In making a decision, of course you can’t just be random, you have to look at accurate data to be able to make the right decision. Decisions made by not seeing accurate data will greatly affect your business steps in the future. ERP software is the solution, presenting reports that are real time, accurate, and very complete so that it will really help you in making the right decisions.

4. Maintain and Improve Collaboration

In business, collaboration between departments or branches is very important. ERP software is able to assist you in managing between departments or branches. With data entered into the ERP system, one department can access data from other departments or branches, thereby minimizing the occurrence of miss communication between departments.

5. Improve Data Security

In an ERP system, all data is stored in a centralized system that has guaranteed security. Admins who are responsible for managing company data can provide limited access to employees. And managers or high-ranking officials also have the right to determine access rights for admins and employees so that there will be no data leakage, important data can be set to only be accessed by managers.
And it will be easy if you want to stop or cut off access rights for employees if there is a change of employees. Thus, it can provide new access to replacement employees. This ERP software can also monitor what activities are carried out by users, so you don’t have to worry about cheating.

Tips for Choosing the Right ERP Software

After you already know the meaning of ERP, its uses for business, advantages and disadvantages, for whom ERP software is for, it’s time for you to use this software. There are several tips that you should consider before you finally decide to use an ERP system.

1. Adjust to Your Business Needs

Every business has different needs. Before choosing to use ERP software, you must first clearly identify what obstacles you are experiencing, what challenges you must face so that you can explain well to the ERP vendor so that you can get the right solution from the ERP system. So that the vendor can also provide features that are in accordance with your business needs.

2. Ensure Experienced Vendors are Trusted

Before you use ERP software, make sure you look for an experienced and trusted ERP vendor. Starting from who are the clients? What solutions are offered, you can see from the portfolio of ERP provider companies.

3. Easy Access

In the sophistication of the digital world as it is today, many entrepreneurs need an ERP system / software that is easily accessible anywhere. It is not only available in the desktop version but can be accessed via a smartphone, making it very easy for you to see how your business is in real time.

4. Unlimited User License

Make sure you choose an ERP vendor that provides unlimited user licenses, this will save you a lot more costs, because you can have many users without having to incur additional costs.

5. Easy to customize

Along with business growth that continues to increase, your business needs will also increase, you have to make sure that this ERP is easy to customize according to your business needs.

In the midst of the rapid development of business, as well as technological advances that unavoidably force you to also move forward so that your business is not left behind. You must carefully observe everything that happens in your business so that you know what steps you should take to keep your business growing.

ERP software is here as a solution for you to make managing operational activities easier and more efficient. All business sectors can already use ERP, both small and large scale businesses.

Reported from Mekari on its website page at https://mekari.com