Enterprise Resource Planning Systems

What actually is the ERP system?

If you search for "ERP" on the Internet, you will find that there is a huge amount of information on this topic. Each of these websites seems to have its own interpretation of ERP and this can of course cause confusion. But just because ERP systems are such a powerful tool for your business processes, there is so much different information about them.

With this article, we want to help you gain a deeper understanding of how an ERP solution will change your business. We give you a short introduction to ERP and how it works. Maybe then it will become clearer why it looks like everyone is talking about it.

ERP - What is that actually?

ERP is an abbreviation for Enterprise Resource Planning, but even the full name does not give much information about what ERP software is or what it does. You need to take a step back and think about all the different processes that are essential to running a business, including inventory and order management, accounting, human resources, customer relationship management (CRM), and beyond.

The goal of ERP software is therefore to combine all these different functions into one overall system in order to optimize all processes and information throughout the company.

The central feature of all ERP systems is a common database that supports several functions used by different business units. In practice, this means that employees in different areas - for example, accounting and sales - can access the same information for their specific needs.   

A look into the past of the Enterprise Resource Planning System

The term ERP was coined in 1990. However, its roots go back to the 1960s. At that time, the concept applied to inventory management in the manufacturing industry. Software engineers created programs for inventory monitoring, balance sheet reconciliation and status queries. In the 1970s, this developed into a material requirements planning system (MRP) for planning production processes.

In the 1980s, MRP grew to cover more manufacturing processes, which led many to call it MRP-II or Manufacturing Resource Planning. By 1990, these systems extended beyond inventory control and other operational processes to other back-office functions such as accounting and human resources, creating the conditions for ERP as we have come to know it.

Today, ERP has expanded to include Business Intelligence (BI) and also takes over "front office" functions such as sales force automation, marketing automation and e-commerce. With these product improvements and the success stories from these systems, companies from a wide range of industries - from wholesale to e-commerce - are using Open Source ERP.

Strongly growing and medium-sized companies today use ERP systems. Software-as-a-Service (SaaS) solutions - also known as "cloud computing" - have contributed to this growth. Cloud-based solutions not only make ERP software more cost-effective, but also make it easier to implement and manage these systems. Cloud ERP enables real-time reporting, which makes work faster and more transparent for employees and managers.

What is the added value of the ERP system for companies?

What is the added value of the ERP system for companies?

  • ERP provides a global, real-time view of data, enabling companies to proactively address issues and drive improvements.

  • ERP improves regulatory compliance and reduces risk

  • ERP improves regulatory compliance and reduces risk

  • ERP optimizes customer service by providing a single source for billing and relationship analysis.

When you add up these advantages, the benefits of ERP, especially Cloud ERP, are clear. With an ERP solution, employees have access to accurate information that enables them to make better decisions faster. In addition, ERP software helps eliminate redundant processes and systems and significantly reduces the cost of doing business.

Are you looking for an ERP solution for your company?

We offer you different solutions. Let us talk about your requirements.