ERP Basics - Understanding ERP

ERP – Understanding Enterprise resource planning In-depth.

(History, recent advancements, uses and deployment options)

What is ERP exactly?

With a ton of industry jargons being thrown around there is be ton of confusions with what ERP stands for and the motive it fulfills.

ERP which stands for Enterprise resource planning, business management software that is designed to effectively and efficiently manage business and day-to-day operations.

Every organization specially in 2019, faces a dire and critical challenge i.e to survive within the current business ecosystem when the competition is at an all time high. In which case having an ERP software that helps you streamline and organize your business can make the difference between surviving and going obsolete.

To simplify, ERP helps automate redundant tasks, streamline operations, bring in unification within the organization and help improve overall efficiency and productivity.

How did ERP grow to what it is today?

The term ERP actually is a predecessor of MRP which stands for Material requirements planning, which was originally coined by the Garter Group in the 1990’s.

The initiation of these systems date back to 1960’s when manufacturing companies were looking for methods to improve their production line efficiency while keeping their costs at a minimum.

In early days of it’s existence ERP was more of an organizational software, helping businesses streamline their processes which were generally back-office tasks otherwise. Eg: Accounting, Human resources etc.

When the advent of modern technology and internet ERP software’s have become the core of many businesses since they are integrated within all areas in an organization. The fundamental purpose they serve is unification among all ranges of business allowing the business owners to identify opportunities, improve productivity at work and grow their business overall.

Regardless of having an “Enterprise”, ERP is not meant only for large multi-national companies. Small and Medium sized businesses are rapidly shifting to ERP after understanding it’s potential and with various examples of having an ERP can make all the difference between thriving and growing or sloping down-hill.

So, what is Inside and ERP software?

An ideal ERP system helps integrate all areas within your business and allow for a comprehensive platform for everyone involved within the business to access it mutually and allowing for better co-ordination between employees at all level, from managerial to clerical.

ERP Software generally consists of various module, some crucial one’s compromises of Finance and accounting, Human resources, Inventory management, Production management, Purchasing and eCommerce.

To understand how exactly it helps having these modules can be understood better with an example:

Your sales team updates the software that a sale of 100 unit has been made, which is received by Warehousing unit who then ensures availability of 100 units. On conformation the same is update by the warehousing team and delivery team can act upon it quickly and get the 100 unit order out in no-time.

The key benefit here usually is that all of this happens in real-time with little to no delay, helping improve efficiency and gain greater customer satisfaction.

What else can I get out of ERP?

Among other uses of an ERP software, it helps eliminate redundant and repetitive tasks through automation, tedious processes such as data entry, filing bills and others can be automated to save time while the same can be allocated within other areas which need more focus.

Real-time reports are another advantage, on a click of a button, you could have reports with the precise metrics you require. In a traditional scenario, one has to wait till the month’s end for a report which can hold you back from acting quickly.

Data from across the organization is stored in a single unified unit which means everyone has access to it at any-point, this helps making key decisions simpler and faster. In case of cloud ERP data can be accessed from anywhere at any-time allowing for employees to be more agile.

Deployment options – On-Premise & Cloud

Primarily, there are two categories in which ERP services are available today i.e On-premise ERP and Cloud ERP

On-Premise ERP, as the name suggests is located within the companies premise, generally this is preferred by larger organizations as it allows to stay inter-connected.

On-Premise ERP is generally deployed on the companies local hardware and maintained by the in-house IT team present.

Cloud ERP on the other hand has been gaining a ton of traction from and has quickly become the choice of many SMB’S and a handful of large corporations as well. The rapid popularity is an outcome of the potential that business owners recognize within the cloud ecosystem.

Easy deployment from anywhere at any-time, cost-effective solutions, ability to access the from anywhere at anytime are all just the tip of the iceberg.

How can TYA Suite help your business?

At TYA Suite thrive to provide growth through innovative technology. Providing customized, flexible and robust Cloud ERP solutions which is designed around the need of manufacturing, inventory management and finance.

We understand every business is unique and provide customizable ERP solutions to ensure your business exactly what it needs to flourish.