ERP stands for Enterprise Resource Planning. It is a system that helps businesses manage their core operations, such as finance, accounting, manufacturing, supply chain, and human resources. ERP systems can be used to automate many tasks, improve efficiency, and provide real-time data and insights.
Why is ERP important?
ERP is not just software, it’s a transformative force that empowers businesses to thrive in the digital age. It revolutionizes operations, drives informed decisions, and fosters customer-centricity, propelling businesses towards a future of growth, efficiency, and success.
ERP Key Benefits
Improved efficiency
ERP systems streamline processes, automate tasks, and eliminate redundancies, leading to significant gains in efficiency, productivity, and overall operational performance. This includes improvements in inventory management, supply chain management, and financial operations.
Use Case: A manufacturing company can use an ERP system to automate the process of scheduling production runs, which can lead to a 10% reduction in production time.
Impactful decision-making
ERP systems provide real-time data and insights into various aspects of the business, enabling informed decision-making that drives strategic growth and profitability. This includes better understanding of customer data, sales trends, and financial performance.
Use Case: A retail company can use an ERP system to track inventory levels and optimize ordering, which can reduce inventory costs by 15%.
Better customer experiences
ERP systems enable businesses to deliver personalized, proactive, and efficient customer service. This includes providing a 360-degree view of customer interactions, enabling quick and accurate responses to customer inquiries and requests.
Use Case: An e-commerce company can use an ERP system to provide personalized product recommendations to customers based on their past purchases and browsing behaviour.
ERP examples in different industries
Businesses use ERP systems in a variety of industries, including:
MANUFACTURING
A furniture manufacturer implemented ERP to streamline production. Before, manual processes led to 10% scrap rate and 2-week delivery delays. After implementation, scrap rate dropped to 5%, deliveries sped up by 50%, and profit increased by 15%.
RETAIL
A sportswear chain introduced ERP to integrate sales and inventory data. Previously, inaccurate stock levels resulted in 20% lost sales due to stockouts. ERP provided real-time inventory visibility, reducing stockouts by 80% and increasing sales by 12%.
HEALTHCARE
A hospital adopted an ERP system to automate patient registration and medical records management. Before, paperwork delays extended patient wait times by an average of 30 minutes. ERP reduced wait times by 70% and improved patient satisfaction by 25%.
ENGINEERING
A construction company implemented ERP for project management and document sharing. Previously, communication issues led to 15% project delays. ERP facilitated collaboration, reducing delays by 10% and saving $1 million in project costs.
TRADE & DISTRIBUTION
A food distributor used ERP to optimize logistics and inventory management. Before, manual processes caused delivery delays and 10% inventory loss due to spoilage. ERP reduced delivery times by 2 days and saved $50,000 annually through optimized inventory levels.
How do ERP systems work?
ERP systems work by integrating all of a company’s business processes into a single system. This allows businesses to track data and information from all of their departments in one place. This can help businesses to improve efficiency, reduce costs, and make better decisions.
ERP systems typically include modules for accounting, finance, human resources, manufacturing, sales, and customer service. These modules can be customized to meet the specific needs of each business.
Common ERP modules
- Financial management modules help businesses track their income, expenses, and other financial data. This information can be used to make better financial decisions, such as how to allocate resources or when to invest in new projects.
- Accounting modules help businesses keep track of their financial records, such as invoices, receipts, and bank statements. This information can be used to prepare financial statements, such as the balance sheet and income statement.
- Supply chain management modules help businesses manage their supply chains, which are the networks of businesses and individuals that work together to get products from suppliers to customers. This includes tracking inventory, managing orders, and coordinating shipments.
- Manufacturing modules help businesses manage their manufacturing processes, from planning and scheduling to production and quality control. This can help businesses improve efficiency and reduce costs.
- Human resources modules help businesses manage their employees, from recruiting and onboarding to performance management and compensation. This can help businesses attract and retain top talent.
- Customer relationship management (CRM) modules help businesses manage their customer relationships, from lead generation and sales to customer service and support. This can help businesses improve customer satisfaction and loyalty.
These are just a few of the ways that ERP modules can benefit businesses. By automating and streamlining business processes, ERP modules can help businesses save time and money, improve efficiency, and make better decisions.
ERP Implementation
There are three main types of ERP deployment:
- Cloud ERP: Cloud ERP systems are hosted on the cloud, which means that businesses can access them from anywhere. Cloud ERP is a good option for businesses that want to save money on hardware and software costs, and that need to be able to access their data from anywhere.
- On-Premise ERP: On-Premise ERP systems are installed on a business’s own servers. On-premise ERP is a good option for businesses that need to have complete control over their data, and that have the resources to maintain their own servers.
- Hybrid ERP: Hybrid ERP systems combine Cloud ERP and On-Premise ERP. Hybrid ERP is a good option for businesses that want the benefits of both Cloud ERP and On-Premise ERP.
Once you have decided on the type of ERP deployment that is right for your business, you need to implement the ERP system. ERP implementation can be a complex process, so it is important to work with a qualified ERP implementation partner.
At Microlabs, we can help you customize, implement, or deploy an ERP system for your business as efficiently as possible. We have a team of experienced ERP professionals who can help you every step of the way, from choosing the right ERP system to training your employees on how to use it.
Contact us today to learn more about our ERP implementation services.
Integration
ERP systems can be integrated with other software systems, such as CRM, SCM, and HRM. This can help businesses to improve communication and collaboration between departments.
For example, Dynamics 365 Business Central can be integrated with Salesforce CRM to provide a more holistic view of customer data. This integration can help businesses to improve customer service, sales, and marketing efforts.
Dynamics 365 Business Central can also be integrated with other Microsoft products, such as Office 365 and Power BI. This integration can help businesses to improve productivity and collaboration.
Overall, integration is a key feature of ERP systems. It can help businesses to improve efficiency, communication, and collaboration.
How much is ERP? (Save up to 50% OFF with PSG Grant)
The cost of ERP systems varies depending on the size and complexity of the business. However, the average cost of an ERP system is $40,000. This includes the cost of the software, implementation, and customization.
There are a number of factors that can affect the cost of an ERP system, including:
- The size of your business
- The complexity of your business processes
- The features and functionality you need
- The level of customization you require
- The type of implementation you choose
If you are looking for an ERP system, it is important to get quotes from multiple vendors. This will help you compare prices and find the best deal for your business.
We are an IMDA pre-approved vendor, so we can help you reduce the cost of your ERP system with the PSG grant. The PSG grant can provide up to 50% off the total cost of an ERP system.
To learn more about the PSG grant, please visit our website or contact us today.
The evolution of ERP systems
- (1960s-1980s) Early ERP systems were very complex and difficult to use.
- (1990s-2000s) Modern ERP systems are much more user-friendly and offer a wide range of features.
- (2000s-2010s) ERP systems have evolved to integrate with other systems, such as CRM and SCM systems.
- (2010s-present) ERP systems have become more cloud-based, making them more accessible and affordable for businesses of all sizes.
- (2010s-present) ERP systems have become more mobile, allowing users to access data and applications from anywhere.
- (2010s-present) ERP systems have become more intelligent, using artificial intelligence and machine learning to automate tasks and improve decision-making.
Improve your business with ERP
ERP can help you streamline your operations, improve efficiency, and reduce costs. It can also help you better manage your inventory, finances, and customer relationships.
If you’re ready to take your business to the next level, contact us today to learn more about how ERP can help your business.
