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HomeBUSINESSWhat Companies use ERP?

What Companies use ERP?

Which companies use ERP  is a common question when considering implementing an ERP, since observing which companies use them and how they work with ERP software can help clear up doubts about the needs and advantages.

Before analyzing which companies use ERP  ( enterprise resource planning  or enterprise resource planning system), it is advisable to clarify concepts about what exactly an ERP is. An ERP is a solution that integrates numerous tasks within the company. From production to human resources management, it is a solution that stands out for its versatility.

Using it, you can  automate a wide variety of repetitive and non-value-added business processes, increasing the efficiency and effectiveness of operations.

Why is an ERP important for companies?

Companies  that use ERP  do so for several reasons. One of them is to connect the different areas of the business or, at least, those that are relevant. They are all included in a single system that is separated into modules. When employees access the program, they have the information they need wherever they are.

Additionally, it must be taken into account that data is shared between modules. This achieves an essential improvement in the visibility of business processes. Given the large number of interactions and combinations to which they are subjected, it is difficult to understand the relationships and implications of a simple action.

Companies  that use ERP  increase their understanding of their own internal workings. In case there is a problem, they will identify it in no time.

What companies use ERP?

There is a wide variety of  examples of companies that use ERP , which seek to take advantage of the different benefits that this type of program provides. When discovering the companies that draw on your capabilities, you should not limit yourself to categories such as large organizations, SMEs or international conglomerates. With this, let’s see which companies that use ERP are examples:

Service companies

This is a type of company that is present in numerous sectors and that needs to  use an ERP to improve its operations . These companies simplify generating invoices, accounting or understanding key performance indicators.

Thus, they have essential areas of the business under control, whose operation they can visualize in a simple way. Whether through graphs or a dashboard, you will not miss a detail.

Companies dedicated to production

Companies  that use ERP  are also dedicated to manufacturing products, regardless of their characteristics. For example, they need the system to efficiently manage their human resources.

Consider that a conventional factory, such as a steel mill, requires a large number of employees, who work in shifts. To avoid confusion and to ensure that production is not affected, a solution that allows precise management is essential.

But the ERP not only helps manage personnel, but is also responsible for  controlling the operation of the machinery . The system is capable of identifying inefficient processes, simulating different scenarios or warning if there are breakdowns. Therefore, it is a tool with which to optimize production and keep it under control throughout the entire day.

At the same time, the company manages  to control the use of raw materials , from storage to distribution of the finished product. If there are problems with inventories, such as a lack of a specific item, they will be detected quickly.

Physical and online stores

Companies dedicated to the distribution sector, such as a large shopping center, also use an ERP. Among the different modules, those that are most useful are  inventory control, POS or supplier management . All of them provide managers with critical information with which to make the appropriate decisions according to each situation.

Likewise,  it makes it easier for a chain of stores to coordinate its operations effectively . Keep in mind that different establishments can share the same warehouse.

Despite this, the needs of each person will not be the same, so personalized treatment becomes essential. With the help of an ERP, communications when placing an order are fluid and shortages are prevented.

Construction companies

To carry out any new construction project, a construction company needs to meticulously plan the appropriate strategy to carry it out. This planning involves a wide variety of tasks, such as  calculating costs, hiring suppliers, and assigning responsibilities . An ERP can take charge and provide automation that is very valuable in a multitude of situations. In fact, the system offers significant time savings in a sector in which any delay is enough to increase spending on a property.

Companies dedicated to logistics

ERPs provide logistics companies with  high operational efficiency, effective coordination and simple management . Since they must maintain a constant flow of products, they have to control inventories very precisely. This involves optimizing the amount of materials that are stored to avoid excesses or shortages. In any case, difficult problems will arise that will affect customer satisfaction.

Another aspect in which they take advantage of the possibilities offered by the system is in the  planning of transport routes . This is a fairly complex process, as it involves analyzing fuel consumption and the state of the roads or your own vehicles. Any failure, no matter how small, will have ramifications that are difficult to understand, which will imply economic losses in most cases.

Likewise, an ERP allows logistics companies  to monitor fleets at all times . A large company may have hundreds of various types of vehicles in circulation: trucks, ships, delivery vans or even airplanes. With such variety, it is essential to carry out monitoring that provides key information in real time to prevent negative consequences.

Also Read: What is Process Improvement and How Does it Help Companies?

Most used types of ERP

Beyond  which companies use ERP , we must analyze the different programs they use. Each sector is subject to specific circumstances to which it must be adapted. A company dedicated to manufacturing carpets does not have the same needs as a hamburger chain.

Some needs do coincide between companies in different sectors, such as supplier management, but in most cases they do not. If you are wondering  what ERP companies use , the following options are the most notable:

  • Generalist ERPs:  They offer a complete set of modules to manage various business functions, such as finance, human resources, inventory, purchasing or sales. They are appropriate for a wide range of industries and company sizes.
  • Specialized ERPs:  They adapt to the requirements of a production sector. This implies that its modules and functionalities are designed with the unique requirements of the industry in mind.
  • ERP for SMEs :  Small and medium-sized companies have needs that become very particular. One of the most important is the control of expenses, which means using an ERP that is affordable, although its functions are not as powerful as a conventional one.
  • ERP for supply chain management :  They are focused on planning demand, supply or production planning. They are the most used within the logistics sector.

Benefits of using an ERP

Knowing  what ERP companies use  is essential, as is understanding the benefits that the system provides. Despite their differences, they all achieve a series of advantages. After all, they turn to technology aimed at making their daily lives simple. Workers have a tool that helps them increase their efficiency and focus on relevant tasks, but it doesn’t end there.

Process integration

Companies  that use ERP  integrate a multitude of processes into a single system. What does this imply? To begin with, it is not necessary to resort to several isolated and specific solutions for specific actions. Doing so would only make it more difficult to share data between departments, that is, it would make communications slower.

When processes are integrated,  decision making becomes more precise . Information obtained from the company’s own operations is available, which is essential in critical situations. You eliminate intuition and increase confidence when charting the course of the business.

Complete business view

Understanding a company is difficult, especially if it is large. Its structure is divided into numerous departments in charge of specific tasks .

All of them are interrelated with each other and with the operation of the business itself. Understanding the role they play and the consequences of their actions in isolation would not be helpful. You would miss relevant information by not seeing the relationships between each part.

Luckily, the  examples of companies using ERP  that you saw earlier do not have the problems mentioned. Their managers are able to see an overview of the business because of the software they are using.

They have panels full of graphs and relevant indicators with which to carry out analysis in real time. Thanks to them, they better understand how a key decision will affect the different parties.

Financial and accounting control

ERPs have financial and accounting functions that add value to companies. They not only help to centralize the aforementioned activities, but also automate them.

A record is made in real time of any income and expenses , as well as variations in product prices. Therefore, the program always handles updated data, which avoids having to enter it manually.

The information collected  allows you to prepare a wide variety of reports  (income, expenses, etc.) and analyze the company’s financial statements or balance sheet. Tools like these give you a clear view of the state of the business and its health. Furthermore, its creation complies with the regulations required by national and international organizations.

Improved customer experience

Another benefit that  companies that use ERP achieve  is to improve their customers’ experience. The system not only optimizes the internal functioning of the business, but its effects are noticeable in relationships with buyers. They enjoy agile and efficient purchasing processes, which means that they do not have to face practically any obstacles.

Along with the above,  relevant consumer information is saved  to be able to serve them in a personalized way. With the data collected, it is possible to offer them quick and accurate answers to the queries they make. As they carry out interactions, the perception of the company will become more positive.

Also Read: What Is Integrated Cybersecurity And Why Is It An Enterprise Must-Have?

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