ERP system: What is it, how does it work and its impact on the company?

What is an ERP system and why is it key for companies?

An Enterprise Resource Planning (ERP) system It's a software designed to unify, automate and optimize all internal processes of an organization** . **

From inventory management and finance to human resource management and logistics. The key to an ERP is integration, which means that all departments of the company they can work from the same database, ensuring coherence and efficiency in the flow of information.

Not only this type of solution improves task coordination, but it also facilitates the making informed decisions by centralizing data from all areas of the company. This is essential in an increasingly world. digitized, where agility and precision in information management can make a difference.

But what exactly does an ERP mean and what benefits does it bring to companies?

In this article, we explain everything you need to know about ERP systems, their operation and their applications.

To this day, there are still doubts about The differences between an ERP and a CRM so we invite you to learn about their differences in one of our articles.

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History and evolution of ERP systems

The history of ERP systems dates back to the 1960s, when the first systems emerged MRP (Material Requirements Planning), designed to manage production and inventory in manufacturing industries. These systems allowed companies to plan production more efficiently, ensuring that there were always enough materials to meet demand.

Over time, MRP evolved into MRP II, including the management of financial and human resources. In the 90s, the first ERP systems were born, which extended these functionalities to cover all the processes of a company.

The term ERP (Enterprise Resource Planning) referred to the ability of these systems to comprehensively manage business operations.

Today, ERPs have made even more progress with cloud technology (cloud computing), allowing SMEs access the same advantages that were previously only available to large corporations.

In addition, the development of custom modules has made ERPs increasingly adaptable to the needs of each sector.

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Main benefits of implementing an ERP in your company

The adoption of an ERP system in a company can transform the way it operates, offering numerous benefits, such as:

• Process automation: An ERP automates repetitive tasks such as turnover And the inventory management, reducing the risk of human errors and allowing employees to focus on higher-value activities.
• Data integration: Centralizing information from all areas of the company facilitates collaboration between departments, ensuring that everyone works with up-to-date data, which improves coordination and avoids duplication of data.
• Real-time visibility: ERP systems allow access to reports and data in real time, essential for making quick decisions based on accurate information, especially in areas such as logistics.
• Reducing costs: The improvement in efficiency and the reduction of manual tasks optimize the company's resources, which translates into a reduction in operating costs.
• Improved customer experience: With a comprehensive view of order management, inventory and customer service, it is possible to improve customer service, ensuring on-time deliveries and a quick response to any incident.

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Key Features of an ERP System: Beyond Management

ERP systems offer a variety of functionalities that go beyond simple resource management. Among the most relevant are:

• Financial Management: The financial modules of an ERP allow detailed monitoring of takings, outlays, accounts receivable and payable, as well as the general accounting. This makes it easy to generate accurate financial reports.
• Human Resource Management (HR): ERPs also offer solutions for personnel management, from payroll and schedule management to employee training planning.
• Inventory Management: ERPs integrate inventory modules What do they allow Control stocks, managing replenishment and optimizing storage, crucial for companies with a high volume of products.
• Customer Relations (CRM): Some ERP systems include CRM modules, that they help manage customer relationships and improve the experience by closely monitoring their needs.

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How to choose the best ERP system for your company: Key considerations

1. Specific features: Find the ERP that fits your industry

Not all ERP systems are the same. Some solutions offer specific features for certain sectors, such as manufacturing, retail or logistics.

It's essential identify which modules are priorities for your company, since an ERP that fits the specific needs of your industry can facilitate process automation and improve productivity.

For example, a manufacturing company may benefit from inventory and production management modules, while a retailer will value sales management and customer service capabilities more.

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2. ERP in the cloud or on-premise: Which is the best option?

The decision between an ERP in the cloud and an on-premise one depends on the desired level of control over data and investment capacity. Each option has advantages that may be better suited to different types of businesses:

• ERP in the cloud: It offers a greater flexibility by being able to access data from anywhere, which Facilitates teleworking and branch management in different locations. In addition, they usually require a lowest initial investment, since there is no need to purchase physical infrastructure. However, being able to connect to the internet is a fundamental requirement for its operation.
• ERP On-Premise: When you are installed on internal servers of the company, provides a greater control over data security. This option may be preferred by companies that handle sensitive information and require internal infrastructure management. Although the Initial investment is higher, in the long term it may be a cheaper option if internal technological resources are available.

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3. Total cost of ownership (TCO): Evaluate long-term costs

When analyzing the cost of an ERP, it is essential to go beyond the initial purchase price. The Total Cost of Ownership (TCO) must be calculated, which includes aspects such as:

• System maintenance: The recurring costs to keep the ERP running optimally.
• Updates: The need to update the system to maintain security and compatibility with new technologies.
• Technical Support: Having a support service that solves technical problems is essential to avoid interruptions in the company's operation.

A detailed analysis of the TCO helps to understand the real investment involved in implementing the ERP, allowing a more accurate financial planning and avoiding future surprises.

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4. Support and updates: The importance of a committed vendor

El after-sales support And the frequency of updates of the system are critical factors when choosing an ERP.

A good supplier must be committed to the evolution of their software, adapting it to technological changes And at new market needs. This includes:

• Technical Support agile and efficient to solve any problems that arise during the use of the ERP.
• Regular updates that keep the system secure and improve its performance.
• Adaptation to local regulations, especially in matters of accounting and taxation, to ensure that the company complies with all regulations.

Having a reliable supplier ensures that the company will be able to take full advantage of all the functionalities of the ERP and keep its system always updated and operational.

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How taclia stands out as a versatile and complete ERP

In today's market, there are multiple ERP systems, but taclia has managed to stand out for its versatility and additional features.

In addition to the traditional features of an ERP, such as inventory management and financial management, Taclia includes advanced and easy tools for project management and customer service.

One of the main advantages of Taclia It is their ability to adaptation to the specific needs of each company, allowing you to customize modules and functions according to business requirements.

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This makes it an ideal choice both for SMEs, freelancers and large companies Who are looking for a comprehensive and flexible solution.

Users highlight the ease of use of taclia and its integration with other digital tools, making daily management easier and more efficient.

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