Definisi Software ERP dan Keuntungannya Bagi Perusahaan

Definition of ERP Software and Its Benefits for Companies

In managing the company, of course various instruments are needed to facilitate all needs. And ERP software is one of them that is now being needed because it is considered capable of being a management application for integrating business management.

ERP software itself stands for Enterprise Resource Planning, which of each word consists of 3 important elements, namely Enterprise / company, Resource, and planning. Then actually what is the concrete definition of ERP software? And what are the benefits if a company uses ERP? Find the answer in the review below.

Definition of ERP According to Experts

To make it easier for you to define ERP in its entirety, then we can refer to it from the opinion of several experts, namely as follows:

According to Hau and Kuzic

ERP is a multi-module as an application solution in business packaging that enables the integration of a company's performance and business processes. In addition, ERP also plays a role in managing human resources, distributing data in general, and providing access to actual information.

Daniel E. O'Leary

According to O'Leary, ERP software is a system designed to process corporate transactions and facilitate planning in real time and integrated. ERP also includes production planning and consumer response analysis so that companies can get access to planning and information to the greatest extent.

O’Brien

Understanding ERP According to O’Brien, software is capable of reengineering a manufacturing process, resources, distribution, finance, and various other business processes for a company to improve profitability and improve its efficiency.

Ellen Monk

Ellen Monk simplifies the definition of ERP as a system for managing every business process, from the process of production, marketing, purchasing, to consolidation that is integrated into a unified system.

From some of the understanding of these experts, it can be further pursued that the definition of ERP is an application that acts as a business management to manage company needs in an integrated manner.

ERP Benefits and Benefits for the Company

From the definition, it is not surprising if ERP is sought after by companies, both large and still developing. Because basically this software provides various benefits for the company. Some of them are like the following:

Data Accuracy

ERP has a system that is able to integrate business and manage several things at once. From the management process, accurate data will be generated. And the accuracy of this data can be a capital for you to develop the company or improve quality services in accordance with existing conditions.

Efficiency and Productivity

ERP is also able to manage the activity process routinely, efficiently and effectively. Such as the process of shipping, ordering, cash management, quality management, supplier performance, and sales realization.

Management of Information and Planning Systems

In ERP systems there are tools to support the best decision making, for example simulation and planning tools. By using these facilities, you can determine the most appropriate resource to meet a particular need.

ERP software can also present reports needed by management so that they can be accessed at any time when needed. Thus planning and decision making steps can be done more quickly.

That's a brief explanation that we can share around the definition of ERP software and what are the benefits for your company. One thing is certain, choosing an ERP must also consider all the needs of the company. Thus, the planning and execution process can be carried out more efficiently for the company's progress in the future