Running a company is not easy. It requires a lot of hard work and management. For big companies with large employee bases, services and transactions, it is impossible to manage everything manually. It will take days to compute the salaries, transactions and all the activities. The chances of error, in this case, are also very high. So to avoid all this confusion in one strike, companies prefer the ERP system.
ERP system stands for enterprise resource planning. It is a type of software, a company uses to manage accounting, risk management, supply chain operations, procurement, and project management. In simple words, the ERP software integrates all the core processes of the company into a single system. It is very easy to use and computes all the things with no errors. The latest ERP accounting systems use machine learning and artificial intelligence as well to provide efficient and intelligent results in every aspect of the business.
Some of the major benefits of an ERP systemare as follows:
- Lower risk: It maximizes business visibility and control. It keeps a check on all the potential risks to the business and predicts them.
- Higher productivity: It automates all the processes inside the company. It helps you to do more with fewer resources.
- Simpler IT: It enables the sharing of databases and simplifying IT services. It gives an easier way to work.
- Better insights: It helps you to get better answers to mission-critical business questions.
- Accelerated reporting: You can easily share results and improve real-time performance.
- Improved agility: It is a great tool for businesses to explore and react to new business opportunities.
Every business requires a different ERP system. To fulfill the needs of business here are some of the major types of ERP software:
- Cloud based ERP: It is software as a service that uses the latest technology called cloud computing. It allows users to use the ERP system on the internet. It has a low upfront cost and is maintained on lease. It gives access to the business-critical application from any location.
- On-premises ERP: It is the ERP software that is maintained and stored in the company’s hardware itself. It is maintained at the physical office rather than hosting it from outside. The company owns the servers. It is licensed under a time one-time fee.
- Hybrid ERP: It is the combination of the above two systems. It is a two-tier module.
There are many vendors of ERP systems. Some of the major ones are as follows:
- SAP R/3 and B1: It offers two solutions that are R/3 suite and the B1 suite. R/3 is compatible with small as well as large businesses. It runs on a variety of platforms like UNIX, Windows server, OS/400, etc and helps you to meet the specific business requirements. B1 is more suitable for small and medium-sized businesses. It offers pre-built modules of e-commerce, purchasing, finance, warehousing, customer relationship management (CRM) and reporting.
- Microsoft Dynamics NAV and AX 2009: The NAV is suited for small businesses and has pre-built modules while the AX is built for a medium and large business. It is suited for manufacturing companies, service organizations, wholesalers and retail-oriented companies. It can be customized according to the need.
- Oracle E-Business Suite Financials and PeopleSoft Enterprise: The E-Business Suite Financials majorly offers finance-related services. The system has pre-built modules of financial and operational information, dynamic planning, budgeting, forecasting, and multidimensional profit analysis. PeopleSoft Enterprise is designed to solve complex business problems. It can run on different hardware architectures and databases.
- LN/Baan: It is mainly designed for manufacturing industries working on complex products with complex supply chains. It is a highly customized software.
- JD Edwards EnterpriseOne: It is an oracle based ERP solution that offers standard based process engineering and helps you to understand the business requirements. The modules available in the system are analytics, capital asset management, CRM, finance management, human capital management, manufacturing, ordering systems, and project management. It is a good module for sectors like real estate, food, and beverage production and construction.
- NetSuite: With its parent company, Oracle powering it, NetSuite is a robust and popular software solution. The ERP system includes financial management and planning, order management, production management, supply chain management (SCM), warehouse and fulfillment and procurement functionalities.
Now that you understand the business benefits of ERP systems, it’s time to compare solutions and find the right fit for you.
You can compare these top solutions back-to-back, such as NetSuite vs JD Edwards, via a software comparison website. Here’s an example!
Good luck on your solution search.