About ERP:-

About ERP

Ministry of Trade and Industry, Ministry of Education, and Ministry of Public Business Sector announced that they are digitalizing all the transactions in and within their organizations and facilities. Therefore, to deal with such ministries, you will need to use an ERP system.

What is ERP? What benefits do ERP systems provide? And what are its main features?

ERP stands for Enterprise Resource Planning, and it is a software system that consists of a group of modules that companies use to manage and integrate the important parts of their businesses regardless of their size or type. Using such systems provides more accurate transactions and easier management.

ERP system is a comprehensive accounting and administrative software that contains all the accounting transactions of your company or factory, this enables you to link all your financial and administrative departments with one system. Consequently, through this software, each department becomes aware of the transactions and operations that are being taken place in the other departments based on the granted privileges.

For example, upon purchasing goods, these goods are entered in the financial department to record their costs, in the purchases department to document the increase in goods, and in the inventory department to record the increase in stock. Then, these goods are displayed in the sales department, which, in return, starts to market and sell them. As you see, it is a fully integrated system that follows every transaction your company makes.

ERP System Basis:

Integration is the keyword and major aim of any ERP system, as it collects various data and transactions from the different departments of your company and merges them in one database. In other words, ERP is software designed in form of interconnected modules (departments).

ERP System Key Features:

Adopting an ERP system will provide you with a bunch of benefits, here are some:

· linking different modules (departments) to each other easily and swiftly and getting rid of the complicated paper-based procedures.

For example, upon purchasing goods, the ERP system sends a notification from the purchases department to the inventory department to ensure receiving them, and to the accounting department to record them as expenses. Moreover, upon issuing goods from the inventory department, the ERP system checks with the sales department, informs the accounting department to record the revenues, and deducts these goods from the stock.

· generating summarized and detailed reports on any department at any time. As, by doing all and each of the previously mentioned steps, ERP system provides accurate calculations and generates precise reports, which are so helpful in making stocktaking and in making and taking decisions easily.

· increasing privacy and the ability to monitor and control the data of your company by granting and preventing specific privileges to certain users.

· the capability to predict revenues and expenses, which facilitates setting plans and saving time and efforts with the ability to modify data at any time.

· recognizing the market in a wider range and controlling your organization completely.

ERP Benefits:

- Using ERP system enhances the quality and efficiency of the company transactions; as it interconnects them in an ongoing way using easier and more comfortable manners than paper and Excel sheets.

- ERP system provides reports that help the management in making and taking decisions more easily.

- It helps the company to quickly adapt to the new changes in the field.

- It protects your data and makes it available exclusively for concerned people.

- It collects your data in one place so it can be accessed easily at any time.

When do you need an ERP system?

- When transaction size between you and your vendors increases, the number of items grows, and the prices, instalments, and due dates vary.

- When your sales volume and the number of sales representatives increase, and you are expanding the coverage areas.

- When the number of selling and purchasing transactions grows, and, in return, the stock size increases, which results in needing constant stocktaking to find out the overage and shortage.

- If you have several departments and each one deals with a different system, which wastes a lot of time obtaining an integrated report on all departments.

- If you constantly need analytical and detailed reports to make and take decisions easily.

How to choose the proper vendor upon purchasing ERP software?

o Make sure that the vendor provides after-sale services and has efficient technical support; as ERP systems need continuous updating and development to catch up with the international technological development.

o Read the reviews and what old clients say about their experience, and search for the company’s actual presence in the market.

o Ask for the total cost of the system including training, the number of users, implementation, after-sale services, and technical support.

o Set a time and period for implementation and training.

o Choose a system that has been used before in various companies and fields so you don’t become a lab rat.