What Is ERP System?
Enterprise resource planning (ERP) system is a process that assists organizations in optimizing, streamlining, and managing various business units efficiently. You can think of it as an enterprise resource planning system as the glue that binds together the different computer systems for a large organization.
It is important to companies because ERP systems help them to implement resource planning by integrating all of the processes needed to run their companies with a single system. A great ERP system can also integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more. Without an ERP application, each department would have its system optimized for its specific tasks. With ERP software, each department still has its system, but all of the systems can be accessed through one application with one interface.
How To Choose The Best ERP System in Malaysia?
Variety of ERP systems are available in Malaysia, different ERP system is designed for different consideration according to the company. For example your company’s size, process complexity, resources, budget, and much more. You can also visit ERP Selection Guide for more tips when choosing an ERP system that suits you.
How Does ERP System Help Business In The Enterprise?
To save you from the time-consuming task, Cosmosynergy is undoubtedly one of the best ERP systems that you can find in Malaysia. It has over 25 years of experience and the ability to deliver the best solution to their customer.
Here The Benefit Of Using ERP System:
- Real-time data and information available – You can have a consistent and systematic flow of business information and data across all departments within an organization.
- Improve collaboration with ERP tools – ERP tools increase collaboration by increasing data access from other departments.
- ERP Malaysia System Implementation – ERP Malaysia system implementation can help businesses experience significant improvements in efficiency and overall productivity.
- Seamless Integration – Enterprise Resource Planning (ERP), systems use an integrated, centralized database to support the main business processes.
- ERP software for businesses helps to reduce operating costs– Companies can achieve maximum ROI and save money through the management of their time and entrepreneurial resources.
- Collaboration and Scalability – ERP software allows for collaboration between departments and allows for the addition of new functions and users to grow.
- 360-degree view of business operations – ERP system gives you a 360° view of your business, including sales, planning and customer service.
- Paperless operations – With the ERP system you have all your files and documents at hand that you can access from any location. It eliminates the need to print and waste paper.
- Better-informed business decisions– ERP software solutions enable users to view all aspects of their business processes and make better decisions.
- Proper inventory management – ERP software lets users see the details of each product, including where it came from, where it is located and what is needed.
- Business reporting is improved – Companies can quickly respond to complex data requests, which saves time and money. With the ERP tool, users can create reports.
- Enterprise Resource Planning Software offers cloud security and apt data – Enterprise Resource Planning Software allows users to access cloud security and apt data.
- ERP software provides powerful business insights– Businesses can make informed business decisions. It integrates data across the organization.
- ERP software makes it easier to comply with regulatory requirements– It provides information about the business, including details such as who, what and when, where and why. This can help ease regulatory compliance.
- ERP software streamlines business processes – ERP software helps to streamline sales and communication between departments within an organization.
- ERP systems allow for greater efficiency and flexibility- They simplify business processes and boost productivity. ERP software solutions are flexible enough to adapt to changing business needs.
- Correct Forecasting – ERP software can give users and managers the tools and resources they need to forecast more accurately.
How Does ERP System Help Business In Enterprise
In a competitive environment nowadays, making the right business decision is second to none when you want to improve your business to the next level. A great ERP system manages the business in the enterprise by containing various modules according to the business hierarchy levels. All operations and the flow of the business will be monitored and calculated correctly according to the setup made by the association business stream.
ERP consolidates data in a centralized place and eases the analysis process to make a better decision-making environment for the user. Whether it is about forecasting inventory levels, predicting customer demands, gauging revenues, or anticipating production levels, ERP software bolsters the accuracy of business decisions by analyzing current business conditions for real-time data analytics. Businesses can base their critical decisions on the accurate analytics and data insights provided by the ERP system.
Feature And Functionalities That ERP System Should have.
Data silos can lead to inefficiency, missed opportunities, and departments working across purposes. ERP provides a central view of critical financial, operational, and business data that can easily be shared with other departments within the organization in near real-time.
ERP systems can be used to create business intelligence by turning the data into reports and insights that companies can use to re-allocate funds or capitalize on new market opportunities.
ERP allows you to automate repetitive business tasks such as order processing, payroll, invoicing, reporting, and so on. Automation reduces time spent entering data manually, eliminates errors, and allows employees to focus on higher-value tasks.
An ERP system’s nature means that data entered by one person is accessible across the entire organization. An inventory tracking module, for instance, could trigger an invoice and shipment when a specific SKU becomes available. This could result in more revenue and better customer service. Executives in line of business could also receive current reports on cash flow and other metrics that will help them make informed decisions.
3. Data analysis
CFOs and business leaders alike must make data use more effective a priority. Brainyard’s Winter 2019 survey revealed that data analysis allows employees to collect a variety of information and turn it into actionable insight. This can lead to new business opportunities, cost reductions, fraud detection, and better customer service.
Executives are just as critical to better reporting as they are to more efficient data usage. ERP reporting modules combine information about business operations to create reports that empower stakeholders to make better decisions, improve business processes, and identify problems before the business suffers. Reports can include visual representations such as charts, graphs, and dashboards. These reports may reveal trends and patterns that could help improve business results.
5. Monitoring and visibility
ERP platforms enable companies to monitor, surface and understand their business metrics. This is a powerful feature. By allowing companywide access, they can break down information silos and offer reporting and analysis for all aspects of business operations.
ERP accounting features allow you to track, store, and analyze financial data such as accounts payable (AP), receivables (AR), general ledger (GL), budgets, and forecasting. Advanced tasks like revenue recognition, tax management, fixed asset management, revenue recognition, and multi-currency reconciliation may be possible.
Time is money and month-end closes always take more time than CFOs would prefer. This functionality reduces the time required to reconcile and close monthly financial statements. This functionality is crucial for companies that want to have continuous month-end closes.
7. Financial management
Financial Management is a complicated task that requires planning, organizing and determining how to best use funds. To make financial decisions, financial leaders need to track and use financial information from all departments.
ERP systems aid finance teams in managing critical business data by tracking, analysing and reporting on it. ERP systems are essential tools in sound financial management for large and complex organizations.
8. Customer relationship management (CRM).
ERP systems that integrate CRM features can bring customer relationship data into an ERP system, expanding the business’ view. All customer information–including contacts, order history, purchase orders and prospect status–is in a shared, easily accessible database.
CRM systems allow companies to automate processes such as filling out POs, creating accounts receivable reminders, and sending notifications to account executives to follow up when a prospect reaches an agreed point in a sales funnel.
9. Marketing and sales
ERP systems that integrate CRM can also be beneficial to sales and marketing teams. They make it easier for them to sell, upsell and generate quotes, purchase orders, forecast, manage and monitor commissions, and keep track of key information like profit margins, ratios, and other details.
Marketing teams might benefit from being able to generate more leads, build and execute campaigns quickly, and track customer activity throughout the sales cycle.
ERP functions are used by sales and marketing teams in close collaboration with finance and operations colleagues to deliver a superior customer experience throughout the sales process.
10. Human resources (HR).
An ERP system’s HR component acts as an end-to-end employee management platform. It handles payroll, onboarding, recruitment, compensation management, timekeeping, and timekeeping. ERP-connected HR software automates complex HR functions like tax and benefits deductions. This saves time, money, and reduces errors.
11. Supply chain management (SCM).
ERP systems provide insight into a company’s supply chain management efficiency by tracking the demand, inventory, manufacturing, logistics, and distribution. An integrated, fully automated supply chain improves operations by suggesting purchase and work orders as well as transferring orders to multiple locations.
SCM system can help you set inventory goals and streamline distribution resource planning. The ability to see real-time information about a company’s supply chains allows for greater inventory control and can help identify inefficiencies.
Manufacturing was the first to introduce ERP. The modern manufacturing systems are efficient because they assist with product planning, sourcing raw material, production monitoring, forecasting, and other functions. Modules for assembly management, bill management, work order management and shop-floor control are just a few of the components.
ERP manufacturing tools, in conjunction with SCM can increase an organization’s capability to automate major inventory planning decisions and forecasting decisions.