ERP Management System

What is ERP?

By adopting effective ERP software, business owners and leaders can automate and simplify tedious back-office tasks, which can help employees be more productive, perform their duties more effectively, and gain real-time visibility into the inner workings of business operations. State of health. This document provides an in-depth overview of ERP topics. It contains the following information:

The Metamorphosis of ERP and Current Trends
Basic ERP Concepts and Glossary
What is an ERP system?
The main benefits of ERP system
How to Determine If/When Your Business Needs ERP
Types of deployment options for ERP solutions, customized systems
How to choose the right solution
How ERP Can Help Your Business
Implement an ERP system in your business
Measuring ERP Performance and ROI

To excel in today’s increasingly competitive and complex business environment, you need systems that simplify, automate and scale easily. This document will guide you on how to select, implement and manage your organization’s ERP system.

1、The Metamorphosis of ERP and Current Trends

The term “ERP” (full name Enterprise Resource Planning) originated in the 1990s and was first proposed by The Gartner Group, a professional industry analysis organization. The term is derived from MRP, which was well known in all walks of life at that time. MRP can be interpreted as “Material Requirements Planning” (Material Requirements Planning) or “Production Resource Planning” (Manufacturing Resource Planning). These systems were invented in the 1960s, when manufacturing companies were actively looking for ways to allow line managers to increase efficiency and improve decision-making.

In the 1990s, The Gartner Group and other companies tried to apply the MRP system to other business types, and hoped to extend their capabilities and processes to other areas of the enterprise, so the ERP we know today came into being. In its inception,

ERP focused on collating data and streamlining processes related to back-office areas such as inventory management, order fulfillment, purchasing, human resources, accounting, IT, production, planning and scheduling, and other related areas.

2、Basic ERP Concepts and Glossary

There are hundreds of concepts and words related to enterprise resource planning, but here are ten concepts and words that are worth understanding before deciding whether to implement an ERP solution in a business:

Enterprise Resource Planning (ERP): A business process management tool that can be used to manage information within an enterprise.
In-company ERP: ERP software installed on company hardware and servers and managed by the company’s IT staff.
Cloud ERP: ERP software that exists outside the company and is managed by the vendor.
Supply Chain Management: The flow of goods and services from the point of origin to the point of consumption.
Third-party vendors: Enterprises or partners that can be integrated into your ERP system (ERP system).

Capacity Requirement Planning: A method used to determine the applicable production capacity of a company.
Mobility Solutions: The ability to access data through your ERP using mobile devices anywhere.
ERP Deployment Options: The categories of ERP systems (ERP systems) that you can implement within your business.
Business Architecture: The structural model of the organization; all the parts that can make a difference.
Customer Relationship Management: Tools used by businesses to manage interactions with customers.

Management Information System (MIS)

It is a human-oriented system that uses computer hardware, software, and network devices to collect, transmit, store, process, and organize information to improve the operating efficiency of the organization.

Management information systems are different from general information systems because they are used to analyze the application of other information systems in the organization’s business activities. In academic terms, management information systems are generally used to refer to information management methods (such as decision support systems, expert systems, and supervisor support systems) related to decision-making automation or supporting decision-makers in making decisions.

Enterprise resource planning (ERP)

The concept of business management proposed by the famous American Gartner Consulting Company in 1990. Enterprise resource planning was originally defined as application software, but it was quickly accepted by commercial enterprises all over the world. It has now developed into an important modern enterprise management theory and an important tool for implementing enterprise process reengineering. The original definition of application software is now called the “Enterprise Resource Planning System.” The enterprise resource planning system is a systemic management idea based on information technology, and a management platform that provides decision-making operation methods for enterprise decision-makers and employees.

Material Requirement Planning (MRP)

Its main content includes customer demand management, product production planning, raw material planning, and inventory records. Among them, customer demand management includes customer order management and sales forecasting. Combining the actual number of customer orders with scientific customer demand forecasting can obtain customer demand.
Material demand planning refers to according to the affiliation and quantity relationship of the items at each level of the product structure, each item is the planning object, and the completion period is the time basis. The order of the scheduled time of each item is distinguished according to the length of the lead time. A material planning management model in an industrial manufacturing enterprise. MRP is to formulate product production plans based on market demand forecasts and customer orders, and then based on the production schedule, the material structure table and inventory status of the products, the computer calculates the required amount of materials and the required time to determine the material processing A practical technique for progress and order schedules.

Manufacturing Execution System (Manufacturing Enterprise Solutions Association, MES)

In the process of products from the work order to the completion of the finished product, the manufacturing execution system plays a role in transmitting information to optimize production activities. In the production process, with the help of real-time and accurate information, MES guides, initiates, responds, and reports production activities. Make quick response to changes, reduce non-value-added production activities, and improve the efficiency of operations and processes. MES improves investment returns, net profit levels, improves cash flow and inventory turnover speed, and ensures timely shipments. MES guarantees the two-way flow of mission-critical information within the entire enterprise and among suppliers.

3、What is an ERP system?

An ERP system is made up of different applications and tools that help the various functional departments of your business communicate with each other more effectively. The ERP system integrates all levels of the enterprise into a comprehensive information system. For example: Employees responsible for planning and scheduling have access to the same data as employees in the financial management department to meet specific job needs. All data is available in real time so employees can make better business decisions faster. With an ERP system , all important business functions, including estimating, production, finance, human resources, marketing, sales, and purchasing, can share a central source of real-time information. An enterprise resource planning system can simplify the process of collecting, storing and using enterprise data. The right ERP system can help you collect and store the following data through a single centralized platform:

Business Sales Management
Customer relationship management
Warehousing Inventory Management

Production Scheduling Management
Supplier Management
Finance and Accounting

Human Resources
Point of sale (POS)
E-commerce

4、The main benefits of ERP system

Why are more and more large and small enterprises starting to implement ERP systems today? The following are some of the main reasons and benefits for enterprises to adopt ERP systems:

Finance and Accounting
Provide business leaders with real-time, clear information on operations.
Provide business leaders and teams with the ability to connect to the supply chain in real time.
Enables business leaders to identify challenges, uncover opportunities, and make faster decisions that impact different areas of the business.
Help automate and simplify tedious tasks and redundant processes.
Give employees the tools and data they need to function.
Provide a single source of truth for the entire company.
Usually accessible from anywhere (outside the company and via mobile devices).

Help increase team productivity.
Make it easier to collaborate between teams and with third-party vendors.
Provides powerful, forward-looking reporting and forecasting tools that can be used to make smarter decisions about the future of your business.
Keep data safe and help you ensure your business continues to operate in compliance with global regulatory laws and guidelines.

5、How to Determine If/When Your Business Needs ERP

Every business is unique and faces different challenges at different times, so the question is: How do you determine if and when your business needs to invest in an ERP solution?

If you can tick most of the items on this checklist, you can start evaluating ERP software vendors and start allocating the resources needed for deployment:

Team members are spending too much time on tasks that you know could be automated and simplified.
You don’t have easy access to the data you need to make informed decisions about the future of your business.
You work with vendors and use third-party applications around the world.
Over the years, your business has adopted and implemented a myriad of different software tools and processes, but none of them are related to each other.
You don’t know exactly what the daily inventory levels are like.
You yourself are searching for information, trying to increase productivity and efficiency, and integrating new tools to scale

Spent too much time. Corporate teams couldn’t easily collaborate or share information with each other.
You cannot access essential business data and information without leaving the company.
You struggle to keep up with regulatory legal compliance changes.
You are often too late to identify or deal with problems; in other words, you are not proactive enough to identify problems that need to be solved to keep the business running smoothly.

If you have selected at least 60% or 70% of the items in the above table, then it is time to start looking for manufacturers.

To justify the required investment for your business to use an ERP system, use the checklist provided above. Please list the challenges you think your company is facing today and discuss with decision makers how you think an ERP solution can help.

6、Types of deployment options for ERP solutions, customized systems

The following is the basic operation IO logic sorted out according to the needs when ordering various customized systems. Of course, this is not fixed. If your requirements span several basic logical structures. That mutual integration to become your unique product is what we can do for you……

7、How to choose the right solution

If you are considering selecting your first ERP solution , or looking to upgrade an existing system, the evaluation, selection and implementation process is really a long-term strategic decision for your business.

To help you in this process, here are eight simple steps to making an informed ERP system choice:

Step : Initial Assessment – Gather company leadership and start discussing ERP-related matters. Make sure everyone is aware of how you evaluate suppliers.
Step : Assessment – Focus on your business and operations to find out what you are doing well, what challenges you are currently facing, and what you think your company needs to resize or make improvements.
Step : Develop Criteria – Establish general criteria to use when evaluating vendors. Criteria can include features, price, platform, and anything else your team thinks is important when conducting an evaluation.
Step : Schedule a Consultation – Arrange a conference call, in-person meeting or web demo with sales representatives and product specialists of interested vendors. Get a first impression of each company and try to note the differences between the different vendors approached.
STEP : BUILD LIST – Narrow down the consideration list to 2 or 3 candidates that you would like to follow up with.
Step : Get in touch – Contact the vendors on the shortlist and arrange a follow-up call to learn more about how their products can help your business.
Step : Prepare Questions to Express Your Considerations – Prepare specific questions that you would like each vendor to answer during a follow-up call.
Step : Contact Vendor Referrals – Talk to other companies that have implemented the ERP system of the vendor you are considering. Find out what they like, what they don’t like, what they didn’t expect, and see if they really want to recommend the vendor. Gather as much information as possible so you can make a final decision. After selecting the ERP vendor that suits your company’s business situation and needs, take the time to understand the entire project from start to finish. Work with an ERP vendor to set key milestones and create a roadmap to success.

8、How ERP Can Help Your Business

Can promote the development of enterprises. We provide flexible, industry-specific ERP software designed with the needs of customers in production, distribution, retail and service industries in mind. We specialize in our clients’ unique business processes and operational requirements. With a deep understanding of your industry, our solutions can both advance business and manage complex matters. That’s why we deliver powerful solutions that help you unleash the potential of your resources to grow your business.

To learn more about our solutions, please click on any of the links below:

Purchasing Management System
Business order system
Material Storage System
Production report system

Production Management Scheduling System
Personnel attendance system
Financial Accounting System
management report

9、Implement an ERP system in your business

When you’re finally ready to implement an ERP system in your business, follow these best practices to ensure success:

Understand business processes and key requirements. Thorough understanding of all the domains, processes and tools that make up the business. Take the time to document what went wrong, processes that worked, questions you have, and any other observations that need to be documented to prepare your business for implementing a new system.
Build the business case for ERP with a positive ROI. List all the benefits of implementing ERP software in checklist form. Share the checklist with team members, decision makers, and key stakeholders. Focus on areas within your organization that are not working today and how you think an ERP system can help address them. Identify key performance indicators that you can use as metrics once the new system is fully implemented within the organization.
Ensure proper project management and resource commitment. Delegate team members to be responsible for managing the implementation process from start to finish. Make sure the delegate has enough resources to complete the task.
Obtain commitment from management and company level. Gain support and input from everyone in the company from top to bottom. Make sure everyone understands what you’re doing, why, and how it affects them and their work.
Understand the value of planning ahead. Early planning can reduce the time it takes to fully implement an ERP system at your company. Think about the resources needed for each step of the deployment phase, and try to ensure that the deployment process is smooth and efficient
Begin centralizing data migration early in the implementation process. Determine how much of your legacy data you want to migrate to the new system, then create a plan to start the migration process early. Waiting until the last minute could spell disaster for your business operations. Actively invest in training and change management. Give employees and team members ample time to understand why you are implementing the new system and how it will affect their roles. Make sure everyone is on board and encourage team members to come to you when they need it.
Know exactly why you’re implementing ERP. Remember why you are implementing a new system in the first place. Define requirements, establish metrics, and develop a business plan that clearly articulates the benefits the company expects from implementing the new system.
Seek outside assistance when necessary. If you need assistance with any part of the implementation process, please contact a consultant whose expertise and advice will be useful.

Following these recommendations and best practices will make the entire implementation process smoother. They will also help you gain employee buy-in to achieve the goals you want to work toward once the system is in place.

10、Measuring ERP Performance and ROI

Measuring the performance of the ERP system (ERP system) is an important part of confirming the return on this investment or continuing to invest in the future. When implementing an ERP system in your company, you should have specific goals for what you can achieve with the new system in place. How you measure performance will depend on the nature of your business, but here are a few general questions to consider when setting goals:

Will this system make my employees more productive? How much is the increase?
Will this system make myself and my employees happier?
How will the new system affect customer satisfaction? Can I predict measurable impact and set specific goals?
Can this system help us increase sales, repeat sales, conversion rates, customer retention, etc.? How much is the increase?
Will the new system give us a strategic advantage over our competitors? How to achieve?
Will this move improve our relationships and processes with global vendors? How do I track it and what are my goals?
Will this system improve supply chain and inventory activities? What are the main metrics we are tracking now, and how will those metrics improve once the system is in place?

Think about the metrics and goals your company is currently tracking, then make forecasts and develop KPIs to track success and progress over time once your new ERP system is in place.