The ERP system, or Enterprise Resource Planning, has now become an essential part of companies, especially for those aiming to have integrated and more efficient business processes.
As technology continues to evolve, so does the demand for ERP systems.
In fact, data shows that 50% of companies are currently adopting, updating, or planning to optimize the use of ERP.
Want to learn more about ERP? Read on!
What is an ERP System?
An ERP system is an integrated software system capable of managing and collecting data from various departments or divisions within a company.
For example, ERP can integrate data from accounting, sales, manufacturing, supply chain, marketing, and even Human Resources (HR) departments.
By integrating all this data into a large database, company management becomes more efficient, able to analyze strategies effectively, and even save on operational costs.
The implementation of ERP itself began to develop in the 1960s and became widely used around the 1990s. The presence of ERP systems aims to automate daily business operations.
Types of ERP Based on Implementation
What types of ERP systems are there? Based on implementation or usage, ERP is divided into several types:
1. On-Premise ERP
This is software where installation and operation are handled within the company itself.
This system allows the company to have full control over all data and infrastructure.
It is commonly used by small to medium-sized companies, especially those that want to keep data within their internal environment.
However, the downside is the higher initial costs for software and hardware installation and maintenance.
2. Open Source ERP
Another example is open-source ERP, which allows companies to view, modify, and develop the ERP source code according to their needs.
This type offers flexibility for customization, enabling companies to adapt the ERP system to their operational requirements.
However, your company must have a strong team to manage and adjust the source code.
3. Cloud-Based ERP
Next, there are cloud-based ERP systems, where you can access hosting services in the cloud in real-time.
This system is very popular, especially among large companies. Why?
Because of its high scalability and the lack of need for physical server infrastructure, unlike on-premise ERP.
The advantage is the affordable initial cost, but you need to subscribe continuously.
4. Hybrid ERP
Lastly, there is the Hybrid ERP system. As the name suggests, this type combines on-premise and cloud systems.
What are the benefits? You get the advantages of both systems.
Data will be stored in two places: on the company's server (on-premise) and partially in the cloud.
Who is it suitable for? This type is ideal for companies looking to adopt cloud systems gradually.
Benefits of ERP Systems
With so many types of ERP systems, what are the actual benefits? Will companies immediately gain significant profits by implementing them? Check this out:
1. Ease of Coordination
The first benefit is the ease of coordination between departments. With ERP, all coordination processes can be monitored in real-time.
Communication between departments becomes faster without the need to contact or visit the relevant division first.
2. Ease of Data Analysis
ERP is not just about storing data in a large repository. It also helps companies collect, analyze, and report data accurately.
This allows businesses to make real-time decisions and adjust processes as needed.
3. Practical Solutions for Scheduling and Management
ERP systems also make it easier to manage schedules, such as employee shifts, company maintenance, inventory delivery, and operational organization.
4. Cross-Department Collaboration
In large companies, departments often work separately, making coordination difficult.
ERP addresses this by providing an integrated system where all teams can collaborate better.
For example, when the sales team receives a large order, they can immediately check stock status in the warehouse.
If stock is low, they can coordinate with the production team to increase production, while the finance team can handle payment records and invoices.
With a system that unifies all information on one platform, companies become more efficient.
5. Cost Savings
ERP may require an initial investment, but in the long run, it saves operational costs. How? ERP helps you save expenses by:
- Reducing the need for paper and manual documents: All data is stored digitally, eliminating the need for printed reports.
- Minimizing data input errors: Administrative errors can cause significant losses. With an automated system, human errors are reduced.
- Increasing workforce efficiency: Automation reduces the need to hire many people for tasks that ERP can handle.
- Reducing stock waste: ERP simplifies inventory management, preventing overstocking or shortages that could harm the company.
6. Enhanced Data Security
In today's landscape, data security is crucial. If your company still uses manual systems or separate software for each department, the risk of data leaks or loss is higher.
Why is ERP more secure? Because ERP has advanced security features like data encryption.
Encryption ensures company information is safe from unauthorized access.
Additionally, role-based access allows employees to access only the data relevant to their tasks.
Automatic backups also help in case of disruptions, allowing quick data recovery without the risk of losing critical information.
With these features, implementing ERP in your company is definitely worth it.
Optimize Your Business with Flexible and Efficient ERP
If you're considering adopting an Enterprise Resource Planning (ERP) system for your business, don’t choose a platform carelessly.
Not all ERP systems are suitable for every business. Some are too expensive, too complex, or lack flexibility to adapt to specific company needs.
Therefore, choosing a modular and customizable ERP is a strategic step to ensure efficiency without straining your budget.
The solution? Use Ferbos ERP. Based on Odoo, this system offers high flexibility with various modules such as sales management, projects, finance, and HR.
Plus, it’s more affordable than many other ERP systems, making it suitable for small businesses to large enterprises looking to optimize operations without breaking the budget.
With server setup support, custom development, and training & maintenance, Ferbos ERP helps businesses grow more efficiently!