Have you ever heard of ERP and have no idea what it is? Well, calm down, you have reached the ideal place, since we are going to give you all the details about what is an ERP , its function and the advantages of its application in the business environment.

Today, the management of a company is carried out in a simple way thanks to the existence of computer systems and programs such as ERP, which is responsible for managing processes in an organized manner, in real time and with great efficiency. For this reason we are going to explain what is an ERP and what is it for .

Definition of ERP

definition-of-ERP

When we talk about ERP We refer to a software specially designed to carry out the planning of the resources of a company. It is known as ERP, which stands for Enterprise Resource Planning or Enterprise Resource Planning System.

Now that you know what does ERP mean, We inform you that this type of software performs different internal operations in companies that range from human resources to the distribution and automation of administrative and productive processes, obtaining greater control over what they do and using the information efficiently.

This type of program represents one of the best investments that can be made in companies, since it allows them to increase their productivity in a fairly efficient way.

What types of ERP exist

What types of ERP exist

There are many types of ERP and they vary according to their scale and the functions they offer.

We present the different types of this system that are available today on the market:

SAP

To this system called SAP It is considered a leader in ERP on a global scale, because it is very functional and stable, being one of the protagonists of the so-called digital transformation, but being realistic we can affirm that it is not very flexible, according to the verified opinion of several users, in addition to requiring qualified personnel for its implementation and subsequent maintenance.

Microsoft Dynamics Ax Axapta

It refers to an ERP that has incorporated a series of planning software, which is very discreet and functional for large, medium and small companies. Its qualities include its simplicity of use and flexibility.

Oracle

In the world we live in, companies are increasingly looking for professionals capable of working with databases. The technologies developed by Oracle are present in everything that surrounds us. This is the great competitor of ERP SAP, because it has a wide variety of solutions at the administrative and business level, which are very successful for different types of companies. Among its most recognized software are Oracle JD Edwards Enterprise One, Oracle People Soft and Oracle E-Business On.

Infor LN

It refers to the youngest software as far as ERP is concerned, so it is much more visual than the previous ones and its functionality is not as advanced, although over time it has been refined to better optimize the processes that are carried out out in companies.

Difference between ERP and CRM

As we already clearly define what is an ERP and what is it for, now we will indicate their differences with respect to the CRM system, thus establishing an overview ERP vs CRM With which you can clearly define which of the two is the most convenient for your company, although of course they are not incompatible by any means, in fact, it could be said that both are necessary.

First of all, it is important to note that both CRM and ERP are information and management systems that allow covering different areas of the organization.

For example, ERP is an enterprise resource planning system, which helps the company to mainly control its production, logistics, inventory, distribution, invoices and accounting and the CRM is a software for managing customer relationships. The main objective of CRM is to have all the information about any client at any time, both to satisfy their needs and to obtain market studies that allow the design of better business strategies.

To optimize the resources and profitability of a company, there are two points that are considered key: the increase in income and the reduction of costs. From this point of view, it seems clear that having an ERP system is not incompatible with a CRM, since each of them will help us manage each of the parts.

While CRM can help us attract new clients, new sources of income, or at least increase the income that comes from existing clients, an ERP will help us reduce costs as much as possible, through a good organization of production, inventories and logistics, as well as by automating accounting and billing, which greatly reduces the operational risk associated with manual tasks. A suitable combination of both systems can lead the company to the optimization of resources and the maximization of profitability.

In any case, management systems are increasingly in demand by companies, and provided that they are chosen based on an exhaustive analysis of the company’s real needs, they can constitute a fundamental aspect for good sustainable results over time.

If you have an international or national company or a SME, you can implement both systems with complete confidence, because their modules can be customized, thus adapting to all types of companies.