What is ERP Software? Uses and Benefits to the Company

ERP software is familiar with all company activities, especially in operational activities. ERP is a software system that has the function of managing company resources on a large scale. For those of you who are still quite unfamiliar with the term ERP software, here we will briefly review the definition of an ERP system and its benefits to the company.

Definition of ERP Software

ERP is an acronym for Enterprise Resource Planning which refers to software with a system used to plan and manage the entire core supply chain, manufacturing, services, finance, and any processes in a company. ERP software is a system in the form of software to help all company management activities.

History of ERP Software

The emergence of ERP Indonesia systems dates back to the early use of calculating machines for businesses in the 1940’s. Then the output at the company increased so that computational solutions were created in the 1960s.

It was in this year that the system began to handle inventory management and control. In the 1960s the ERP system was introduced which later in the 1970s continued and led to the creation of MRP (Material Requirements Planning) software to help plan needs in the production process.

In the 1970’s to 1980’s this system has evolved in various companies. Until the 1990s, the ERP system was first used in corporate resource planning.

What Are the Uses and Benefits of ERP Software?

Here are some of the uses of ERP software for companies that you need to pay attention to:

Simplifying Company Operational Activities

ERP helps all company activities to be more efficient, concise, and faster. With a system like this, each team will be more focused on doing its job without interference from other parties. In essence, ERP greatly simplifies and speeds up the company’s operational activities.

Guaranteed Data Security

Using an ERP system, the security of all company data will be guaranteed. The system has a firewall to control restrictions to prevent data breaches. All data is stored in a very secure and tight system.

Accurate Business Forecast

ERP software has a good and sophisticated analytical system so that it can filter out inconsistencies in data. ERP systems are very important for company operations in order to get real, complete, and consistent reports.

Here are the benefits of using ERP software

More Efficient Company Operating Costs

ERP systems help companies to reduce operational costs. This is because all company activities switch to ERP software which is more automated so that it can reduce manual labor costs.

Guaranteed Company Data Security

By using an ERP system, the security of company data is more guaranteed because ERP software has a firewall and restriction controls to prevent any data breaches. The ERP system also shows all user activity so that the admin can control and check if there are employees who are carrying out suspicious activities.

Better Corporate Planning

ERP systems are able to manage operational planning that is more valid and structured so that this can increase the company’s competitiveness and increase profits.