Do you have decreased the income of the company? The tasks in each area are not proving an optimal performance? Within the different tasks that are performed on the inside of a company, the administration is a key support in productivity, but unfortunately it is always carried out in the best way. To resolve this situation recurring uses an ERP software that takes care of the integration and centralization of the different processes that make up an organization.

ERP Software definition

The term ERP (Enterprise Resource Planning), it is translated as Enterprise Resource Planning systems, which are techniques of information that unify and automate many business tasks that have to do with the operational practices and productive in each sector.

ERP systems in general have the function of unifying each one of the areas of production, logistics, distribution, inventory, accounting, sales and human resources of the company to facilitate the general regulation and help optimize decision making that impact positively the company.

ERP Evolution

The evolution of the ERP software is the advancement that have brought different types of programs to business management. Year-on-year have been designing new, improving the already established and, above all, incorporating its function to the company, and combining it with the traditional model of work. It might be thought that this type of system is a recent introduction, but really the background to the ERP’s dating back to the year of 1945, at the end of the Second World War when the American government was seeking a way to manage and organize your inventory of material resources used in the battle front. In this way, began designing specialized programs that offer an effective solution and optimized for the organization of its inventory. Once applied these computer systems, they discovered all the benefits brought with them, and when the war ended, the programs started to be implemented in the industry.

• Management and control of inventory system

In the 1990s in the 60’s already carried inventory management strategies are very similar to those currently have. A system was created to maintain an adequate level of stock in warehouses, by means of automated management initiatives to maintain a minimum quantity of products in store and dispose of them at the right time

• Material Requirement Planning (MRP)

For the year of 1970, MRP systems were mixed in the production processes when planning the requirements of materials. The main function of this type of applications was used to answer the questions when and how much. That is to say, provide a demand-based approach in the planning and organization of the raw material, depending on the state of the inventory.

• Material Requirement Planning (MRP II)

For 80 years, earlier systems were further refined for the MRP II, which managed the supply chain from start to finish. Your task is to examine the state of the inventories and of the processes of sale to invest in material resources at the time necessary, according to the established objectives.

• Enterprise Resource Planning (ERP)

At the end of the 90s, the computer programs had already moved and for the first time applied a ERP software in all areas of a company to manage effectively. Are a type of program that helps improve the performance of the internal processes and supports decision-making.

ERP nowadays

At the beginning of the 21st century, the multiple benefits of ERP system had been already knew  and in this way many companies began to rely on this solution for inclusion in each of its processes. Simultaneously, this software demanded an establishment enabling custom coding of enterprise data. The inclusion of the internet in the business processes evolved the technology further of the ERP’s, because the combination of both in addition to providing a comprehensive and integrated analysis of areas of a company, developed the model of an ERP software “in the cloud”, which means that now with this type of technology is saved and access all the information of the company from any site and in a simple way. At present, the cloud is a feasible alternative that include ERP systems and that helps to reduce capital and operating expenses, since it eliminates the need to hire staff to update the databases or the need to purchase hardware and software issues. In the beginning these programs were too expensive, but the constant advances in its design made them affordable for companies. In other words, an ERP software is an effective solution for small, medium and large companies that can implement to acquire an efficient innovation and take advantage of new business opportunities. Today, count with an ERP system allows you to respond to the demands of the market without losing sight of the specific objectives of each company. The digital age is a fact and continues in constant advance, therefore the work mode requires the approach to mobile and social technologies with a contact surface easy to use that allows the optimal integration of information without any risk.

Is an ERP a good  investment?

It is well known that technology changes in the blink of an eye and in consequence of this, change business practices, as well as the demands of customers and a way to adapt to this persistent model of development is acquiring an ERP system. Their technology is kept to step of the changes and guarantees to act according to the requirements of the sector. These programs deliver results in increased sales with each of your applications, which are intended and designed under the common structure of information technologies that make it easier for the employees greater visibility and awareness of the business. Hence the success of the implementation of an ERP system to demonstrate best practices in business procedures.Now the immediacy and accessibility are the key to this investment that is adjusted instantaneously to the particular needs of each company. The domain of business management is an issue that is emerging as a scope that will endure for many years, but not everyone will be able to be part of it. A ERP software provides the firmness that any company requires in the future to sustain and increase the competitiveness and profitability of their activities and thus be able to stand out as one of the cutting-edge companies of the sector

Advantages of an ERP system

ERP systems have multiple advantages offered to manage their business. Some of these are:

• Informatic security

The ERP’s kept safe at all times the information, provide restrictions on various levels of the organization and only granted access to relevant users. In addition, centralized data that provides backup feature to support and protect the records of any error.

• Decision making

To have unified and centralized information is easier to consider future expectations with greater precision and thus make the decisions that have a greater positive impact on the future of the company.

• Operative efficiency

Each of its applications help to reduce manual tasks and automate the activities already in place, reducing the possibility of mistakes. In addition to this, avoid duplication of work thanks to its operational efficiency.

• Clients and suppliers integration

A ERP software has the added value that links to customers and suppliers together both work in the design and development of new strategies that have an impact objectively in the company’s productivity.

• Earn on time and expenses

When there is an operational efficiency, a decrease of errors and there is no evidence of duplicate activities speaks of a significant reduction of time and costs in each business task that is optimized

In addition, these computer systems offer intelligent solutions that facilitate the generation of reports on the state of the company providing a level of knowledge more detailed and up-to-date each internal process that is the responsibility of each area.

Which enterprises need an ERP software?

Any company regardless of its dimension can enjoy all the benefits of an ERP system, who has the technology that can be installed in any type of industry and thanks to its various applications characteristics it is possible to customize the ERP software that will enable the general control of each area. An ERP helps to increase organizational value thanks to its agility which helps to keep under control each of the activities of the company, modify and update databases and optimize processes that reflect a gain in the overall profitability of the company.