What is the Benefit of Using ERP?


The primary objective of using ERP is to optimize the management of a company’s processes. This allows the structure to improve its efficiency, by making many processes that it uses regularly automatic. It should be noted, however, that there is strictly speaking no Best ERP System in Saudi Arabia given that this type of solution is modular.

In other words, companies will choose the modules to integrate based on their main activity. It goes without saying that certain modules will suit some companies better and will be less so for others. The key to getting the best ERP is for the structure to choose the solutions specific to its category of activity, its size, its services and what it wants to improve.

The Basic Modules of an ERP

Although integrated management software packages consist of several modules, some basic modules are offered by the major vendors. Among these, we cite in particular the finance, human resources, purchasing and supply, customer relationship management and finally business intelligence modules.

The Finance Module

This first module assists the company in its financial management. Concretely, it will intervene thanks to the recording, the follow-up as well as the consolidation of commercial and operational information. All of these will be grouped together in a centralized accounting system. To provide this essential basic functionality, the ERP uses various accounting management tools.

The Purchase or Supply Module

This feature helps in managing procurement processes. He intervenes as soon as the purchase orders are issued, and takes care of the management of the suppliers, the follow-up of the payments but also of the generation of reports. Thanks to the ERP, requests for approval of vouchers and payments are automatically transmitted to the relevant decision-makers.

The Customer Relationship Management Module

This module, which is also called the CRM brick, is a centralized repository of customer information. To be able to be exploited, the whole of the company as well as all the commercial services will have access to it. Thanks to the automated management of customer relations, the module will proceed to the organization of all the interactions of the structure. This specifically concerns its relationships with customers and prospects. This follow-up of interactions is of interest to all departments dealing with customers. This may be the sales, marketing or after-sales service department.

Business Intelligence

This solution allows the company to evaluate its performance. The goal for the structure is to have a vision that is both clear and synthetic of the KPIs. To fulfill the function assigned to it, the module offers dashboards, generic reports as well as personalized reports relating to the various activities of the organization.

ERP Modules Specific To A Sector Of Activity

Enterprise resource planning (ERP) is modular software made up of a suite of applications. Some modules such as customer relationship management, finance and human resources management are basic modules offered by all software publishers. Alongside, others, more specific, are chosen by companies according to their sectors of activity. These include supply chain management, project management and production management.

The Supply Chain

The logistics chain module, also called supply chain, allows you to perform various operations. These are in particular in connection with partners and suppliers within the framework of the supply chain. This concerns, for example, the supply of raw materials or the management of stocks. Thanks to this module, the company manages its supply chain in an optimized way by centralizing the management of all services. Good management of the supply chain helps decision-makers in their decision-making. The aim is in particular to optimize costs in a single step.

Project Management

As part of project management, the ERP module will take care of the management of calls for tenders. Without forgetting also the planning of the resources, the work distribution structure as well as the contracts and the structures.

The advantage is that decision-makers can have an overview of all the resources that the project requires. These are quantified in particular in terms of stock, assets, materials and labor. Just like resource consumption visibility, the company can also track the profitability of its project while controlling the margins during execution. In this way, managers can optimize the performance of the project on the one hand, and on the other hand, ensure that the KPIs are well achieved.

Read More: projects control management system Saudia

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