ERP, Modern Business Needs

ERP, Modern Business Needs


ERP or Enterprise Resource and Planning, is a system that integrates all resources and operations of the company so as to create an integrated and efficient system, so as to improve company performance.
With the ERP system each department within the company be able to function more efficiently, more quickly and precisely in the decision because all the necessary data is available, accurate and realtime. All departments can interact so as to produce positive synergies that can improve overall company performance.
Targets to be achieved from the implementation of the ERP system is a pressing cost / costs as low as possible, and to encourage sales / sales as high as possible, which means it will result in increased revenue / opinion of the company at an optimal point, of course it is this which is always desirable for all business owners. But then the question is: does that mean that all employers want an ERP system? it turns out the answer is No !, because not all successful ERP implementation

Increase in net profit to 100% ??

By implementing ERP, companies can reduce (or even eliminate unnecessary) costs of operating expenses from cost of purchases / procurement, inventory and warehouse costs, production costs, up to the cost of sales, accounting, personnel / HR and others.
Meanwhile in sales, with sales management and customer management / customer settings and monitoring sales systems can push sales up at an optimal point.
How much is the increase in revenue that can be obtained with the implementation of the ERP system? exact figures on what percentage increase that can be achieved is still a debate in many circles because it is something very subjectif, depending on the type of business enterprise and the conditions before and after using the ERP system.
At a company that is very wasteful and run it manually (tanpai system) increase net profit 100% is not impossible, because in addition to increase sales and reduce costs, management of inventory either in collaboration with the management of sales and purchases can reduce inventory as low as possible, so that settles capital will also be lower, which may result in a decrease in interest costs, the cost of storage, handling, and others.

ERP is most appropriate for your company ??
This question is a favorite question that is frequently asked. ERP is most appropriate for your company is the ERP that meets some of the following conditions:

1. In accordance with the Budget your company. Where this is an important requirement and the primary, because if the price is too expensive ERP implementation so that the company's financial drain, it could be the implementation of ERP is not a solution but instead accelerate the company toward bankruptcy. The price of an ERP implementation can range from tens of millions of rupiah to tens of billions of rupiah, depending on the type of ERP vendors, consultants qualifications, long implementation and complexity of implementation.
Pelu also noted that the annual fee should you spend on ERP applications you use, since generally each application ERP implementing annual fees which vary from 18 s / d 22% of the initial cost.

2. In accordance with your business Every ERP applications generally sought to be implemented in all types of industries although at first they departed from a particular type of business. For that look for information about the type of successful ERP implemented for companies that are similar to your company. ERP systems are most closely with your business processes to minimize the customization process will generally take no small cost. But this does not apply if you use open source ERP applications where the source code is available, so that the cost of customization is cheaper or even your own custom can do when able to do so.

3. Easy to maintain Implementation of the ERP system is not an objective, but rather is the beginning of a process of continuous improvement to achieve optimal conditions. Thus you will need a system that is easy to care / maintain, and which has been tested in various kinds of companies where this will prevent you from bugs and errors that often occur in the application of new types of applications. Subsequently seek the support of ERP systems are available, either from vendors directly or through consultants. Additionally look for ERP applications to master the technology, for example, if your HR expert in Java programming, Java-based ERP look.

4. Easy upgrade Every business will continue to evolve to follow the dynamics of the world economy, so the ERP system must always be able to follow the demands of companies in the following business dynamics. The ERP application to look for a dynamic and easy to upgrade.

5. Based on the latest technology in use ERP applications of course you do not want to annually replace the ERP system because the old one was obsulet / outdated, therefore look for ERP-based applications Latest technology, and features the features of today's business world demands and future , one of which is the availability of Web-based interface, online shop facility, integration with email, capable of dealing with multi-location database via the Internet and others

6. It has the smallest risk of loss should be recognized that not all ERP implementation process always works, where the failure of ERP implementation can be caused by many factors, ranging from technical constraints such as ERP systems are less suited to the business processes of the company or a non-technical constraints such as low penyerapa / reception HR to apply the new system (which is generally very different from the previous) or because other non-technical reasons. So if the company has invested substantial funds for implementation will become a major dilemma for the company, because if backward / void of the implementation of the investments already incurred, while large enough if the problem continued to be heavier. Imagine if the company had several billion rupiah fund menginvesasikan but apparently failed system implemented well, this certainly is a dilemma that is heavy enough for the company.

From the above information would be able to make a positive input for companies that are planning to implement ERP applications. Adempiere ERP application is one of the best option because it meets all the above criteria. But still a lack of knowledge and lack of user training event or training Adempiere often constrain the company to carry out exploration and implementation Adempiere system.


Regards
Agung Budi Santosa
Adempiere INDONESIA.  ordinary user