ERP is an overall operations management system, real-time (instant), multi-functional management, supporting all internal business processes of a company. ERP supports all core business processes such as order processing, inventory management and control, production and distribution planning, and corporate financial administration.
ERP software systems provide the automation, integration, and intelligence needed to efficiently run all day-to-day business operations. Most or all of an organization's data should reside in the ERP system to provide a single source of truth for the entire enterprise.
Why need to use ERP?
The system contains operations and information - Knowledge of the enterprise
- The need to digitize and store information.
- Aggregate data automatically.
- Links between all processes.
- Business Intelligence.
- Build plan better.
- Increase competitive advantage.
- Management costs are optimized, productivity increased.
- Can access the latest technologies that the world is applying.
Scope when implementing ERP system
Select the module to be deployed, divide the implementation phase, and limit the scope so that the system does not go too far in the wrong direction of the original needs. The subsystems need to clearly detail the activities that will be posted to the system such as:
- Finance-Accounting: budget management, asset management, treasury control, costs and corporate cash flow control.
- Logistics: Production planning, materials management, factory maintenance, project management, event management, etc.
- Human Resources: Records management, personnel training and development, etc.
- Supply chain: Inventory control, purchasing and order control, planning, supplier scheduling, etc.
- Workflows: Integrate the entire organization with flexible assignment of tasks and responsibilities to positions, positions, jobs, and more.
Advantages of ERP system:
- Reduce unnecessary working time in operations such as departments doing the same thing unnecessarily without applying ERP
- Increase better customer satisfaction. Increase flexibility, quality and efficiency. Improve information accuracy and decision-making ability.
- Improve resource utilization, improve supplier performance, reduce quality costs, make decisions quickly. Supports forecasting and optimization, with better transparency.
Disadvantages of ERP system:
- Cost and implementation time.
- Difficult to integrate with other systems.
- Risk of unsuccessful implementation.
- Difficulty making changes.
- Risks of using a supplier.
Modules of ERP
Subsystems are divided according to department operations
- CRM and Customer Interaction
- Sales management
- Production Management & MES
- Purchasing Management (SCM)
- Mobility Inventory Management
- Financial Management
- Human Capital Management
- Project Management
- Fixed Asset Management
- Field Services Management
- Smart Factory Management
How to deploy a large system successfully?
Determination and steadfastness in bringing knowledge into ERP
Even though it is a software system, the success of the project depends on human resources factors. ERP is a collection of management processes and information, including business operations. The core of the system is only general. In order for the system to operate according to actual operations, businesses need to bring knowledge and professional information into the system so that the system becomes the "soul" of the business.
Core staff who understand and understand operations as well as overall management information are the key to the successful operation of the system because:
- When ideas are not true to reality, the system that operates for ideas and not for reality is in need of management.
- When the system has too much information but cannot solve the real situation that the user needs.
- When the process is too strict but in reality you need to be quick, convenient and still controllable.
- When employees resist using the system because they think it is cumbersome, time-consuming, unintelligent, etc.
After all, the above things all come from human factors and equally important are the software solution consulting personnel of the implementing unit.
- Providing an unreasonable solution will easily cause disruptions in the operation of the information flow.
- Not enough experience to understand system functions and business operations.
- Project setup: scope, participating teams, management requirements information, processes, data.
- Design: actual survey and application to the ERP system to provide solutions.
- Build: calibrate the system according to established requirements, prepare system test scripts, test, calibrate after testing, user training, calibrate after user training, user acceptance testing.
- Transfer: prepare the system, configure it, convert data into a ready-to-use system.
- Operation and support: real input on the system, real data, support for error correction during the first period of operation, user support.
Before starting to implement the ERP system, building and creating an implementation plan is necessary and important to serve as guidance and goals to achieve each step during the project implementation process. The more detailed the plan is, the easier it is to carry out the project and shorten the implementation time. During the implementation process, to avoid affecting the work being done, for each effective working session, it is necessary to have clear criteria and results achieved according to the previously planned plan.
ERP system platform
Use software companies in the top 5 in the world
- System architecture is not disrupted because large systems have accumulated experience from large enterprises. - Not dependent on the deploying unit because the company has many partners to support each other in the process of providing and deploying its products. - The most modern utilities and technology developed by the world's leading IT experts. - Platforms from companies: SAP, Oracle, Infor, Epicor, Microsoft,...
