Today, the use of business systems is essential even for small businesses. Even if only a small accounting system is used, the operational efficiency of using the system will be incomparable to doing so manually. To ensure the efficient execution of business, the use of effective business systems is an important part of management strategy.
A common problem for companies that have implemented business systems is the increased workload caused by using multiple independent business systems together. Many companies have independent business systems such as sales management system, inventory management system or accounting system, and many companies may have difficulty exchanging data between systems at the end of each month. In addition, many companies may have duplicate master information in each system, such as vendor and customer masters, and many companies may have to spend a lot of time and effort changing masters. Although a business system has been introduced to improve business efficiency, it is a real downfall if a large burden is placed on the operation of the system.
The implementation of an ERP system is a means of solving these problems. ERP (Enterprise Resources Planning) refers to the concept of properly allocating and effectively utilizing management resources, but ERP system is often viewed as enterprise (core) information system. All functions such as accounting, inventory management, sales management, and procurement management are configured within a single system, and information such as masters is centrally managed. Because all functions are connected, even if a single part is issued to the production line, the result is immediately reflected in the financial statements. Also, when changes are made to master information, they are immediately reflected in all functions that use that master information, simply by changing the common master that is managed centrally.
There are various types of ERP systems, and the choices will vary depending on the size of the company, industry, and budget size, but selecting a system that fits your company will help you improve the efficiency of your operations. If you have any questions about business systems, please contact us.