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What Is the Use of ERP for Enterprises? What Are the Functions of ERP Software?

Published on: 2019-05-27

  What is ERP useful for in an enterprise? What can it help an enterprise do? Nowadays, with the rapid development of information technology in China, many companies have implemented enterprise ERP systems. So what is ERP useful for in an enterprise, and what can it help an enterprise do? Next, I will give you a brief introduction.

  What Is ERP Useful for in an Enterprise:
  I. Sales Management
  1. Customer resources are managed centrally, and sales staff can only add or modify customer information, with no permission to delete it;2. All customer purchase records are stored in the system and can be viewed on computers, mobile phones, and iPads; 3. Product inventory information and customer quotations can all be viewed through the system, and inventory information is updated in real time;4. An online store can be established so customers can place orders independently through the store;5. Product information and order information in the store are synchronized to the ERP management system in real time;6. Managers can help sales staff formulate work plans and monitor employees' work progress in real time through the ERP management system;7. Various data reports can be generated automatically based on order data to provide a basis for enterprise decision-making; 8. Corresponding promotional activities can be formulated according to the actual conditions of the enterprise to facilitate more transactions.

  II. Procurement Management
  1. All transactions with suppliers are stored in the management system and can be checked at any time, making it convenient for purchasing staff to negotiate prices with suppliers; 2. All accounts receivable and payable can be queried in the system; 3. All supplier historical quotations can be checked, making it easier to monitor purchase prices; 4. Product inventory is updated in real time, making procurement planning more accurate; 5. Inventory warnings can be set so items that are out of stock or about to be out of stock are reminded in time; 6. Procurement plans are generated intelligently, reducing the workload of purchasing staff.
  III. Inventory Management
  1. Warning rules can be established, with custom rules for product validity periods, maximum inventory, minimum inventory, and more. When a product's validity period or inventory reaches the warning point, the system automatically issues a reminder to keep inventory at a reasonable level; 2. Product quantity and price are entered initially, and after goods move in and out of storage, inventory quantities are automatically updated, allowing real-time viewing of inventory and the funds tied up in inventory.3. Picking is consolidated, and the system automatically sorts ordered products according to warehouse shelf numbers, allowing all goods to be picked in one pass; 4. Goods can be received into storage by barcode scanning, and with a scanner gun, products can be warehoused with a single scan.


ERP Software Functions


  ERP Software Functions:
  1. Improve efficiency

  Enterprise ERP systems can integrate procurement, sales, warehousing, and other business activities with financial operations. They can use planning management (MRP) to respond quickly to market demand; optimize the management of sales demand; strengthen the integrated management of procurement demand, production scheduling, logistics distribution, and more; and thereby realize synergy among all management departments and links, improving enterprise production and operating efficiency.
  2. Realize informatized management
  Informatization is the only path for the development of modern enterprises, and ERP systems also play a catalytic role in this process. Through ERP systems, information can be transmitted smoothly among various business departments, turning information islands into shared platforms, increasing information sharing, expanding the scope of information sharing, and shortening the delay of information sharing.
  3. Process-based management
  Enterprise ERP systems can also change the enterprise's management model and promote a shift from functional management to process-based management. When enterprises design departments and positions, they can break departmental boundaries and design positions and responsibilities around processes. For example, through production processes such as material issue forms, material requisition forms, and finished goods warehousing that originate from production task orders, enterprises can design and adjust corresponding positions and standardize job responsibilities, thus realizing process management. In this way, unclear departmental responsibilities and mutual shirking can be avoided from the process perspective.
  4. Strengthen internal control
  One important manifestation of irregular management in private enterprises is weak internal control and a lack of necessary control links and methods. Through the establishment of ERP systems and the streamlining of business processes, effective internal supervision, review, checks and balances, and control mechanisms can be established.
  5. Shift the focus of the finance department's work
  In traditional private enterprises, finance mainly means accounting. As enterprises develop, financial management in private enterprises should also keep pace, gradually extending from simple bookkeeping, accounting, and after-the-fact recording functions to the business level, including deeper processing of business data and risk control before and during events. This helps improve the accuracy of accounting and the predictive capability of financial management.


ERP Software Functions


  ERP management systems help large, medium-sized, and small enterprises optimize management processes, improve overall work efficiency, enhance core competitiveness, and allow enterprises to gain a larger market share in a short period of time.

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