What is ERP?
What is en enterprise resource planning system? How does it work?
What is ERP? What does this stand for?
An ERP (Enterprise Resource Planning) system helps companies to automate and manage business processes which are important for them to achieve the best results. Its purpose is to streamline and optimize operations within a company. There is also a cloud-based solution.
The history of ERP systems
From IC, to MRP and then ERP
The history of ERP can be traced to the 1960s, when basic programs were developed in order to simplify the work of the company management. These programs, known as IC (Inventory Control) programs, were primarily intended to support decision making in the field of inventory control. The next stage in this development was the establishment of the MRP (Material Requirements Planning) standard. The purpose of this standard was to manage production processes and needs analyses for materials.
Continued development and expansion of this type of program led to the advancement of ERP systems. These systems provided more extensive functionality that covered areas such as logistics, stock management, finance, accounting, staff administration and payroll management.
Aims and objectives of the ERP system
Process optimization and management support
The primary goal of the ERP system is to support management of the company’s resources, structure and optimize all its processes, and thereby have a measurable impact on speed and quality of manufactured products as well as the company’s development and profitability.
The ERP system affects:
- Process improvement and automation
- The ability to make the right decision
- Careful tracking, analysis and reporting
- Effective planning of delivery and stock
- Optimal management of all the company’s resources
- Digitalization of the company
The functional areas of an ERP system
The whole company in one ERP
A complete ERP system should cover as many business processes as possible in a manufacturing company, as well as its areas of function. Monitor ERP is a standard system comprising six modules whose functions provide comprehensive support for management of the whole company.
- Manufacturing module
- Sales module
- Purchase module
- Stock module
- Time recording module
- Accounting module
Why do you need an ERP system?
Why is an ERP system really necessary? What can an ERP system actually change? What can it impact, and will it have a positive result?
A carefully selected ERP system which is tailored to manufacturing companies enables you to effectively organize and optimize your processes. It helps companies to realize their full potential by efficiently managing material resources in an effective way and improving both efficiency and productivity in your business. This leads to corporate growth, improves product quality and enables continuous development.
Monitor ERP is an award winning ERP system for manufacturing companies. Whatever you manufacture, you’ll need an ERP system which handles every area of your business – Monitor helps you keep track of material requirements, invoicing and everything in between. It will also make your business more efficient.
Standing in the way of progress
There are still large numbers of companies which use basic, sometimes obsolete programs and tools, or have used the wrong ERP system. This is likely to stand in the way of the company’s growth, as well as negatively impact product quality and the business as a whole.
Lack of integration
Maybe you’re already using an ERP system which doesn’t integrate seamlessly with other programs, or where your processes are not correctly optimized. This can lead to more negative consequences than benefits.
When requirements and material consumption or allocation of production capacity are not planned correctly, there are delays to processes, and delivery to the end customer is affected negatively.
By having a customized ERP system which is tailored to your business, you’ll easily be able to optimize and structure your processes. This will directly affect profitability, growth and the success of your company.
Computerization and automation
Using an ERP system which is integrated with other programs used in your company on a day-to-day basis reduces your administrative workload, improves decision making and monitoring of processes and makes it easier to perform analysis, resulting in greater efficiency.
Quality and punctuality
Effective management, planning and calculations supported by reports and analysis from the ERP system ensure that the correct timeframes are created, stock and loss are reduced and all commitments are fulfilled as intended.
System ERP – FAQ
Frequently asked questions on ERP systems.
Does my company really need to have an ERP system?
In order to effectively and successfully lead a manufacturing company which aims to achieve growth, development and sound profitability, it is necessary to consider using an ERP system. Implementing an ERP system will enable you to carefully evaluate, structure and optimize business processes, which thereby leads to faster and more seamless decision making.
Is an ERP system suitable for a company of my size?
An ERP system can be used by companies of all sizes. If you want to improve the operation of your company, gain a structured overview and optimize management of resources, you’ll need a suitable ERP system. Thanks to our modules, which cover every area of a manufacturing company, Monitor ERP is the perfect choice for companies both small and large.
Which ERP system should you choose, and what should you have in mind?
There are currently many manufacturers and providers of ERP systems on the market. It’s worth remembering that choosing the right ERP system is a complex process which involves many different factors.
The most important thing is to define the purpose of the system in the company, as well as functionality, which can be decisive in relation to development and process optimization.
What sets Monitor ERP apart is that it's a standard system which is therefore already optimized for manufacturing companies, which substantially cuts the implementation period and ensures you’ll avoid spending money on adaptations.
What does implementation of an ERP system involve, and how long does it take?
Choosing Monitor ERP gives you access to our extensive knowledge in the area of planning company resources and the manufacturing industry. Our consultants guide you through the full process, with instructions and project management, to ensure things run as smoothly as possible.
Since Monitor ERP is a standard system, implementation normally goes very quickly. We obverse and analyze how you work, decide the best way to use Monitor ERP in your company, and educate your employees.
You’ll also have access to our support and the Monitor Academy e-learning platform, which can be a big help during implementation and when questions arise from day to day.