Get to know the ERP system and its functions

An ERP system is software that is specifically designed to process inventory management and control for a company. ERP is an abbreviation for Enterprise Resource Planning, which according to Daniel E. O' Leary, is a software package or powerful software that allows a company to integrate various functions separately. Currently, many companies are starting to use ERP (Enterprise Resource Planning) systems because of the many weaknesses that exist in old or conventional information systems that are separate.

This ERP system offers many advantages which are certainly much more profitable than the old system. Therefore, this system has begun to be chosen by many companies as a management arrangement. So, the advantages offered by using this system are better than conventional systems. The advantages of this ERP system are:

• With an ERP system in a company, this system will provide a higher level of valid data due to the integration of a system with other systems compared to the previous system which was still separate. Apart from that, the integration system in this ERP can also eliminate data redundancy.

• Speed in obtaining information where in this ERP system the company can get information more quickly because it does not have to integrate existing data.

• It is practical to use it, because the ERP system offers practicality to system users or users by only using one access portal. Of course, this is different from the old information system because it requires having an account in each system that will be accessed.

• Control over security, availability and system reliability becomes easier due to the integrated ERP (Enterprise Resource Planning) system.

In organizations or companies that do not implement an ERP system, they generally use a separate database system. Where each work unit has its own database, such as marketing which has a marketing database, human resources or HRD with its own HRD database, purchasing has its own purchasing database, and the finance department has its own financial database. These separate systems usually have different databases and incompatibilities often make it difficult to manage them.

With the existence of ERP (Enterprise Resource Planning), this system will later be developed to replace separate systems. So that later it will become integrated and management will be more effective and efficient.

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