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What is ERP and who is it for?

Updated: Sep 19, 2021

We’ve made a quick and easy guide for you to understand the value and resources of running your business through an ERP system.

9 out of 10 companies in the industry already use Enterprise Resource Planning (ERP)

What is ERP?


ERP stands for “Enterprise Resource Planning” is an application that makes use of a central database that receives information from various departments within your company to plan and manage daily activities such as supply chain, manufacturing, services, financials and other processes.

Who is it for?


ERP is commonly used by companies working within the supply chain to help keep track of all the moving parts of manufacturing and distribution. However, ERP can be utilised by a number of different industries including those in healthcare, nonprofit groups, construction and hospitality.


As a result of several decades of development, numerous software solutions for ERP are available today suited for any size of business to run their operations in a well organised and efficient way.

What are the possible applications of ERP?


An ideal ERP system covers all areas in a company - from the management of the company to the administration and all departments. These include, for instance:

  • Finances

  • Accounting

  • Payroll accounting

  • Procurement

  • Purchasing

  • Sales and Marketing

  • Materials management

  • Determination of material requirements

  • Production

  • Research and Development

  • Customer relationship management

  • Asset management

  • E-commerce

  • Human resources

  • Finance and accounting

  • Controlling

  • Quality management

  • Project management

  • Data administration and management

  • and many more


Advantages of an ERP system:


9 out of 10 companies in the industry already use Enterprise Resource Planning (ERP). This makes industrial companies one of the front runners. However, this is not surprising, because in a digitalised world an ERP system offers many advantages:


  • optimised business processes and increased performance

  • increased competitiveness

  • processes are accelerated

  • improved organisational processes

  • strengthened cooperation between the departments

  • reduced costs and increased turnover

  • replaces inefficient and cumbersome isolated data processing solutions in the company

  • encompasses the entire company

  • first-class communication between separate departments

  • Enterprise Resource Planning (ERP) can be set up locally, mobile and in the cloud


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