This document discusses the benefits of implementing an ERP (Enterprise Resource Planning) system. It notes that ERP systems can help companies by reducing costs, improving customer service and inventory management. The document provides examples of how ERP systems can help with sales, logistics, production and financial management. It also lists some common business challenges that ERP systems can help address, such as meeting deadlines, optimizing resource usage, and maintaining profitability. Overall, the document promotes ERP systems as a way for companies to more efficiently manage operations and better achieve their business objectives.

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ERP
ERP
Reduction
of inventory
Increasing
the level of
accounting
control
Improving
the quality
of customer
service
Reduction
of delivery
costs
Reduction
of work and
production
costs
Warehouse Management

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IT systems (especialy ERP - Enterprise Resource Planning, CRM - Customer Relationship
Management or MRP II - Manufacturing Resource Planning) are a very costly investment,
and therefore selection of solutions that will satisfy specific needs of the company, and at
the same time, which can be easily modified by the employees can be a hard task.
RegaIrrespective of which solution you finally choose, the advice presented in this guide
will help you make the right investment.
Would you be interested if you could find out about:
• Why is it worthwhile to implement ERP / CRM / MRP system?
• What are the most common threats in the business activity?
• What are the challenges of enterprises in the 21st century?
• What are the example needs related to implementation of ERP / CRM / MRP?
- in sales management
- in logistics management
- in production management
- and financial management

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More ERP Tips:
• To what it is worthwhile to pay attention before implementation of ERP / CRM / MRP?
• What are the examples reasons, for which it is worthwhile to implement ERP system?
• What are the example Mistakes in implementation of ERP system?
• What are the example benefits from implementation of ERP system?
• Selection of ERP system, i.e. to what still pay attention?
Maybe you also have such problems in your company:
What are the most common problems in the company?
What problems do you have before implementing the ERP?
If you want to develop your company wisely, using ERP system, please ask yourself these
questions:
18 questions about choosing ERP

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What is ERP (system)?
What for your company means "business management system" (ERP)?
Day by day you run your business activity according to adopted vision and objectives. You support
clients, seek new earning possibilities, try to overtake the competition and achieve as much at the
lowest cost. Of course, at the same time ensuring that the invested funds would bring the greatest
profits.
IT systems and people using them can help to lead the company in the best direction. Business
management systems, also known as enterprise resource planning systems (ERP) or Customer
Relationship Management or Manufacturing Resource Planningcan, have a key role in economic
successes of the company. But how to choose the best system that meets business needs, as well as
is enough simple in use to be able to quickly shift and use by the employees?
At the beginning it is necessary to assess the needs of own company, to determine what problems
the system is supposed to solve, to analyze the wide range of currently available software on the
market, to state which will be the best and to find experienced IT specialists, who will help in its
implementation. If you want to develop your company wisely using IT system, keep on reading. We
will help you understand, what IT systems can provide, how to plan the evaluation and design the
desired solution. In order to better present the most important issues, we will use fictional history,
describing the distribution company going through the process of determining its business needs
and defining required solutions.

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How to start ERP project?
At the beginning it is necessary to answer a few simple questions to state, whether such a system is
really needed. In order to collect necessary information at this stage we also offer our experience and
assistance.
When is it necessary to consider implementation of IT management system (ERP / CRM / MRP)?
Are you wondering, is it worthwhile to try a complete IT system for business management? Many of
the best contemporary systems have a modular structure, so for the start it is possible to implement
only the necessary functionality, and the improvements and extensions when they will be really
needed. Unlike older ERP systems, modern flexible solutions can be adapted to practically any
significant process or practice activities, including the field of financial, sales and service, production
or human resource management.
In order to preliminary assess, what a new system can provide, it is worthwhile to give some thought
to significant turning points in the organization or principal areas, in which it is necessary to
maximize efficiency, so that the company could develop.
How quickly the company develops?
Recently a significant number of new clients appeared? New products and services are offered?
Employment increased, because employees no longer were able to meet orders? The company
extends its range of activity? Systems and software are in the same state, in which they were, when
turnovers, number of customers, products and services or employed not yet were mind-blowing?

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How to start ERP project?
Does currently systems limit the company’s freedom?
Employees must enter and collect information to and from many various programs (sales, financial,
warehouse, logistics, production) – already too many, by which are getting confused. Due to diversity
of programs, employees of one department cannot exchange or link information with information of
neighboring department employees. System administrators are being overwhelmed with
unprecedented number of requests for implementation of all sorts of program combinations, with
which the current software is barely managed to operate, and it doesn’t seems that people work
more efficiently. Or you bought the second company and now somehow it is necessary to connect IT
systems of both enterprises.

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What functionalities should have the ERP / CRM / MRP system?
What are the key areas of your business activity: distribution, production, finance, CRM?
It is possible also to look at the matter under a completely different angle – what benefits can
provide corporate IT system in the following critical areas of activity:
Distribution: are the goods always provided to the right places in time?
What improvements would be useful in the stock, inventory, orders and supply management? Are
the sale forecasts accurate and reliable, and are they directly translated into planning of material
goods supply? The good business management system can increase the efficiency of activities in the
area of distribution and supply chain management, help to control costs and maximize the use of
limited resources with better results.
See business challenges in trading company.
Production: are you able to produce what your customers wish for, better and more efficently?
What would happen if you could develop, produce or assemble products faster or with lower
overheads? And what about the production quality – whether it wouldn’t be good to increase the
repeatable production quality through the effective quality assurance system? In addition to the
above reasons, many companies introduces management support systems in order to be able to
more quickly and more flexibly react to changes in market trends and competition effects.
See production management.

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What functionalities should have the ERP / CRM / MRP system?
Finance: does the company operate in accordance with established strategy?
Of course, you closely follow the financial results of the company and economic events affecting it,
managing finances in the most efficient way. And if you could reduce the time of this work and
simplify it, with easier access to critical financial information? A good (ERP) system can, e.g. minimize
the time and effort of closing the month by employees. And easy-to-use interface can reduce human
errors in financial calculations. Good financial management system can also enable to generate
cross-sectional financial statements, based on all relevant information.
See finance management.
Customer Relationship Management (CRM): are the customers satisfied with the service of your
company?
Contacts with customers can be a determining factor of the company existence. Do you facilitate
your cooperation with customers? Do you understand their needs and preferences, and most
importantly – are you satisfying them? The new system can help to fit contacts with customers in
commercial and marketing actions, which may result in an increase of turnovers and greater
attachment of customers.

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Why implement an ERP system?
Before implementing the ERP system, ask yourself some questions...
It is also necessary to answer a few simple questions about business processes in your company or
the problems you need to solve in your daily work:
• Did you lose a customer, because he went to the competition?
• Did you sign a risky contract, which turned out to be not very profitable or even lossy?
• Did you fail to meet the delivery or production deadlines?
• Do you currently feel that your resources (employees, machines) are overloaded or vice versa are
usage, but you don’t know to what extent?
• Are you contending with dropping profitability and growing costs?
What are the challenges of enterprises in the 21st century?
Sometimes in decision making related to investments in ERP system also current atmosphere and
business conditions are decisive. For example, some companies/employees are working more and
harder in accordance with the principle of “everything goes down the drain”, i.e. a lot of work, small
effect. It is associated with:
• Handling a lot of paper mail, invoices, documents
• Manual prescribing and copying invoices (documents)
• Physical approval of documents (stamp, signature)
• Free or limited flow of information
• Manual searching documents (physical, paper)

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Why implement ERP system?
Lack of transparency and control sometimes affect such a state of the work:
• Delays in accepting and generating documents (e.g. purchase or sale invoices)
• Lost or omitted purchase invoices
• Too long flow of the acceptance of documents, decisions
• Lack of appropriate procedures of the flow of documents
• Hardly and too late detected irregularities
These challenges affect most companies, particularly those which aren’t using ERP system. Of course,
it is only so-called the tip of iceberg. In order to properly diagnose irregularities and problems, you
should as always verify the subject in details.

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