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How does an ERP and CRM business management software work?

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Enterprise Resource Planning

ERP and CRM software are some of the most valued and easy to use business management tools on the market. ERP software for companies is an integral business solution, that is, it allows you to manage all the processes related to your company through a single database; from sales departments to human resources, through logistics or production. Everything is unified. What is not so well known is how this type of software works, as well as the peculiarities it presents.

How does an ERP software work?

The ERP (Enterprise Resource Planning) software is an enterprise resource management system that has particular characteristics in its operation. They are management information systems that integrate and use many of the large corporations dedicated to the sector of production, distribution and goods and services. They are generally called backoffice systems, since the client and the general public are not directly involved with it. In other words, it is an internal management program that deals directly with suppliers and allows for the establishment of an action protocol that improves the efficiency and productivity of employees.

The latest generation ERPs include a series of modules specialized in the integral improvement of all the departments of which a company can be composed. Examples of these modules include manufacturing or production, logistics and warehousing, and even accounting and human resource systems.

  • Modular: ERP management software consists of different modules or applications that enhance the customer experience. There are modules with different themes, such as production, human resources management or sales and marketing. All of them are adjustable and allow the customer to choose those that best suit their needs.
  • Comprehensive: by using a single database, all departments and employees of a company are interrelated. Sharing information in real time avoids duplication of functions and increases worker productivity.
  • Scalable: you can adjust its performance according to the level required by the client. If the company grows and increases workers or creates new departments to meet their needs, the ERP program adjusts to these needs without diminishing its performance.
  • Auditable: this is another of the advantages of an ERP software, since it records all the actions carried out in its database. This allows you to make queries or analyze errors by discovering who made them.
  • Secure: manage all users’ data and keep hackers away from your business documents and confidential information.

In short, the operation of an ERP software is complex, but its usability is intuitive and very easy to learn. In addition, the benefits it brings to your company will allow it to grow in a sustainable way and with an appropriate internal organization. Having an instantaneous information update system, because it uses the cloud for its administration, improves the efficiency and productivity of your workers by preventing overlapping functions. In addition to ERP software, there are other business management software for the proper management and operation of customer databases. This is the case of CRM (customer relationship management), a software that allows the company that uses it to establish a better relationship with customers.

What to use ERP systems for

An ERP system is responsible for making a comprehensive management of the company, regardless of the sector it occupies. Its basic utility, in short, is to facilitate and improve administration. The ERP system articulates all processes, which includes managing accounting, warehouse management and stocking, controlling production costs, dynamizing human resources, keeping a complete sales management up to date and, in short, giving a coordinated response to the endless number of variables that affect the daily performance of the company.

The ERP system, being moldable in nature, can be used and coupled to virtually any type of business, food, distribution of goods, trade, etc.. It represents a firm boost to the economy of a company since through the system certain contrasted patterns of quality and viability are assumed, which are constantly contrasted with reliable data of the market in which it competes. This also means contributing to a better understanding of the true potential of the company, and designing the entire action programme on a solid basis.

Benefits of the ERP System

Implementing an ERP system in a company does not have to be fast or easy, requires a study appropriate to each case and necessarily involves a part of investment. However, given the dizzying progress and success of this type of software, experience has shown that it also offers an excellent number of advantages.

The first immediate benefit is that it simplifies management tasks. By centralizing all the information generated by our company in a single database, on the one hand streamlines communication and decision-making, and allows you to anticipate the next steps in a realistic and simple.

Another advantage of implementing ERP is that we have greater control of the organization and product tracking. Each module is interconnected, giving the different departments instant information on the production and distribution chain.

And without a doubt, the greatest benefit is the economic one, since guaranteeing efficiency implies a saving component. Once the initial investment has been saved, the cost reduction will be applicable to all facets of the company. The greater efficiency achieved, the reduction in the number of errors and the reduction in duplicate tasks allow business costs to be lowered, increasing the profit margin.

What is a CRM?

A CRM is, therefore, an indispensable tool to create a business strategy focused on the user, thus achieving long-term relationships and a higher degree of satisfaction with the brand.

Specifically, the CRM stores and manages as much information as possible regarding customers for the proper management of their relationship with the company. By storing each customer’s data, this software is able to analyze customer preferences, thus better planning production based on demand and target audience and offering the right products or services to each customer.

Salesforce, Oracle CRM, SAP CRM and Microsoft Dynamics are the most know CRM in the market due to their multiple functionalities, although there are also other free CRMs with their obvious limitations such as SugarCRM, VTiger CRM, Zoho CRM and Civi CRM.

In short, it improves the productivity of the company and the effectiveness of the relationship with the public. This is what is known as relational marketing. A customer-oriented strategy is the key to generating competitive improvements.