Why do companies need to use an ERP system?

If you firmly believe that your business needs a complete information solution, you can skip this chapter.

Today's small and medium-sized enterprises also face similar problems to large enterprises. One is how to plan and integrate resources. The scenarios faced by small and medium-sized enterprises are more complicated, after all, their resources are limited. No matter how small the business section is, it also needs a complete operation chain:

1. Bookkeeping to track purchases and sales
2. Tax calculation according to local laws and regulations
3. pay employees
4. Ship according to promised time
5. Send qualified goods and provide corresponding services
6. Communicate with customers and answer their inquiries

Large companies invest millions of dollars in some large systems, including systems like SAP or SAP, which can handle large companies in multiple countries, multiple companies, multi-currency, global business . On a unified platform, it can help complete data consolidation, basic business processing, including bookkeeping, taxation, reporting, and large-scale supply chains.

Compared with large enterprises, small and medium-sized enterprises have lost the first wave of digital reform from 1995 to 2015, the main reason is that there is no funds to invest in large-scale software licensing, and these large software companies will not consider doing it for these small and medium-sized enterprises. Meet their needs. Large systems require a minimum capital operation which is around $100,000. Even some cloud service providers do not have a relatively simple way to allow these small and medium-sized enterprises to do related DIY, and to make these small and medium-sized enterprises trust enough.

As a result, today's SMEs are struggling with organizational management, and they often use a mix of applications and tools such as Excel, accounting software, and web-based CRM to manage their day-to-day activities. As a result they had to access disparate data to understand customer master data, sales cash flow and profitability. Information exists on different isolated islands, which makes it difficult to integrate these data and gain insight into changes from these data, so that small and medium-sized enterprises cannot be innovative, but keep adapting to the operation of some of their large software. This limits the development of SMEs.

ERP tries to solve the problems faced by these SMEs:

1. Reliable: set a free and open source software that can be freely downloaded and installed
2. Complete: All required modules are present.
3. Customizable: It is easy to add some fields, or customize some new and new functions.
4. Efficient: requires relatively few computing resources. (can be operated and managed cheaply)
5. Single source: A system and database that allows multiple users to access, record transactions and extract data at the same time