The Role of ERP in Improving Company Operational Efficiency

The application of ERP (Enterprise Resource Planning) software varies, because this business effort really depends on the type of industry and the basic interests of each company.

For those of you who are still laymen and don't fully understand the implementation of ERP software and examples of ERP implementation in a company, you don't need to worry.

You can clearly understand the objectives and examples of implementing ERP in a company, through the explanation in the article below!


Objectives of ERP Implementation in the Company

Each company certainly has different goals and interests when deciding to start implementing ERP software in its business. However, in general, the objectives of using ERP software by companies can be seen as follows.

  • Companies want to obtain accurate and comprehensive business reports.

  • The company wants to expand its business reach.

  • Companies want to achieve efficient and effective operations.

  • Companies want to gain as much business visibility as possible.

  • Companies want to increase the retention ratio or customer satisfaction level.

  • Companies want to achieve healthier and measurable business budget management.

  • The company wants to reduce its business lead time.

  • Companies want to increase business productivity.

  • The company wants to streamline every business operation, so as to reduce waiting time significantly.

  • Companies want to achieve a system that is well integrated and automated.

  • Companies want to implement an adequate security system to protect their crucial business data.

  • Companies want to increase the level of collaboration between employees.

  • Companies want to achieve optimal project management targets.

Main ERP Components in a Company

ERP software basically covers various aspects of a company's business operations. However, in general there are 5 main components contained in ERP software.

These include finance, Human Resources (HR), Manufacturing and Logistics, Supply Chain Management (SCM), and Customer Relationship Management (CRM).

The following is an explanation of the five main components in ERP software.


1.  Finance

This component functions to track all the company's business financial data. This includes accounts receivable, accounts payable, general ledger, costs, and budget forecasts.

Through this ERP software component, companies can carry out a series of activities related to accounting and finance starting from recording cash flows, write-downs, calculating taxes, sales and customer management, budget management, as well as preparing reports and analysis.

2.  Human Resource (HR)

Next is the human resource component which functions to handle every task or responsibility of business operations related to human resource (employee) management.

In more detail, this component is responsible for supporting activities including automatic payroll for employees, paying taxes, preparing work reports, tracking attendance, promotions, and determining working hours and vacation hours for staff or employees.

3.  Manufacturing and Logistics

Next there is manufacturing and logistics, where this component plays a role in supporting the planning, production, receiving, and delivery of orders to end customers.

In more detail, the activities supported by this software component are production planning, production quality monitoring, production scheduling, production forecast planning, and many more.

4.  Supply Chain Management (SCM)

The fourth component is Supply Chain Management (SCM) which has the function of supporting and facilitating the company's supply chain network so that it can run smoothly and optimally. Supply chain components include planning, manufacturing, marketing, and distribution operations of the company's business.


5.  Customer Relationship Management (CRM)

The final component is Customer Relationship Management (CRM) which focuses on customer management to consumer analysis of the company's business. This component also has the task of collecting customer data from various channels.

Business activities supported by the CRM component include designing in-depth business strategies, mapping potential consumers based on certain niches, managing goods delivery flows, preparing sales analysis reports, sales management, managing customer support, and organizing company business promotions.

Example of implementing an ERP application in a company

So far, there have been many global companies that have successfully spread their business wings through the implementation of ERP software. The following are a number of examples of ERP implementation in global companies in various industries.

  • Manufacturing companies: PT Gudang Garam, PT Kimia Farma, PT Semen Gresik, and others.

  • Service companies: PT Telkomsel, Garuda Indonesia, ServiceMaster, Go-Jek, and others.

  • F&B (Food and Beverage) Companies: Wakou, Starbucks, Cadbury, Hershey, PT Indofood and so on.

  • Retail companies: Amazon, Walmart, Juice United, Beyond, Eiger, Zalora, and many more.

Software Implementation is Much More Optimal with PT. Prima Grace System

It is very important for business people to choose ERP software correctly and according to their needs so that the output from implementing the company's ERP software can be maximized.

In Indonesia itself, there is quite a lot of ERP software available, so it is easy for your company to find it. However, you also have to choose the available ERP software carefully and appropriately.

As a top recommendation, you can use ERP software from SAP Bandung which has proven quality and competence in advancing the business operations of Indonesian companies. In more detail, ERP software is equipped with systems and features that have principles of integration and overall automation.

Software ERP sendiri setidaknya menyediakan 8 modul utama yang siap menunjang sekaligus mengoptimalkan setiap operasi bisnis perusahaan Anda.

The eight modules include Finance & Accounting, Inventory and Distribution, Procurement Management, Manufacture & Production, Asset Management, Project Management, POS & Integration, and Sales & Customer Management.

You can use the eight modules above according to your respective company's needs practically and easily.

With ERP Software with our service SAP Bandung, implementing ERP in corporate business ERP in corporate business will be much more effective, efficient and practical!

Come on, consult us about your company's ERP needs, or contact us "CLICK HERE" for a FREE consultation!