What is ERP System Philippines and What are the Types?

ERP System Philippines or Enterprise Resource Planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. 

A complete ERP system Philippines suite also includes enterprise performance management, software that helps plan, budget, predict, and report on an organization’s financial results.

ERP systems tie together a multitude of business processes and enable the flow of data between them. By collecting an organization’s shared transactional data from multiple sources, ERP system in the Philippines eliminate data duplication and provide data integrity with a single source of truth.

Related: What is ERP?

What Means ERP and How Does It Work?

The Enterprise Resource Planning (ERP) is a process used by companies to manage and integrate the important parts of their businesses. Many ERP system Philippines access software applications are important to companies because they help them implement resource planning by integrating all of the processes needed to run their companies with a single system. 

An ERP software system can also integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more. You can think of an enterprise resource planning system as the glue that binds together the different computer systems for a large organization.

In general, enterprise resource planning uses a centralized database for various business processes to reduce manual labor and to simplify existing business workflows. An ERP system typically contains dashboards where users can look at real-time data collected from all across the business to measure productivity and profitability.

Without an ERP, data is commonly siloed by department and can be difficult to access across a company. By using an ERP, data from multiple departments can be easily shared and visualized across an organization. 

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What is an ERP System Examples?

Much of modern business is done through computer- and Internet-based services. Because of this, it’s nearly impossible for someone to keep track of all the data that their business relies upon. This is where ERP software comes in.

ERP software examples integrate with your core business operations, like your inventory tracking system, eCommerce payment gateway, and shipping and handling. You no longer need to bounce through multiple software programs when you have the answers you need in one place.

If you already use warehouse inventory management software, your ERP system can integrate with this, too. Here are some of the leading best ERP system philippines software companies.

SAP S/4HANA

This next-generation service is known for its far-reaching compatibility with multiple company sizes and existing software. 

Oracle Cloud ERP

The Oracle ERP System is one of the most well-established software companies in the world. They boast a broad range of capabilities within their ERP solution, including expense and risk management. 

Sage Intacct

This company is known for its extensive third-party integration capabilities and being useful for smaller, high-growth companies. 

Epicor ERP

Epicor offers a high degree of scalability and customizability for businesses of different sizes. Also includes options for in-house or cloud-based usability.

What is ERP Based System?

The Enterprise Resource Planning software can be used to automate and simplify individual activities across a business or organization, such as accounting and procurement, project management, customer relationship management, risk management, compliance, and supply chain operations.

The Individual ERP applications can offer software as a service (SaaS), while a complete suite of ERP applications forms an ERP system that can be used to effectively communicate and bring together business processes to enable a flow of data between the applications, typically through common databases either on-site/on-premise or in the cloud.

The ERPs connect every aspect of an enterprise. An ERP software system allows for better performance and project management that helps plan, budget, predict and accurately report on an organization’s financial health and processes.

Related Article: ERP in the Philippines

Why Do Companies Use ERP Systems?

The Enterprise Resource Planning (ERP) is used by organizations looking to manage their business functions within a centralized and integrated system. 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, Philippine companies using  ERP can be utilized by a number of different industries including those in healthcare, nonprofit groups, construction and hospitality. Organizations needing to manage their staff, customers and inventory can all rely on ERP benefits.

The ERP stores all entered data into a single database, allowing all departments to work with the same information. Additionally, all this data can be organized, analyzed and made into reports. ERP brings together customer management, human resources, business intelligence, financial management, inventory and supply chain capabilities into one system.

Enterprise resource planning software is used to manage a number of business functions, but how is it any better than other solutions? Even though ERP may have similar goals to other solutions, its unique features make it a distinctive competitor in the software market.

What are The Types of ERP?

It’s great to be familiar with leading ERP companies, but this may leave a question still bouncing around your head. That question is, “What are the best ERP systems?”

This is important because the average ERP cost is significant. You don’t want to pick any software at a whim that may not work well for your company or employees. You also want to make sure the ERP offers your most-needed features and is compatible with in-house software. Below are some of the ERP systems :

Acumatica Cloud ERP

Given its cloud-based usability, small- and medium-sized business compatibility, and competitive pricing, Acumatica is a winner. This ERP consistently achieves high user sentiment and has become a key player among ERP industry veterans.

Oracle ERP Cloud

One of the longest-serving ERP providers is still one of the best. Oracle’s Internet-based ERP streamlines and consolidates data efficiently for medium and large businesses. They’re a leader in financial management and forecasting tools that save businesses hundreds of labor hours per year. 

Unit4 ERP

Praised for their software’s versatility, next-gen capabilities, and student management features, Unit4 is an ERP to think seriously about. The company maintains a competitive pricing model despite increasing market competition and freedom of customer choice.

Sage X3

This powerful, scalable, and end-to-end ERP is designed to centralize all information a business needs to improve performance. Known for catering to process manufacturers and distributors, Sage’s X3 capabilities are stand-out in their niche. Their software simplifies immense amounts of data for complex production control and scheduling needs.

What is The Difference Between SAP & ERP?

ERP stands for Enterprise Resource Planning and it’s a business process management system which automates and integrates all the core business processes of an organization into a shared database in order to streamline processes and information across the organization with netsuite ERP.

SAP (Systems, Applications, and Products in Data Processing) can be referred to as the products offered by the company SAP AG. SAP is one of the largest providers of ERP software in the world.

Local ERP system is a software suite of business process applications developed by the multinational software giant SAP SE, which incorporates the key functions of a business within an organization. 

The idea is to provide businesses with a platform that would allow them to maintain a single database for data related to a variety of business functions in an accessible way. The idea behind an automated business management tool is to save businesses from inefficient operations and expensive processes. 

SAP is the world’s largest vendor of ERP solutions and a leader in business applications. ERP is more like a methodology with a specific set of standards that consolidate various applications of an enterprise resource planning pdf in a single domain, whereas SAP is one of the world’s largest providers of ERP systems.

What is The Difference Between ERP and Financials?

The first differential point in the two systems is the scope. An ERP system has a broad range of functions when compared to accounting software as it not only focuses on the financial aspects but other factors as well.

If you take QuickBooks as an example, you can say that it works on a small stand-alone database. It cannot connect various real-time processes of the company. So, in this case, you need to use an integrated ERP system to handle the job. 

Moreover, with MYOB and Xero accounting solutions, you can only manage inflows and outflows of cash and generate reports of the financial year. If we take an accounting module within an ERP solution, it manages the cash flows along with the response to real-time market trends confidently and swiftly.

Another way to look at an ERP system is to consider the act of building a house with blocks of lego. An ERP is a collection of all the operations of the business that gives a 360 view of the organization’s health and performance. Lots of lego blocks brought together into a complete house.

On the other hand, a dedicated accounting solution is really just a single lego block. It tells you the financial performance of the business, but it’s isolated to basic financial reporting, and often not real-time.

Accounting software has a limited ability to meet industry-specific needs as compared to an ERP system. Many ERP vendors such as SAP have built industry-specific solutions that are tailored to the market needs of specific industries. 

How Much Does an ERP System Cost in The Philippines?

How widespread is the use of ERP across a chosen industry in the philippines? Regardless of size or complexity, companies spend a fortune in building and maintaining their ERPs. 

Aside from the financial costs, one must also look at the business and human costs in implementing a complex project as an ERP. Let me share with you how much it takes to make this transformation happen.

The financial cost. In the Philippines, a typical investment in Systems Applications and Products (SAP) or Oracle for a small- to medium-sized company can cost around P20 million to P30 million, which covers implementation, hardware and licenses for 50 to 60 users. 

For large companies, this can go as high as P300 million, as they opt for more functionalities, operating entities and ERP customizations. 

There is also the thing called “the fine print” that covers ongoing costs through annual subscription, additional support from the ERP provider, and IT support  internal for general maintenance and troubleshooting, and external for software development. 

These are usually ignored or intentionally left out to expedite the approval of required investments. There are also cases where ERP implementations are stopped midway due to various reasons such as vendor support issues  and these are very costly.

Conclusion

The very best method to enhance customer satisfaction is to supply client-centered goods and services. ERP provides this in a few different ways. First, most ERP system in the Philippines have been outfitted with a Client Relationship Management (CRM) tool that can be readily incorporated with your operations. 

Together with contact information, an integrated CRM can show you information such as order history and billing info. This allows your staff to see your customers more broadly to acquire a better comprehension of their needs. The increased customer visibility makes it possible to revise your sales strategy for enhanced lead generation.

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