Which kind of ERP fits your business

For organisations looking for an ERP, or organisations that are expanding, there may still be hesitation and uncertainty about whether an ERP suits their own organisation.

In this article the author has information about the question of which kind of business an ERP suits, so that those looking for an ERP can take this information back to analyse their own organisation and decide whether they should implement one.

The content of this article covers

1. The types of business that use an ERP
2. The differences in the modules needed
3. The difference in price for implementing an ERP

The details of each point are as follows:

1. The types of business that use an ERP

For business organisations that implement an ERP, businesses are divided into 2 types:

1.1 Businesses with a production system

1.2 Businesses without a production system

These 2 types of business can be explained briefly as follows:

1.1 Businesses with a production system

These are businesses with a goods-production process, such as machine manufacturing, industrial-goods manufacturing, or food manufacturing.

When a business with a production system implements an ERP, it must implement the system with a production module too. It should therefore choose an ERP provider whose ERP is strong in the production module.

1.2 Businesses without a production system

Businesses without a production system are service businesses, retail businesses, wholesale businesses, and so on.

Businesses without a production system still have a large number of transactions on the buying side, the selling side, and the warehouse. Some organisations may process documents in the thousands or even tens of thousands.

2. The differences in the modules needed

From the information above, both businesses with and without a production system differ in the ERP modules they choose to use. For example:

A business with a production system needs a module to manage the production system, as well as other modules needed for operations, such as the purchasing module, sales module, HR module, warehouse-management module, accounting module, and so on.

A business without a production system does not need a production module, but still needs the other modules required for operations, such as the purchasing module, sales module, HR module, warehouse-management module, accounting module, and so on.

So in implementing an ERP for businesses both with and without a production system, the difference is that a business with a production system must use a production module, while a business without a production system does not need one.

3. The difference in price for implementing an ERP

Because of the difference in the modules used by businesses with and without a production system, the budget for implementing an ERP also differs.

Put simply, a business with a production system must add a production module, and the other modules used to manage the organisation must still be present.

But for a business without a production system, there is no need for a production module, so a business without a production system uses a smaller budget to implement an ERP than a business with a production system.

In summary, in implementing an ERP, businesses are divided into two types: businesses with a production system and businesses without a production system.

These two types of business have different module needs.

A business with a production system must use a production module too, while a business without one does not. As a result, the budget for implementing an ERP differs: a business with a production system has a higher budget than a business without one.

At this point, readers should now be able to see what type of business their organisation is, and which kind of ERP implementation suits it, so that their organisation can be managed at peak efficiency.