Enterprise Resource Planning can be described as the hub from which a business is managed and navigated. Here you can read more about the importance of a good ERP for businesses, the different types of ERP and how you can integrate your ERP system with PostNord.
What is Enterprise Resource Planning?
Enterprise Resource Planning - often abbreviated ERP - is an English expression for what in everyday English is called a business system. The full Swedish definition of ERP is standardised business-wide system support.
In Sweden, the term business system is more commonly used than Enterprise Resource Planning and ERP, while vice versa applies in international contexts.
How ERP systems work
An ERP system should provide exactly what the Swedish definition describes - a business-wide system support. Cross-functional means full support that includes all types of governance, information management, finance and administration.
A complete Enterprise Resource Planning system rarely consists of a single system, but is rather an integration of several different ones. An ERP usually contains different modules for purchasing, CRM, accounting, invoicing, human resources, project planning, resource planning, order and inventory management. etc. Each module is linked to a common platform, which in turn is the business system itself.
In addition to internal integration of different IT systems, modern ERPs today can also be linked with certain external components - for example, PostNord's integration solution tools.
Business systems contribute to better goal achievement and productivity
The purpose of ERP systems is to meet the management, operational and strategic needs of a business. Enterprise Resource Planning allows companies to get an overall helicopter view of the business, as well as to go into the details of each individual module.
Thanks to the complete system support offered by ERP, it has been proven that the use of ERP brings positive results in terms of business development, goal achievement, productivity, cost efficiency, customer care and quality-oriented work. The common database makes it possible to see the impact of each module on other modules as well as on the company as a whole.
Advantages and disadvantages of Enterprise Resource Planning
A well-implemented ERP system can bring many benefits and have a very positive impact on a company's profitability. Similarly, a poorly implemented ERP can have negative effects. It is therefore important that you, as an entrepreneur, choose a system that suits your business.
If and when you are considering investing in a complete ERP system, it is important to be aware of the advantages and disadvantages it can bring to your business. Generally speaking, an ERP system can do a lot of good as long as it is tailored to the business and used appropriately.
The main advantages and disadvantages of ERP can be summarised as follows:
Benefits ERP
- Time efficient - consolidating everything on the same platform can save many working hours per month.
- Better overview - integrated modules make it easier to get a good overview.
- Minimises duplication of effort.
- Facilitates collaboration between different departments.
- Easy to scale up - modern ERP systems are easy to adapt and configure as your business grows.
- Seamless integrations make it possible to provide better and faster service.
Disadvantages ERP
- Increased vulnerability - breaches or other problems in a fully integrated business system have consequences for all modules of the business.
- Takes time to implement and the ramp-up period can be lengthy.
- Minimises duplication of effort.
- Often an expensive investment.
What are the different types of ERP systems?
Business systems come in many different variants issued by different players. Most of today's systems are categorized as one of the following two types:
- Location-based system
- Cloud-based system
A location-based system is installed locally on the company's own servers. To access the system and use its functions, you need to be on site and have access to the relevant servers. Location-based ERP systems are usually installed and managed internally by in-house staff. This type can be useful if you want to have more control over the implementation and who has access to the system.
A cloud-based ERP system is installed and provided instead by an external provider. The functions are the same as in a location-based system, but to access them you log in to a website in the cloud.
Most modern ERP systems today are cloud-based because it offers more flexibility and much better availability. You can access the system from anywhere in the world. A cloud-based service is also often cheaper than an on-premises version.
The right type of ERP system for your business depends on your needs and requirements in terms of availability and security.
Discover PostNord's smart integration solutions and get even more out of your business system
Administration around ordering, invoicing, logistics and transport of goods is a big part of the business for companies involved in e-commerce or other types of sales. As professionals in this field, we want to do what we can to make it easier for you and your business.
As a business customer of PostNord, you get access to PostNord Portal Business. You'll find handy tools like Send Parcels and Track Parcels as well as our integration solutions.
With PostNord integrations you can connect your ERP via plug-in and get access to automated freight purchases and other smart features that save both time and money. You can also build your own integrations tailored to your ERP using our secure APIs.
Want to know more about how we can assist in the use of ERP? Get in touch and we'll talk!
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