What is enterprise resource planning (ERP)?

An enterprise resource planning system is a business information system digitally integrated into day-to-day operations of a company, institution or organisation. Business management systems help to integrate, optimise and control processes (accounting and finance, project management, procurement and sales, supply chain, warehousing, manufacturing, inventory, human resources, customer relationship management, etc.) within a company, taking into account the needs of a specific company: collecting all the company’s data in a single system, analysing it in real time and obtaining insights to make quick, data-driven business decisions.

Fast-growing companies that want to manage information flows more efficiently and quickly, avoid manual errors and duplicate data, collect the most relevant data and to digitise their business usually choose to have enterprise resource planning systems installed. With an enterprise resource planning system in place, all company’s information is stored on a single platform, allowing to use real-time data from anywhere in the world and from any device.

Enterprise resource planning systems are usually constructed from separate modules by different business areas, adapting and integrating modules for each company, institution or organisation according to its area of activity: for example, you may not be interested in the logistics management process, but find the procurement and sales process essential. In light of this, the installer of an enterprise resource planning system selects the modules which you need and adapts them to your specific needs.

An ERP application can be developed for a specific company either from scratch or by adapting standardised enterprise resource planning systems based on best global practices.

Why does a business need an ERP system?

Trying to ensure that a company runs smoothly – let alone its profitability – can sometimes feel like balancing on a wheelbarrow while juggling plates, especially if you’re constantly bouncing between different information systems to ensure all processes are working as planned. We are not saying that once you have an ERP in place, your growth or profitability will automatically skyrocket, but at least it will help you to ride the wheelbarrow more steadily and put all the plates in their place. This is why many successful companies use ERP systems and why you should consider buying an enterprise resource planning system if you are involved in business management yourself.

ERP systems are particularly relevant for growing businesses and organisations that perform many functions simultaneously, generate large amounts of data and want all their business information to be secure, always available and stored in one place. A significant number of the world’s businesses use enterprise resource planning systems or similar solutions.

Businesses, institutions and organisations that have adopted ERP systems usually indicate two main benefits of these solutions: ERP helps to improve business efficiency in real time, at the same time helping to make better business decisions in the future.

Which enterprise resource planning (ERP) system should I choose?

We always recommend choosing a standardised ERP system, because only having such a system you will be able to get the best and time-tested solutions. It will include tools based on the best global practices, be constantly updated, and you will be independent of one particular supplier. All you will have to do is to decide what functionality you need, which manufacturer’s offer best meets your requirements and make a decision.

We are a gold partner of SAP software in Lithuania, we offer our customers the best global practice-based standardised business management system SAP S/4 HANA, which is designed for the management of the key business processes of large regional and international companies. This is a system for managing accounting, finance, production, supply chain, purchase-sale cycle, inventory, human resources, customer service and other processes, depending on your needs. For small and medium-sized enterprises, we can offer a tailor-made solution SAP Business by Design, which will allow you to manage your entire business, from HR to finance, using one secure cloud suite.

What are the advantages of SAP business management?

This is a single system that manages all the key business processes of an enterprise, ensuring data integrity, completeness, comparability and traceability.

The SAP ERP is adaptable to the structure and processes of an enterprise, making daily tasks and projects interconnected. This enables the company’s management to quickly identify efficient and inefficient processes and activities, and reduce the time needed to make business decisions.

The SAP ERP business management system consists of a number of modules that are individually selected and customised according to the industry and/or area of activity of an enterprise. These SAP ERP modules are used by many enterprises around the world, so many of the potential business process challenges have already been resolved and integrated into the solutions contained in these modules.

SAP ERP is multilingual, transactions can be accounted for in multiple currencies and it can also be adapted to different regulatory frameworks, which allows businesses to manage and account for transactions in different countries and jurisdictions. All this is done in an intuitive, native-language user interface.

SAP ERP can run on both your in-house infrastructure and cloud platforms.

The benefits of SAP ERP go beyond optimised processes, increased user productivity, efficient use of resources and administered property. SAP ERP systems enable processes that reduce the risk of human error and respond faster to the changing business environment.

Why is it worth choosing InnoForce as your digital transformation journey partner?

InnoForce has many years of experience in implementing and servicing SAP solutions – we are a Gold Partner of the software manufacturer and a certified SAP Partner Centre of Excellence (PCoE). Our team can help you with both the installation of the latest versions of the solutions, as well as with the maintenance and development of older ones and with their conversion.

The latest proof of our efficiency is the SAP Baltics Partner of the Year award received in 2021, which is awarded to one SAP partner in the Baltics only.