Organisational resource management involves the effective use and coordination of a company’s resources, such as materials, employees, finances, information, and technology. Organisational resource management software, such as ERP (enterprise resource planning), WMS (warehouse management systems), CRM (customer relationship management), and HRM (human resource management), enables companies to integrate various aspects of their operations and improve operational efficiency. The systems support the planning, control, and analysis of business processes, providing better coordination and data-driven decision-making.
Enterprise Resource Planning (ERP), Warehouse Management Systems (WMS), Customer Relationship Management (CRM), Human Resource Management (HRM)
Type of technology
Description of the technology
Basic elements
- ERP (enterprise resource planning): Enterprise resource planning software that integrates finance, production, sales, purchasing, warehousing, and other operational processes.
- WMS (warehouse management systems): Warehouse management systems that optimise the processes of receiving, storing, picking, and shipping goods.
- CRM (customer relationship management): Customer relationship management tools to track customer interactions, analyse customer needs, and improve service.
- HRM (human resource management): Human resource management software that supports recruitment, training, performance appraisal, compensation, and employee development processes.
- Systems integration: Integration of various systems in the company (ERP, WMS, CRM, HRM) to enable effective exchange of information between them and automation of business processes.
Industry usage
- Industry: ERP and WMS help manage production processes, inventory control, and supply chain optimisation.
- Retail: CRM makes it possible to manage customer relationships, personalise offers, and better handle orders.
- Logistics: WMS optimises warehouse operations, reducing order picking time and the process of tracking shipments in real time.
- Services: HRM supports the recruitment, training, and evaluation of employees in the service sector, resulting in better team performance.
- Finance: ERP integrates financial management, facilitating cost and revenue monitoring and budgeting.
Importance for the economy
Organisational resource management s crucial to the operational efficiency of companies in various industries. With advanced ERP, WMS, CRM, and HRM systems, companies can better manage their resources, optimise operational processes, reduce costs, and improve customer relations. In sectors such as commerce, industry, logistics, and services, effective resource management contributes to better utilisation of resources, faster delivery of products to market, and increased customer satisfaction.
Related technologies
Artificial Intelligence
AI supports process automation in the organisational resource management, including data analysis, demand forecasting, inventory optimisation, and personalisation of customer service.
Cloud Computing
More and more companies are using ERP, WMS, CRM, and HRM systems in the cloud, which results in flexibility, remote access, and lower IT infrastructure costs.
Big Data
Analysing large data sets collected from ERP, WMS, CRM, and HRM systems enables optimisation of business processes, forecasting, and a better understanding of customer needs and employee performance.
Internet of Things
Integration with IoT enables the automation of warehouse processes (WMS), such as inventory monitoring and real-time shipment tracking.
Automation
The organisational resource management systems automate many routine processes, such as managing orders, inventory, and payments, which increases operational efficiency.
Mechanism of action
- ERP, WMS, CRM, and HRM systems collect and process data from different areas of the company. ERP integrates and manages all operational processes in one central system. WMS optimises warehouse operations by controlling inventory. CRM enables customer relationship management and analysis of customer needs. HRM enables the management of employees and HR processes in the company. The systems are integrated, which enables efficient management of the entire enterprise and decision-making based on the collected data.
Advantages
- Improving operational efficiency: Integrated ERP, WMS, CRM and HRM systems enable automation of processes, which saves time and reduces costs of managing resources.
- Improved inventory management: WMS optimises warehouse operations, minimising losses associated with excess or insufficient inventory.
- Increased customer satisfaction: CRM makes it possible to better understand customers’ needs, personalise offers, and improve service.
- Personnel management: HRM supports the effective management of employees, which leads to better motivation and productivity.
- Faster decision-making: By integrating data from different departments of the company, ERP enables more accurate business decisions.
Disadvantages
- Implementation costs: Implementing advanced ERP, WMS, CRM, and HRM systems can be expensive, especially for small and medium-sized companies.
- Complicated implementation: The implementation of resource management systems requires proper training of personnel and adjustment of internal processes.
- Risk of cyber attacks: Storing data in the cloud and managing key processes over the Internet can increase the risk of cyber attacks.
- Maintenance and updates: ERP, WMS, CRM, and HRM systems require regular updates and maintenance, which can generate additional operating costs.
- Scalability limitations: Implementing these systems can be difficult to scale in fast-growing companies, especially if the size of operations changes rapidly.
Implementation of the technology
Required resources
- ERP/WMS/CRM/HRM software: The organisational resource management tools, such as SAP, Oracle NetSuite, Salesforce, and Microsoft Dynamics.
- IT infrastructure: Servers, cloud computing, and stable Internet connections for storage and processing of organisational data.
- Implementation team: IT specialists, ERP consultants, and managers responsible for implementing the system and integrating it with business processes.
- Staff trained to use the systems: Training for employees to effectively use the implemented tools to manage the organisational resources.
- Technical support: An external or internal IT team responsible for the day-to-day operation and maintenance of management systems.
Required competences
- Knowledge of ERP/WMS/CRM/HRM systems: Ability to operate enterprise resource, warehouse, customer relationship, and human resource management software, such as SAP, Oracle NetSuite, and Salesforce.
- Process management: Ability to optimise business processes and manage resources within the company, including production, finance, warehouse, and human resources.
- Data analysis: Ability to process and interpret data generated by ERP/WMS/CRM/HRM systems to improve operational efficiency and make business decisions.
- Process automation: Knowledge of implementing business process automation and integrating asset management tools with other company systems.
- Data security: Data management skills, including knowledge of data protection regulations and securing data processed by ERP and CRM systems.
Environmental aspects
- Energy consumption: ERP, WMS, CRM, and HRM software can generate high energy demands, especially when supported by extensive server and cloud infrastructure.
- Raw material consumption: Warehouse systems (WMS) can contribute to more efficient inventory management, which can reduce the consumption of raw materials in production and logistics processes.
- Recycling: Resource management systems can support a company’s material recycling processes, e.g. by better managing waste and optimising the life cycle of products.
- Waste generation: The use of effective warehouse and human resource management software can help reduce material waste and production losses.
- Emissions of pollutants: Production and logistics management systems can help monitor and reduce CO2 emissions and optimise the supply chain, reducing environmental impact.
Legal conditions
- Legislation governing the implementation of ERP/WMS/CRM/HRM systems, such as GDPR (example: regulations for data protection in CRM systems that collect customer data).
- Data security standards: Regulations for the protection of data processed in the organisational resource management systems (example: ISO/IEC 27001, which defines information security standards).
- Environmental standards: ERP systems can support compliance with environmental regulations, such as ISO 14001 (example: standards of environmental management in manufacturing companies).
- Intellectual property: Protection of software, algorithms, and databases used in the organisational resource management systems (example: copyright on ERP software protection).
- Export regulations: Regulations for the export of technologies and products manufactured using ERP, CRM, and WMS systems, which must comply with local and international regulations (example: European Union export regulations).