What is an ERP system? And why are most companies in Saudi Arabia turning to it?

It was not a spur of the moment thing, but rather something that happened over the course of time.recent yearsThe use of ERP systems has become widespread among various institutions and large stores, especially with the economic and legislative changes that Saudi Arabia has recently witnessed, such as the implementation of...Electronic billing system،The use of an ERP system has become essential to ensure the best performance for the company or store. 

The question here is: Is using one ERP system suitable for all companies and stores? Especially sinceThere are many different ERP systems available, and choosing the right one for your business can be a bit challenging. In this blog, you'll learn everything you need to know about enterprise resource planning (ERP) systems, along with a selection of the best ones The best accounting ERP system in Saudi Arabia. 

What is meant by ERP system?

ERP stands for Enterprise Resource Planning, which is a comprehensive management software used primarily by business owners to manage the vital operations of an organization.

An ERP system primarily organizes an organization's operations and departments to streamline business operations and facilitate employee tasks. This aims to improve work efficiency and ensure integration between vital organizational departments, such as sales, accounting, human resources, and others.

The importance of using an ERP system

As mentioned above, the primary goal of using an ERP system is to increase productivity and operational efficiency. This is achieved by improving work efficiency by simplifying tasks for employees, allowing them to perform routine tasks as efficiently as possible. This is achieved by reducing human error as much as possible and intensifying employee efforts and focus on improving the results of their tasks.

The enterprise resource planning system or store represents a fundamental pillar, because itIn short, it's a software system that aims to consolidate all the vital processes of a company's departments into a single structure. This is achieved by unifying the data of each department and facilitating the exchange of information and data between them, which ultimately improves work efficiency, reduces costs, and increases profitability.

This process is done through several steps:

1. Database unification: Integrating facility data into a single database, making it easy to access information and data for any department in the facility.
2. Issue detailed reports: The ERP system helps the organization prepare their own budgets and prepare the necessary financial reports.
3. Company business arrangement: Organizing all operations related to the human resources department, such as: hiring new employees and individuals needed by the organization, organizing employee training and skill enhancement processes, and also managing salaries.
4. Efficient inventory management: Track inventory efficiently and professionally. Not only that, but the ERP system automatically updates inventory, reducing the chance of errors and the risk of stockouts or oversupply. This ultimately results in a balanced product supply and increased sales.
5. Improving customer experience: One of the most important benefits of an ERP system is that it helps improve the customer experience by enhancing communication and interaction with the customer. This is achieved by providing the most accurate information the customer needs in the fastest time and with the least effort, which ultimately improves the relationship between the organization and the customer.

For more, read also about A comprehensive guide to using an ERP system to improve your company's performance in 2025

Criteria for selecting the best accounting ERP system in Saudi Arabia

• 1. Ease of use

Choosing an ERP system with an easy-to-use interface will save you a lot of time and effort spent training employees on how to use it technically.

• 2. Integration with existing facility systems

Before purchasing an ERP system, make sure it can integrate and work with your organization's existing systems and the applications you use in your daily business, such as customer management systems and accounting systems.

• 3. Test the system before purchasing it.

It is essential to test the ERP system you have chosen before finalizing your purchase, as practical experience is the best measure that determines whether the system is effective and suitable for your business or not.

You may also be interested in Technical challenges in ERP and how to avoid them

How to choose Which ERP system is right for you?

Choosing an ERP system depends primarily on the nature of your business, your budget, and other factors that determine which ERP system is right for you. Below, we'll outline the steps you can take to easily choose the right ERP system for you:

1. Specify Your priorities

It is necessary to determine the goals you want to achieve by having an ERP system for your business. For example, you can determine your priorities in terms of:

• Increase productivity
• Reduce costs
• Promote integration between departments or others.

You can determine your priorities by:

1. Analyze routine processes that require employees to work on periodically.
2. Focus on departments where human errors occur most frequently: such as sales, accounting, warehouses, etc.

Finally, it is essential that the ERP system works to achieve the public benefit of all departments of the facility. It is necessary to meet their needs with complete professionalism and accuracy.

2. Putspecific financial budget

The next step is to conduct a study of the facility's financial situation and allocate a realistic budget. This budget includes the costs of purchasing the system, implementing it across the facility's departments, and, of course, training employees on how to use it.

3. Choose a smart and advanced ERP system. 

When you reach this point, it is necessary to focus on the priority of management, because there are two basic types of ERP systems:

• 1. Cloud ERP system

It provides the ability to manage the facility from anywhere, without being restricted to the facility itself. One of its most important advantages is that it requires lower maintenance costs than a local system.

• 2. Local ERP system

An on-premises system is ideal for organizations that prefer to keep data internally or have security concerns. This type of enterprise resource management system requires greater technical resources than a cloud-based system.

• Choosing a Professional ERP Provider

Research companies or establishments similar to yours that use effective and professional ERP systems. Choose companies with a good reputation and extensive experience in their field. Inquire about the possibility of customizing and updating the system and other necessary technical information.

And ifYou are a gold and jewelry store owner and looking forBest gold shop management softwareWe offer youQirat programAl-Muhasabi is the best ERP system dedicated to managing gold shops and companies in a balanced manner, helping gold shop owners manage their stores accurately and efficiently. It features an easy-to-use interface and supports the Arabic language, a feature rarely found in most ERP systems.

The carat system works on:

Reduce the risk of loss or theft.

It provides accurate reports to each department, which enhances sound decision making.

Ensures employees have an easy-to-use interface without requiring a lot of prior training.

Certified by Zakat, Tax and Customs AuthorityIn Saudi Arabia.

It provides experienced, efficient, and reliable technical support, and is characterized by its rapid response, ensuring comprehensive and efficient management of your gold and jewelry store warehouses.

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To learn more about the carat system, read: Definition of the carat system

• Ability to customize

It is important to ensure that your ERP system is flexible and can be customized to meet the needs of your organization's departments and facilitate the professional completion of tasks.

For more read aboutBTop 5 Features That Make Qarat the Best Gold Shop Management Software

Common Mistakes When Choosing an ERP System

TThere are a number of common mistakes that business owners often make, especially when purchasing and testing an ERP system for their business for the first time. To avoid making any of these mistakes, we'll detail them below:

1. Neglecting the step of setting the goal and work priority before purchasing an ERP system.
2. Focusing entirely on preparing the initial budget only and neglecting to review costs on a regular basis, such as maintenance costs, training, etc.
3. Rushing to choose the first available ERP system without conducting a preliminary study or even training to test the system and determine whether it has the ability to meet your business needs or not.
4. Making the decision to purchase an ERP system alone without involving department heads in your decision may result in choosing an ERP system that is not suitable for your business.
5. Neglecting the flexibility and customizability of the ERP system may cause problems, especially during expansion as the business grows.
6. Choosing an ERP system that is difficult to use will result in errors and decreased work efficiency due to the increased time wasted as employees try to navigate the new system.
7. Neglecting integration with existing company systems and applications will lead to technical problems later on.
8. Choosing an unreliable ERP system supplier without checking their experience and reputation in the market.
9. Not paying attention to developing a realistic and executable plan.
10. Choosing an ERP system that does not provide adequate protection for the organization's data and information, which exposes the organization and its customers to risk.

Finally, an enterprise resource planning (ERP) system acts as the central nervous system of a company or organization. Choosing the right ERP system for your business will undoubtedly enhance work efficiency, significantly reduce errors, and ultimately increase profits.

Before taking the step of purchasing an ERP system for your business, it is necessary to take your time and know how to choose The best accounting ERP system in Saudi Arabia Suitable for your business, it is necessary to determine your priorities for using a cloud ERP program in your company while determining the available budget.

If you are a gold and jewelry store owner and want to boost your sales and facilitate the management of your branches with the least possible effort, we recommend that you use Qirat Accounting Software is the best gold shop management software in Saudi Arabia. Try it now and discover the difference for yourself!