ERP in a Nutshell

What do we know about ERP?

For starters, ERP is an acronym for Enterprise Resource Planning. However, the name alone may seem unspecific to what it does exactly.

Let us take a step back and break down the various processes that are vital in running a business, what are they? These may include the basic such as inventory & order management, accounting, human resources, customer relationship management and so on. All of these have different functions and operated by different departments; so how do they make sure that the information being passed across the entire organization is accurate?

Here’s where ERP comes in the picture. At the primary level, ERP Application integrates these various functions into one complete system to streamline processes and information for the whole organization.

The fundamental feature of all ERP systems is a shared database that supports multiple functions that is managed by different business units. Which means employees from different departments—for example Finance and Human Resources, can rely on the same information.

What can we benefit from having an ERP System?

Collaboration & Productivity: Having an ERP system eases the burden of manual tracking on spreadsheets and automates processes. It manages important tasks on a daily basis across an organization and freeing up staff to focus their efforts on more critical initiatives that require individual attention. This boosts productivity and radically reduces workload. With ERP, you can have cross-departmental collaboration and prudent workflow execution. Having the availability of real-time communication between different departments within the organization enables rapid responses and managed coordination.

Data Integrity & Efficiency: Since each department uses information differently, it is prone to errors. Having awkward manual process can waste the organization’s time & money. Accessing a single database makes sure that all branches in a company are in sync and using the same data. This deducts the need to consistently reconcile accounts just to make sure they match. Because of this automation, it allocates more time to focus on productivity and become efficient with information management.

When would be the best time to implement ERP?

Measure Performance and Plan Ahead: An ERP Solution makes it easier for any organization’s staff at all levels, from front-end employees and team supervisors to senior executives and managers – to measure company’s performance and understand the impacts within the company. They become more receptive and have better forecasting so they can rapidly change their tactics & address market demands as they emerge. There is no specific industry or company size that dictates when you should use an ERP System as all businesses aim is to grow. Add up all these advantages, employees get access to accurate information that enables them to make decisions faster. It also removes redundant processes hence it lowers the cost of doing business overall.

 In a nutshell…

If your company wants to improve their internal business process and dramatically reduce labor costs, IT expenses and improve the collaboration between staff and companies—then implementing an ERP System might just be the answer for it.