What is ERP Software and why does your business need one?
Today’s global trade faces continual problems, and today’s technology systems must change to meet the ever-changing demands of clients. In order to reduce operational expenses, businesses aim to increase efficacy and profitability, which necessitates the use of ERP (enterprise resource planning) solutions.
ERP software typically combines all elements of a business — from product planning to development, manufacturing, sales and marketing — into a single database, application, and user interface. ERP platforms enable users to complete more tasks because they meet the demands of today’s businesses.
What is an ERP Software?
ERP software is a term used to describe a system of interrelated business applications that an organization uses to manage the flow of data from strategic planning to payroll, from order taking and manufacturing to managing customer support.
They are systems, not stand-alone software. Companies use them to manage their core business operations, but they are also used for support functions like human resources and finance.
The term ERP is largely location-independent – businesses around the world can benefit from the standardization that ERPs provide across all departments of an organization for greater efficiency.
How Can ERP Create Value for Business?
1) Flexibility: In general, if you have an existing ERP application, you can continue using it and enhance its functionalities to suit your evolving business needs. Most of the time, you’ll only need to hire software development services for updating and maintaining software features.
2) Customization: If you don’t have an existing ERP application, chances are that the customizable functions will meet most of your organization’s requirements. In this sense, ERP software is a cost-effective option because you can have an application developed for your needs.
3) Compatibility: Even if you decide to switch from one system to another in the long run, compatibility enables a quick and smooth transition between applications. In short, you don’t need to hire consultants when changing platforms because you’ll be able to use their expertise in case of emergencies.
4) Connectivity: Modern ERP applications are web-based and allow users to access them from any location and even through mobile devices, which means you can also use them for field data collection and other tasks.
5) Data security: In general, it’s safe to store important data in one centralized location, which also enables faster access. Thanks to better security features, today’s ERP software is an even more attractive option for businesses that use cloud computing technology.
6) Task automation: One of the best features of modern ERP applications is that they automate routine workflows to save time and money. Also, they enable collaboration between co-workers, partners, shareholders, etc., which is not possible with stand-alone solutions.
What Features are provided by ERP Software?
ERPs are used across all industries, so the features they provide vary widely. However, ERPs contain at least some of the following standard modules:
- Sales Management
- Service & Customer Relationship Management
- Financials
- Manufacturing
- Project Planning & Execution
An example of an industry-specific application that works with ERPs is the Hospitality Management module, which replaces multiple applications typically used by hotels. This type of software facilitates tasks like reservations, accounting, room inventory control, etc., while cross-departmental modules provide connectivity between these functions and ERP systems.
Advantages of Using an Enterprise Resource Planning Solution
ERP solutions offer many benefits to business owners, including time and cost savings, improved supply chain management, better customer service and increased productivity. Businesses that use an ERP system encounter the following benefits:
Reduced paperwork – Because workflows are automated, businesses using ERP software have less paper to deal with. The ability to monitor workflow statuses from a central location enables better planning and faster decision-making.
Improved customer service – Connecting different departments of an organization makes it easy to provide each customer with the type of service they require. For instance, ERP software can be linked to new product development features so that customers’ requests are considered during this process. This leads to higher customer satisfaction rates and improved loyalty.
Faster and more accurate reporting – Because all the data within an ERP system is linked, it’s possible to generate reports faster than with stand-alone applications. For example, a complete report about the number of items sold at different times can be created in just a few clicks. In addition, those who use business intelligence software to access their ERP systems can get accurate reports from a variety of databases.
Increased productivity – One of the most important benefits of an ERP system is that it increases the overall efficiency and effectiveness of an organization’s workflow. If a business has trouble handling a high volume of orders, for example, using an ERP solution to automate certain processes will help it complete them faster. As a result, employees will see an increase in productivity and the company will be able to satisfy more customers.
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