In most industries, one of the major challenges faced by the managers is to be cost effective. It is very challenging to demonstrate ROI and to organize the information flow to facilitate the decision making processes. These challenges highlight the flexibility that demonstrates ERP as a powerful business tool. ERP implementation can transform your business and ensure success with the support of the business leaders and commitment of the project team. With proper forecast and execution, ERP solutions can improve business efficiency.
But what is Enterprise Resource Planning (ERP)?
Enterprise Resource Planning (ERP) is real-time business management software which integrates the key business areas by using a common database to run and manage the organization effectively. For example, a departmental shop manager may look into ERP to monitor the status of a production order.
How is ERP different from MRP?
Material requirements planning (MRP) was developed in the 1970s to focus on the inventory management of manufacturing. The purpose was to monitor and track the parts required to complete the production and stock management of the warehouse. Eventually, other areas of business required smooth information processing too, such as payroll, capacity planning, supplier management, etc. for which the successor ERP was made. ERP is now a standard business application in industries such as healthcare, retail, banking, education, etc.
Is choosing an ERP system difficult?
ERP software selection is an important decision since it will have a major impact on your business. Although not difficult, but the selection requires you to clearly identify your objectives and requirements.
The pre-selection process includes ERP system integration planning so that the company can make every data more accessible and useful. Creating a dedicated team by recruiting new staff or training the existing ones is compulsory, since it is not the job of a single person. ERP brings forth cultural change along with technological change, and the employees must adjust to the new process.
Why is ERP important and how does it work?
ERP enables real-time data view of your data and processes and this central database management system can be accessed through every department of the business operation. This helps to increase production levels, control the costs efficiently, access information, execute integral strategic planning, and monitor activities to ensure a smooth client communication. ERP also synchronizes reporting and automation to make the process more efficient.
What are the advantages of ERP System?
Here is a list of 5 advantages that will make you think that your business DESERVES an ERP system!
- ERP integrates all the key departments of your business to increase productivity and communication.
- Accurate forecasting allows maximizing efficiency and this is beneficial for the production cycle,
- Real-time visibility of the business data allows swift decision making. It allows you to be mobile accessible and brings your business with you wherever you go. Most ERP service providers offer native applications like Android, iOS and Windows smart devices for convenient accessibility.
- Information can be made accessible to your clients too if you wish to share any data.
- You do not have to purchase every ERP solution available, you can choose the modules based on your business volume and requirements.
By adding up all the advantages, it is clear that an ERP solution eliminates all the possibilities of redundant processes and dramatically lowers the cost of your overall business. Upgrade your business from manual methods to automated processes.