Enterprise Resource Planning (ERP) systems as integrated systems that manage all aspects of a business; aligning financial management, human resources, supply chain management, and manufacturing with the core function of accounting. ERP systems are used to provide transparency into the entire business process by tracking all aspects of production, financials, and materials.
These expansive systems act as a central hub for end-to-end workflow and data. ERP systems tie together and define a plethora of these business processes, and enable the flow of data between them. By collecting an organization’s shared transactional data from multiple sources, ERP systems eliminate data duplication and provide data integrity with a “single source of truth.” Today, ERP systems are critical for managing thousands of businesses of all sizes and in all industries.
As technology continues to advance and evolve, 2019 is the time to consider investing in an ERP system if your company doesn’t have one in place already. As your organization grows, new challenges arise – processes get more complicated, supply chain management is harder to control, and financial expenditures increase. Your efficiencies can tend to wane if you are not utilizing all of your information in productive ways.
Benefits of Enterprise Resource Planning Software
Efficiency
The number one goal of implementing ERP software is to boost efficiency. ERP software eliminates repetitive processes and great reduce the need to manually enter information. The software is also able to streamline business processes and make it easier and more efficient for companies to collect data, no matter what department they’re working in.
Forecasting
Enterprise resource planning software gives users, and most importantly managers, the tools and resources needed in order to create more accurate forecasts. Since the information within ERP is as accurate as possible, businesses can make realistic estimates and much more efficient/effective forecasts.
Productivity
ERP software will save you time through productivity enhancement. Through having redundant processes automated, individuals will have more time to work on other important projects and tasks. They also will be able to work easier since the solution was designed for easy use.
Flexibility
Modern-day ERP software’s are robust and flexible. They are not a one-size- fits all, but they can be tailored to the unique needs of a manufacturing operation. ERP software is also able to adapt to the changing needs of a growing business, eliminating the need to purchase a new solution once your business changes.
Collaboration
Collaboration is another one of the main benefits of utilizing ERP software. Collaboration between departments is a crucial and important aspect of a manufacturing operation and allows for much more thorough visibility. With data being entered into ERP systems being centralized and consistent, there is not much reason for why departments would not be able to work together.
Scalability
Structured ERP software enables the addition of new users and functions to grow the initially implemented solution over time. When a business is ready to grow and continue to build, enterprise resource planning software will aid in facilitating the growth.
Cost Elimination
ERP software reduces administration and operations costs through the utilization of accurate and real-time information. It allows manufacturers to manage operations, prevent delays within production, and break up information, ultimately enabling managers to make decisions much more quickly and efficiently.
Mobility
Some ERP software’s grant you access to a centralized database that allows you to work from home, the office, or wherever you wish.
Competition
While ERP software is expensive and a substantial investment, it is actually more costly to not purchase the software. While there are manufacturers that are seeking to stick to methods of the past, this has put them a bit beneath the competition. ERP has technological advancements that greatly aid production efficiency and productivity.
Integrated Information
No more issues with data spread across separate databases since all information will be inserted into a single location. This means that you can integrate platforms such as CRM software with an ERP system, which keeps data consistent, accurate, and unique.
