ERP stands for Enterprise Resource Planning, but somehow that doesn’t convey what it means or what it does. Generally, it refers to the systems and software packages used by organizations to manage day-to-day business activities, such as accounting, procurement, project management and manufacturing.
Towards the beginning, when ERP’s first came into the market, it was primarily designed for inventory management. These days, ERP systems have evolved to encompass a lot of other back and front office operations.
In order to fully understand ERP, it helps to take a step back and consider all the processes required to manage a business, which is a lot. These processes include anything from Customer Relationship Management (CRM), order management, inventory management, labor management, accounting, etc.
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.
ERP Software Solutions
Some of the key features of an ERP solution include:
- Shared database
- Support for multiple business functions
- Detailed reporting in real-time
- Enhanced process automation
- Dashboards to track metrics
- Third-party integrations
Here at Solutions Review, we understand each business is unique in its own way, but at the core, businesses follow similar processes and face similar issues. So how do you know if your company or organization needs an ERP solution? Your business might be flashing the red light, telling you that it might require a bit of automation and better management.
If you’re like me, numbers are not your friend, and dealing with them is time-consuming. There are accounts that need to be tracked both internally and externally. Internally, so that you keep your employees paid through the year and ensure that the processes are running smoothly. Externally, so that you know how much money is flowing into your account through sales. This means twice the scares and twice the amount of time spent on tracking them. It’s a daunting task but it doesn’t have to be that way if you opt for an easy-to-use ERP software.
You Use Multiple Systems to Run Your Business Operations
As mentioned earlier, there are plenty of processes involved when managing a business. However, in today’s world, organizations look to digitize these processes. You’ll be amazed at the number of software solutions available for each of these processes. This results in using multiple software and it can get chaotic as your business begins to scale. It can pose a serious problem when managing your business. To solve this, implement an ERP solution in order to have all these processes and data in one collaborative platform.
What an ERP Solution Can Do for You
- Digitize Self-Service: It can inform customers on what’s available and what’s out of stock. It can help with product suggestions based on purchase or browsing history. Customers can get regular updates on how far away they are from receiving the product. It helps customers with all details pertaining to their purchases. This not only reduces operational costs but also adds credibility to your business.
- Eliminate Data Redundancy and Errors: Data repetition and errors are a common sight when you use different software to deal with such data. With an ERP integrated to your business, you can get rid of such inefficiencies and manage your business better.
- Increased Revenue Growth: Since an ERP is integrated with your business, most of your sales and revenue data are readily available and are updated in real-time. With this information, you can get a deep understanding of business revenue. You will be in a better position to identify and manage cost variances. You will also be able to allocate financial, human, and operational resources better. This will eventually lead to rewarding outcomes such as an upward revenue growth, business expansions, better-paid employees, etc
Read more benefits of an ERP software solution here.
Looking for more information about ERP systems? Download our free buyers guide, where you can find the top ERP software vendors, snippets about their highest ranking ERP solutions and products, plus the top 10 questions and tips to ask yourself and software vendor before purchasing!
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