What is ERP (Enterprise Resource Planning)?
Enterprise Resource Planning or ERP systems are used in the industries for managing the business functions in a centralized and integrated way. ERP is mostly used in the companies who want to track the moving parts of the manufacturing & distribution supply chain. ERP System Development is widely utilized by healthcare, construction, hospitals and non profits group.
ERP stores all the entries in a single database and makes the working procedure easy by allowing all the departments to work with same information. With ERP all the data can be well organized, analyzed and converted into reports. It brings customer management, business intelligence, inventory, financial management and supply chain into one system.
Why to use ERP System?
There are various software available which manages the functioning of businesses. ERP system has some unique features which makes it unique and distinctive from its competitors. In this blog we are presenting some reasons which make it unique. They are as follows:
The centralized database is the unique feature of ERP system. With a single database, you provide single source of truth for working to your company. It reduces the chances of error caused due to incorrect data which further reduces operational cost. With the centralized database hesitation or stalling of projects gets reduces as all members of the company has the access to the data they need. Data is compiled, stored and can be accessed from the single system without thinking about how accurate or secure the data is.
Centralized database information helps in improving the analytics and reporting. In the ERP system, records are stored by the data user input which makes it superb business intelligence tool. ERP software makes functionality very easy and team can generate reports very quickly. ERP generates the reports in few minutes while if it done by human it may take several days.
In most of the ERP systems, customized dashboard is provided in which executives can easily see the reports at the time of sign in. Reports can be of income, expense or custom KPIs or of anything. There is no need to rely on the IT executive to generate the report.
With the traditional methods, complex tasks are mostly unavoidable. Tasks like monitoring inventory levels, generation of reports, timesheet tracking or order processing used to take several hours of the employees while with the ERP system these tasks are accomplished within few minutes with less chances of error. If you will choose correct solution then the complex task will be automated. The data base system removes the redundant tasks like multiple data entry and allows the complex calculations to be done within few minutes. Your staff becomes free and can use their efficiency in other task which ultimately increases the productivity and profitability.
In the modern time, it is very crucial that customers should remain happy with your services. The best way to receive customer satisfaction in the digital age is by providing client oriented goods and services. With the help of ERP system you can achieve this. Most of the ERP systems are installed with the customer relationship management (CRM). CRM tool has the access over data for business function.
CRM tool not only shows the contact information but also show the details of billing & order history. It helps your team to understand the needs of client by looking into previous order and they can make the strategy for lead generation.
Simplified Compliance & Risk Management:
when the companies expand they do business in different part of the world and it becomes very difficult to have a track of different regulations imposed on business. Many ERP systems are designed with these regulations so that you can maintain compliance at every stage. ERP system provide built in auditing tool which assist your documenting like tax provisions & chemical use. This makes easy to generate the reports and to send over the relevant regulatory body.
ERP system has tools which manage the risk which further enhances reliability and accuracy. It also improves overall financial management as there are less chances of errors in the accounting. Forecasting tools all the users to predict the demand, budget or labor for any event.
The 5 Essential Types of Software Every Business Needs