If you don’t have an enterprise resource planning system (ERP) in place currently, you may be wondering how it can benefit your business. Whether you are involved in catering or manufacturing, these systemscan streamline many functions of your company – leading to better efficiency and productivity, and also reducing errors.
What is Enterprise Resource Planning?
Enterprise resource planning may be something that you’re unfamiliar with, so let’s get down to the basics for a minute. An ERP is a platform that can benefit your business in so many ways. Think of it as a type of GPS navigating program that uses software to help a business grow, run and expand.
In previous years, people going on a trip used maps, guidebooks and CB radios to get a person from point A to point B when traveling. As time went on, GPS systems offered more sophisticated methods for finding the best route. In addition to relaying road closures and traffic alerts, the latest systems can also alert travelers if they’ve taken a wrong turn and how to get back on the correct path.
Growing Your Business
ERP involves all aspects of a company such as IT, finance, human resources, production and manufacturing and shows them how to work in tandem.
The organization components that ERP can bring to the table are worth the price alone. Whether your data frequently changes, or you need to stay current with all of your finances, an ERP allows you a chance to see all that information in real time. It also aids in making decisions whichare invaluable to a business.
Dealing with Constraints
In order to keep your business running, you need to know your bottom line financially. This means assessing costs, and realizing what it takes to run your operations. To help with streamlining your business, ERP can provide greater visibility and overview. Imagine having easy access to where you need to cut costs, as well as the lost opportunities that are being mismanaged.
AMust-have for Large Firms
There is a massive amount of information that needs to be tracked for both complex and large businesses. This includes being able to ascertain figures in regard to inventory, accounting and CRM. Programs in the past rarely allowed the other departments to communicate and be shared easily. That’s why enterprise resource planning is so important.
In addition to allowing executives the opportunity to access everything with just a glance, managers can adjust costs more accurately and take inventory counts. This can save substantial amounts of time and money in productivity. It can also allow more accurate reporting during month and year end.
AReal Benefit for Startups
If your company is in the growth stage, you and your manager may wear a variety of hats in the establishment. This means that in addition to functions such as finance, one of you may also have a host of other job duties such as payroll, taxes, accounts payable and accounts receivable functions. Then, let’s add the task of filling in with other departments such as customerservice, production and human resources.
Managing the paperwork and spreadsheets attached to varying duties can be time-consuming and difficult to keep track. Fortunately, ERP system integration can free up owners from these simple tasks and allow them to focus their valuable time on less administrative duties, such as getting new business and tending to their customers.
Open Up New Opportunities
The end goal of a company is to increase its productivity and efficiency toward higher revenues and a larger customer base. ERP can help increase the inner workings of a business on-the-move. While you’ve reached a place of greater success, you probably would like to see your company expand to something even bigger and better. In order to play with the big boys, an ERP system is integral because it can give you a better handle on where you stand and where you can realistically get to in the future.
From Inefficiency to Streamlined
An ERP can help better organize your business by automating its processes and teaching workers how to better communicate with the new tools now within their grasp. When your customer service representative takes an order from a client they can have easy access to credit ratings, inventory, and the history of any past purchases. This alleviates the need to waste time by going to the financing or inventory department first.
Modern technology makes it easy for corporate personnel to access important information, even when they’re out of the office. In addition to the cost of ERP system, the time spent to implement the process will be just as much an investment. That said, the superior data analytics gained will forever enhance a company’s business module.