ERP stands for enterprise resource planning. This is a widely used term for different business activities that help manage a business better. An ERP system can automate many business activities and speed the communication of information between different business functions within a business to managing outside business connections.
ERP systems first began to automate different back office functions of a business such as accounting, human resources and inventory control. Front office jobs became integrated later.
To begin to implement an ERP system within a company usually requires some changes in the way the company typically runs its business. An ERP system can combine your many business processes into one system thus saving the company time and expenses associated with doing business.
5 benefits of using an ERP system for your business are:
You can make critical decisions that affect your company much faster. Needed data for making decisions is readily available across the entire organization. The information on your business is available in real-time. It can be available to all management at any time to make the proper business decisions for your business.
Sales forecasting can allow you to keep minimum inventory in stock. This can optimize operations, meaning less need for more storage space. Order tracking is made more efficient from the time of the order to its fulfilment. ERP systems can allow you to follow an invoice all the way through to the cash receipt with this information readily available. This is of value to you as a business and to the customer as well.
With all of the business data contained in the central ERP system, there is not a need to change between different systems for your business finance, human resources, marketing and sales departments and any manufacturing programs used within the business. It can all be contained within one system. In the past, there might have been stand-alone programs for the finance department and one for the human resource department. All of the former programs can be combined into one application and have one database and network for all functions.
An ERP system can improve business productivity and performance of business functions. It can speed up these processes as well for all involved. With a complete enterprise function overview available and easier exchange of needed information, the speed at which you do your business is greatly enhanced.
Customer service representatives can take orders up front for your business. All information is available to not only take the order, but complete the fulfillment process as well. Improving your customer service department and increasing customer satisfaction is another benefit of an ERP system. Sales and marketing, customer contact databases, information readily available can all make for better management of your customer relations. Satisfied customers can equal repeat business for your business.