What is ERP?
ERP stands for ‘Enterprise Resource Planning’. ERP is a software that integrates, automate and manage core business processes of an organization for optimum performance. An organization has many business processes like, finance, procurement, supply chain, operations, marketing, reporting, manufacturing, human resources, etc. There is a flow of data and information between the business processes of an organization. The flow of data should be smooth and streamlined so that the processes may run systematically and in co- ordination with each other. ERP software co- ordinates the flow of data between the business processes of an organization, streamlining the operations of the organization. The ERP software integrates all the businesses processes on one platform so that all the process may run in a synchronized manner to achieve the objectives of the organization.
How ERP Can Help in Your Business?
If the business processes are not streamlined and synchronized, then the efficiency of the system is reduced. A lot of effort and resources is wasted but the desired result is not achieved. ERP software bring all the processes together. When your processes, data and systems get integrated together, you will get business intelligence, acceleration, adaptability and efficiency to optimize your operations.
The ERP system can benefit your business in following ways:
The ERP system has numerous benefits, most of which are derived from information sharing and standardization. Since in the ERP system, the processes can share data easily as compared to disparate systems, the cross- departmental business processes are easily managed. When the modern tools & technology like advanced analytics artificial intelligence (including machine learning) is combined with the ERP system, the entire system is optimized. Some of the advantages of ERP are as follows:
(a) Access to data from Anywhere
(b) Information is always up-to-date
(c) Uniformity in Business Decisions
(d) Improved customer services
(e) Boosts efficiency by automatic data collection
(f) Better planning and reporting due to easy availability of data
(g) Saving of money due to optimization of processes
(h) Improved supply chain management
(i) Provides data security
(j) Better visibility into the parts of business, such as, inventory
(k) Better risk management and mitigation due to improved control and compliances
Six Signs that You Need ERP System
Your Systems Are Non- Integrated and Not Giving Optimum Performance
If you are constantly switching between software or finding difficult to get your apps communicate to each other, it is time to switch to ERP system. All growing businesses face these problems and until and unless you will integrate all your processes, software, apps, etc. these problems will remain there. If the systems don’t communicate with each other, the overall system becomes inefficient. A lot of money, effort and resources is waste to manage multiple database and cross- checking information. A single integrated ERP system shares the information and expertise with all the team members and provides one source of truth for all. It is capable of increasing productivity and create a consistent user experience.
If you hold too much of inventory, you need extra space to occupy it and will engage additional money and resources to manage it. On the other hand, if the inventory is too little, it will halt production, force extra cost to accelerate shipping of missing parts and ultimately delay inventory.
It you are facing either of these situations, you need an ERP system to accurately forecast the demand by integrating all supply chain processes.
Customers Are Not Satisfied
If the customers are not having a good experience regarding ordering, delivery, quality etc. they will less likely to return. In today’s world, the customers have many choices available. Therefore, making the customer happy is crucial to sustain and be profitable in business. ERP system can help you in this is a great way. An ERP system makes data available both for you as well as for the customer. From collecting the sales order to processing it and delivering to the customer involves so many departments and employees. A centralized ERP system integrates all the processes and ensures good customer experience. ERP system also helps in complaint handling and resolution if the customer is not happy and get back to you with any complaint.
Off-the-mark Product Costing
Knowing the actual cost of the product requires collecting data from each process, quotation and plant. It may become a tedious and resource consuming process and the chances are that you miss the data and do not arrive on the true product costing. A well-integrated ERP system helps extracting information and data from all the departments and processes and provides a big picture regarding costing of the product.
Difficulty in Extracting Data
If you will not have access to the critical information, the quality of your decision making and business strategy will get effected. Modern ERP systems are built to provide business intelligence (BI). A centralize ERP system helps extracting critical data and hence helpful in making decisions.
Maintaining and Reporting Data to Regulatory Agencies
Today businesses have to maintain and produce a lot of data to comply with various regulating agencies. In the manual system, it becomes very complicated to keep and extract the data and reports at the appropriate time. Due to inaccurate or insufficient data, sometimes the regulatory agencies are not satisfied and it may have adverse effect on your business. Modern ERP systems facilitate in capturing data and presenting it in standardized formats and reports required by the regulating agencies. This is less time and resource consuming and helps freeing up your resources for other important tasks.
ERP System Providers in the Market
There are several ERP software providers in the market but the following vendors are the market leaders in providing ERP solutions.
You should check each service provider and choose the one which is the best suited as per your requirements.
If your business is growing and you are observing above mentioned signs, you should think over regarding adopting ERP system. An integrated ERP system will help you manage your internal processes in an optimum way, make your data accessible from anywhere, secure your data and make resources free for other crucial functions of the organization. The process of applying ERP system entails some cost and the results are seen in the long run only but it is definitely worth it to adopt ERP technology.