Enterprise Resource Planning or ERP Software integrates many facets of a business’ or organization’s operation in one unified application. Such software automates and streamlines the flow of information essential to back-office functions. Functions consolidated in ERP software include:
- Inventory management
- Human resources
ERP software automates tasks streamlining a businesses’ work process. This results in a shortened business process cycle, increased productivity and improved customer relationships. The advantage is a method for standardizing processing with the ability to both save and recall information in a real-time environment.
Identifying and Correcting Inefficiencies
Enterprise Resource Planning software enables a business to identify and correct inefficiencies in its business process. By correcting these operational bottle necks, ERP software is a powerful tool for decreasing data duplication, improving information management, forecasting, and achieving financial goals.
A wide variety of often disconnected processes, systems and activities are often employed to run a business. These can become, to use a modern term, a “smashup” of both automated and manual workflows and procedures, many of which often lack formal documentation. Such hybrid procedures are often carried out through a variety of departmental applications and databases that lack real time integration. In the past such a disjointed approach may have served its purpose but in the current evolving and competitive marketplace, it can critically hamper productivity, expansion and profitability.
The foremost reason to adopt an ERP software solution is because it is vital to a company’s success in today’s competitive environment. Labor-intensive processes are cumbersome, prone to human error, and drain a business of its most vital resources’ time and money. There has never been a time like today when a company must operate in as lean a manner as possible. To ignore the need to automate routine yet essential business activities is a certain formula for failure in the current business climate.
Many companies find themselves employing multiple processes, systems and activities to run their day to day business. As a result both procedure and workflow often breakdown in the highly completive nature of today’s marketplace. The result is reduced productivity, growth and most importantly profitability. With effective ERP software your business can raise productivity, reduce overall operating expenses, optimize performance, and improve data flow. Areas where ERP software enables automation include:
- Supply chain management
- Warehouse management
- Point-of-sale software
- Retail management
ERP software enables a business to create and maintain a climate that ensures information consistency and accuracy. While small discrepancies in information between various departments may seem inconsequential such errors add up. Many customer satisfaction and retention issues are resolved simply by keeping real-time accurate records.
Ultimately, Enterprise Resource Planning ensures that employees at all levels from sales and service to the CEO have accurate and current information with which to assess needs and make critical decisions. This allows a business to be more agile and profitable by allowing it to quickly identify problems and make timely corrective action. ERP software also empowers a business to become more responsive to changes in the marketplace and address customers’ needs as they become evident.