Enterprise Resource Planning, commonly referred as ERP is a complete software solution that consist of various modules and features that manages a company's core processes, such as financials, supply chain, production, manufacturing, engineering, HR activities and more.
These modules are integrated with each other to lower the stress of duplication of information and double entry with different departments. ERP is a software solution that centralizes data from multiple departments into a single platform, thus connecting the entire organization.
ERP software tools are great to have if you aim to upgrade your business performances while simplifying your operations. With these at your disposal, you can combine all your company's information in one database and manage a variety of daily tasks without relying on multiple software solutions. This is among many reasons why ERP software is important for your company or business. Below are the major benefits for your business:-
1. Reduced Operational Costs
This is one of the most important factors of using ERP software, it helps you to reduce your operational cost since it coordinates with different departments of an organization. An ERP solution centralized different business processes which create a control on inventory cost, marketing cost, production cost and so on.
2. Streamlined Process
One of the good effects of centralizing information for the entire business into one system is that different departments in the enterprise are now connected to each other. As a result, the communication between the companies departments will become more efficient, and normal sales processes, such as order to cash, etc. will be streamlined.
3. Improved Inventory Monitoring
A major challenge for growing companies is tracking and monitoring their expanding inventory levels. ERP systems utilize bar-coding, RFID tags and serial numbers to keep tabs on your inventory at every stage during the supply chain. These tools help you keep track of inventory levels at different warehouses, which items are in transportation and which items are on the shelves ready for customers. The increased warehouse visibility optimizes the pick, pack and ship process greatly, removing all the guesswork.
4. Good Supply Chain
Having the right ERP system in place means improved procurement, inventory, demand forecasting, etc. essentially improving the entire supply chain and making it more responsive.
5. Security of Data
The collection of data in the database is secured in all ways and can be accessed by the authorities in the higher level of management. ERP software system allows the admin and higher level managements to control the access restriction to the data. This gives your company desired security. The important data information like business deals and sensitive material are transferred through encryption so there is no way a third party can access the information.
6. Simplified Compliance and Risk Management
Last but not least, as companies grow and do global businesses, it is normally difficult to keep track of all the different country regulations imposed on your business. Even though local companies also need to worry about various environmental, information security and HR regulations. With all that in mind, many ERP systems are built with these regulations to help you maintain compliance at every stage of your work. Moreover, ERP software provides built-in auditing tools to assist with documenting things like chemical use and tax provisions. This makes it incredibly easy to formulate reports and send them over to the relevant governing body.
Due to the high demand usage of ERP software along with these major benefits of the software there are many more advantages businesses get from this incredible software. If your company is not using an ERP system it's highly recommended time to get one.