Companies today need to find ways to become more streamlined, and efficient. Profit is key to keeping a business afloat and also to help it to grow.
Integration of systems, transparency between departments, and removal of time-consuming operations can all impact a business positively.
Indeed, many companies suffer due to a mass of time-consuming practices that could quite easily be automated. The problem is that many companies are unaware of how to do this successfully.
This is where enterprise resource planning software has managed to help many businesses.
So much so, that the global ERP market was worth nearly $40 billion in 2019 according to Allied Market Research. It is expected to be worth double this in a few more short years.
Many businesses are putting their faith into ERP systems. The question is, how could one impact your business?
What is ERP software?
Enterprise resource planning software, or ERP for short, is designed to help manage and integrate certain areas of a business.
It affects such areas as human resources, finances, manufacturing, and reporting. It doesn’t deal with sales areas as much as some other systems do but concentrates more on the financial data of a company.
It can be used to automate areas involving manufacturing and inventory, and the supply chain too.
Many businesses are now turning to ERP consulting services to devise a system that will help their company run smoother and more profitably.
Who uses this type of software?
Many different areas of industry are using ERP now, and this system is certainly not limited to one specific area.
Industries using ERP could and do include.
- Health Care
- Non Profit Organizations
While this seems rather broad and unspecific, there are some very big brands using ERP right now. Amazon, Toyota, Starbucks,
ERP systems are complex and one question that will arise will be how do you choose an ERP vendor? The biggest names in ERP now are Oracle and SAP.
However, there are many other ERP systems available, and this is why consultants are now so prolific. Choosing the right system is a lengthy and complex process.
In what ways can an ERP impact your business?
It is all very well knowing that Amazon is benefitting from using an ERP, but what about your business? Are there benefits for you, or is ERP something you could avoid?
If you are looking at introducing ERP to your business there will be a plethora of questions such as how can a cloud-based ERP support remote work? Or will it improve our manufacturing process? Will it actually save you time?
These are some of the areas that ERP will impact:
- Inventory management
- Project management
- Warehouse management
- Financial management
- Human resources
The bottom line is that ERP will put all of your company on the same page. No longer will departments be unaware of what another one is doing.
These are the benefits of ERP
Your productivity will improve with ERP. Right now, your business could be carrying out the same tasks in different departments without anyone knowing it.
Productivity will improve
By integrating departments through ERP and having more control over management, it will be clear which tasks can be removed. Many other tasks can simply be automated.
You will also be able to see problem areas and bottlenecks more clearly through easy-to-understand reporting.
Sales and inventory
Ordering, shipping, and inventory will all be impacted by ERP. Manual systems are time-consuming and lead to errors. An integrated ERP system will be able to track in real-time when orders are made, when they are shipped, and the products deducted from the inventory levels.
This helps with the supply chain and reordering from suppliers.
Cash flow improvements
One big problem with companies is cash flow. This is the lifeblood of any business, and when it dries up it leads to serious issues. It can lead to poor supplier relationships, and it can lead to closure.
Having automated systems for invoicing and reminders can help reduce the days sales outstanding. This leads to a smoother cash flow and fewer problems.
Not only this, by automating all the invoicing activities you are freeing up time for your employees to concentrate on other areas.
Your data and reporting will be more reliable
Instead of multiple departments using different systems, and spreadsheets, you will have a unified system. This means all data from different areas of the business are in one place, and visible to all concerned.
There is a lot of talk in the business world about ERP and CRM at the moment. There are differences between these systems and while a customer relationship management system can complement an ERP, they are very different.
An ERP can impact a business’s productivity levels, internal visibility, improve automation, and increase profits. The interesting part of an ERP is that it can work for all manner of businesses, even small independent ones.