All You Need to Know About Enterprise Resource Planning

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Every organization is composed of people working in different departments, managing the assigned tasks, and connecting as a team to offer their services to the customers. To handle the processing smoothly, an integrated software platform is needed. Nowadays, every organization including manufacturing companies, institutions, hospitals, banks, and the government are using enterprise resource planning or ERP systems – a popular management business tool. Here’s everything you need to know about ERP.

What is ERP?

ERP software is a business management software that can be used to store, manage, and transfer data within the network of different departments working in an enterprise. The software is composed of a collection of applications that work as a team. It allows an organization to integrate different features of an operation; production, marketing, sales, making strategies, planning, resource management and to analyze the data collected. This business tool is much more efficient than a combination of different applications working together.

What are the uses of an ERP system?

An ERP system can be of great help for your business with its unique features. Here’s what it can do for your enterprise to make sure it runs efficiently;

  1. Finance data integration

In the absence of a proper system that can integrate the information flow from various departments working in collaboration like finance, sales, and marketing, the whole network of departments consumes more revenue and manpower. It is because they rely on individual systems. An ERP system can solve this issue in an enterprise by providing a completely interconnected network that promises efficiency.

  1. Coordinating multiple orders

From taking orders to manufacturing to accounts to marketing, an ERP can do it all in a single system. It saves you from the hassle of having separate systems that cannot work in collaboration.

  1. Tools for better customer service

Enterprise resource planning systems come with built-in customer relationship management or CRM tool which is used to track the activity of the customers. This feature can prompt an organization about the needs of the customers to enable them to serve their users accordingly.

  1. Speedy and standardized manufacturing

ERP systems can speed up, automate, and standardize the manufacturing processes. Standardization helps reduce the amount of time required to manufacture. This feature works best for companies that are planning mergers.

  1. Increased productivity and improved management

With tasks like making reports, checking monitoring levels, tracking, and processing the orders comes some space for human error. It has been witnessed that in the absence of this tool of management, employees have taken hours to achieve their goals relevant to these basic tasks. No matter how skilled or experienced the staff is, there is always a possibility for mistakes. An ERP system can do these basic tasks like data entry and calculations within minutes. This can increase your company’s profitability and efficiency and can increase ROI.

  1. Maintenance of  compliance and risk management

It gets a little difficult for bigger enterprises with branches all over the world to keep a track of regulations on your organization. But, this is not restricted to international enterprises only. Even the local ones have to beware of the information security, environmental and other regulations. The ERP system comes with features that are designed to take care of these regulations and help you maintain compliance. This software also has built-in tools for auditing that can be helpful in tasks like documenting tax provisions. Another tool that this system offers is risk management. It offers advanced reliability and promises accurate and secure results in financial data analysis.

What are the key features of ERP?

ERP system is a business tool that offers multiple features. The most important ones of them are listed below;

  1. Integration

The integration allows ERP to work in harmony with all the other components in an enterprise to make sure the output is accurate and profitable. It allows a better user experience as well. For example, the CRM when integrated can result in allowing the users to check order history and customer data, all in one place.

  1. Data analysis

This feature in the ERP systems provides the company with a pattern or trend in its processes. This can have positive effects on the efficiency of the process and can lead to better decisions in the future. This feature not only analyses data but also offers easy and quick access to the stored data as well.

  1. Automation

Automation is one of the core features that ERP offers. The ERP system can automate everyday tedious tasks like taking orders, payroll, making invoices, reporting, managing accounts and much more. The best part about automation is that, with this feature, there is no room for human error. As a result, all you will have is accurate information.

  1. Accounting

Great enterprises come with great finances and greater accounts. ERP is super-efficient when it comes to financial management.

  1. Reporting

ERP provides intuitive, relevant, and accurate reports within no time. This feature can be best proven in favor of your business as it can target the weaknesses better than human minds.

  1. Tracking and visibility 

Comprehensive visibility and tracking information – two very important features of ERP that can help the business to a great extent.

What are the types of ERP?

There are three types of ERP systems available in the software market; cloud, on-premise, and hybrid. Based on the features they offer, explore your options and choose the one that suits your business in the best way possible.

  1. Cloud ERP

This type of ERP system looks and works like any other traditional ERP system. The difference comes on the basis of the deployment. With this type of ERP, instead of hosting your servers and storing the data on-site, your ERP provider becomes the host. Cloud ERP includes enterprise-grade security as well as low cost, simplified usage, and greater flexibility. It provides you access to your business, and greater visibility through your cell phone from any corner of the world. If you’re looking for recommendations, we can’t help but suggest NetSuite ERP. Try for yourself!

  1. On-premise ERP

An on-premise enterprise planning resource system refers to an in-house ERP system. This means that you do not need to order it for delivery over the web. It is the decision of the company to opt for this type of ERP system so all the operations are carried out physically and visually inside the office.

  1. Hybrid ERP

Also known as the two-tier model, a hybrid enterprise planning resource system is a combination of on-premise ERP and cloud ERP. In this type of ERP, the functions of both the above mentioned ERPs are combined in different areas including collaborations, sales, and CRM.

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