Enterprise resource planning (ERP) is software, tools, and technology used to manage daily business operations and automate processes, such as accounting, supply chain, manufacturing, managing projects, and more. ERP systems have different modules that perform these functions.
ERP streamlines and integrates all of a company’s data into one database system that acts as the single source of truth, so data can be saved and accessed in one place. These software systems automate tedious and time-consuming manual processes to save companies time and money.
Benefits of ERP
Overall, enterprise resource planning helps organizations save time and money. Here are some main advantages of ERP:
- Save time and money: ERP software tools help businesses plan, forecast, and operate faster, so that they can expand and gain profitability.
- Automate processes: Automating an organization’s processes gets rid of redundant and inefficient workflows, which improves productivity and creates space for growth and innovation.
- Centralized system: With management systems (modules) for all departments in one place, teams can easily access real-time data across the organization. Reporting is streamlined and accessible by all.
- Secure, accurate data: Not only is data secure on the database system, and much more accurate than if it was input manually, but it’s also available in real-time. Data, such as procurement or sales, can be tracked and monitored. Reports can be generated immediately, which is useful for planning, forecasting, budgeting, and communicating insights to shareholders and teams.
- Cloud-based accessibility: Most ERP systems are now cloud-based, or at least have the option of being accessible on a cloud, so that teams can access them anytime, anywhere.
- Collaboration and knowledge sharing: ERP helps integrate all teams, which enables collaboration and sharing of knowledge across the organization. Companies can grant organization-wide access, and this visibility contributes to workplace cohesion and harmony.
How does an enterprise resource planning system work?
If companies need to use seven different systems to automate their workflow and production, then employees need to learn (and toggle between) multiple software tools just to get a simple task done.
ERP provides a central database system that streamlines all that data and planning in one place. Modules might include:
- Supply chain management
- Inventory management
- Project management
- Human resources
- Warehouse management
- Finance and accounting
- Risk management
- Sales orders and planning
- Business intelligence
- Data analytics
- Research and development
If this is something which would help your business grow, please come and talk to us about how we can help.