A process by which a company manages and integrates the important parts of its business. ERP systems merge an organization’s key operations, including the manufacturing, distribution, financial, human resources and customer relations departments, into one software system.
What is Enterprise Resource Planning?
ERP is an industry acronym for Enterprise Resource Planning. Broadly speaking, it refers to automation and integration of a company’s core business to help them focus on effectiveness & simplified success.
Advantages of ERP System
With Enterprise Resource Planning software, accurate forecasting can be done. When accurate forecasting inventory levels are kept at maximum efficiency, this allows for the organization to be profitable.
- Integration of the various departments ensures communication, productivity and efficiency.
- Adopting ERP software eradicates the problem of coordinating changes between many systems.
- ERP software provides a top-down view of an organization, so information is available to make decisions at anytime, anywhere.
Benefits of ERP
Here are the ten key benefits that having an ERP software brings:
An ERP system is easily scalable. That means adding new functionality to the system as the business needs change is easy. This could mean easy management of new processes, departments, and more.
Much of the inefficiency in operational work stems from improper reporting.
As compared with manual record-keeping or other traditional approaches, an ERP system improves data quality by improving the underlying processes. As a result, better business decisions can be reached.
An ERP system introduces fundamental innovations in managing resources, which eliminates delays and thus reduces cost of operations. For instance, use of mobility allows real-time collection of data, which is indispensable to lowering costs.