Need of ERP in present business environment

 

ERP solutions allow businesses to streamline and automate their processes, which can lead to higher accuracy in your order taking and more efficiency in your overall operations. The importance of ERP comes from the complete visibility ERP provides–meaning your resources will be tracked and reported on to determine which areas of your business operation are falling short. This means you’ll have an information system working for you–without needing to expand your IT staff.

A few more reasons why a business may look to purchase ERP software:

• To improve business performance

• To position the company for growth

• To reduce working capital

• To better serve customers

How important is ERP for present business environment

ERP will help streamline workflows so all of your business processes are in one place. This should lead to a business with increased productivity. When all of your data is available in a single platform, you’ll eliminate the need to use separate unconnected programs, or document sharing with excel spreadsheets. Housing all of your data in one place will also improve the collaboration between employees, leading to better communication during critical projects.

One example is a manufacturing business. Multiple manufacturing plants looking to unify under one ERP system may face scaling challenges, which could be a hindrance to become the global operation they desire to be. Rather than have each manufacturing plant run its own instance of a generic solution, a unified manufacturing ERP can help define a custom bill of materials and schedule production in a plant that is closest to the customer. This will speed up production time, reduce shipping costs and time, and lead to a more satisfied customer.

Another example is a professional services business, such as a marketing agency. This type of business will need to access and manage data across many client databases depending on the projects they are working on. Their workflows are heavily dependent on calendars and tasks, leading to a project management environment.

ERP software will also provide better financial planning by allowing analytics tools to review historical and real-time financial data. This will aid in informed decision making and help break down your business by region, location, profit center, or even by employee.

Rather than having your company financials and sales data split across multiple systems, a unified single system will also improve data security and accessibility. A centralized repository will let you monitor day-to-day processes for continuous improvement. This will overall lead to improved communication between multiple departments who may rely on each other to complete orders.