What is ERP and What Can it Do for My Business?
While anyone with minimal business knowledge has probably heard of “ERP,” what may not be as clear is the significant role an ERP system can play in running a business. ERP (which stands for Enterprise Resource Planning) is a tool that consists of various databases that manage different aspects of business ranging from finance and accounting to inventory management and anything in between. You might be wondering why this matters to you and why you would bother learning about ERP when the way you’re currently managing business seems to work just fine. Simply put, with companies today becoming more global and technology enabling us to do more than we ever thought possible, it is more important than ever that companies not only keep up, but also stay ahead of the curve to be able to survive the competition. So now that we have established the importance of ERP in general, let us look at some of the specific benefits ERP can do for your business.
Benefits of Using an ERP System
One of the key advantages of an ERP system is the built-in data security features that allow you to manage how data can be accessed, processed, and stored. With data becoming more accessible and easily sharable, it can be an incredibly powerful tool but also a huge liability if not managed properly. An ERP mitigates this risk by allowing you to manage who can edit, access, and share data. Additionally, built-in firewalls and centralized backup systems keep information secure across all platforms.
Another advantage that ERP offers is data accessibility. By allowing multiple users to input and modify information as needed, the system compiles the data, which can then be accessed by authorized users wherever and however they need. This is beneficial for a business because it allows you to compile and store detailed information about customers and suppliers. Having buyer and supplier information in one centralized place means you can access data about orders, inventory, contact information, and inventory with just a few clicks of your computer mouse. This also makes you better equipped to serve your customers because you have all their information at hand in a way that is easy to find and assess. Additionally, ERP offers data accessibility by offering options to house information within the cloud, which makes integrating data and sharing it with other users a much simpler process.
ERP’s many streamlined and integrated processes are another of its strengths. Using ERP systems places all the business management information in one place, making it easy to compare information and see the impact various parts of the business have on others. This also ensures consistency across different functional areas of the company to ensure that metrics and processes are the same, which often improves efficiency by limiting mistakes and confusion across departments. These streamlined processes are especially helpful for growing companies because they automate many business functions, which can lead to an increase in cost savings and efficiency. ERP software also enables you to analyze your business in real-time and respond quickly to any changes, problems, or updates. There are also tools for helping you generate reports, which once again saves time (and money) and can give useful insight into the health of your business.
If your business is considering implementing an ERP system, please contact us and one of our consultants can work with you to determine the best ERP option for your business.