Corporate Resource Planning The global
ERP software market is expected to be $41.69 billion by 2020. The impact of these systems is clear. While the number is impressive, those who have never used the software may have difficulties to understand why ERP is important to their business. But as globalization tightens the market for many industries, it's crucial to explore any means to give your business a competitive edge. For many companies, this is occured by using ERP software.
What are the usage areas of ERP?
Enterprise resource planning (ERP) systems are used by organizations that want to manage their business functions within a central and integrated system. ERP is often used by companies working within the supply chain to help keep track of all the moving parts of manufacturing and distribution. However, ERP can be used by many different industries, including healthcare, nonprofit groups, construction and service industries. The entire organization that needs to manage its employees, customers and inventory can count on the benefit of ERP. ERP stores all entered data in a single database and ensures that all departments work with the same information. In addition, all this data can be edited, analyzed and turned into reports. ERP systems combine customer management, human resources, business intelligence, financial management, inventory and supply chain features in one system.
Why should ERP system be used?
Enterprise resource planning software is used to manage various business functions, but how can it be better than other solutions? Although ERP has similar goals as other solutions, its unique features make it a unique competitor in the software market. Here are 8 reasons why any organization should consider the importance of enterprise resource planning (ERP) systems:
1. Saving More Money Although
many vendors have offered flexible pricing in recent years, ERP packages are still a great investment. For many, the high costs alone can make the program seem unlikely to save your organization money. But once you get past this bias, it's easy to see that ERP systems provide an excellent return on investment. Firstly, ERP consolidates many of the systems that may currently be fragmented in your organization. From product development to accounts payable, your staff will have access to all the tools necessary for their job from one centralized system. By combining systems, you help your employees use their time more efficiently. With ERP, users don't have to hunt for a piece of information across multiple systems. It is very easy to get information with the central database. Moreover, your organization saves money with ERP by eliminating the need for users to be trained in many systems. This not only reduces the amount of money spent on training, but also reduces the logistical effort involved. Instead of setting up several training sessions with several different vendors, you only need to contact one.
2. Enhanced Collaboration
The features of ERP systems may vary slightly depending on the program you use, but generally all systems improve collaboration in some way. As mentioned earlier, the central database is an integral part of what makes ERP unique. With this database, you provide your company with a single source of truth to work with. This reduces errors that occur by working with inaccurate data, further reducing costs. Moreover, a central database reduces any hesitation or pause during projects as all team members have access to the company-wide data they need. In addition, there is no need to consolidate information between various systems or sources. Since data is all compiled, stored, shared and accessed through a single system, there is no need to worry about how accurate, complete or secure the data files are. Maybe it's not easy to tell if your team is repeatedly entering the same customer information into several different systems. Without an ERP, you invite human error into your processes when it can be easily avoided.
3. Better Analysis
A central knowledge database also makes it easy for you to develop analysis and reports. An ERP system records and stores all data entries, making it an excellent business intelligence tool. As long as your vendor provides powerful functionality, ERP software makes it easy and fast for your team to create various reports. Research and compilation reports that take days without an ERP only take a few minutes. Most ERP systems provide a customizable dashboard so administrators can view reports when they first log into the system. These reports can include anything from income and expense statements to custom KPIs that provide insight into specific functions. The ability to quickly access these reports allows you and your team to make faster decisions. You no longer need your IT staff to create the reports you need. Finally, reports often come with access levels, allowing only authorized personnel to see valuable company data.
4. Improved Efficiency
With traditional methods, tedious work is completely unavoidable. Tasks such as generating reports, tracking inventory levels, tracking schedules, and processing orders take employee hours. In addition to taking time, these processes lower employee morale and lead to human error. Even the best staff make mistakes after entering the same row of data countless times in different formats. If you choose the right solution, an ERP system can automate your most tedious tasks. The database within the ERP software eliminates redundant tasks such as multiple data entries and enables the system to perform advanced calculations in minutes. This increases the time your team members have to do more smart work, increasing the return on investment in workforce. Therefore, ERP increases your organization's productivity, efficiency and profitability.
5. Happy Customers
Managing your customers has never been more important. In our digital age, more and more people are turning to the internet for advice on what clothes to wear, what foods to eat and how to live their lives. 84% of consumers trust online reviews as much as a friend, and previous customer reviews more influential than ever.
The best way to increase customer satisfaction is to offer customer-centered products and services. ERP achieves this in several different ways. Firstly, most ERP systems are equipped with a customer relationship management (CRM) tool or can be easily integrated with one. With an ERP, your CRM can access data in business functions.
Besides contact information, an integrated CRM can show you details such as order history and billing information. This allows your team to see your customers more holistically so they can better understand their wants and needs. Increased customer visibility helps you formulate your sales potential to drive better production.
6. Simplified Compliance and Risk Management
As companies grow and do business in different countries, it can be difficult to keep track of all the different regulations that apply to your business. Even local companies have to worry about various environmental, information security and human resources regulations.
Fortunately, many ERP systems are built with these regulations in mind to help you maintain compliance at every stage. Additionally, ERP software offers built-in auditing tools to help document things like chemical use and tax provisions. This makes it incredibly easy to formulate reports and send them to the relevant board.
Additionally, ERP systems often provide tools to manage risk. The enhanced reliability and accuracy of this solution improves overall financial management due to fewer errors in accounting. Forecasting tools also allow users to forecast events when it comes to demand, effort and budget. With this information in your hand, you can create more secure budgets, schedules and product development plans.
7. Improved Inventory Monitoring
The biggest challenge for growing companies is tracking and monitoring their expanding inventory levels. ERP systems use barcoding, RFID tags and serial numbers to keep tabs on your inventory throughout the supply chain. These tools help you keep tracking of stock levels in different warehouses, indicating which goods are in transit and which goods are on the shelves. Increased warehouse visibility greatly prevents to occur all the guesswork by optimizing all picking, packing and shipping operations.
Inventory tracking supports reporting as tracking technologies provide more accurate figures. Users can configure custom KPIs to see which products move the fastest, show more demand, and which increase transportation costs. With the great precision provided by ERP, warehouse managers can get real-time data on their inventory to make more accurate business decisions.
8. Improved Production Planning and Resource Management
Besides managing your inventory, ERP systems also manage production. ERP provides information about all manufacturing operations, including the shop floor. This allows users to optimize production schedules, equipment and labor to maximize capacity.
Additionally, it manages your ERP Bill of Materials (BOM) and fixed assets. With this software, users can easily create and edit BOMs as well as keep tracking of all previous changes. Fixed asset management enables users to plan equipment maintenance to reduce unexpected downtime, improving your profitability and supply chain relationships.
Finally;
The importance of ERP systems exceeds the initial cost, time and effort involved in implementation if you choose the right solution. See www.enfotek.com.tr for more information about features and functions, application objectives and questions to ask for your company.
With enough careful research and careful thought, you will find that ERP software has been produced by Enfotek, providing all the benefits listed above, painting a picture of why ERP is important to a company.