What is an ERP system?
An Enterprise Resource Planning system helps organisations track information across all departments and business functions, from accounting to human resources to sales and beyond.
Consider all the core functional areas and processes in your company: they will certainly include finance, HR, sales and purchasing, and may include manufacturing, supply chain, service, procurement, and others.
Put simply, ERP (Enterprise Resource Planning) collects all of these together into a single, fully integrated system that manages all business activities and data in one place.
How can I tell if my company will benefit from an ERP system?
Many businesses get by using a collection of simple and unconnected tools and software products to manage different parts of the company such as QuickBooks or multiple Excel spreadsheets. Here are some of the signs that your business is ready to move on.
Too much time spent on routine, repetitive daily activities
If managing key activities, like closing the books, is taking longer and longer, having too many unconnected systems may be the reason. ERP software integrates all your activities and data into one system in real-time and with a common interface, making it easier for all parts of the business to communicate and collaborate effectively, and for routine tasks to be completed efficiently.
You cannot easily find the information you want to inform your decision-making.
Can you easily answer important questions about your business – such as revenue per product line or number of returns? If not, segregated systems and a lack of access to metrics and KPIs may be holding you back. Enterprise resource planning software is designed to address these challenges.
You do too many processes manually and have too much data held in too many places.
Do you have departments using their own processes or systems to get their work done? If so, it is likely there is a lot of duplicate data entry going on, with all the risks that brings of error and poor productivity. A fully integrated ERP system allows data and processes to flow seamlessly from start to finish.
How will ERP help to run my company better?
An ERP system helps companies track information and manage common business activities across all departments and business functions, from accounting to human resources to sales and beyond. It can simplify, automate and accelerate many functions, and give management accurate and timely data to assist better business decision making.
Typical benefits experienced when ERP Systems are implemented include;
- Improved productivity by streamlining and automating processes and helping your team to do more with less.
- With all the data about your business held in one place information silos are eliminated and mission-critical business questions get answered quickly.
- Generating and sharing business and financial reporting is easy, improving visibility of operational and financial KPIs across the entire business.
- Improved customer engagements and profitability, with faster turnaround times and accurate responses.
What functionality does an ERP system include?
- Product and purchase planning
- Manufacturing and delivery planning
- Inventory management
- Shipping and payment
- Supply chain management
- Marketing and sales
- Customer relationship management