An enterprise resource planning (ERP) is a solution that integrates all the processes you use in business. When you look into all the systems you’re using. Chances are you have one for your order and inventory management, human resources, and accounting at a minimum.
If the systems could talk to one another and automate tasks for you, you’d definitely love it. That’s what enterprise resource planning systems can do. ERP software uses a centralized database to store information for all departments and runs integrated software, so everyone has access to what they need, regardless of which business function they’re working to perform.
So, what are the benefits of having an ERP system?
Reduced Operational Costs
ERP systems allow you to merge processes across departments, so you can more easily identify and anticipate problems. This also means you’ll be able to come up with ways to resolve those issues faster, so any disruptions or delays in your business do less damage to your company reputation and minimize losses.
Improved Productivity and Efficiency
ERP means automating a variety of tasks such as updating inventors, compiling reports, and monitoring sales. This automation saves time, allowing you to focus on other areas of your business, while also reducing human error.
More Accurate Reporting
Data is critical to businesses as it shows you where you are, where you’ve been, and can project where you could be if you remain on the current path or make adjustments. The business intelligence and analytics areas of ERP can provide insights to help you keep your business on the right track, making adjustments where necessary so you can optimize business performance.
Streamlined Regulatory Compliance
Industry standards change and remaining compliant can be an issue for businesses across a number of industries. Many ERP systems include compliance reporting features to keep track of changes in compliance protocols and update you in real-time.
ERP systems can become highly complex because customization and flexibility mean no two implementations will be exactly the same. Choosing the right ERP solution isn’t a decision to take lightly or make quickly. Implementing the system takes time, effort, and money.
Mistakes during ERP implementation can cost you more in the short term, so hiring a team of professionals to help you get it right the first time is a worthy investment. Many ERP vendors can assist with requirements planning and implementation to ensure your core business processes continue to run smoothly as you switch to the new system.