According to Wikipedia, Enterprise Resource Planning (ERP) is the integrated management of main business processes, often in real-time and mediated by software and technology. Basically, ERP is a software tool that consolidates a company’s structured set of data, facilitates tasks, and simplifies business processes. The outcome of using this tool is to make the most effective operations and make employee time available so they can work on more tasks. These goals can cause an elevation in revenue margins and productivity while enhancing communication across the company.
The global ERP software market is expected to be worth $47 billion by the year 2022; the result of this network is visible. While that figure is outstanding, those who have never operated the software may find it hard to interpret why ERP is beneficial to their business. However, as globalization compresses the market for many businesses, it is extremely important to find out all tools to provide your business with a competitive advantage. For many companies, this is accomplished through the utilization of enterprise resource planning.
While it is interesting to know that ERP software is used to organize several business functions, the question is how is it greater than other solutions? Here are the top 5 reasons or advantages of ERP in your business success.
This software can remove tedious repeating tasks from your employees and allow the system to finish advanced calculations within a short span of time. You will be able to deliver reports and make action plans much easier since you have one system to rely on.
Although the software is a big investment, there are many ERP Business Providers who introduced flexible pricing. The big expenses alone can make it look uncertain that the program would end up not saving your organization any money at all. But once you get past the dismay, it is effortless to see how ERP can deliver an outstanding return on investment.
Compliance and Risk Management
As companies develop and perform business in various countries, it can be complex to keep track of all the different requirements enforced on your business. Even small businesses demand to panic about different environmental, human resources, and information security regulations. Fortunately, lots of ERP benefits are made with these guidelines to help you retain compliance at every level. Furthermore, ERP software provides built-in auditing tools to help with recording things like customer information and employee performance. This makes it remarkably easy to produce reports and transmit them to the appropriate institution. ERP frequently offers tools to control risk as well.
A big challenge for developing companies is tracking and monitoring their growing inventory levels. ERP uses bar-coding, radio-frequency identification (RFID), and serial numbers to retain documents on your inventory at every point during the supply chain. These tools assist you in keeping track of inventory levels at different warehouses, which items are in transportation, and which items are on the shelves ready for consumers. Inventory monitoring also strengthens documenting, as tracking technologies give more precise figures. Managers can obtain real-time data on their accounts to make more exact business resolutions with the larger accuracy provided by ERP.
Excellent Customer Service
Managing your customers has never been so important. In our modern technology, more and more people are switching to the internet to solicit advice on what food to eat, what clothes to wear, or how to live their lives. And with a growing percentage of consumers trusting online reviews, previous customer points of view are more convincing than ever. The best way to improve customer satisfaction is to give client-centered goods and the best services. ERP software possesses these features in various ways. The customer relationship management (CRM) tool is widely used and very helpful to businesses. CRM has access to data across business functions. This is one of the ERP Business Solutions that most companies are using.