What is ERP Software And How It’s Useful

For those of you who haven’t heard of the term ERP before, below we will provide you with some essential information. So what does it represent? ERP or Enterprise Resource Planning is the process of collecting and handling business data from numerous sectors by utilizing particular software.

Namely, this software provides institutions with an integrated, real-time perception of their main business processes, easily accessible through a single centralized system. All in all, ERPs can be defined as tools employed by numerous organizations to simplify their business operations, such as accounting, supply chain, human resources, customer relationship management, e-commerce, and risk management.

These are just the basic information regarding the ERP software. If you’re interested to learn more about it, including its advantages, then just keep reading and you’ll gather all the crucial information.

Huge Benefits Of ERP Software

Enhanced Productivity

According to many ERP software connoisseurs, one of its key benefits is automation, ranging from marketing automation to invoice generation. This allows workers to be a lot more effective and productive and focus on different areas, and at the same time, makes sure no process is being neglected.

Additionally, by having a central repository attainable by all sectors, an ERP eliminates the need for tiring and overwhelming manual processes, for example, repetitive data entry across several systems. You’ll quickly notice that the precision of your data will enhance as well!

Decreases Expenses

Of course, this highly depends on the solution. Generally speaking, ERP software can cost somewhere between a few hundred dollars, up to $100,000. What matters is the fact that this software is truly worth every penny. Now, on the market, you can stumble upon a variety of different ERP software, one is the NetSuite ERP software. But what is so great about it? Namely, it enables companies to focus on their business without worrying about how they will operate their ERP.

Besides that, NetSuite helps consumers enhance their flexibility and efficiency and encourages entrepreneurs to work on their functionality and prioritize real-time business insight with this software. Bear in mind, that the faster you get the desired insight, the better.

Why did we mention NetSuite in particular? Well, because not only it’s currently one of the best software on the market, but it is also very affordable which is something that every business owner appreciates. This type of software will save you money in the long run. 

Now, let us return to the subject. Generally speaking, with practically every ERP software, you’ll be able to reduce your costs, due to the fact that this program lets you input it only once and then carry it over to other sectors in real-time. 

Furthermore, you can also simplify tiresome tasks, for instance, invoice allocation, report drafting, employ payroll, which can definitely save you lots of time and allow you to focus on more important obligations. 

It’s worth mentioning that if you spend more on different systems, than you normally would on centralized ERP, you might even be able to save on IT expenses overall. Keep in mind that utilizing one system also decreases training requirements for end-users since they’re supposed to be learning only one system.

Enhanced Planning & Resource Management

This software really does effectively enable planning across your company so you know exactly how to predict your expenses, sales, and the resources you need, whether that includes people, materials, equipment, or anything else.

Moreover, it offers a thorough insight that allows you to efficiently plan production schedules and simultaneously, foresee resource needs, which is extremely important, because when you’re able to predict numerous crucial things, such as equipment maintenance, then you can decrease production delays or unplanned downtime.

What Are Other Major Advantages Of ERP System?

Enhanced Collaboration

Another very important trait that can certainly positively impact every company is the fact that this software effectively connects teams, and enhances communication and overall employee engagement.

Furthermore, with this software, every approved worker has on-demand access to all operational data, which enables them to comprehend all of the business’s moving parts and the role they have.

Real-time project updates, along with decreased silos further enhance the efficacy which leads to cost savings, as well as better workflows. Remember that the collaboration capabilities expand outside the wall of a particular company in order to connect with some of the most crucial partners.

Regulatory Compliance

In every single industry, especially the one that revolves around food & beverage, there are various legislations and requirements that are continuously changing. If a certain firm fails to comply with them, it can seriously jeopardize many aspects of it.

On top of IFRS and GAAP compliance, enhanced solutions, such as Sage Intacct and Acumatica, can also help with training, reporting, paperwork, accuracy, security, and process control, which all play a major role when it comes to meeting regulations. 

Furthermore, with the help of the ERP systems, you can tackle various types of regulatory compliance, such as:

  1. Government Regulations
  2. Trade Regulations
  3. Business and Finance
  4. Labor Regulations
  5. Information Technology
  6. Industry Compliance

Improved Accuracy And Availability Of Information

This is an advantage that must definitely be mentioned since it is one of the most important ones because it affects various aspects of enterprise resource planning. Namely, high-quality ERP software allows efficient and centralized collection, storage, and processing of information regarding sales, production, consumers, sales, and many other things.

That’s precisely why a single data system is utilized and maintained instead of using a variety of separate databases that require regular checks and synchronization to eliminate duplicate or outdated records.

Moreover, the enhanced quality of all types of internal data, mixed with its availability to the employees in all crucial sectors, is a precious feat that leads to performance optimization in all areas of the company. Especially inventory management and supply chain is the activity that experiences the most benefits from the ERP software.

Enhanced Data Security

Another great benefit that the ERP system offers is data security. Namely, this system has control over who can view and alter sensitive data. Merging info into a single repository shore up security in comparison with scattered sources on different systems.

Unfortunately, these days, a lot of companies are experiencing issues with security breaches that can cause some serious expenses, which is why it’s of huge importance to implement ERP software if you want to make sure your data is being secured. 

Most importantly, enhanced data security is going to help your firm with regulatory compliance and built-in reporting functions that can help you decrease auditing expenses.

Complete Visibility 

This advantage of ERP is for sure one of the most crucial selling points for this software. Namely, it enables total access to every single essential process within your company by developing data from every sector easily accessible to both your senior management and you.

For instance, with the help of ERP software, you can easily supervise inventory levels on a daily basis, including future deliveries that you’ll be receiving in the near future. By knowing exactly where you stand when it comes to inventory levels, you can efficiently control the working capital on a more accurate level. 

Furthermore, the availability of all important information about your business in a centralized location leads to enhanced collaboration and simplifies the completion of all duties and tasks. Additionally, this visibility offers more coherent workflows.

All of this helps you make much smarter decisions, as you won’t have any doubts that you are seeing a crystal clear picture at any moment. 

Improved Customer Relationships

Employing an ERP system on Salesforce enables integration with the Salesforce Customer Relationship Management platform, significantly extending the visibility you have over every single operation that occurs within your company.

What’s great about it is the fact that every consumer information from personal data, to purchase history is stored in a single place and goes straight to the ERP system with the goal to improve the customer experience.

If you decide to use both CRM and ERP, you’ll be able to automate consumer services, such as payment notifications for current customers. Besides that, you can also supply the marketing and sales team with much more useful information to help them close a sale. Below, we’ll enumerate the major benefits of the ERP system when it comes to this:

  • Simplifies invoicing and accounts receivable
  • Close the books quicker at the end of every month
  • Decreases invoicing errors and billing with the goal to accomplish a better consumer experience
  • Puts consumers in the driver’s seat with customized portals and dashboards
  • Connects sales, product, and finance teams for alignment on product offering and accessible income streams
  • Provides easily digestible data to every member of your team by using real-time dashboards
  • Produces global financial reports by employing built-in analytics

Gives You A Competitive Advantage

Business owners who decide to start implementing this software will quickly realize that it gives them relevance among other businesses. When you enhance productivity, use automation, acquire real-time information on finances and eliminate bottlenecks from the workflows, you will get more money, and at the same time, gain more recognition from your employees, colleagues, clients, partners, and stakeholders

And all of this leads to making more informed business decisions and also having a company that truly runs like a properly-oiled machine.

Implementing An ERP Software In Your Company

How To Properly Implement The ERP System?

Now that you’ve realized how essential an ERP system is, it’s also crucial to understand different ways you can implement it in your company. Remember that just like with many other things, there are right and wrong ways you can do it. Below, we will talk about some steps that must be taken into account to be sure you are doing everything perfectly:

  • Map out various divisions of your business – This can be defined as the most important step when it comes to implementing the ERP software in your company. First, you must figure out which department of your business is going to employ it. Bear in mind that every firm works differently and that ERP that you can find on the market can vary, depending on the type of company you have. Therefore, it’s of huge importance to map out numerous sectors of your organization, so you can figure out which ERP system is most suitable for you.
  • Opt for the ERP program that comes with the best features- During this step you must be extremely careful. As it was mentioned above, this program can vary depending on the organization it’s intended for, hence, there’s no such a thing as the best ERP software for every single company. Instead, you should opt for one that perfectly matches the demands and needs of your firm. In order to make the smartest decision, acquire software that is loaded with high-quality features that can hugely benefit your organization. 
  • Seeking professional help is always recommendable – Even if you think that this is something that you can do all on your own, it’s always advisable to talk to someone who has way more experience when it comes to this. Just keep in mind that if you talk to a professional you will streamline everything regarding setting up and training your employees to employ the ERP program. Namely, these experts have a plethora of experience in this field and know exactly what you’re supposed to do if you want to properly implement this system for your company. In these types of situations, having a professional by your side is always welcome because you can never predict whether you’ll be experiencing any problems or obstacles on this journey. As was mentioned multiple times above, ERP systems cannot be defined as “one size fits” tools, which is why you must consult someone who is familiar with every single feature that it offers so you can take advantage of it the right way.

There’s no denying that ERP software is more than beneficial for every company out there, but just like with any other software, you must first get yourself familiar with everything it offers in order to use it correctly. 

What is ERP Software And How It’s Useful was last updated May 16th, 2022 by Allen Brown