Can ERP Get Better Your Business Management?

PostedOn: 2017-04-04 13:06:06

In the modern business environment, utilizing ERP software can integrate information from all your different business functions into a centralized resource. With this, you can simplify the mass of data your business generates, which can make easy your decision-making process. But installing ERP software alone isn't going to take your business to the next level.

What Is ERP?

Enterprise Resource Planning (ERP) is the current buzzword in today's digital business environment. There are multiple proprietary formats available, each hawking the benefits of their particular version. So what is it that makes this ERP so attractive to business?

ERP is software that helps map out, plan and organize processes across a business. A modern business model will generally consist of various modules performing multiple functions, such as sales, finance, customer relations, accounting, human resources, management of supply and inventory, supply chains, research, and development, etc.

ERP software integrates information for each of these business functions to provide a centralized consolidation of data. The ERP platform simplifies the data, "crunching the numbers" for you, to help make sound decisions for the business. ERP lets your business change and adapts to the ebbs and flows of the unstable global markets and ever-changing customer expectations.

Not an Instant Miracle

Installing ERP software isn't going to automatically save a floundering business. Once implemented, most businesses find there is some restructuring that needs to take place and some changes that need to happen. These developments are never easy, but once personnel training and reorganization are complete, business performance can improve dramatically.

The success of ERP implementation is dependent upon good project management. ERP electronically integrates business procedures and practices by using a central database repository for all the information generated by the business. Having access to this repository of information can enhance the business's ability to plan strategy and forecast success levels.

What ERP Has to Offer

With ERP implementation, a company can mechanize its business processes according to its own unique set of rules. Automation can eliminate a great deal of the manual work and human error related to data entry. This can shave hours from departmental workloads.
Automation is workable for many tasks. An evaluation of your company's business practices will allow you to assess how much installing ERP software could benefit your business. Some of the tasks ERP can automate include:

  • Making postings to a general ledger
  • Preparation of financial statements
  • Preparation of monthly and yearly budgets
  • Tracking data to assure adherence to a budget
  • Accounts receivables, billing and collections management
  • Management of accounts payable
  • Defining and supervision of rules relating to budget management and cash dispersal 
  • Assurance of compliance with regulatory, tax and other local, state and federal reporting requirements 
  • Management of many currencies and languages in global marketing 
  • Product data management 
  • Production schedule management
  • Work order management and shop floor control
  • Scheduled maintenance and equipment lifecycle monitoring
  • Inventory and warehouse management
  • Logistics management and supplier evaluation and ratings
  • Customer relations management
  • E-commerce and e-account management
  • Tracking customer preference
  • Employee performance management
  • Payroll administration and benefits tracking
  • Training, development and skills management 

ERP That's Right for You

If automating business processes would not be a positive step for your business, then ERP is almost certainly not for you. Automating all or part of your daily business grind could make a huge impact on your overall success rate, however. ERP software can help give you a real-time, live view of your business functions and practices. 

ERP can allow your business to become more efficient and productive, leading to increased profitability. That makes it something worth considering.