PostedOn: 2017-06-08 12:01:52
If you're in business, you know the acronyms balanced around. One of the more important ones is ERP, and your ERP needs to be the best.
Know Your ERP
Enterprise Resource Planning (ERP) is process management software for business. It integrates the important functions of running a business into a single system: inventory management, HR, customer relationship administration, order management, accounting and more. A great ERP system can streamline your business, organizing it into one comprehensive system.
Your ERP system relies on multiple departments sharing a database for their various needs. Rather than each employee creating the same spreadsheets and databases, your ERP system allows your staff to pull reports from different departments. Staff won't be duplicating work already done.
What Should Your ERP Do for You?
There isn't a "one size fits all" type of ERP. Sure, some may claim their software can do everything for every business, but you'd be wise to do some research on that claim before buying into it.
Generally speaking, there are some basic tasks that an ERP system should do for your business. We've listed the main features of an excellent ERP here.
Integration of Financial Information
A CEO must understand how the company is performing overall and needs accurate information to do that. Different departments within a business tend to get competitive, and this rivalry can lead to a bit of "poetic license" in the department's evaluation of itself. A good ERP means everyone is using the same system, following the same protocols for reporting, and thus the CEO gets data that isn't embellished.
- Integration of customer order information: An effective ERP system keeps order information in one continuous data line. From the placing of the order to the customer service rep processing it to the loading dock shipping it out to finance sending an invoice: All this information in one software system lets you track orders more effectively. You can coordinate manufacturing, inventory and shipping between different location simultaneously.
- Standardize and speed up manufacturing: An ERP system can provide standardized methods for automating steps in the manufacturing process. By standardizing these steps and using one integrated system, you'll save time, increase productivity and reduce overhead cost.
- Increase sales and reduce inventory: When the manufacturing process flows more smoothly, deliveries can be better planned, reducing the on-hand inventory in warehouses and decluttering your shipping docks.
- Uniform HR information: If you have multiple business units, this feature is especially important. When your HR information is not unified, you can have trouble tracking employees' time and communicating with them about services and benefits. And when employees question the competency of the HR department to treat them fairly, your workforce morale can suffer dramatically.
Top Features in an Effective ERP System
The top ERP systems all have a few things in common. Here we've made a quick checklist of what tops the list. Feel free to check your software's capabilities against it.
- Mobile functionality: You must have a mobile app.
- Manufacturing: Business should have effective inventory management, report information critical to inventory, streamline production and improve production cycles.
- Financial management: Your company can't risk missing a payment or overlooking accounting details when regulatory requirements and financial filings are so closely scrutinized.
- Human capital management: Give your HR department a break with this feature.
- Supply chain management: Make sure you're monitoring demand, supply, status of manufacturing, logistics and product distribution at the speed of cyberspace.
- Project management: Take the guesswork out of project-related activities.
- Customer relationship management: Help your salespeople and marketing planners address your customer needs and buying preferences better.