Enterprise resource planning (ERP) is comprehensive business software that is beneficial to modern day business organizations. This is because ERP effectively and efficiently manages, implements, controls and automates business organizations. This can also be described as a complete software solution package. The package is used for running large organizations besides meeting their requirements with ease and effectiveness.
ERP has several applications, namely, human resources, supply chain management, finance, manufacturing and logistics. ERP covers almost all of the organizations globally. It is an effective measure to manage and control the various challenges in a business organization. It is instrumental in minimizing the levels of costs, time, human energy and enhancing the levels of reliability and accuracy.
The progress in the use of computers and electronic media propelled many organizations to implement ERP as their primary system. This is also because the scope of ERP extends to many sub-systems such as inventory, sales, marketing, logistics, supply chain management, accounts, payroll and transfer of information pertaining to the organization.
All levels of change- be it micro or macro, can be accurately determined and implemented to suit business needs with the help of an ERP system.
There are numerous services associated with an effective ERP system in an organization. Here are some benefits of using ERP, namely:
- Establishes a competitive edge over its peers.
- Lowers the response time by effective transfer of vital information.
- Effective and efficient utilization of material, human resources, and finance.
- Lowers the cost associated with the inventory of the organization by creating a better level of communication and support within the organizational framework.
- Streamlines the various functions of the organization.
- Establishes, management of effective consolidation of data which can be of great importance while making organizational decisions.
- Augment the levels of customer satisfaction by improving the present levels of performance.
- Generate high productivity at an economical cost thereby increasing the profit margins of the company.
Before implementing an ERP system in your organization, note that the ERP system of every organization is different from the other because all organizations have differences. These differences are in terms of the nature of business, maintenance of accounts and inventory, employee strength and level of automation planned by the management.
Thereby, it is necessary for all modern-day organizations to have an effective and efficient ERP system for providing the best business solutions.