In a nutshell, ERP or Enterprise Resource Planning systems collect and organize key business information and help organizations run efficiently, even as they expand.
Once your organization grows to a certain point, you will need a better system than manual paper work, spreadsheet or even small management softwares that do not integrate all operations of your organization.
You must have heard the term “ERP” and probably have an idea what it means, but you might not know exactly how an ERP Systems can help your team.
What is Enterprise Resource Planning (ERP)?
An ERP is an application that automates business processes, and provides insights and internal controls, drawing on a central database that collects inputs from departments including accounting, manufacturing, supply chain management, sales, marketing and human resources (HR).
Once information is compiled in that central database, leaders gain cross-departmental visibility that empowers them to analyze various scenarios, discover process improvements and generate major efficiency gains. That translates to cost savings and better productivity as people spend less time digging for needed data.
How Can ERP Improve or Help a Business?
Improve ProductivityCentralized system that provides all required information makes all operations faster and easier. An ERP system streamlines the process of collaborating with others by providing your employees with access to the data they need when they need it!
Decrease CostsAn ERP can reduce the error rate in your business practices by standardizing procedures and workflow throughout all departments.
Real Time InformationReal time information of all the operations of your business at in a centralized location can also help you achieve goals. By providing real-time data, small business owners can make difficult decisions simpler and can quickly respond to changes in the business environment. You will be better prepared to respond to changing customer needs or market conditions.
Reduce ErrorsAutomating tasks that are error-prone, like account reconciliations, customer billing and order processing, helps reduce errors.
Growth and ScalabilityBecause of the increased data clarity that an ERP system provides, employees can adjust their attention to manage increasing volumes of business. An ERP system will assist your business to improve with growth without ever feeling disorganized or overwhelmed.
As your small business grows, new challenges will arise. Processes will get more complicated, supply chain management is harder to control, and financial expenditures will increase. Your businesses efficiencies tend to fade if you are not utilizing all of your information in productive ways. No business is too small for an ERP solution.