Top Benefits of ERP

Are you searching for the benefits of ERP? Want to know how ERP can help an organization to achieve its goal effectively. Here is the complete guide about what is ERP and its benefits.

A typical enterprise has many business units. These business units continuously communicate and exchange data with each other. The success of any organization depends upon effective communication and data exchange within the departments as well as associated third parties such as vendors, outsourcers and customers. ERP Solutions helps the organization to manage these activities.

Based on the manner in which communication and data exchanged is managed, Enterprise Software Systems can be classified into two types-

* Decentralized Systems
* Centralized Systems also called ERP (Enterprise Resource Planning)

In a company with Decentralized System of Data Management, data is maintained locally at the individual departments. Departments do not have access to data from other departments.

There are following problems with Decentralized Systems-
*Numerous disparate information systems are developed individually over time and are difficult to maintain.
* Integration of data is time and money consuming.
* There are chances of inconsistencies and duplication of data.
*Lack of timely information leads to customer dissatisfaction, loss of revenue and reputation.
*High Inventory, material, and human resource cost.

What is ERP?

In a company with Centralized System of Data Management, data is maintained at a central location and is shared with various departments. Departments have access to data from other departments.

Thus, ERP is a process of integrating and managing an important part of a company's business. An ERP management information system, which integrates human resources, sales, planning, marketing, purchasing, and finance, is implemented through software.

ERP software is required by enterprises to streamline their business processes. It helps in increasing productivity, reduction in process cost. It also reduces frequently committed manual errors.

The need for ERP

In the following circumstances, you need an ERP system-

* Business is not growing anymore and has become stagnant.
* There is no channel for proper communication or there is a lack of communication among the
* When the data is not easily accessible.
* When a company uses different software for different departments.
* Management of data becomes difficult.
* Complex inventory management is required.

Execution of an ERP framework changes the way people work and interact in an organization. When you implement the ERP software, it solves all the aforementioned problems.

The features of ERP

Some of the top features of ERP software are as follows-
* Financial Management :
It helps you in storing and monitoring your financial data. It helps you in keeping track of your expenditures. You can discover and analyze profit trends. You can maximize your profits and cut down on unnecessary costs.

* Customer Relationship Management (CRM) :
For your business to grow rapidly, market planners should be able to analyze the sales and demands of your product. It helps in outlining consumer preferences and their buying patterns. A separate record of the company's customer and sales data can be maintained within an ERP framework.

* Human Resources (HR) :
Employees are the part and parcel of any organization. Human Resource component helps in keeping track of every single employee. It assists in giving out payments by including tax and deducting benefits. It allows you to save your time and focus your attention elsewhere.

* Manufacturing :
It is one of the most important parts of any business. With the help of ERP, manufacturing becomes more efficient. It accelerates production cycles.

* Mobile Functionality :
With the help of ERP solution, employees have up-to-the-minute information on products, their pricing, and their shipping details. This feature provides remote access to the database of the company which is convenient for the employees.

Top 6 Benefits of using ERP software in an organization-

1. Customer Service :
The clients of your company are not devoid of the benefits provided by the implementation of the ERP system. Your sales team can easily keep tracks of the purchases made by the customer. Your company can provide better customer interaction. If the customers are satisfied, half of the job of any business is accomplished.

2. Improved Efficiency :
Employees need to perform repetitive manual activities daily. With the proper implementation of ERP software, employees can save their time and effort and put it to better use.

3. Improved Collaboration and Workflows :
Most of the time, business units of an organization perform work in isolation with zero collaboration. With ERP, collaboration among different business units becomes easy. The data becomes centralized and streamlined, employees can easily access the data as and when needed.
This process enhances communication across the length and breadth of the company. With the ERP system, the entire information is just a click away.

4. Focused IT Costs :
Availability of sufficient funds is always an issue for any company. Managers need to adopt methods that improve production and profit by cutting on unnecessary costs. One such method is the implementation of ERP. Though a large investment, it removes the need to spend money on multiple systems for multiple departments.
ERP solution helps in unifying IT costs and improving the efficiency of the business.

5. Total Visibility :
Your employees can easily avail the data from every department without any hassle. From senior management to salesperson, anyone can gain access to the wealth of information. This complete visibility assists in maintaining intra-departmental checks and balances.

6. Improved Reporting and Planning :
Now, your company can easily have a single source for reporting information. This software gives you an insight into the workings of different departments at the same time. You need not bother yourself with gathering information from spreadsheets and emails.
There are several other benefits of using ERP software. These benefits include data security, flexibility, improved productivity, customer satisfaction, complete customization as per the requirement of your business.

ERP allows you to manage your data with one system in a simple manner. It keeps you updated with the last-minute transactions and processes. With the data being centralized and streamlined, you can analyze the profit and loss trends easily.
If you are planning to implement an ERP system or wondering whether you need one, contact IHits Technologies. You can find the ERP system that meets the requirements of your business. The team will guide you through the entire process. You are just a step away from making the best investment for your organization.


Guest Author: Vikram Shankar Mathu23 Jul 2019

Very interesting article! Must-read for those who do not believe in the ERP!!

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