Enterprise Resource Planning (ERP) software has been functioning for businesses to conduct daily activities, for the last six decades. Although the rate of adoption is increasing rapidly, many businesses still do not know how important it is. Businesses are looking for a competitive advantage like the market. ERP nowadays is increasingly popular, helping companies increase production and profitability.
What is Enterprise Resource Planning (ERP)?
A business’s everyday operations, such as supply chain, production, services, financials, and other processes, are planned and managed using this sort of software or system. Individual tasks throughout a business or organization, such as accounting and procurement, project management, customer relationship management, risk management, compliance, and supply chain operations, may all be automated and simplified with Enterprise Resource Planning software. The purpose of ERP is to efficiently connect and bring together business processes to facilitate data flow between applications, generally using shared databases on-site/on-premise or in the cloud.
ERPs link every area of a business. An ERP software system improves performance and project management by helping companies to plan, budget, forecast, and properly report on their financial health and operations.
Why choose an ERP?
Specifically, key business benefits of ERP software are:
- Enhanced Business Reporting: Improved reporting tools and the one source of truth — an integrated database for all business activities
- Better customer service: ERP provides better access to customer information with faster response times and improved on-time delivery and order accuracy
- Improved Inventory Costs: Inventory management is now easier since it only carries as much inventory as is required, avoiding these typical difficulties. There will be no issues such as excess inventory and increased overhead expenses, or insufficient inventory and longer customer fulfillment periods.
- Boosted Cash Flow: Improved invoicing with ERP and better collections solutions will now be available to get cash in faster.
- Cost Savings: The software provides improved inventory planning with better procurement management and customer service. The relationship management with vendors will also be improved.
- Better Data & Cloud Security: Software is dedicated to security resources such as avoiding installing malicious software and the data distributed across multiple servers.
- Business Process Improvements: Routine tasks or manual are automated which helps in implementing smarter workflows resulting in more efficiency.
- Supply Chain Management: There would be effective demand forecasting and lean inventory, reduction in production bottlenecks, and transparency through the business.
The types of businesses that benefit the most from ERP
What are the different sorts of businesses that profit the most from ERP systems? The adaptability of ERP software enables businesses of all sizes to develop solutions that are tailored to their specific requirements. Major industries that use ERP include:
- Professional Services
- Industrial Services
- Service Business
- And more
Things to consider while choosing an ERP
The decision must be correct. Here are some ERP system selection factors to consider when you’re choosing a project:
Create a clear and thorough list of your ERP requirements. Make use of all available resources to make this list the best it can be. Talk to your staff at all levels, and once every opinion has been put down, get a strong consensus on what is an absolute “must-have.” The next priority tier comprises items that are not required, but there is widespread consensus that having them will help the firm.
Upper management support
Support entails more than just having a budget approved. You want your management to proactively demonstrate their support for you. When the decision to support the new ERP or utilize the current system occurs, you want to know that the management genuinely supports the ERP, even if there is a short-term cost at the time of the decision.
The new ERP will be used by people from all functional areas. Gain their support by including their wants and needs in the criteria list. Assure them that they will have assistance in navigating the necessary adjustments. In exchange, they will assist you in implementing and taking full advantage of your new ERP.
Your company has specific functional criteria that must be met before you may modify or update anything. Is this ERP capable of handling sales orders that contain both physical items and services? It needs to if that is what your company sells.
Integration with existing systems
Most organizations considering an ERP option have other systems that are perfectly suitable for their needs, and the company is not interested in altering numerous systems in addition to its ERP. The question now is, how will such systems interact with ERP? What integration tools are included with this ERP? It should have straightforward integration.
Technology and future scalability
These concerns apply to the software used to develop your ERP system and to the hardware required to use that ERP. We know there will be ongoing developments and improvements in both domains.
The total cost of ownership and ROI
Add up all the incremental costs you will incur due to this ERP. There will be the initial purchase amount and some initial consulting expenses. You will have support and maintenance costs every year while you use the ERP.
At the same time, you will benefit from improvements in the cost to perform work. Most businesses have a threshold return needed before investing. Ensure that this ERP passes your business ROI threshold.
Customization on ERP
Given the unique characteristics of each company, custom-built or customized ERP software may occasionally solve difficulties that off-the-shelf software cannot. You may include features that are exclusive to your company and how it runs.
EBS has the facility to offer you the perfect customization on ERP as per your request. Having a customized ERP will help you with a list of things like having absolute control over your product, flexibility, gain competitive advantage, scale, and change your ERP system when your needs change and you’ll own your own software.
The Enterprise Resource Planning(ERP) software developed by Entire Business Solutions (EBS) is a web-based system to manage your business’s or oraganisation’s day to day activities. This system is designed to keep track of each and every activity that is being executed inside your business . Being a web-based system you will be able to run your organisation from every corner of the world.
For further information about the Enterprise Resource Planning software contact us: