ERP stands for Enterprise Resource Planning that is implemented as software and helps in integrating all the business systems of a company on a single computer. Earlier, there were various barriers in a company’s business administration that kept all the systems such as human resources, finance and accounting, sales and marketing, and manufacturing and production as separate entities that were concealed from the vendors and the customers. New Enterprise software companies in United States have created ERP software that integrate all these various modules and connect them to a centralized database that can be accessed by employees, top management executives, customers, and vendors. This ensures a transparent communication that improves supplier-company and client-company relationships.
ERP software is instrumental in increasing productivity, efficiency, reduce costs in the long term, and streamline processes.
Benefits of ERP software-
- Competition- The survival of a company is based on how well its defeats its competitors. Even though ERP requires major investments, these investments may be crucial which may affect the productivity of employees, their efficiency in producing the desired outcomes, and the time that is saved by using ERP software. The transition from the traditional business approach to the technology based software approach is imperative to remain in the race.
- Efficiency- The probability of redundant data reduces while implementing an ERP software. ERP that is produced by the Enterprise software companies in United States does not require multiple data entries as all entries are updated and viewed by all the nodes that are connected to the company network.
- Forecasting- ERP software is useful in helping managers make accurate forecasts. The software compiles all the data from various databases and extrapolates the data in order to identify trends residing within the data. These trends help managers and executives make prudent decisions and policies that the benefits the company.
- Collaboration- A siloed business with every department functioning as a separate entity with no communication is detrimental to the company. Collaboration is important, especially when the data is centralized. The software then encourages interdepartmental efforts and helps in building teams to complete projects.
- Scalability- The growth and expansion of a company can be facilitated by the ERP software because it has provisions to include new users and functions to compete with the evolving technology. ERP software also helps in acquiring new resources.
- Integrated Information- All the information concerned with the company is stored at one location. The centralized database allows the integration of various software with the ERP software. For example, CRM software can be integrated with ERP software. The customer orders, the transaction information, and inventory are present in one place.
- Streamlined Processes- The process of manufacturing becomes complex as the company and its business grows. The integration of manufacturing software helps in exchanging the required information between all departments. It automates the business operations and provides real-time, accurate information to everyone connected to the network. The efficiency of business operations increases as users can navigate complex processes, eliminate data-re-entry, and improve functions such as production, order completion, and delivery.