Businesses that successfully integrate digital transformation in their operations have proven to become the most successful ones today. A great example is Amazon.com. Amazon’s entire business infrastructure is based on the integration of software and technology in all areas of business. Today, it is the most widely used E-Commerce platform globally for its reliability and ability to deliver value to customers. Undoubtedly, this can be credited to the benefits of ERP systems.

What is ERP?

So, what is an ERP exactly? An Enterprise Resources Planning system (or ERP, in short) is a software system that is custom tailored to a business’ requirements. It harmonizes the management of the entire business in real time. In other words, this is a centralized software system with ground-breaking features and capabilities that help businesses optimize planning of resources across all departments.

In simple terms, an ERP system is glue that binds all computer systems within a company. Changes and updates in one computer system can be viewed by another in the ERP network. This often makes decision-making faster and more accurate. The best thing about the ERP system is that an ERP can be systematically configured to adapt to specific business departments but all of it can be accessed through a centralized UI and software application.

Now, why would you ever want to invest in an ERP system, if you can just use Microsoft Office, and emails to update everyone in your organization?

Unless you want to get lost in the abyss of emails popping up on your screen and being sent who-knows-what, ERP filters out what information comes to you and what goes into another user, like a traffic controller. There might be 20 people working in your department responsible for different tasks, and if the same information is being sent or updated to everyone, this creates a mess, and no one will know what is intended for whom.

ERP Modules

An ERP system can be used by businesses of all sizes. It helps to integrate various organizational systems and facilitate error-free results and transactions. This in turn greatly reduces cost and time needed for business processes and enhances business efficiency.

The functional areas of an ERP include:

• Order Processing: credit checking, pricing, inventory, order entry, shipping, sales analysis
• Supply Chain Management: Planning, scheduling, product configurator, claim processing, warehousing
• Financial Accounting: Cash management, receivables and collection, vouchering, general ledger, fixed asset info, financial consolidation
• Manufacturing: bill of materials, scheduling, current capacity, engineering, work orders, workflow management, product life cycle managements, interference, flow status
• Human Resource Management: rostering, payroll, training, recruiting
• Management Accounting: Costing, capital budgeting, cost management, activity costing
• Customer Relationship Management: Customer contact info, sales and marketing in term of Business Support System (BSS)
• Data Service: Self-service UI for customers, suppliers and employees of the organization at large
• Project Management: Project costs, work breakdown, billing, time and costs, performance, activity management, project and resource planning

There is no limit to the amount of software capabilities you can harness from an ERP. You can make your departments work to its fullest capacity with no extra cost or time. Essentially, you’ll be optimizing resources for maximum output.

20 ERP SYSTEMS BENEFITS AND WHY YOU SHOULD GET ONE

An ERP system is typically built upon a common database system that is maintained by Database Management Software (DBMS). It integrates and simultaneously updates the status of the core data, giving you an accurate overview of real-time performance.

On the other hand, an ERP system is also able to capture the smallest details in each transaction, giving you the ability to continuously track business resources such as production capacity, cashflow, raw materials and also the status of orders, purchase, and payroll.

ERP is the revolutionary innovation of our lifetime. Here’s 20 ERP Systems benefits and what it could do for you:

1. Eliminate double work, data duplication redundancy that wastes your time and storage space
2. Reduce communication lags by delivering integrated information from all departments from a single, reliable source, available on-demand
3. A centralized database, which means efficient business processes that reduces costs
4. Easier global integration by harmonizing information, business processes and employees across different geographical locations
5. Control and management of all operations, not just monitoring
6. Align and standardize processes and company best practices
7. Drastically reduce time spent on routine business processes
8. Automate resources matching as configured to your parameters
9. Assist sales forecasts and allow inventory optimization
10. Better customer service, experience and satisfaction
11. Eliminate surplus and storage costs by optimizing supply chain management
12. Reduce cost of production and production bottlenecks
13. Increase operational efficiency
14. On-demand revenue and profit reporting
15. Accurate and transparent statistical data
16. Efficient financial management and control from receivables to payables and everything in between
17. Improve data security in an in-house system, eliminating compromise of sensitive data
18. Develop cross-functional capabilities, reducing training costs and time spent on on-the-job training
19. Optimize business processes, reporting and KPI
20. Superior business intelligence and analytics, increasing company agility, to respond quickly to market influences and make the best decisions

And that’s just to list 20.

Bottom Line

Like a horizon that can never be reached, ERP systems benefits are endless. Its only limitation is the lack or inefficient use of its system. Use it well and you too, could bring your company from good to great.

Want to know what ERP can do for your company?

CRT Insights Technologies not only provides world-class ERP solutions but also expert advice from experienced regional consultants. Contact us and quote “Live-in-5” for a free 1-hour consultation on your ERP needs today!

This article is part of a campaign for CRT Insights Technologies’ Live-in-5 Rapid ERP Implementation programme. 5 Easy steps to get you future ready.