If you wish to understand how the computers in an organization function, the logic with which they are operated, then it is better you understand the software that is running in them. Here’s a brief history of Enterprise resource planning or ERP is basically an enterprise application that combines various functions of individual departments and then fuses them into one software application that is to be used by the whole organization.
- The biggest advantage
The biggest advantage of using ERP is that it makes it easier for companies to keep a track of the workflow happening in various departments. This way the operational expenses, which may be incurred in manual tracking, data duplication, etc., are significantly reduced as well.
- Complete and better visibility
With ERP an organization can see all the important procedures taking place in the company as and when it wishes. This is a very useful for people in senior management as it helps them keep an eye on individual departments. It is this aspect that can help different departments in a company collaborate better and also in less time.
- Better workflow
As has been said already, with ERP the workflow in a company becomes more coherent and there is also a sense of automatic to it. Work passes from one department to another like knife passing through butter. This also means that the transition process is much smoother and processes take less time to be completed. With ERP there is also no possibility that a company shall miss out on any process as such.
- Unified reporting system
This is also a major benefit of using ERP in one’s organization. With ERP companies can analyse the status of a project and also take a look at various statistics pertaining to the same as and when they feel like doing it. This can be done on a real-time basis across each and every department and its different functions. This also implies that since the same software is being used by all departments they need not maintain separate software. This also saves a lot of expenses.
- Business intelligence
A number of ERP vendors these days are capable of incorporating business intelligence functions in their ERP packages. With the help of this facility, companies can gain some insight on the processes that are being followed in the organization and also find out areas where they need to improve and ones that could cause problems in the future.
- Advanced integration
With ERP systems it is possible for an organization to perform e-commerce integration operations of the very highest level. Most of these are capable of dealing with processing and tracking orders made on the web. You can also integrate other systems such as barcode readers with the ERP setup. This can be done by way of an application programming interface or API.
- Various modules
ERP systems come with a variety of modules such as ones meant specifically for finance or accounts and another meant solely for human resource management. There are also separate modules for manufacturing, sales and marketing, supply chain and warehouse management, customer relationship management, and project management to name a few. It is this modular nature that allows a company to select which ones they would like to use. These choices are made on the basis of the needs that they have as an organization.The more models you implement the better it will be for the company in the end.
- Backend benefits
As part of ERPs companies implement database systems in the backend and this enables the companies to have a storehouse of all information within the company. This data comes in handy for implementing the ERP system properly. When you come to think of it, this centralized facility is of immense help. It is because of this centralized aspect of data storage that these systems can be regarded as safer. This is also the reason that centralized security setups can be applied to the same. This is how companies can keep track of all the transactions that take place through the ERP system.
- Better tracking
With ERP systems a company can keep track of various areas of their business such as orders, inventory, and revenue. This also allows them to predict how their sales can be over a period of time as well as how their business could perform overall.
- Ideal for companies with global operations
In this day and age there are plenty of companies that are working all over the world. It is not uncommon for even small and medium-sized companies to have operations in multiple countries. This is where ERP can be of such help as it helps these outfits to keep track of their various units and arms, monitor basically each and everything that goes on in the company, store data properly for usage as and when needed and thus integrate them seamlessly.
SAP Business One ERP is created for small and medium-sized companies. Due to it’saffordability and business management system, most companies do not have to pay hundreds of thousands to have an ERP implemented into their business.