Enterprise Resource Planning (ERP) is a process followed by companies to manage different functions of their businesses. Moreover, it is a software or application that assists companies in resource planning and management. The concept of ERP was first introduced in the early 1990s by Gartner, a technology research and consulting company. Often, companies fail to manage or integrate different aspects of their businesses, which leads to businesses being in worse condition somehow. But with a single ERP system, they can integrate multiple business processes such as planning, inventory, sales, purchase, human resources, accountancy, and many more. Moreover, it’s a perfect technology solution for all-size organizations seeking to manage their business functions within a centralized and integrated system.
A good ERP system is flexible and scalable. It enables a company to adapt and grow alongside changes in customer behavior, the market, government protocols, and everything else.
Being a highly accessible system with integration of all necessary business management tools, an ERP system enables a business to grow without investing an additional effort, time and cost in hiring new staff and managing different business activities.
More than a business management system, a perfect ERP software has high-class and trustworthy security features. It provides data security, network security, secure logging, communication security, and more.
A good ERP system simply eliminates inefficiency, waste of time, and unnecessary resources, resulting in better efficiency and performance.
Reporting and analyzing the whole data of a business could be a long process for a human resource, but with ERP software, it is easier and faster to generate reports and analyze them on time.
An ERP system stores all the customers’ data and tracks their interactions and behaviors, making it possible for a business to analyze them and improve sales with increased customer flow and relationships. It’s a very important tool for e-commerce sites.
A good ERP system keeps records of sales to customers and purchases from suppliers and provides real-time data of sales and purchases.
An ERP system functions as an inventory management system as well. It provides a hassle free and simple access to inventory insights of a business overcoming the conventional paper recordings.
A good ERP software automates accounting and helps with financial management. It simplifies accounting operations by keeping a record of payable and receivable accounts and tracking revenue, profits, expenses, etc. Moreover, it helps in billing, cost analysis, budgeting and enhances financial productivity.
An ERP system provides quick access to employees’ data by keeping detailed records of each employee from every department. It also simplifies communication among human resources, provides an overview of day-to-day performance, helps to identify the needs of the HR department and automates salary processing by keeping a record of work hours, benefits and deductions.