Enterprise Resource Planning
(ERP) is a software system that integrates leading company functions through a
centralized database. Any company, large or small, needs to ensure that
it is running in a cost-effective manner. This synchronicity between
departments means that if any part of the company is not performing to its
maximum potential, the problem can be corrected immediately.
1. Productivity
Whether a company is involved in
e-commerce or traditional wholesale and retail, the provision of ERP means that all records can be
monitored throughout the organization and, most importantly, kept up to date.
Once the sales team has recorded a deal, for example, the customer
records will be updated, the delivery team details its information, and HR can keep
an eye on individual employee performance.
As a result of the information
on the shared database, it is then a relatively easier task for the billing
team to send out its accounts. ERP can be implemented to work in
conjunction with SAGE and other accounting software tools. Training for
the company must be implemented from an early stage, of course, to ensure that
all employees are aware of the importance of ERP and how the system can add
value to the business. ERP use in the US is currently rising by 21%
annually.
2.
Importance
One of the most notable
advantages of ERP is that the constant round of time-consuming
interdepartmental emails can be eliminated. If all employees are aware
that ERP can provide them with the most up to date information about both
company and individual performances, they can focus on developing the company
rather than wasting time on duplicating queries across the business. The
system is invaluable for the sales, marketing and accounting teams; compliance
has become ever more crucial in the world, and ERP can help a company to ensure
that all departments are performing within the legally approved structure
required by national and international law.
Another key area for ERP is that
of financial projections and planning. With the availability of current figures and business
performance, it is much easier for CEOs to make accurate projections based on
actual figures and targets rather than vague predictions. A survey by the
British magazine Computing revealed that 63% of respondents found ERP results
less time wasting. The respondents also stated that this greater
efficiency meant that some departmental budgets could be cut, including IT
department expenditure; this one centralized software tool can eliminate the
need for upgrades and a myriad of software packages for each individual company
department.
3.
Employees
ERP can be seen as a cost-cutting
tool; however, the introduction of this system should also be viewed to increase
staff opportunities and make their roles more intriguing. Employees no
longer has to waste so much of their time sending emails to their colleagues in
other departments, they can use their time more efficiently and pursue more
leads in order to achieve business success.
ERP can also help a manager identify
positive company growth more effectively, as well as to highlight any negative
factors.
Author: Aimee Claire
No comments:
Post a Comment