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.
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.
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.
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