Enterprise Resource Planning, commonly called ERP, is a software package which integrates with the functions and operations of a company to provide improved and timely information using shared data stores.
For any company, use of an ERP package is an impressive enhancement. There are many options you can choose from but NetSuite is the ideal ERP solution for many of today’s growing enterprises. Use of the ERP software provides many benefits to the company.
It is a great way to streamline the firm’s workflows. As all data is organized nicely, providing better customer service is possible. You can access real-time statistics, information about raw material availability, cash flow, and sales patterns.
Understandably, ERP reduces the amount of paperwork and ensure quick processing of information. If your company participates in global operations, this is a great tool.
Overall, all of the benefits that ERP provides can be summarized to state that it boosts company’s productivity level. As a result, both tangible and intangible profit is augmented.
Source of Competitive Advantage
If successfully implemented, ERP solutions can become the source of a sustainable competitive advantage for the enterprise. Organizations are able to respond faster to consumer needs and gain trust as they have timely access to real-time information. Repeat business is ensured by pleasing consumers with quick and accurate solutions.
Drawback of ERP
In order to make the most out of this system, it is essential that you not only learn the benefits but also comprehend disadvantages of relying on ERP system. As it entails levels of configuration and a very intricate interface, implementation of the system may require a lot of time and money. In fact, it can affect the working environment of the company significantly. Even with this disadvantage, ERP has become a necessity for the transport sector, manufacturing-based firms, and distribution and retail stores.
Implementation of ERP
Features and capabilities of Enterprise Resource Planning solutions can be used in multiples sectors a business. Below is a list of some ways you can implement it in your company.
1. Customer Relationship Management
Without a doubt, customers are a valuable asset to all companies. You cannot afford to lose your customers, and so customer relationship management (CRM) is critical for business success. Addressing individual customer needs on time via traditional methods is difficult if you have a large customer base. By utilizing ERP, you can ensure effective information flow between the sales team and marketing team. It helps understand changes in buying preference and patterns.
2. Supply Chain Management
Supply, demand, logistics, distribution and manufacturing status must be correctly assessed in the competitive market. Your firm may face adverse consequences if it fails to do so. ERP helps ensure a healthy relationship with the suppliers and distributors. It systematically takes care of different phases from design to requirement fulfillment.
3. Financial Management
An ERP’s financial administration is important as companies are always under the inspection of financial regulatory bodies. A financial management module offers many benefits including the production of financial reports. It also presents documents regarding tax requirements. Real-time tracking of expenses helps managers respond accordingly. They can improve cash flows and maintain more accurate financial reporting.
4. Human Resource Management
Human Resource includes payroll management, employee administration, and legal reporting. While these are important, the responsibility of Human Resource Management (HRM) has increased with time. ERP helps managers handle a wide range of tasks such as talent management, recruitment, scheduling, time & attendance systems, performance assessment, etc. The tool also provides tailored insights into some of the most common HR processes.