It is surprising for many people how ERP can bring a boost to your business. However, if you need to know how ERP can actually do wonders for your business, you should understand how it works. The word ERP stands for enterprise resource planning and is aimed at making the business more efficient. In other words, ERP is basically a software that is meant for taking care of the business data. This includes everything from inventory records, customer orders, accounting, customer relationship etc. these are basically the tasks that businesses face on an everyday basis. Thus, ERP comes off as a great help in managing these. This system is often referred to as a “single source of truth”. Reason being, employees in different departments can depend on the same information that is being shared by ERP.
The history of ERP dates back to 1960s. However, it was Gartner who came up with the word ERP in 1990. At first, this term was only associated with the manufacturing sector. The next decade saw some changes as the term was then called MRP which meant Material Requirements Planning. Later, in the 1980s when its functions further grew and expanded, it was then termed as Manufacturing Resource Planning. Some also called it MRP II. Furthermore, in the next decade the term underwent another change and this time it was the ERP. This was due to the fact that it started performing more functions. This time the term dealt with functions like human resources and accounting. These were primarily back office functions. However, now ERP serves various front office functions including marketing, sales, and e-commerce to name a few. ERP has grown immensely ever since it came to the surface. Thus, now big and small companies, both make use of this system. It has also been seen that businesses go for cloud-based solutions. This makes ERP more feasible and within reach. Other than this, it makes the system easy to use. This is just the beginning as ERP will have its fair share of importance in the coming years. This could mean that the current usage is only the first step in making this system the next big thing in the realm of businesses.
There is no doubt that businesses have seen the growing importance of ERP. Due to its effective implementation, it many businesses have witnessed a smooth workflow. Moreover, they have also seen ease and comfort as this software has been a helping hand in making things easier. Moreover, one of the biggest advantages of ERP is that different departments can be managed at the same time. Other benefits are as follows:
Businesses that have been using ERP system would surely agree with the fact that this system has very low operational cost. There are many businesses processes that can be easily managed through the use of ERP. Not only that, it works as a multi-tasking device. Thus, handling various functions for different departments and units.
Big corporations to small budding businesses, everyone that uses ERP has seen how much risk is decreased. ERP has been believed as a blessing. If the system is used smartly it can definitely be rewarding. This is possible if you control the finances and make the best possible use of this software.
Whether you have a new set up or you are planning to start a new business, ERP software could be implemented in any business. This system has proved to be beneficial for countless businesses, let yours be the next one to benefit from it.
•Affordability factor: In the past ERP systems were not that affordable. However, now things are different. ERP was specifically expensive for small and medium businesses. To make things easier, cloud-based ERP hit the scenario and turned out to be a game changer. Since then, it has become very easy for the businesses to utilize the benefits of ERP. As a result, these businesses have now gotten a chance to do well too in the market. Hence, fulfilling their business needs.
•The various functions: A lot of businesses have used ERP and still continue to make the most of this system. It performs a wide variety of functions that always come in handy for the businesses. Some of the areas are; finance and accounting which covers cash management. Project management is another area that it manages. This refers to resource planning, cost of the project, looking after the activities involved in the project management, billing and costs etc. another domain is the customer relationship management. This entails, customer contact, call center support, while also dealing with marketing and sales. Another important function is the human resource. This deals with training and recruitment which is the basics for any recruitment department. Other categories that fall into this area are payroll, retirement plans, pensions etc.
•ERP as a whole: ERP has countless functions that it can perform. As a whole, it can be seen as a complete package for any business if they wish to run it smoothly. Since ERP has a vast range of areas that it covers, therefore it is like an all in one solution. Moreover, it is a good investment as it takes care of every unit in of your business. Thus, it is more of a one time purchase that is fruitful for the growth of any kind of business. In addition to this, it enhances customer service. Imagine if everything is being taken control, you would not have to worry about anything as ERP ensures smooth services and business flow. If you consider all the above benefits, you will realize that ERP is the solution for every business. Since customer satisfaction is one of the most common principles of every business venture, if ERP can help you achieve that, then there is nothing better than that.