What is Enterprise Resource Planning (ERP)?
Have you noticed the amount of time spent on day-to-day tasks has slowly increased? Are you opening one program and another and then another to take care of finances, sales, and other business needs?
When everyday business tasks start to become difficult it may mean it’s time to start upgrading your systems.
That could mean looking into an ERP, Enterprise Resource Planning software.
Enterprise Resource Planning helps to streamline a business’s different sectors whether it’s a mixture of finance, human resources, sales, manufacturing, logistics and more. Instead of using multiple programs for all the different sectors of your business, an ERP system simply allows for a business to operate in a one-stop-shop system. [1]
Systems like ERP, offer customizability to what your office actually needs to thrive. The size of the system can change depending on your business as well as the modules you use to help your operations. A sample of different is listed below:
ERP modules
All ERP systems differ on the specifics of the businesses need.
- Accounting
- Human Resources
- Business Intelligence
- Sales Management
- Customer Service Requests
- Project Management
- Database storage
- Distribution
- Purchasing / Procurement
- CPM (Corporate Performance Management)
- Transportation Management
- Manufacturing Management
What are the main characteristics of an ERP system?
- An integrated system
- Before to maintain and keep track of all of a business’s operations, a business may be using multiple systems like CRM (customer relationship management) software, an HR software, payroll software and so on. An ERP system can be customized to fit in all the software in one place that will help run your business in one uniformed program.
- The system Operates in (or near) real-time
- Depending on the job it is tasked with, most ERP systems run on real time or close to real time. That means when inputting data, or maybe even doing something as simple as an inventory check, the system will be up to date. [2]
- A consistent look and feel across modules
- Having an all-in-one system helps so that you’re not having to learn and remember where all the tools you need to get the job done are located on what program. With ERP, a business only has to worry about the one interface and the modules within.
- Multiple Deployment options
- On-Premises – servers would be located within the offices.
- Hybrid – This means that there may be servers on site but the system may also be hosted through a service online.
- SaaS – SaaS (Software as a service) would have the ERP as stored and accessible on a subscription-based service much like the Cloud.
Benefits of ERP
- Productivity
- By streamlining many of the businesses daily processes to improve operations [3]
- Efficiency
- Systems working optimally together on an easier and faster working programs help with employee morale and efficiency without the delay of using multiple systems
- Cost Reduction
- With more efficiency, the operations are able to scale up and grow the business by watching costs and monitoring productivity
How do I know what kind of ERP my business needs?
Deciding to invest in Enterprise Resource Planning Software may be an arduous journey. Knowing the ins and outs of your business, as well as obtaining the precisely customized modules can be more difficult and time consuming that most business owners can manage alone.
Fortunately, we have consultants that can help guide and assist you in this “decision- making” process. Atherton and Associates has ERP consultants available for any questions about how to best transition any business into using ERP systems. Learn more by visiting www.athertoncpas.com or email to info@athertoncpas.com today. At Atherton, We listen, We Learn, We Help.
[1] http://www.netsuite.com/portal/resource/articles/erp/what-is-erp.shtml
[2] https://www.erpfocus.com/four-practical-examples-of-the-power-of-real-time-erp-data-3965.html
[3] https://www.workwisellc.com/erp-software/15-benefits-implementing-erp-software/