The Business Value Of ERP System

Enterprise Resource Planning (ERP) is the software and system packages used by companies in dealing with day-to-day business activities, for instance, procurement, accounting, manufacturing, and project management. Simply put, statii ERP software eliminates data duplication and provide data integrity by collecting an organization’s shared data from various sources.

In today’s business enterprises, ERP is as indispensable as the power that keeps all the computers running. It is of vital importance for managing thousands of firms in all industries, small and large scale sizes alike.

How can ERP improve your company’s performance?

ERP attempts to integrate all functions in all departments in an enterprise into a single system that can manage all departments’ needs. It automates the task in performing an individual business process ?” for example, fulfilling an order. The process involved in order fulfillment entail taking a customer order, shipping, and billing the customer.

With the use of ERP, when the company’s representative takes an order from a client, he or she pulls out the pertinent details about the customer (credit rating, credit and order history, the company inventory, and the schedule of possible delivery). When one department finishes the fulfillment of the order, it will be immediately routed to the next department through ERP. Thus, a faster business transaction with minimal to no error.

ERP can help in integrating the financial information, manufacturing process, and human resources information of an enterprise. However, there are many problems encountered in between ERP planning to the actual implementation.

If you intend to install ERP in your company, bear in mind that the average execution time is between one to three years depending on the size of the enterprise and the number of departments to integrate. A company should not focus on the length of time it will take, however, rather concentrate on understanding why your business needs it and how you are going to maximize its use to improve the value of your enterprise.