ERP (Enterprise Resource Planning) is something every business needs to operate in a cost-effective manner. It is generally a business management software that comprises powerful and strategic tools for handling all the core functions and activities within an organization. The concept of ERP has various dimensions because it differs from company to company. Despite the fact that it was invented to facilitate enterprises to begin with, today it is an integral part of businesses at all scales.

History

The term ERP evolved from MRP which stood for Materials Requirement Planning or Manufacturing Resource Planning. It was coined by an industry analyst in the 1990s; at the time it referred to organizing data and streamlining routinely tasks like inventory management, human resources, purchasing, accounting, manufacturing etc. With the expansion of the internet and advancement in technology, departments like E Commerce, CRM (customer relationship management), SRM (supplier relationship management), and SCM (supply chain management) were added to the quota.

ERP Today

Modern ERP systems are designed to include all moving parts of a business so that managers and owners can comprehend every aspect of an agency. This leads to making better decisions and huge positive impacts. All areas of a business are united and communication between staff of all levels reaches an optimum flow. Today ERP software provide real-time data, advanced automation, and management of finances like never before.

Gains from ERP

As we can assume that the ERP system of every business is unique in a way, the benefits earned out of them can vary more or less. Despite saying that, the core purposes are bound to overlap and hence we portray a list of some common interests:

• The leaders of an organization remain up to date with all movements occurring within the work space
• Easy and instant access to repositories
• Detailed info of transactions
• Automation of laborious or monotonous tasks
• Single point for management (extreme convenience)
• Effective communication/collaboration with internal staff and external vendors
• Accelerated process life cycles + boost in productivity
• Improved data security
• 24/7 access to real time data via mobile devices
• Modern techniques and innovation
• Precise reporting and forecasting
• Time and money saved
• Identifying challenges and opportunities
• Eliminating errors
• Controls for compliance

Do You Need ERP?

Not every business necessarily needs an ERP software, but it doesn’t hurt if you have funds available. However, sometimes the lack of an ERP system is all that stands between an organization and success. Below are a list of situations that indicate that you might need to invest in the concept:

• You regularly outsource work, hire external vendors or collaborate with third parties
• A lot of work manually done at your site can be automated
• You cannot define your inventories
• No track of transactions
• You constantly stay off-site and remain oblivious to on-site operations
• You only have a vague idea of your data
• Lack of communication with employees and other stakeholders
• High input and low output

If half or more of these points ring a bell, that’s the signal for taking action. You must consult an IT firm who can provide you ERP experts to analyze the particulars of your business and devise appropriate software accordingly.

With a fitting ERP system in place, the productivity of your organization will escalate swiftly. Work will become less of a burden for your staff, financial matters will become transparent, and all data will be at your fingertips. The central purpose of the system is to provide a profound understanding of the entire business, so that there isn’t room for misconceptions and blunders.