ERP (Enterprise Resource Planning) implies “integration of the business processes” of the different functional units of any organization. Present day economic scenario demands best management and effective planning of the business processes resulting improved production in lesser time period. This has become the motto of every middle and big sized organization necessitating ERP implementation. In a nutshell, ERP forms the backbone in any business.
Integration of the different functional units into a single platform provides real time visibility of all the events in a business enabling the management in prompt decision making. Lots of time and resources are wasted in handling high volume of business transactions, which can be minimized through ERP implementation. This is perhaps the most important benefit that an ERP system offers.
Benefits of ERP Integration
ERP enables end-to-end integration in any business process starting from the production, maintenance of accounts and distribution. Through different modules, ERP integrates all major functions like planning, deploying of workforce, tracking performance, managing inventory, processing orders, procuring, managing finance and accounts, controlling engineering processes, manufacturing, managing customer relationship and timely delivery of goods. All these processes are controlled through a central repository that enables smooth data migration and swift communication among all the units. The result is better work management, increased productivity leading to better margins. In the ever changing economic scenario of the world market, ERP can be customized according to business requirements and upgraded regularly.
With ERP software, a business organization will not have to bother about shortages in inventory and wastage of time in transferring files and data. ERP provides a fast and reliable solution to all business problems through integration speeding up the production. Timely detection of the problem and its solution by ERP helps in timely delivery of goods much to the satisfaction of the customers.
Significant Benefits of ERP
1. ERP can be operated irrespective of geographical locations as it supports multi currency conversions and languages.
2. Streamlines workflow along with the integration of the business units.
3. Efficient data sharing between different units reducing data redundancy.
4. Optimization of resource usage and implementing best business practices.
5. Improved work efficiency through proper work force deployment and performance tracking.
6. Enables better planning and forecasting thereby reducing inventory costs.
7. Improved account management efficiently maintaining general ledger, accounts payables and receivables through different modules.
8. Improved customer satisfaction with improved quality and timely delivery of goods.
9. Tracks vendor performances and reduces vendor pricing.
10. Efficient Supply Chain Management (SCM) through different modules of order processing, supply and distribution to remote locations.
11. Provides an overall updated data of inventory, sales and receivables of an organization.