Enterprise resource planning (ERP) is a specific type of software that is specifically designed to be used for managing businesses. Most of the time, this software is made up of an integrated applications suite that can collect, store, manage and interpret the data that is gathered from many different places. These places can be service delivery, product planning, shipping, payments, inventory management, marketing and sales. There are an enormous amount of benefits that can be provided to companies that choose to implement it in their daily procedures.
1. Regulatory compliance
When ERP software controls all parts of a business, it will be able to comply in a more effective manner with many regulations. ERP systems are capable of having crucial regulatory requirements integrated into their framework. This a tremendous advantages that saves money and prevents needless headaches. This can also prevent inspections from occurring because of possible failure to comply with various regulations.
2. Decreased operating expenses
Because a company’s resources will be managed so efficiently by the ERP system, delays and other common problems will become infrequent occurrences. Because so few delays will be experienced, a business will quickly start to see a decrease in the amount of their operating expenses. Many companies are experiencing large savings by switching to a system that uses mobility, allowing data collection to be performed in real-time.
3. Business analytics
Various analyics tools can be utilized by a business to help make educated decisions based on the data they have collected over a period of time. The built-in analytics functionality allows ERP to study the data in an efficient manner.
When a company grows, it will experience significant changes in the way it operates. Therefore, it is important for a company’s system to increase its functionality during this period of growth. This is possible with ERP because it is scalable. Processes and departments can be managed with this system.
5. Outstanding supply chain
The procurement, inventory and demand forecasting of a business will be greatly improved by the use of ERP. With the improvement of the supply chain, an increase in its responsiveness will soon follow.
6. Complexity is reduced
ERP systems are capable of lowering the complexity of a business. This allows a system of workflows to be introduced that can make the entire chain of human resources increase its efficiency to a level that would have previously been thought to be unreachable.