ERP ( Enterprise resource planning) is a software which integrates the Accounting, Human resources Planning, and productive assets utilisation in one unique complete seamless integrated business system.
ERP systems help improve productivity and profitability in many ways but the 3 key areas are as mentioned bellow. Examples of application are shared which may be simplified to elaborate on the concept and in reality may be more complex.
1.They reduce mundane,repetitive activities.
For example when an Enquiry is received from the customer. It is stored in the Erp system. Later the quotation is prepared from the system. Now the customer places order. It can be stored easily as it will automatically pick up the items from the quotation we have sent. Later the proforma invoice, sales invoice can all be prepared without repeating the items, but by simply picking up the entries from quotation sent to the customer earlier. There are many such methods by which the time and effort involved in preparation of the document is reduced.
2.The data is centralised which helps in making better decision.
Often the production module is integrated with the purchase systems, sales systems. If the sales order is received from the customer.Then the data of the item in the sales order, can be easily transferred to the purchase department, which then places purchase orders to vendors. i.e the procurement is simplified. Later when the company receives the materials from the vendor, it,s easy to check and also convey to the product department for unfinished material and sales team for finished goods. This in turn helps the sales team to invoice the customers for the inventory i.e is ready and required by the customer as the information is available in real time on the same ERP platform.
3.Best practices for business can be adopted with ease.
Earlier only large companies could afford ERP systems. Now due to advances in technology, the availability of the cloud platform, and software as service model (SAAS), the cost barrier is reduced and the benefits of ERP can be availed by a larger section of companies. The ERP system helps in developing best practices like the Purchase order sent by the company is properly authorised and viewed by Purchase officer, accounts department, owner management and so on. In absence of a robust ERP system such level of co-ordination is not easily possible in the time frames which business systems permit.
There are many more aspects to it, which we will touch upon in future articles. If you wish to know how a cloud based ERP system, with many functions of CRM (Customer Relationship Management) can benefit you, then please do email us firstname.lastname@example.org, or tinkle at 8655843886.