What is ERP?
Enterprise Resource Planning, also known as an ERP System, has gained much interest over the last few years, because of its core focus on the day-to-day running of a business. An ERP system looks at a company holistically and incorporates various business functions into one software feature. Configuring an ERP system can be complicated as it encompasses many parts of the company with different levels of complexity and variable costs. An ERP system varies between industries and the needs of each, but its primary function is to provide a simplified, automated way for businesses to run, for a more effective and organised business structure. The goal is to bring order to a disorganised system, making workflow a smooth user experience, from the CEO right down to the receptionist, with a straightforward process.
Most ERP systems will incorporate some, if not all, of the following functions:
- Vehicle Loading and Schedules
- IT Helpdesks / Support
- Supply Chain Management
- Managing Human Resources
- Manufacturing of Goods
- Integration of Multiple Branches
- Automated Systems
- Point of Sale
- Managing Serial and Batch Numbers
- Job Costing
- Coordinating Multiple Currencies
- Contracts and Communication
The Benefits of an ERP System
The core focus of an ERP system is to share information across all areas of a business so that information is available in real-time and data is only captured once. This provides accurate and up-to-date information for the decision-makers in the business and empowers employees to work more efficiently.
Some of the benefits of using an ERP system include:
- Saving you money
Automating your processes means that you free up costs on administrative and operational costs within the business. Staff can actively manage day-to-day operations and prevent further delays that inevitably cost the business money. An organisation can take advantage of inventory efficiency and in return, reduce excess costs within the business.
- Well-organised business processes and daily operations
– Data is available centrally across all business functions, making it easily accessible.
– An ERP system meets the needs of automating business processes.
– The decision-makers can access all data, operations, and production in real-time – no waiting for feedback.
– Easily automate tracking processes, particularly across multiple branches.
- Consolidated software programs
Many industries struggle with the use of numerous software programs for different business functions and various departments. An ERP system eliminates the data silos that come with using multiple programs, consolidating all the information.
- Real-time data
With an ERP system, data is available in real-time, allowing your business to respond to ever-changing market conditions, efficiently and effectively. It enables you to make informed decisions based on readily available information and reports, to accurately report on data and determine forecasts for the business.
- Easily traceable information
An ERP system assists companies to easily track stock and business information, for a more streamlined business process.
- Business flexibility
ERP systems quickly adapt to the changing needs of your business, so as your business grows, so will your ERP system. An ERP system is equipped to fit any size business, and the system will adapt to your business goals. Tailor-made ERP systems are also available, to suit your business or industry and its requirements.
- Maintain customer satisfaction
An ERP system makes efficiency and accuracy easy, allowing you to deliver better customer service and maintain strong customer relations.
How an ERP system improves productivity
An ERP system is configured to achieve the desired business results based on the core objectives, which can determine the level to which it improves productivity in the business. The points below outline some of the ways that an ERP system can improve productivity:
Finance is at the core of every business, and it is imperative that the finance department is operating efficiently. ERP software gives comprehensive visibility into how the finance department performs, allowing management to view the accounts with the full integration of the business’s analytics readily available. This eliminates the need for performance reporting and additional feedback meetings.
Implementing an ERP system can improve your:
- Financial statements and reporting
- Cash flow
- Asset management
ERP systems allow for quick and easy access to information that managers require to make well-informed business decisions, without having to wait for feedback from the relevant departments. The ERP software allows users to define their specific objectives and what their KPIs are, and pinpoint their target market.
Improve Project Management
ERP project management software helps determine a team’s performance and is able to keep a record of all the necessary details of the business or task. Workflow is centralised at one point to avoid overlapping responsibilities and team confusion. There is no need for employees to waste time searching for information in other areas, with it all consolidated by the ERP system.
The 5 Project Management features of an ERP system include:
- Resource allocation
- Corrective action
- Real-time information access
- Cost estimates
- Change order
Effective Holistic Solution
When ERP systems are implemented correctly across a business, they transform the financial, operational, and human resource aspects of an organisation. Companies at the forefront of innovation are implementing ERP software to improve the way data is shared across an organisation, reduce internal costs, increase efficiency, and improve processes across their organisations. An ERP system fits in with any industry, be it retail, corporate, industrial, and even small businesses, assisting with the day-to-day operations of the company, and the ever-changing industry needs.
Bridges Information Gaps Across The Business
ERP systems bridge information gaps across different departments within a business allowing managers to see a more holistic view of a company’s finances and critical issues. With easy access to all company processes and data, managers can make quick and informed decisions to improve the productivity of the business. The ERP system eliminates time loss and ultimately financial loss, with its ability to provide the necessary information for all departments, in one centralised destination.
Some of the key business issues that are supported by an ERP system include:
- Efficient and professional customer service
- Accurate cash management
- Quality control for every aspect of the business
- On-time and reliable delivery
- Error-free inventory capturing
- Lack of productivity and wasted time
Does an ERP System Sound Like the Right Fit For Your Business?
Omni Accounts is ready to implement an ERP system in your business today. Learn more about an ERP System by talking to one of our qualified consultants today – an Omni Accounts consultant is ready and willing to answer all your questions and help you get started on selecting the right solution for your business.