Lets take a closer look at Enterprise Resource Planning
ERP is a powerful business tool. It is very flexible and can adapt to most business needs. So what exactly is it?
Enterprise resource planning (ERP) is a combination of the various tasks that are essential to run a business that is burdened by the weight of its manual processes. These include accounting, human resource, supply chain, customer relationship management (CRM),inventory and order management to name but a few.
The system reduces the need for manual processing and helps to streamline your business around one centralized location. It consists of a maintained database that allows all members within a company to view the same shared information. This allows staff to generate reports quicker, generate sales orders at speed and makes financial processes easier by automating a lot of the manual re-keying involved in many departments. It is all wrapped up in one user friendly system which makes business performance analysis painless.
The rise of ERP
If you had a time machine and traveled back to the 1960′s you would witness some manufacturing company’s using a technique which they referred to as Manufacturing Requirements Planning or (MRP). As it evolved, the process came to be known as Manufacturing Resource Planning and eventually Enterprise Resource Planning. The original MRP systems were used as an organisational and scheduling tool, but as the years rolled past and technology advanced in the 1970′s it was adapted and developed to become more business process friendly.
The systems began to have the ability to include customer and supplier information and it was not long before its uses became recognized by other industries.
By the time the 1990′s arrived Gartner had coined the term ERP and the rest is history.
So how can ERP add value to my company?
At its core, ERP helps employees to do their jobs more efficiently by breaking down the barriers between business units. More specifically, an ERP solution:
- Gives a global, real-time view of data that can enable companies to address concerns proactively and drive improvements
- Improves financial compliance with regulatory standards and reduces risk
- Automates core business operations such as lead-to-cash, order-to-fulfillment, and procure-to-pay processes
- Enhances customer service by providing one source for billing and relationship tracking
With an ERP solution, employees have access to accurate information that enables them to make better decisions faster. Not only that, but the software helps to eliminate redundant processes and systems, dramatically lowering the cost of doing business overall. When you add up these advantages, the value of ERP—particularly cloud based—is clear.
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Posted on January 11, 2016 in B2B Platform in the Cloud, Business Process Automation, Cloud Computing, CRM, ERP, Gartner, Integrated Supply Chain Management Platform, Sales Order Processing, SAP, Supply Chain Automation, Supply Chain Performance, Uncategorized by Tagged as