The need for an ERP system in companies seeking to grow and streamline their operations is significantly increasing. Your ERP penetrates virtually all processes in the organization, promoting departmental collaboration and teamwork.
10 Things You May Not Know About ERP
1. Good Workflow Support
Your ERP system simplifies company processes, effectively improving your organization’s workflow. Activity coordination within the company becomes more manageable since the ERP system integrates the different modules, allowing user interaction.
If the platform’s CRM registers a sales order, the information will automatically find its way to the production module. It allows workers to start the manufacturing process with knowledge shared. When the customer pays, the accounting module records the revenue thanks to an effective ERP system.
2. Centralized Database
ERP implementation in your organization ensures there is only one version of the truth by creating a centralized database. Departments record all transactions and relevant information in a shared database.
A centralized database also ensures remote access to company information, allowing your team to execute processes even when not in the office. Data accuracy, collaboration, and reporting improve significantly after implementing an ERP centralized database.
Cloud-based ERPs offer superior information handling features than other traditional approaches. These systems provide your employees with remote access to information provided they have the internet. This configuration also improves data safety since you can implement several security measures to control access.
3. Provides a Uniform User Experience
Many companies fail to understand how important it is to provide quality and similar customer experiences. Instead of training employees on the different software applications, why not use ERP to create a centralized platform for everyone? Your workers will quickly move around modules and learn the system after ERP implementation.
4. Access Control
Companies handling critical information can benefit heavily from the access control features provided by ERP systems. Modern ERP solutions provide advanced user-permission settings to limit the access of specific files. It means no more unsecured Google documents or Excel sheets when handling your company’s inventory management and financial records.
ERP provides a practical approach to preventing sensitive data from falling into the wrong hands. Your workforce and other system users only get to access what they need, improving overall data security.
5. Improved Collaboration
Companies must collaborate to ensure maximum productivity in their business operations. You risk losing a lot of information and knowledge when your team works on disparate systems without consistent communication. However, ERP helps improve collaboration by enabling seamless information sharing across departments.
An ERP system helps clear all the confusion that comes with miscommunication or lack of information within an organization. It ensures the critical team members use a common platform to improve collaboration, minimize concerns and share accurate information.
6. Enhanced Demand Forecasting
Demand forecasting and planning have become more manageable, with information across all departments in a centralized database. Organizations using separate and poorly integrated systems are victims of messy and non-standardized data, making accurate analyses challenging.
A centralized database makes forecasting less challenging, saves time, and guarantees more accurate results. Modern ERPs come integrated with the necessary application to help with demand forecasts like year-over-year comparison tools.
7. Integration
ERP integration means connecting other systems to your software. It helps improve the productivity of the ERP function by facilitating information flow within your company. Some integrated systems include customer relationship management tools like Salesforce or other business intelligence resources.
8. Visual Dashboards and Reports
Integrating an ERP system into your operations provides a complete view of all your operations with better reporting. The reporting modules create ideal reports by compiling information about your business operations. This information empowers stakeholders to enhance business processes by identifying problem areas and making more informed decisions. The pieces can include visual representations like graphs and dashboards to help deliver the message better.
9. Compliance
An external audit is most common after any significant upgrade, implementation, and conversion in your business. In some industries, ERP implementation in your business configuration is necessary to ensure all systems run smoothly and guarantee continuity. You are less likely to mix up ingredients in manufacturing if you have a practical ERP system.
10. Real-Time Visibility
Another less often realized feature of ERP is that it offers real-time visibility for company information. Authorized users access all the information stored in the company’s central database and gain valuable insights. Your organization becomes more responsive and agile thanks to the availability of real-time data.
How to Implement ERP
Even the best ERP system may fail to deliver your desired results without proper installation. You can achieve a successful ERP implementation project by following these practices.
Preparation
Preparation is crucial for every project with long-term effects on your operations. ERP spreads across your departments and handles critical information, making it essential to prepare adequately. The preparation can include answering questions like:
- How much should you budget for the ERP implementation?
- Are there any customizations or integrations required in the system?
- Who will handle the implementation process?
The primary objective of preparation is to guarantee a hiccup-free procedure.
Change Management
It would help to consider how your workforce will react to the change once you implement an ERP system. Most business owners overlook change management during ERP implementation, which may result in poor end-user adoption. It would help to provide training and clear communication throughout the project to ensure they understand the system better.
Outside Help
Modern businesses prefer seeking outside help from an engaged software developer when implementing ERP solutions. The upside of procuring assistance from the source is that they manage your project and offer constant support to enhance software value and mitigate risk.
Conclusion
Although this may not be everything you should know about ERP, it provides a more defined and robust starting point for the uninitiated. These systems help manage and automate the different operations in your company in an integrated platform. If looking for a solution to help streamline your processes, contact us today to get started!
