Why Does a Company Need and ERP Solution?
An organization that does not have ERP Software will be running on many kinds of software that do not allow interaction. Customization also may be difficult it in some cases. This will negatively affect the optimized functioning of organization’s business activities.
The organization will be facing hardship in many areas of its functions. The engineering design of the software will be needed in order to improve the product, and to follow the client’s behavior and choices since the first contact is quite important. Administration of the different receipts interdependence will be very complex, such as invoices regarding materials purchases, general expenditures or salaries. All of these things change when an ERP system is implemented. Information flows constantly and allows you to follow a client’s processes at any moment, no matter which part of the process they are going through. Purchases and expenditures are registered in a centralized database which allows you to have close control over these activities. In this regard ERP helps you to prevent possible abuse.
A powerfully integrated ERP system enables interactions of marketing, sales, quality control, products processes, supply lines, stocks and many other areas and it can be in a single database. This will eliminate the occasional loss of and retyping errors. It integrates all departments and functions across a company in a single computer system that is able to serve all those different department’s particular needs. An ERP system also automates business processes by placing them into a useful format that is standardized and common for the whole organization. Moreover it could even be used between their suppliers and customers.
Enterprise Resource Planning (ERP) Software is Usually Packaged in Functional “Pieces” that can be Implemented in Various Combinations
How can ERP improve a company’s business performance?
ERP’s best hope for demonstrating value is as a sort of battering ram for improving the way your company takes a customer order and processes it into an invoice and revenue—otherwise known as the order fulfillment process. That is why ERP is often referred to as back-office software. It doesn’t handle the up-front selling process (although most ERP vendors have developed CRM software or acquired pure-play CRM providers that can do this); rather, ERP takes a customer order and provides a software road map for automating the different steps along the path to fulfilling it. When a customer service representative enters a customer order into an ERP system, he has all the information necessary to complete the order (the customer’s credit rating and order history from the finance module, the company’s inventory levels from the warehouse module and the shipping dock’s trucking schedule from the logistics module, for example).
Some of the Business activities that an ERP Solution Covers: