What Is An Enterprise Resource Planning System?

Enterprise Resource planning can monitor business resources between stakeholders providing manageable data, helping business owners create straightforward ways to enhance efficiency.

What Is An Enterprise Resource Planning System?
ERP Systems for Small Business

Integrated Information

The most obvious benefit of ERP software is that it gathers information from across all other departments and consolidates it into a single source. This collective approach makes it easier to optimize your data for consistency, accuracy and uniqueness for all of your business needs. Various departments can then coordinate with each other more easily, making processes more coherent.

Integrated information is crucial in high-level business operations like forecasting, subsequent planning, and decision-making. In these departments, it’s essential to avoid bottlenecks to keep the workflow as streamlined as possible. 

Since ERP systems automate routine and manual tasks, they cut down on your business’s overall operational costs. One way the program reduces expenses is by simplifying the report submission process. ERP can easily handle inventory reports and employee progress. 

Competitive Advantage

Modern ERP software puts you ahead of your competition. Because they automate your routine tasks, ERP systems give you room to increase productivity in other areas. They take care of giving you real-time data to streamline your business processes, taking care of the busy work while you handle vital tasks. 

This feature allows your business to operate at a higher efficiency than those without ERP, making your services more accurate and responsive. Enhanced accuracy results from ERP reduces the need for manual data entry.

Another perk of utilizing ERP is how conducive it is to upgrades. Older software can impede your business goals if it isn’t compatible with new programs. ERP lends itself well to current systems like machine learning.

Enhanced Data Security

Developers create all cloud-based software with data security in mind. ERP systems are aware that they keep track of a lot of sensitive business data and offer tools to prevent any security breaches. They rely on firewalls and other measures to secure data across devices.

The best ERP solutions monitor who has access to the system and periodically review and authenticate all devices that connect with the ERP software. Since these systems merge all of your information into a single repository, whether on-premise or in the cloud, their data security services reach full optimization by not having to stretch their abilities.

By stopping threats before they start, ERP systems improve other areas of your business functions. Customers will enjoy knowing that your technology values and protects their information. Individuals that handle regulatory compliance will appreciate the built-in reporting functions. Administration teams will value the increased profitability that comes from having efficient workflows.

Improved Customer Service

Any business’s success hinges on customer satisfaction and excellent customer relationship management (CRM). According to Bluelinkerp, 55% of customers are willing to pay more if a company can guarantee a quality experience. 

Aside from keeping your business operations data in one place, ERP software also collects your customer data in a single location, which goes a long way in enhancing their experience. ERP also allows you to customize your response to complicated data requests, putting you in a position to service more customers.

From order history to customer satisfaction, people want to feel valued in CRM interactions. By having better access to customer information, your customer service team can respond quickly and accurately to customer concerns. 

Overall, ERP solutions make it easy to provide satisfying customer services that feel personal, which gives you another competitive advantage.

Modifies Supply Chain Management

Supply chain management is a huge undertaking that can’t experience any disruptions. You need to be able to track products through the supply chain and stay on top of quality control, which requires you to streamline your workflow in the most cost-effective way possible. 

When you conduct these business processes manually, you leave room for error you can’t afford in such a strategic process. If your company deals with moving physical inventory and production, an ERP system improves supply chain management (SCM).

An ERP system can dramatically improve profitability and reduce overages involving inventory and production. Your business needs unified insight into sales and optimized procedures so you aren’t relying on “best guess” estimates for supply chain management. 

Once you streamline your supply chain, you also facilitate manufacturing innovations that can reduce costs and develop new products that give your business a competitive advantage. ERP allows the analysis that promotes improved supply chain management.

Well-designed ERP software makes your supply chain more responsive by improving your forecasting, inventory management, and procurement. These are areas where automation is essential for making your job easier, as it updates your data in real-time and handles routine tasks for you. 

Valid data results in shorter lead times, more on-time deliveries and accurate logistics management enhance your business’s overall operation and success.

Facilitates Regulatory Compliance

Meeting regulatory compliance requirements is one of the most difficult ongoing tasks for businesses. When your business functions rely on manual processing, you lose out on the accuracy needed for staying compliant with your specific business’s regulations. 

ERP systems understand your business needs in this regard and can take specific regulations into account, such as the Sarbanes–Oxley Act (SOX) and the Federal Information Security Modernization Act (FISMA). By yielding consistent data for workflow efficiency, they give you more control over vital business information.

Regulatory compliance departments, and the individuals that handle those procedures, must have solid control over most of your business’s information. Because ERP software displays your data in a comprehensive dashboard and gives you real-time, customized reports, those employees get a much-needed cohesive overview of your business processes. 

ERP implementation quickly identifies any disparities between your business functions, leading to accurate bookkeeping and forecasting overall. Given these systems automate your reports, you ultimately cut down on your business’s operational costs for continual audits.

Should Your Business Implement an Enterprise Resource Planning System?

If you want efficient and streamlined business processes, ERP systems are essential to have. The efficiency and ease that they bring to your business is almost irreplaceable. Schedule a consultation to speak with Solved by Tanna today and let us work together to find the best solution for you and your business!