ERP for Businesses
What is ERP?
An ERP or Enterprise Resource Planning is a software that automates business processes and workflows, improves control, and provides insights from a centralised database that seamlessly integrates finance, inventory, supply chain, production, warehousing, sales, marketing, and human resources management. Team members can use the information in a centralised database to analyse different scenarios, uncover new opportunities, suggest improvements that translate to cost savings, better productivity, and ultimately improved profitability.
Modern ERP software systems are built to cater to businesses of all verticals with embedded best practices and thus have become a critical tool for businesses across different industries. Businesses rely on ERPs for their day-to-day business activities, enabling access to real-time data across different geographical locations and departments. Human errors can be minimized as there would be less need for manual data entry by employees and queries & reports can be generated easily and quickly without IT intervention. In a nutshell, ERP helps to unify resources, processes, and technology across any business.
Definition of Enterprise Resource Planning (ERP)
As per Wikipedia, Enterprise resource planning (ERP) is the integrated management of main business processes, often in real-time and mediated by software and technology. Enterprise resource planning is categorised as business software that contains a few modules to address specific business requirements. The software fulfills different functionalities, for example, accounting, inventory management, customer relationship management (CRM), warehouse management, project management, and more. All these are fully integrated within the same database, thus minimizing data corruption or human errors from manual data entry.
Most ERP systems are built on a single common database. Information flow through different business functions, departments, geographical locations so there is seamless sharing of information throughout the organization. ERP is the enabler for resources (people), processes, and technology in modern companies.
ERP makes it easy to collect, organise, analyse and distribute information throughout organizations so that every team member can perform their role in the most efficient manner. Instead of spreadsheets and multiple disparate standalone systems, ERP can bring all resources together and create a better order.
How ERP can help businesses?
An ERP system can help businesses of all sizes to identify new opportunities for expansion and also identify areas for improvement. A high adoption rate can maximize the use of ERP to fulfill the specific needs of each business. Whether it is a spike in demand, delay in shipments, low cash flow due to overstocking – an ERP solution allows you to drill down to the specific issue so that you can proactively mitigate the issue.
The Business Value of ERP
More companies are implementing ERP solutions because there are obvious benefits across various departments. Besides a lower operational cost as the main value of implementing an ERP system, below are some of the business values an ERP offer businesses:
- Real-time visibility
- Instant access to business data
- Ability to uncover new opportunities
- Ability to identify issues
- Ability to make faster decisions based on real-time data
- Automation of tedious and redundant tasks
- Access from anywhere (not confined to business premises)
- Enable better collaboration between team members & third party
- Improve forecasting to improve cash flow, minimize overstocking & achieve optimal inventory
- Reporting capabilities
- Lower operational costs
- Better risk management
- Predictive insights with build-in artificial intelligence
- Single source of truth with data integrity
SAP Business One is an affordable Enterprise Resource Planning (ERP) software designed for small to midsize businesses. As a business management solution, SAP B1 streamlines business processes, provides real-time information, and help boost overall business performance. The solution covers finance, sales, customer relationship, purchasing, procurement, inventory and manufacturing in one centralised system, enabling accurate and precise information retrieval that assist in reporting, forecasting and analysis.