ERP is an application that automates business processes and provides insights and internal controls, drawing on a central database that collects inputs from departments including accounting, manufacturing, supply chain management, sales, marketing and human resources (HR)
Sometimes described as “the central nervous system of an enterprise,” an ERP software system provides the automation, integration, and intelligence that is essential to efficiently run all day-to-day business operations. Most or all of an organization’s data should reside in the ERP system to provide a single source of truth across the business.
Finance requires an ERP to quickly close the books. Sales needs ERP to manage all customer orders. Logistics relies on well-running ERP software to deliver the right products and services to customers on time. Accounts payable needs ERP to pay suppliers correctly and on time. Management needs instant visibility into the company’s performance to make timely decisions. And banks and shareholders require accurate financial records, so they count on reliable data and analysis made possible by the ERP system.
An ERP is also an asset when it comes to planning and coordination. Employees can see current available inventory and customer orders in detail, then compare supplier purchase orders and forecasted future demand. ERP software improves communication and collaboration as well because workers can check on the status of other departments to guide their own decisions. As a comprehensive source of data, an ERP system also provides a host of reports and analytics that can be difference-makers for the business. Turning a vast trove of information into charts and graphs that clearly illustrate trends and help model possible results is an ERP capability executives find invaluable.
Six Key Benefits Of ERP
- 1- Higher productivity: Streamline and automate your core business processes to help everyone in your organization do more with fewer resources.
- 2- Deeper insights: Eliminate information silos, gain a single source of truth, and get fast answers to mission-critical business questions.
- 3- Accelerated reporting: Fast-track business and financial reporting and easily share results. Act on insights and improve performance in real time.
- 4- Lower risk: Maximize business visibility and control, ensure compliance with regulatory requirements, and predict and prevent risk.
- 5- Simpler IT: By using integrated ERP applications that share a database, you can simplify IT and give everyone an easier way to work.
- 6-Improved agility: With efficient operations and ready access to real-time data, you can quickly identify and react to new opportunities.
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