ERP System – All That You Should Know!
October 3, 2017
Whether it be an SME or a large enterprise, one of the biggest challenges it faces is the difficulty in managing different modules, departments, processes, products or services it possesses in a centralized and efficient manner. An organization will have different systems in place to do individual tasks, an HRM software for managing HR related stuff, an inventory management software for inventory management, an invoicing system for billing etc, to name a few.
When the size of the organization becomes larger, the complexity of keeping these systems synchronized also increases. This might lead to inefficient operation of the organization and fall in productivity. This can also become a bottleneck that an organization can’t grow beyond a limit due to the inability of individual systems to work together. Here comes ERP softwares to the rescue.
An ERP (Enterprise Resource Planning) software is a centralized business and process management software which binds together different modules within an organization. That means, you can cover the entire lifecycle of a product from the design to delivery phases through a single application. This helps in cutting down considerable amount of manual effort and process complexities.
You can use an ERP system for Financial management, Human Capital Management, Supply Chain Management, Project Management, Customer Relationship Management, Sales & Marketing, Inventory Management, Manufacturing, Purchase Management, forecasting sales trends, improving existing processes, generating analytics reports and a lot more. It also helps in bringing down the operational cost by streamlining the processes.
Data security is another important aspect an organization must consider seriously especially when regulations like GDPR (General Data Protection Regulation) are becoming a mandate nowadays. An ERP system can centrally manage various data accesses for different users like employees and external consultants in an organization effectively and securely. It also helps to comply with security and process regulations in the respective geography in a more robust way.