With the global ERP Market reaching $41.69 billion by the beginning of 2021, the impacts of ERP systems are becoming more and more important to enterprises. It is simply unperceivable nowadays to run an enterprise without an ERP solution in place; it lies in the heart of every enterprise, and its diverse functionalities spread across it.
What are the benefits of ERP?
Organizations that want to manage their business operations in a centralized and integrated manner employ enterprise resource planning (ERP). Also, companies involved in the supply chain frequently use ERP to keep track of all the moving elements involved in production and delivery, and organizations that need to manage their employees, clients, and inventory can all benefit from ERP.
ERP allows all departments to work with the same data simultaneously because it keeps all entered data in a single database. Data can also be arranged, examined, and turned into reports. ERP unifies customer management, human resources, financial management, business intelligence, inventory, and supply chain functions into one system.
Why ERP is important?
- Automation
ERP automates simple, tedious, and complex tasks. It has the necessary engines that provide users with vital information in real or near-real time. For instance, users can easily tell what’s on-hand, what is the average cost of each item, what are the profits made per item, how much money they owe to suppliers, how much money clients owe them, etc. The availability and accuracy of such information and automation allow for better decision making, more accurate exchange of information within and outside the enterprise, and improved reporting.
- Money and Time Saving
Integrating all systems in one central system makes it much simpler to access information. Additionally, ERP helps businesses save money by removing the requirement for users to receive specific training for multiple systems. As a result, less money is spent on training and less work is put into the logistics. One simply needs to get in touch with one vendor, rather than booking many training sessions with several separate vendors.
- Improved collaboration
In general, ERP improves collaboration and is a single source of data to work with, which reduces all sorts of errors brought by incorrect data.
- Improved productivity
Employees no longer need to spend hours on tasks like generating reports, monitoring inventory levels, maintaining timesheets, and processing orders. ERP not only saves time but also prevents the business from human errors.
- Maintained compliance and Risk Management
ERP helps keep track of all the different regulations imposed on businesses that are growing in local and/or international countries, helping businesses maintain compliance at every stage. In addition, ERP provides integrated auditing features and risk management tools.