What is ERP?
ERP stands for Enterprise Resource Planning and is a business software that helps businesses run with greater efficiency and accuracy, resulting in higher production levels. Becoming familiar with the components of this business software and just how beneficial a tool it is for business operations is the best way to begin the search for the perfect solution for specific needs. Read on in today’s Softengine Blog to further understand how ERP operates and the extensive benefits and key features to help run business operations with ease.
One Comprehensive Solution: An ERP is a software that helps to run all business operations in one location. From finances and accounting, production, inventory and warehouse management, supply chain, manufacturing etc., an ERP is equipped to handle it all with seamless integration! With all integral business information and data being stored in one location, there is no worries if data has been altered or misrepresented from department to department. This single view of information within a highly comprehensive and configurable solution makes ERP’s extremely beneficial and effective.
This statistic from Fortune Business Insights shows just how important ERP software is becoming in the business world, “The global ERP software market size is expected to reach USD 93.34 billion by 2028, exhibiting a CAGR of 9.2% during the forecast period. The market size stood at USD 46.30 billion in 2020 and USD 50.31 billion in 2021” (2).
How ERP Systems Operate: ERP solutions consist of a series of integrated modules that contain specific business processes for each department that all are located on a shared database. Despite modules having specific duties, due to the shared database, the processes are completely integrated and communication data between one another. In each individual module, operations can be found for specific duties such as creating a sales order, purchase order, entering the chart of accounts, checking inventory levels etc.
Widely Used ERP Modules: ERP solutions are also available to manage industry-specific requirements and can be designed specifically for a certain industry. Enhanced with customizability and specific features, an ERP can handle every type of business’s internal operations. Some modules that are included in most solutions are:
- Finance and Accounting Module – Manage financial assets, track cash flow, and create budgets along with automating the key financial tasks.
- Sales and Customer Management Module – With the sales module, handling customer data and monitoring sales campaigns has never been easier. Due to the completely integrated structure, it allows for tracking the customer and sales journeys from beginning to end.
- Purchasing and Inventory Module – Manage purchase schedules and payables, oversee the entire procurement process, clear inventory levels visibility, and synchronized warehouse and accounting data are just a few features of the purchasing and inventory module that assists in these operations.
- Production Module – Production modules increase transparency throughout the production process to improve control and distribution. With the ability to generate real-time production reports, track stock locations and transfers as they occur, and use relative data to guide production planning, this module is an integral component for business success.
- Business Intelligence – In this module, the information stored within the database is leveraged to generate smart business insights. Along with this, there is the ability to build customized dashboards and reports to easily depict business performance.
Key Benefits of ERP: With an established background and information about ERP and how they operate, there are many benefits to cover that result from implementing an ERP solution.
Deeper insights are available at the click of a button due to the integrated data within the shared database. By eliminating communication silos, the single truth is always represented when critical business questions arise.
Improved agility is achieved by real-time data being automatically updated and stored allowing for quick access to information and projects.
Greater productivity by automating and streamlining core business operations. ERP allows for automation of tasks that would usually require completion by hand, saving employees critical time to allow for more time consuming, critical thinking tasks to be completed.
Industries that Benefit from ERP: Certain industries require specific features and abilities from an ERP, and despite every industry being able to gain many benefits, the following examples have proven to prosper from the opportunities an ERP presents: Utilities, Wholesalers, Manufacturers, Service Companies, and Retail. Each of these industries have unique requirements, but with high customizability and effective business processes, they acquire the ability to thrive and grow powered by a strong ERP solution.
ERP for Every Business Size: ERP solutions are not only for one size of business; There are options that are specifically designed for the varying business sizes with their needs in mind. Small, Midsize, and Large businesses all have ERP options that will best fit their requirements for growth and prosperity. (1)
SAP Business One is the leading ERP Solution for the Small to Midsize business market and comes equipped with an integrated array of modules to streamline internal business operations. Softengine, an Award-Winning SAP Business One Gold Partner, is ready to help take your business to the next level with growth and increased production. Contact one of our Softengine SAP Business One specialists for inquiries: [email protected]and check out our website for detailed information about SAP Business One: SAP Business One Overview – ERP Software for Growing Companies (softengine.com)
(2) https://www.globenewswire.com/news-release/2022/02/22/2389161/0/en/ERP-Software-Market-to-Reach-USD-93-34-Billion-by-2028 -Announcement-of-ERPx-ERP-Suite-by-Unit4-to-Elevate-Market-Fortune-Business-Insights.html