There are many functions in a company that needs to act together and in sync with each other. Only in this way can the company work efficiently. If different departments are functioning as separate units and depend on manual synchronization of their data, then there can be errors. It can also be time-consuming and become an obstacle to the growth of the company. Whether all the processes are done manually or automated, they must all come together and sync if the company must progress and grow quickly. In many companies, it is found that some of the systems are not scalable. The IT department is constantly trying to fix the problems. This way the systems cannot keep up with the fast growth of the company. A solution must be found to solve these issues.
Understanding ERP
ERP stands for enterprise resource planning. Though the name refers to planning the available resources in a better way, this system brings all the functions of the company under one system and helps to use the data more beneficially. ERP can include supply chain, manufacturing, finance, services, and other processes of the company. The ERP software helps to automate the various individual activities in a company like accounting, procurement, customer relations management, project management, and supply chain management. ERP system softwarehelps to integrate processes in a company and streamline the information across the entire establishment.
The ERP management system software improves the efficiency of a company by managing and improving the way in which the resources in the company are utilized. It helps to reduce the number of resources used without reducing the efficiency in any manner. This will boost the company’s growth and profitability. This provides an integrated system of all processes and provides a common database from which all departments can get the required information. Real-time information sharing is possible. There will be a common user interface for all the departments. ERP can be hosted on-site or on the cloud. The system is also available as a software-as-a-service.
Types Of ERP Solutions
ERP is a kind of application that is created to satisfy the requirements of an organization to help it grow and improve business performance. Though there were big business and small business ERP systems earlier, not the terms are no more in use. However, there are types of ERP systems based on the way they are deployed. The custom software development company can develop and install the ERP system in the company’s computers placed on the company’s premises. All the resources used for the deployment of the system and its maintenance are provided by the company. This type of ERP system is called an on-premise ERP system.
The second type is the cloud-based solution which is called software-as-a-service provided by services providers on the payment of subscription. In this, the establishment doesn’t install the software or hardware on its premise. It accesses the data using the internet and uses whatever services it wants to utilize. The services are flexible and the client needs to only pay for what they use. The company offering the service will take care of maintenance and support. The third type is the hybrid ERP system where both cloud-based and on-premise models are combined to give a flexible service. This system offers a lot of flexibility for the company to migrate between both models. Many custom software development companies install the system on the site and also offer cloud services.
Why Do Companies Need ERP Systems?
The main advantage is that the system helps to break the barriers between the different business units in the company. This allows for more efficient working by the employees. There is also smooth flow of information between the various units. The main advantage for the management is that it can view all the information from all business units on a real-time basis. This helps in quicker decision making. You can access the data from anywhere using a device connected to the internet and take immediate decisions.
As you can view the financial transactions in all the business units, it is easy to see if there are any errors. Any deviation from regulations can be immediately noticed and the necessary action taken to ensure compliance. All the main business processes like lead generation to cash, order placement to fulfillment, and procurement to payment are visible in the same dashboard. This helps to monitor all the operations at the same time. ERP helps in taking customer satisfaction to the next level as all the activities of the customer can be tracked across different business units. ERP helps companies to have better control over all their operations. It also helps in the better usage of resources using real-time information.
