An ERP is the integrated real-time management of business processes using software and technology. It is also a category of enterprise management software that can capture, store, manage and analyze data from numerous business processes. ERP integration provides a constantly updated picture of primary business activities using common databases.
But what does ERP stand for? It’s an acronym for Enterprise Resource Planning.
Now that we have the ERP definition out of the way, let’s dive deeper into what ERP software or systems are, how they work and why you need them. The examples of ERP systems listed will help you find the best solution for your business.
How Does ERP Software Work?
An Enterprise Resource Planning (ERP) system or software works in real-time, using a company’s shared database to process data and information anywhere. Automation is built into ERP systems, meaning reduced manual labor. Such systems can be on-premise or cloud-based; traditional on-premise systems are part of legacy technology.
This software covers the following areas:
- Financial Accounting
- Management Accounting
- Human Resources
- Order Processing
- Supply Chain Management
- Inventory Management
- Project Management
- Customer Relationship Management (CRM)
- Supplier Relationship Management (SRM)
- Business Intelligence
As you can read above, ERP covers a whole range of important areas that are essential for building your own business. It’s time to learn about ERP examples worth considering.
What Are ERP System Examples?
ERP solutions are flexible and support both desktop and mobile devices. The systems listed below are some of the most popular ERP systems:
It is a real-time business management solution that works on financial and business management, supply chain, industry-specific solutions, manufacturing, distribution, construction, and professional services.
You can deploy this software on-premise, via hosted data centers, or cloud computing. This software can be licensed or subscribed to as a software-as-a-service (Saas) solution.
Microsoft Dynamics 365
This cloud-based product combines ERP and CRM capabilities, as well as productivity and artificial intelligence applications and tools. It helps manage a company’s finances, supply chain, operations, commerce, reporting, manufacturing, and human resources.
SAP Business One
Designed for small and midsize businesses, this business management software includes essential automated functions for finance, operations, and human resources.
This ERP system and e-business application are ideal for “build-to-order” and sales models. Among its functions are purchasing, sales, production, materials management, and financial accounting. Other companies can also use the system for mechanical and plant engineering.
Each of these ERP software examples functions relatively the same, with minor differences like how Microsoft Dynamics combines ERP and CRM and ABAS ERP, making their systems useful for mechanical and plant engineering.
What Are the Benefits of ERP Software?
ERP technologies are very helpful as they automate key processes and provide insights into what’s happening in the business. Living in a world where digital trends change over time can be difficult, but thanks to this software, it’s not a problem.
In fact, 88% of businesses attribute their success to ERP strategies. You can do the same with your business.
But what does ERP software mean to businesses? Below are the benefits of an ERP system.
- Better Customer Service. ERP helps businesses deliver goods to their customers quickly and efficiently. More modern versions of the system also improve customer communication.
- Better Data & Cloud Security. ERP provides data security, risk management, attack prevention, and processes to improve security. Cloud security ensures that encrypted data on your system is strongly protected.
- Supply Chain Management. ERP features include automating on-demand scheduling, especially when new orders arrive. Employees can view real-time management via scheduling.
- Financial Management. Financial ERP enables better financial reporting, accounting, and budgeting. It helps companies improve their daily operations.
- Improved Inventory Planning. ERP enables companies to make better decisions by providing accurate inventory data. Companies can easily control their operations, finances, and inventory.
Ultimately, ERP software helps your business improve and grow, attracting more customers and increasing sales. You can present your brand’s image with a favorable reputation of efficiency and high quality.
Check out these other blogs about ERP software:
Do I Need ERP Software?
In an age of growing and changing trends, you need to improve your business processes to keep your company running. A company won’t survive for long if much of its offerings prove to be negative or outdated. An ERP helps with this.
But how will you know if you need ERP software? Here are some telltale signs.
1. You are experiencing low customer satisfaction & sales. Poor service isn’t good; it leads to lower revenues and profits due to customer dissatisfaction. ERP helps you meet your customer’s needs on time and fast; it improves productivity and relationships with customers and suppliers, thus increasing the chances for sales.
2. Your business & financial decisions seem ineffective. Poor decisions lead to serious consequences. Some businesses even end up filing for bankruptcy. A survey of small businesses found that 82% go out of business due to cash flow problems. Using an ERP system helps you make better decisions by reviewing vital data about your business’s future.
3. Workflow processes are slow. Avoid slow workflow processes. They can cause stress, disorganization, and poor quality of work. By using ERP software, you can ensure streamlined workflows that yield high productivity while still keeping everyone in your workplace healthy.
4. Operations are inefficient. Slow and inefficient operations hardly guarantee good results. A lack of balance in your business functions could cause your product or service quality to drop, and a drop in sales could follow. ERP software helps you prioritize quality over quantity.
5. Your systems are outdated. Old systems don’t work as well as they used to. That also means your production and operations could fall. You must keep systems up to date or replace them with new and updated ones. New systems open up better possibilities to expand your business functions.
6. Inventory management is inaccurate. Errors in orders or deliveries could arise from inaccurate inventory management. You could end up losing items. An ERP system helps you monitor your inventory so you can track orders and transactions properly.
If you experience any of the warning signs above, then it’s high time to deploy an ERP system. Streamlined operations and workflows lead to better products and services that subsequently lead to better sales and, ultimately, business success.
Future of Enterprise Resource Planning?
Right now, ERP has changed the digital landscape for businesses. It helps companies improve and expand their services while attracting new customers. It’s no secret that the digital transformation era’s features will bring a bright future to the ERP market.
- Business solutions will be generally cloud-based. Its relatively low initial cost makes it easily accessible. Many users have chosen a cloud-based ERP system over legacy and on-premise systems.
- Mobility makes running a business possible even on the go. ERP isn’t limited to laptops or desktop computers; you can download an app that typically allows Android and iOS users to do business anywhere in the world.
- Unceasing technological advancements. The overall ERP process is further streamlined by advanced technology. Not only does it contribute significantly, but it also finds ways to reduce the cost of these processes.
- Digital marketing enhances lead generation and conversions. ERP systems provide marketing teams with data that allows them to increase the conversion rate of their marketing strategies. They save a lot of money and time while ensuring they can continue to grow.
- Artificial intelligence will enhance operations and services. Artificial intelligence working with an ERP system automates processes for users to quickly adapt and create a better user experience that quickly responds to user issues.
There’s no stopping the spread of ERP, meaning its market will just keep growing. Technologies are connecting people and businesses in every corner of the world. That means more companies would benefit from deploying ERP systems to maintain efficiency and stay globally competitive.
Leverage ERP Software Now
Now that you know what the meaning of ERP is or what an ERP system is, it’s high time to assess your needs and decide which software can help your business.
ERP has transformed the digital landscape; ERP in business has helped companies of all sizes improve their customer services. That is on top of improved business processes in ERP environments. An ERP accounting system, for instance, has helped many businesses improve cash flow. Finance and data in ERP are also ever so helpful.
ERP’s importance in any industry that relies on digital technology cannot be emphasized more.
Kissinger Associates is a company that implements ERP systems for small and medium-sized businesses. Their main goal is to help businesses grow through integrated solutions designed by ERP industry experts for specific industries.