Enterprise Resource Planning (ERP) is a cross-functional enterprise system that helps you plan, track and manage your business. Driven by an integrated suite of software modules that supports the internal business processes of your company, ERP systems today, are a necessity and not a luxury.
This integrated suite of modules, illustrated here, includes accounting, administration, budgeting, sales, sales analysis and business intelligence (BI), customer relationship (CRM) and supplier relationship (SRM) management, replenishment and purchasing, inventory, supply chain, costing, and manufacturing. It will become the lifeblood of your company, and you will rely on your ERP system to track and manage your business more effectively and efficiently.
Many companies today still use multiple solutions, often called point solutions, to run their businesses. Often these point solutions are not integrated and require duplicate data entry, leading to operator inefficiency and discrepancies in results reported by the various solutions. Furthermore, each solution has a unique database, which makes it difficult to combine the data for reporting purposes. Examples of these point solutions would be a basic accounting system, Microsoft’s Excel or Access and other focused but limited software solutions that don’t integrate with each other.
Regardless of size, the advantage of a well-executed ERP system is seamless integration between business functions. Master data and transactions are entered once and are used throughout the system, minimizing duplicate data entry and potentially improving data accuracy. You must achieve the ability to enter data only once, which leads to one set of accurate data from which to report, to create efficiencies and reduce operational costs.
Another advantage of integration is the reduction of risk that one business unit fails to recognize or take into account activity occurring in another business unit. When the sales function, one of the many examples, is integrated with accounting, system controls can be set to prevent further sales to customers that are in arrears.
ERP systems are suitable for all types of companies; different ERP systems are suitable for different business types. Our software provides business processes and support for Manufacturers and Distributors. ERP systems for hospitality, service providers and other vertical industries have similar structures but with industry specific modules and functionality built into the software.