Enterprise Resource Planning, or simply an ERP, is a business management software which comes with a set of integrated applications that allow a business to collect, store, manage and interpret data from its different activities in real-time, thus enabling its overall smooth functioning. In simpler words, an ERP software helps integrate the different core processes of a business such as finance, supply chain, manufacturing, raw material procurement, marketing & sales, planning etc., into a single system. This facilitates flow of real-time information across departments and empowers data-driven and pro-active, accurate business decisions based on the real facts.

ERP actually helps organizations get rid of disparate systems and processes, taking form of a unified IT package, which gives the employees authorized access to the single-yet-shared database where data entered once can be used over and again. This eliminates data duplication, chances of errors, delays and manipulations and brings a degree of automation to the business. It also enables generation of synchronized reports on key business metrics, giving the required information at the time it is required and in the way it is required..

What all businesses need ERP?

Any business, be it large-scale, small-scale or medium-sized, ranging from manufacturing to catering and whether discrete or process manufacturing, needs an ERP solution. This is because challenges of small/medium businesses are no different from large industries. They need to follow the same guidelines, abide by regulations, maintain reports & documents, meet quality parameters, manage resources, cut costs, thrive on thin profit margins et al, just like the big daddies of business. So, to standardize their processes, streamline operations, cut losses and wastage, stay audit-ready, exploit resources and improve profits, even macro, start-ups, small and medium industries are looking for an ERP partner.

The ERP systems were predominantly developed to manage discrete manufacturing processes which involved production of goods that are easily distinguishable and can be physically counted like nuts, bolts, wires, etc. Such ERP software were ideal for industries like automobiles, mobile phones, furniture, toys, etc.

What are benefits of an ERP to businesses?

An ERP software helps your business ensure numerous benefits, the first being automation. Check out the other advantages, apart from it, below:

• Improved productivity & efficiency: An ERP system saves time and resources by automating manual business tasks and processes to promote productivity and improve efficiency. 82 percent* companies that implemented an ERP solution improved either key or all business processes post implementation.
• Reduced costs & risks: Uniform and streamlined business processes reduce the operational and management costs while improved data integrity and financial control reduce risks.
• Industry & regulatory compliance: An ERP solution facilitates control over reporting processes and thus ensures compliance with regulatory requirements, meeting data integrity and enabling complete traceability, thereby keeping away hefty fines and image damage.
• Enhanced business visibility: With the integration of all the business processes, ERP gives management comprehensive and real-time visibility into performance of each department and access to key business data.
• Quality analysis & reporting: An ERP software allows business managers to use interconnected dashboards to quickly analyze & report, thus facilitating informed and accurate decision making.
• Streamlined processes: An ERP system integrates all the processes across departments from beginning to end and meets the specific needs of each individual business.