What Is Enterprise Resource Planning?
Enterprise resource planning (ERP) is a system that businesses create and use to integrate and organize their core business processes. Today, this is achieved most efficiently with cloud-based software using real-time data and programs that can be custom-fit to suit the needs of a specific company. An ERP system is a group of applications that work together to collect, analyze, and use data, that can be accessed by managers and employees company-wide, and even across international borders, for global enterprises. These programs provide flexibility, scalability, improve productivity, reduce waste, plus many other functions.
An ERP data management system integrates individual databases to manage resources like cash, capital, and materials, and track orders, inventory, and payroll. Departments, including sales, accounting, human resources, purchasing, and manufacturing, have access to the same information that is always current. It also eases communicating reports and information to investors and stakeholders. Enterprises of all sizes can use these systems, though they are more common among midsized to larger entities.
Professional consulting companies like Iwigroup.ca help businesses adopt, learn, and tailor ERP systems to suit their specific operations. Those working in discrete and process manufacturing, distribution, non-profits, finance, media, food, and other industries can benefit from finding the right software solutions for their current and long-term goals. These technologies can help enterprises better serve customers and stay competitive in busy markets by anticipating needs, analyzing trends, and being proactive.
In the past, core areas and departments were mostly isolated with communications and collaborations happening through inefficient analogue or segmented channels. With cloud-based, shared knowledge and consistent delivery, companies can operate smoothly and grow more easily. Core areas like Finance and Accounting, Management Accounting, Manufacturing, Supply Chain Management, Order Processing, Project Management, Human Resources, Customer Relationships, and Data Management can be controlled and integrated with dynamic insights that are relational and inform one another.
An ERP system like the popular Sage Business Cloud Enterprise Management (formerly known as Sage ERP X3) features:
- Centralized data to better manage inventory, taking orders, approving expenses, and reporting
- Monitoring business operations to gain insights to reduce costs, manage risks, and identify key opportunities
- Improved process controls to integrate workflows using a single, coherent, accessible program
- Cloud computing capabilities that add flexibility, access, security, scalability, and cost savings on multiple devices from a world of locations
- Insights into customer relationship management to help with existing and new sales channels
- Enhanced support to assist with international expansion in new locations with a range of languages and currencies
- Tools for employees and managers to improve productivity and results
These systems can seem overwhelming for new users, but they are incredibly useful for enterprises of all sizes, so it’s smart to work with consultants who can ascertain the needs, capacities, and goals of a business, and teach managers and employees how to make the most of their software. The nature of cloud-based systems makes it easy to operate with the latest updates, keep IT maintenance costs down, and stay secure with software that is compliant with regulations and laws. Because of the variety of ERP systems available, there is always a solution, even for the most niche companies and start-ups today.