ERP SYSTEMS IN A NUTSHELL
RP stands for Enterprise Resource Planning. However, its full name doesn’t shed much light into what ERP Systems actually do. The best way to describe an ERP is using an analogy. Imagine a four-way road junction. On each road, are vehicles, trying to pass and move along. Such a scenario is likely to lead to traffic jams and in worse cases avoidable accidents. If at the middle of the road there was a traffic officer guiding the vehicles then such occurrences would be unlikely.
An ERP works like this. Instead of vehicles, we have your various business processes that need to work together, relay information and coordinate to achieve the organization’s goals. Each of these processes requires different information. It can be cumbersome to handle each and every one of them without getting delays, misinformation or mistakes. ERP software integrates these various functions into one complete system to automate and streamline processes and information across the organization.
Various essential business processes including inventory and order management, accounting, human resources, customer relationship management (CRM), and more can be integrated into one complete system with a central shared database. This ensures that the share and management of information and generation of reports are quick and automated.
Advantages of ERP Systems
- Reliable and timely access to information.
- Easily distribute resources and information across the organization.
- Limit repetitive and unnecessary processes, information and data through automation of certain processes and data validation.
- No duplicate records since the organization uses a shared database.
- Improve performance as the data is sent and easily acessesible in real time i.e when it is needed. Therefore there is no time wasted in delivering data, records or reports across the organisation.
- The ERP holds data in easy to read database therefore performance evaluation and business forecasting becomes easier.
- An ERP system gives your organsation an edge over your competition.
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