Managing a business isn’t easy. Trying to keep a company running smoothly — not to mention profitably — can sometimes feel like spinning plates while riding a unicycle, especially if you’re forever hopping between programs just to keep everything on track. That’s why many successful businesses use job card software, and why, if you’re involved in running a business, you might want to consider using one too.
But what is ERP? What does an ERP do? Could an ERP benefit your business? We’ve put together a beginner’s guide to ERP.
What is ERP?
ERP stands for Enterprise Resource Planning, and an ERP solution is simply a piece of software that helps businesses manage their backend processes. That includes everything from finance and accounting, to procurement, supply chains, inventory, as well as core HR tasks like scheduling. Essentially, hvac service software is a centralized program from which all the essential functions of a business can be run.
ERP systems come in all shapes and sizes, with many ERP products aligned to particular industries or business types.
What does an ERP do?
ERP software has a number of uses for businesses, but essentially, an ERP is used to keep all of an organization’s crucial data in one place, ensuring that it’s safe, organized and accessible. Having an ERP means you only need one program to keep track of all the moving parts in an organization; so nothing gets lost in some long-forgotten spreadsheet. A ehs software gives a complete picture of the what, when, who, why and how in a business’s day-to-day operation.
What is ERP software used for?
Financial management
Having a clear picture of your finances is imperative for any successful business, which is why a sturdy financial management module lies at the heart of every ERP solution.
Although an ERP system will manage all of your business accounting requirements, it can also help manage a wider range of financial tasks, like budgeting, recording transactions, dealing with expenses, overseeing assets and collections, and measuring cash flow.
A good ngo accounting software will also help keep financial data safe and compliant. Security is a top concern for makers of business software, particularly in light of recent high-profile data breaches. Many ERP providers offer a cloud-based service, meaning businesses can take advantage of their service provider’s advanced security features, automatic backups, and managed disaster recovery procedures.
By evaluating financial data, and offering a 360-degree picture of a company’s fiscal health, an ERP can even present opportunities to maximize profitability. An intelligent software program can analyze data and spot patterns with a meticulousness and speed that manual reporting simply can’t match.
Supply chain and operations management
For businesses that rely on materials coming in and products going out, being able to properly manage that supply chain is vital. A business is only as successful as the chain it exists in, and the need to better administrate the supply chain is the primary reason that field service management software was first created.
Tracking all supply chain communication through one consolidated system means there’s no room for error; any and all contact is clearly recorded, and less time is wasted chasing up replies or searching through inboxes.
An ERP can also help keep things ticking over by automating tasks, such as placing orders when stock levels drop below a predefined point.
When a business is part of a chain, it’s not only that business’ performance that can impact profits, but also that of your vendors. ERPs can help track and evaluate the efforts of those both higher and lower in the chain, allowing you to monitor KPIs — such as cost, error frequency, and timescales — and create a more efficient network.
Project management
ERP Software gives users an accurate, real-time overview of the entire product lifecycle — from quotations issued, through to production, delivery, invoicing and collection — so not only can businesses oversee their supply chain, but also their day-to-day production.
If a business manufactures or produces a product, keeping employees informed at every stage, and keeping tabs on timings is imperative. An ERP system can help organizations monitor the progress of numerous projects at one time, so businesses know at exactly which stage a project currently is, and what the next steps are.
Just as business learn from past experiences, so can an ERP; a smart software solution can let its users know if a project is likely to miss a deadline or exceed a budget, or send a reminder when a payment is overdue, helping everything stay on track.
Human resources/capital management
ERP is all about getting the most out of your resources, and, as any successful business owner will tell you, the most important resource available to any organization is its people.
Through an ERP’s human resources module, businesses can get a consolidated overview of their workforce, and manage core HCM functions such as time management and payroll.
Like many other arms of the CRM Software , a business’s HCM department benefits enormously from its data being centralized and accessible. Managing employees through an ERP means that data will be consistent and up to date; no more scrambling around through Rolodexes and phones for an employee’s number when they don’t turn up on time.
Repetitive HCM tasks like scheduling, tracking absences and managing vacation time is another place where ERP automation can step in to save time. HCM modules can also ensure businesses are compliant with employment laws and regulations by collecting the required information, and giving a clear overview of hiring data.
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