What is ERP?
ERP is an acronym for Enterprise Resource Planning. It refers to business software that integrates your core operational processes into a single system. Such processes are for example inventory and order management, manufacturing, project management, CRM (customer relationship management), accounting, human resources, and more. ERP systems collect your business data from multiple modules and sources to provide you with visibility across every aspect of your business.
An ERP system is the “single source of truth” for a company. It is made up of modules (applications) that are tied together in a shared database. This enables data to flow freely between them, eliminating the possibility of duplicate entries. This also automates manual tasks and processes to streamline productivity. Whether your company is large or small, an ERP gives you the functionalities to manage your most important processes.
The ERP software does not define mandatory features that need to be included in the system. Most cloud-based software options allow you use only those applications which align to your needs. With Composity ERP you can start small and upgrade as you grow.
An ERP will often include the following functionalities:
- Accounting and Finance
- Sales Management
- Inventory and Warehouse Management
- Manufacturing Planning & Scheduling
- Supply Chain Management
- Business Intelligence
- Project & Task Management
- ePOS (Point of Sales)
The benefits of ERP
Each company may have a unique workflow and differ from other businesses. But what brings them together is that all companies strive to stay competitive. This can be accomplished with a reliable and efficient way to store and access information. Тhat's where ERP systems come in handy. They can drive huge improvements in the effectiveness of your business by:
Mainstreaming internal processes
Prior to ERP systems, inventory, accounting, customer service and sales were all spread across numerous databases, used in various solutions. With ERP, your information is integrated and housed in a central database, accessible to multiple departments. Your data is consistent and accurate. You are able to manage customer orders and you have information on stock levels, at any given time.
Increasing overall performance
One of the biggest advantages of using an ERP system is having streamlined processes. As your business grows, your operations become more and more complex. ERP increases efficiency and productivity by providing accurate, real-time information cross-departmentally. The system can help by navigating users in doing complex tasks, reducing data re-entry, automating operations, and improving functions, such as supply chain, production, order completion, delivery, and more.
Data, collected at any department, is easily accessible by the management and can be displayed in advanced reports for analysis, to facilitate the process of decision making. ERP software reporting is easy and customizable.
Users can also run their own reports, for example a sales rep can see their own performance for the day, or get the date when a product comes in stock.
Knowing precisely where your business stands, allows you to make future decisions on the long-term success of your company.
ERP software reduces operational costs by eliminating communication issues like delays and others. With real-time data reports and ad-hoc analysis, you have accurate data at any step of every process. This is especially useful for problem-solving and increasing efficiency. Having only one system to maintain can greatly lower your administrative costs such as IT-related expenses, including staff, hardware infrastructure, hosting and application licenses.
And here are some more benefits of implementing ERP software:
- Automation of tasks
- Better control and traceability
- Standardized workflow
- Improved collaboration
- Greater data security
- Better customer service
- Ease of use as data entry is similar in the entire system
- Integrations with third-party software
Can Small Businesses Use an ERP?
The traditional ERP systems were at largely intended for global enterprises and were too expensive for small to medium businesses. But the rapid evolution of cloud technology has changed that. Today even if your business is small you can throw away the endless disconnected spreadsheets and applications and implement an ERP software. The business suits are getting even more user-friendly and affordable.
Using a SaaS (software as a service) solution, SMEs can have the same advantages that ERP systems provide to larger enterprises. Cloud ERP offers quick implementation, flexibility and supports you through the changing business needs. Composity offers cloud ERP for small and mid-sized companies, to meet your every business need.