Is it possible that companies that use ERP solutions are better at planning everything than others? That is because the best ERP solutions help businesses manage their daily activities to create a smooth workflow with better preparation. Let us explore why companies that use ERP implement such a helpful tool and the benefits of implementing an ERP system in your organization.
What is ERP?
Enterprise Resource Planning software enables businesses to manage their accounting, inventory and supply chain management, human resources management, and customer relationships management through one platform. Companies that use ERP share resources among the whole organization with accurate data from multiple sources. Companies that use ERP range from small to large enterprises across various industries, with more industries opting to use ERP software to plan workflows and data collection within the organization.
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Who Uses ERP In a Company?
Companies that use ERP typically are in the manufacturing or supply chain industry, but cloud ERP usage has expanded beyond the manufacturing industry in recent years.
Once a business implements an ERP system, all relevant departments within the business can have access to an ERP solution. However, companies that use ERP usually restrict access to sensitive data related to trade with user-based roles and user privileges.
Accounting divisions of companies that use ERP heavily rely on data from different departments to make predictions about future demand and to plan supply according to trends in data.
What Do Companies Use ERP Systems For?
Here are some significant reasons why companies that use ERP can streamline their businesses:
Companies that use ERP rely on ERP’s centralized company information database to collaborate seamlessly among different departments. Complete data transparency across all departments enables managers to make faster decisions and not have to stall waiting for data or resources from other areas of the business. Companies that use ERP will always have access to up-to-date and accurate information.
A central database of business data and reports enables companies that use ERP to make informed decisions to improve the business. Customizable dashboards can be implemented to access essential data at a glance to make quick decisions. Companies that use ERP no longer have to rely on IT support to generate reports. Instead, authorized personnel will have access to sensitive data to make essential business decisions.
Companies that use ERP eliminate repetitive manual tasks by automating tasks such as report generation, monitoring inventory levels, timesheet tracking, and order processing to improve productivity. Companies that use ERP can automate data entry and customize business processes to perform complicated calculations efficiently. Automating these functions would provide more free time for employees to focus on innovative methods to improve business.
Better Customer Relationships
The customer relationships management integration of ERP allows companies that use ERP to build better relationships with customers with accurate data. A CRM will record all customer interactions to enable your employees to serve each customer better. With customer transaction data, you can anticipate customer needs and up-sell different related products with an improved sales strategy.
Compliance and Risk Management
Financial tools available to companies that use ERP are advanced to enable compliance with business regulations of different regions. Auditing tools for recording chemical use and tax provisions can be easily handled by companies that use ERP by generating reports for relevant governing entities. Risk management features enable companies that use ERP to predict demand, labor requirements, and budgets to stay on track with production and development plans.
What Are the Benefits of Using ERP In Business?
Here are some other advantages that companies that use ERP enjoy:
Companies that use ERP save money by using one software to manage their finances, supply chain, inventory, HR, and CRM features. While the initial price of implementing an ERP system might seem daunting, companies that use ERP see this cost as an investment toward business development. New advances in cloud ERP technology have made implementation even more accessible by introducing off-site ERP solutions that can be accessed via any browser. Thus, saving companies that use ERP more money in equipment costs.
Companies that use ERP can integrate all business solutions with their ERP system to create a seamless workflow for all departments. Businesses that operate from multiple locations can centralize operations by using an ERP system cloud-based ERP services allow collaboration among all departments without having to maintain an on-premise ERP system.
As companies that use ERP grow, their ERP system can also scale up alongside the business. Cloud-ERP systems can be easily scaled up by adding new users based on rising demand to keep up with the business's growth.
Improved Customer Service
Companies that use ERP collect data on all potential leads using the CRM component and help the sales and marketing departments coordinate their efforts for increased customer acquisition. With records of all customer interactions, companies that use ERP can offer superior customer service after sales to build customer loyalty.
Examples of Companies That Use ERP
These are some high-profile companies that use ERP solutions to run their businesses.
Amazon is known to use the popular ERP system SAP for all the business benefits offered by the solution. SAP allows customizable interfaces to fit any business in any industry and helps organizations like Amazon enable third-party vendors to manage all aspects of their Amazon storefronts.
Starbucks is known to be one of the companies that use ERP system Oracle to automate business management. Oracle can generate insightful reports for companies that use ERP, such as Starbucks, to understand their revenue, expenses, sales data, inventory management, and operations statuses to make calculated business decisions.
Toyota Industries Corporation is one of the many companies that use ERP solutions by Microsoft Dynamics 365 to manage their after-sales services for distributors worldwide. This solution has helped companies that use ERP systems maintain better customer relationships and automate customer service offerings.
Selecting the right ERP solution for a business is no easy task. If your company wants to join the list of companies that use ERP, consider consulting our ERP software page to compare the best ERP software vendors.