What is an ERP system? This guide explains what an ERP system is and how it works for your business.
Two primary concerns of any business are efficiency and profitability. This is basically what an ERP system is designed to optimize.
An ERP system allows you to perform the necessary money-making processes of your business as efficiently as possible.
To achieve a level of efficiency and profitability, a business aims to maximize it’s bottom line while keeping overhead costs low.
An ERP system provides a business with management software that fosters productivity.
The term “ERP” stands for Enterprise Resource Planning.
Basically, an ERP system is a shared database that reflects the moving parts of a company. This provides a much broader, top-down perspective of your business.
Installing an ERP system will grant you a much fuller picture of what is actually going on, in any given period of time.
Some processes in which you can gain some business insights include: sales, human resources, inventory, purchasing, finances, online ordering and many more buckets.
The main objective of an ERP system is to improve how your business resources are spent, and that means money and time. By taking a wide-view, and analyzing every aspect of your business, you will be able to decide if you are properly deploying your resources in a way that will drive maximum profitability.
This means that you can gain key, actionable insights in to where you might be losing time and money with your efforts.
What are the benefits of an ERP system? There are several valuable features that an ERP system brings to your business.
ERP systems allow you to reduce cost by combining many tools and separate business applications into one database. This increases your organization and decreases the time required to look for the right report or information.
With an ERP system, various disparate departments in your operation wll work much faster. Sales, accounting and shipping are great examples of areas that could use an ERP system to save time, and therefore increase profits.
Your customer relationships will improve after installing an ERP system. Your overall level or work and service will become much more efficient.
If you are still using pen, paper and spreadsheets to keep your business operations organized, it’s time to consider installing an ERP system.
Modern ERP systems will integrate with your existing business stack, which helps with upfront and implementation costs associated with switching systems.
These days most ERP system software is cloud-based and can be loaded onto any device connected to the internet, even a tablet or smartphone.
eHopper’s ERP software package is a great choice for businesses looking to manage and organize their processing in a more efficient and profitable manner.
If you suspect that there are areas of your business that are not functioning efficiently, or if your sales have become stagnant, this it is time to consider moving to a proper ERP system. You’ll have a much better idea of how your company is performing in several crucial areas. This knowledge will allow you to streamline your processes to save money and time.
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