How Does an ERP System Give Management Control?
An ERP system automates business processes and streamlines operations to increase productivity across departments, while its real-time reporting helps companies stay in contact with clients and customers.
Service-based businesses can particularly benefit from having a centralized system. An ERP, for example, can help improve customer retention and boost revenue while simultaneously cutting costs by eliminating manual data transfers and the need for external accountants.
It’s a single source of truth
ERP systems offer a central repository for enterprise data, helping eliminate duplication of entry and errors while streamlining reporting and automating manual tasks for reduced manual work. As a result, ERPs enable businesses to quickly introduce new products or services and seize market opportunities quickly.
An ERP system can also help businesses streamline their operations by optimizing workflows and processes. For instance, utilities companies could utilize an ERP to forecast demand for future services as well as inventory needs in order to avoid stockpiling too much spare equipment that might not be needed in case of outages.
There are multiple deployment models for ERP available today, but two of the most frequently utilized are on-premise and cloud hosting. While one requires installing and maintaining hardware within physical office spaces, while hosting involves servers managed remotely by vendors. Both types offer flexibility, scalability, and security benefits.
It’s easy to use
ERP can eliminate information silos and provide everyone with easy access to data, speed up reporting processes, provide deeper insight into business performance analysis and reduce risks – features which enable companies to streamline operations and make better decisions.
The top ERP systems use industry-standard technology and support prebuilt functionality and configurations based on years of experience with thousands of customers, helping organizations avoid reinventing their processes from scratch. ERP software can automate error-prone tasks like account reconciliation and customer billing while giving teams all of the information necessary for more efficient operations.
An ERP system can also help businesses optimize supply chains and cut costs, saving both money and time in the process. An ERP can track shipments as they travel between companies, helping spot potential issues before product arrives at warehouse – saving both money and time in transit costs. Furthermore, ERPs increase transparency between companies involved in supply chains – such as when an equipment tracker informs a company of malfunctioning equipment.
It’s flexible
An ERP solution should be adaptable enough to adapt with changing business processes, accommodating new opportunities or challenges with ease. Some suites are built around micro-services which create loosely coupled systems that can be upgraded individually in small steps without costly big bang upgrades. These solutions tend to be more scalable and secure than traditional solutions.
ERP systems also integrate and automate interrelated processes, eliminating redundancies and increasing productivity by enabling departments to synchronize work. For example, an order received may trigger credit checks, query inventory levels and update distribution schedules instantly – saving both time and resources in real-time.
Businesses rely on flexibility in order to stay abreast of industry innovations, like AR in retail. A flexible ERP solution should include integration with third-party apps and a data platform, with extensions implemented using visual drag-and-drop or light scripting for AR support.
It’s secure
By integrating data from multiple departments into an ERP system, it can allow you to see where any parts of your business may be misspending funds or falling behind, which enables more precise decisions and efficient operations.
Many manufacturers utilize ERPs to integrate all their departments, including accounting, human resources and supply chain management. This integration reduces duplicate technology usage while simultaneously improving productivity by eliminating incompatible duplicates. Furthermore, ERP provides businesses with one single source of truth regarding financials, customer relationship management and production issues.
Though ERP systems are invaluable tools for enterprises, they remain susceptible to cyber threats. Leaders must take caution when configuring access roles and permission settings as well as consider using an access management solution like Pathlock that automates user access reviews with quick re-certification processes.
An ERP system must be secure to protect sensitive business information. Strong passwords should be updated regularly to maintain this level of protection, while leaders should arrange training sessions on the ERP to eliminate employee errors and protect themselves against cybersecurity vulnerabilities.
