Need to boost your finance team and spruce up your business operations? Today’s enterprise resource planning (ERP) systems blend and automate critical financial and operational tasks while dishing out precious data insights from various sources like general ledger, accounts payable, accounts receivable, payroll, and finance reporting.
The latest ERP systems are also beneficial for managing inventory, orders, supply chains, procurement, production, distribution, and fulfilment. Companies that add human resource management, customer relationship management, and commerce capabilities can reap even more rewards.
So, understanding what ERP systems bring to the table is key. Here are 10 capabilities to mull over when sizing up ERP systems.
Integration
Data silos result in inefficiency, missed opportunities and departments working at cross-purposes. The primary and most significant advantage of an ERP system is providing a centralised view of essential financial, operational, and business data that can be shared across the organisation in near-real-time. ERP systems can generate business intelligence by converting data into reports and insights that a company can utilise to relocate resources or take advantage of new market opportunities, among other actions.
Automation
ERP lets you automate repetitive business tasks like payroll, order processing, invoicing, and reporting. This saves time and reduces errors. With an Enterprise Resource Planning system, data entered by one user is accessible across the whole organisation. For example, when certain products are available, the inventory tracking module can automatically trigger a shipment invoice, leading to more revenue and a better customer experience. Executives can also receive automatic updates on important metrics like cash flow to help them make better decisions.
Data Analysis with ERP
The Winter 2020 survey by Brainyard revealed that CFOs and business leaders are always looking for ways to use data better. Data analysis is a game-changer, allowing employees to gather and turn information into practical insights. These insights can help identify new business opportunities, improve operations, cut costs, detect fraud, and provide better customer service.
Tracking and Visibility
Enterprise resource planning platforms enable companies to monitor, access, and comprehend business metrics. They achieve this by providing organisation-wide access to almost real-time data, dismantling information barriers, and delivering reporting and analysis for all areas of business operations.
Reporting with ERP
Effective reporting is important for executives to leverage data more efficiently. ERP reporting modules gather data on business operations to create reports that enable stakeholders to make better-informed decisions. It also helps to streamline business processes and identify potential issues before they impact the business. These reports may incorporate visual elements like charts, graphs, and dashboards to highlight trends and patterns to drive improved business outcomes.
Customer Relationship Management (CRM)
Integrated CRM features in ERP systems broaden the scope of business by consolidating customer relationship data. This includes contact details, order history, purchase orders and prospect status. CRM systems facilitate process automation by completing purchase orders and generating accounts. It also sends notifications for account executives to follow up when a prospect reaches a predefined point in the sales pipeline.
Sales and Marketing with ERP
ERP systems with integrated CRM enhance the capabilities of marketing and sales teams by simplifying the process of selling, upselling and generating quotes and purchase orders, forecasting and tracking critical details like profit margins and ratios. Marketing teams can benefit by generating more leads, swiftly building and executing campaigns, and tracking customer activity throughout the sales cycle. Sales and marketing teams collaborate closely with the finance and operations departments using ERP functions to deliver exceptional customer experience throughout the sales pipeline.
Manufacturing
ERP originated in the manufacturing sector. Modern systems enhance efficiency in manufacturing processes by aiding in product planning, sourcing raw materials, production monitoring, and forecasting. They also feature modules for assembly management, bill of material, work order management, shop-floor control, distribution planning, and product tracking. When combined with (SCM), enterprise resource planning manufacturing tools significantly improve an organisation’s capability to manage and automate key inventory planning and forecasting decisions.
Supply Chain Management
ERP systems provide valuable insights into a company’s supply chain management efficiency by tracking demand, inventory, manufacturing processes, logistics and distribution. A fully automated and integrated supply chain improves operations by recommending purchase orders, work orders, and transfer orders across various locations. SCM systems also assist in setting inventory goals and streamlining distribution resource planning. Access to real-time data on the supply chain helps pinpoint inefficiencies, offering better control and management of inventory.
