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A Review on ERP’s

Erstellt von Chris

24. Juni 2020

ERP (Enterprise Resource Planning) is a business process management software that helps a business owner / company easily stay organized.
For instance : As a General Manager of any business, you are expected to understand the fundamentals of business; especially you have to know what you have (inventory), how much it costs (gross price), what you are selling it for (selling price), how old it is (expiry date), and all these things add up to the business making profit.
If you don’t manage these things, constant loss / minimal profits will be on the loop for your business. Since it’s not an easy task to handle these processes everyday, ERP comes in as the rescue buddy.

How it works

ERP is meant to simplify day-to-day back-office functions and make the management as smooth as possible. So, the software integrates various business functions and processes all relevant information from its central database.
Some of the important parts of business that ERP can be integrated on includes : Planning, Purchasing, Inventory management, sales and marketing management, budget and financial planning plus management etc
One of the main advantage of using the software is the ability to perform different tasks on the same platform. You can chat with your customers, create marketing emails, check the level of stock, make direct orders to suppliers, prepare report presentations all at the same time. Also, every analyzed data is in real-time; thanks to the updating features of technology!

ERP Software modules

ERP software consists of different modules which are essential for continuously collecting, managing and interpreting data from each specific department of business. Each module focuses majorly on one area of business process.
All these modules sum up shared information; and pool them together, making it easier for users to access and rely on the same information though on specific needs. For example : instead of having different spreadsheets for different departments, once a sales’ order is made; both the officer in charge of releasing goods in the warehouse and the financial management departments are notified and can process the order quickly – without re-entering the information again manually!
ERP helps break barriers for business employees in different units. It also helps in tracking an order and reducing risks of repeating same process, or making an order twice, or even releasing shipping wrong goods to clients.

Disadvantages of ERP

They can be costly compared to the size of business operation. Secondly, you can’t divert sensitive information meant for a certain department, since all data is shared across the same network. Another challenge is; employees might need advanced training before using the system- since a mistake made could be irreversible!
Entering every information necessary to the ERP’s performance is a task that requires significant amount of time, planning and even money.

Bottomline: For efficient and improved business performance, ERP is a great tool. And I recommend it to every business owner seeking to run a stress-free business!

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