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What is Enterprise Resource Planning:
Enterprise Resource Planning (ERP) is software used to integrate all the essential business processes to improve efficiency and effectiveness. ERP is not to be confused with Materials Requirements Planning or MRP, though. The latter is software specifically targeting the manufacturing unit of a firm. It calculates the number of materials needed to manufacture the end product of a firm. It can also keep track of production and inventory. In short, MRP is an accounting tool.
ERP links a business to the cloud – thereby making it a one-stop hub to glance at all of a business’s daily processes on one user-friendly interface. These include managing inventory, accounting, managing customer relationships, human resources, and several other business sectors. The selling-point of an ERP is the fact that any employee from any department of a firm can access relevant information from the same database. ERP Camp® cloud software solutions make this information accessible anywhere and anytime.
How will it benefit your business?
- Minimizing costs:
Since ERP integrates all firm functions under a single system, it helps avoid replicating optimization efforts to each process separately. Most companies that offer ERP solutions provide a monthly subscription service.
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Integration:
Since everything is united, you can access all of your business’s channels with a simple username-password combination. Log in just once to view all functions in a dashboard-like interface. Through this interface, you can access all of your business information and data. Instead of having many employees individually upload their files and merge them into a bigger file, their files individually can be accessed from one database.
- Improve Productivity:
Increase your company’s productivity by avoiding manual logging and processing daily activities. Instead, use the ERP’s central system to log in business activity just once.
- Live analytics:
ERP software provides live updates of your business’s performance. It can analyze the data fed to it, interpret it, and provide insights.
- 24×7 access, from anywhere:
ERP cloud computing software gives you the freedom to access all aspects of your business from any location around the globe. This feature is especially beneficial in times of a pandemic like this. Not only can you work from home – but you can also manage your business from home.
- Flexible payment methods:
If you’re the owner of a small or medium business, you may benefit from the monthly plans ERP software companies offer. So don’t worry if you’re unable to make a large one-time capital investment.
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Scalable:
Once purchased, you can scale your ERP software to adapt to your growing business. Customize the functions of the ERP to suit the exact needs of your organization. Software updates install themselves automatically without you having to buy newer versions.
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Ethical:
ERP ensures a company’s compliance with regulatory bodies and accounting standards. It strives to reduce potential risks.
- Reliable financial planning:
It analyzes data and business information fed to it and provides an intuitive plan closely following business objectives. It’s forecasting is done with a high level of precision. Financial reports are prepared by it and regularly reported to affirm that reality reflects prior forecasts.
Conclusion
There are many situations in which an ERP system can help small and medium growing businesses. Some utilize it to support their growth; others use it to standardize procedures after a merger or an acquisition. ERP introduces efficiency improvements, so the immediate result of businesses that adopt ERP is cost minimization.
