Understanding What is Enterprise Resource Planning and Its Benefits

In running a company, there are many business processes that need to be considered, ranging from finance, human resources, manufacturing, supply chain, services, to procurement. 

To help companies to be able to manage all these business processes with an integrated system, a role from Enterprise Resource Planning (ERP) is needed. 

If you are interested in getting to know it further, check out what Enterprise Resoure Planning is and its benefits for the company. 

What is Enterprise Resource Planning (ERP)?

Enterprise Resource Planning or ERP is a type of software (software) used by companies to manage daily business activities, ranging from accounting, procurement, project management, risk management and compliance, to supply chains. 

In general, ERP also provides company performance management, which is software that is able to plan, budget, predict, and report on the financial results of an organization. 

ERP systems bind many business processes and streamline the flow of data that occurs in them. By collecting transactional data with organizations from multiple sources, ERP systems can eliminate the risk of data duplication and provide data integrity with just one source. 

Now, the ERP function is very important for managing thousands of businesses of all sizes and various industries. 

For companies, ERP can be likened to electricity that can keep the lights on.   

Benefits of ERP for enterprises

The existence of ERP in a company is an indispensable thing. 

Here are some of the benefits of ERP that can be felt by companies:

1. Increase company productivity

ERP is able to simplify and automate the core business processes of your company so that everyone in it can do many things even though they only have few resources. 

2. Get important insights

The presence of ERP can make communication within a company more effective. So, you can get answers quickly from business questions that arise. 

3. Fast reporting process

ERP is also able to help your company to speed up the business and financial reporting process. 

This way, you can take action or make decisions according to the insights you get and improve performance in real time. 

4. Lowers risks

AN ERP can maximize business visibility and control, ensuring compliance with existing regulatory requirements. 

This can help your company to predict and prevent risks that can endanger business continuity. 

5. Simplify information technology

By using an integrated ERP application that shares databases, your company can simplify information technology (IT) and make people within your company able to do their jobs more easily. 

6. Creating new business opportunities

Erp systems provide efficient operating performance along with data that can be accessed in real time. 

This allows the company to identify and react to new business opportunities. 

7. Improve quality control

If your company has just completed the manufacturing process of a product, an ERP system can block the product from sale until the documents are approved.  

This allows your company to review the product in detail so that quality control is improved. 

Those are the various benefits of ERP for companies which can certainly provide many advantages. Are you interested in having an ERP system inside the company?