Enterprise resource planning is a software solution offered for better management of the resources within the company. This software helps in integrating the company’s functions and operations. Enterprise resource planning also provides timely and precise information about the shape of the company.
With the help of enterprise resource planning the company can streamline their work flow, can provide enhanced support to their customers, real time availability of data on sales, inventory and raw material availability, reducing a considerable amount of paper works and finally it assists in the global operations.
As a whole enterprise resource planning is software designed to boost the company’s productivity. Though there are lots of advantages with enterprise resource planning, there are also few drawbacks with this. One of the main drawbacks is that it takes more time and amount to implement.
Let’s see some of the key features which make this software a huge success in the market:
1. Financial management:
Corporate Financial administration is always a big and important task in any company. Every company is under scrutiny of monetary bodies which regulates the financial flow. ERP has a good financial administration component which makes it a attraction for many companies. There are several benefits in enterprise resource planning related to financial management.
Starting from the invoices to the cash receipts, ERP can be customized to store much information and if effectively used, ERP can help in stabilizing the financial situation of a company. ERP provides real time tracking of cash flow and timely financial reports can be created.
2. Human resource management:
Some of the key factors in the human resource management are payroll management, employee administration, tracking the personal information of the employees and little other legal information. Using the traditional human resource management was complex. Managers found it very difficult to track the progress of an employee and also on tracking the information regarding the employees.
With the advent of ERP, a lot more information can be gathered and maintained related to human resources. This involves talent management, recruitment management, scheduling, attendance and time management, etc. The tools can also be customized based on the need of the human resource managers.
3. Supply chain management:
Assessing the demand and matching the needs of the customers is also one of the key functions of the business. With increase in the competitions, this part is gaining much importance in a business. Failing to collect and forecast this information can have adverse affect on the productivity. It can also degrade the company’s status in the economy. ERP software can take care of the supply chain management right from the beginning till the end.
4. Customer relationship management:
This method also called as CRM is the most required part in sales. Customers are the most valuables to each company and they work based on the needs of the customers. CRM ensures reliable and proper communication of customer related information to the sales team and then to the marketing team.