A Brief Guide About ERP Software and its Functions & Workings
Every company is using software systems for running their business efficiently and maximizing their profits. Though different kinds of software systems are available and helpful for businesses, the importance of ERP is hard to ignore. It is an abbreviated form of Enterprise Resource Planning and it is a kind of software system that integrates different processes of business into a single system.
For instance, companies usually have different departments like finance, manufacturing, HR, procurement, supply chain, etc. So, the main task of ERP is to integrate all these processes into a single system. Regardless of the size of the business, a company can easily find ERP solutions suited to its business needs. Therefore, if you are looking for ERP solutions for SMEs, you should contact a reputed company like Webcity Technologies LLP offering cost-effective solutions to worldwide clients.
Core Functionalities of an ERP Software
Based on the industry and the module, a modern ERP system performs innumerable functions for a company. However, the main characteristics possessed by all kinds of enterprise resource planning software are as follows:
- Configuration tools for users (including suppliers and customers), processes, locations, business units, etc.
- Easy integration with other business processes like third-party software solutions.
- Choice of deployment varying from on-premise, cloud to hybrid. On-premise is the traditional ERP deploying method where installation of the software takes place at the data center and it runs on the company’s server. In the cloud based manufacturing software, the software runs on a remote server and users access it via a web browser. The companies can choose from private or public cloud computing platforms as per their business needs. Hybrid ERP is the best choice for those who want a mixture of on-premise and cloud ERP software for meeting their business requirements.
- Presentation of mass information with analytics and dashboards for assisting quick decision-making process.
- Up-to-date and accurate information and alerts with the feature of self-service reporting across different operations.
How ERP Works?
The companies incorporate ERP software to increase organization efficiency by ensuring effective utilization of the company’s resources and accomplishing tasks within specified timelines. It commonly acts as an integrated system that collates data of the entire organization and giving them the flexibility to use it on a real-time basis. This collated data helps the top management in giving a crystal clear image of key business information that helps in making sound business decisions.
It usually has a common user interface across components or applications and supports them in real-time. With the help of ERP Software, different departments can collect and collate data easily and prepare several reports as per business requirements. It plays the role of an effective communication tool that shares information between different departments, assists people with daily activities, and helps them in preparing reports quickly and with more accuracy.
Whether you are looking for ERP for SMEs or for Fortune-500 companies, you will get the right solution meeting your business needs and falling within your budget.
ERP for Every Industry
Any industry and any scale of a business can reap the benefits of ERP. Many studies show that the ERP software proves to be useful for SMEs involved in manufacturing of leather bags, leather shoes, leather garments, leather saddler, tanneries, raxine, etc.
The moot point important to remember is industries of different scales are using ERP software for running their business more efficiently. So, pick the right ERP software system for your business to make it more productive and efficient. If you are finding it hard to pick the right ERP for your SME, you can take professional assistance from experts.
5 Major Benefits of ERP to Manufacturing Industry
Enterprise Resource Planning or ERP is a software system, which every company right from large to the small-sized enterprise is using it. To say precisely, almost all businesses regardless of their sizes and complexities are reaping their benefits. Amongst various industries, manufacturing is one of the most competitive industries worldwide. It acts as a backbone of the economy and one of the largest employment generators in many nations. Due to stiff competition, the manufacturing industry experiences several challenges in meeting its goals. Fortunately, with the effective implementation of the ERP software, companies overcome these challenges and achieve their goals successfully. ERP for manufacturing companies acts as a boon by helping them in multiple ways.
1. Real-time Access to Integrated Information
With ERP, SME’s involved in manufacturing get real-time access to integrated information. When any company makes an investment in the software, it does not need to buy multiple software systems like CRM, HRM, etc. ERP helps in centralizing the data and allows the top management to get key business information in real-time. It eliminates redundancy and helps in maintaining accuracy, uniqueness and consistency in the organizational data. The easy access of consolidated data encourages employee efficiency and improves overall business productivity.
2. Enhanced Data Security
Data is the primary tool that supports the company’s growth. Therefore, no company can take the risk of keeping their data unsecured and unsafe. In this situation, ERP acts as a breather for manufacturing and many others companies as it keeps data safe, secure and coded. A few times back, companies face the problem of cyber thefts even after securing their infrastructure with older versions of ERP systems but not anymore. The modern versions of ERP with new features like auto-updates have eliminated the risk of cyber thefts by informing clients timely.
3. Easy Forecasting and Reporting
In manufacturing companies, management often faces a crisis-like situation. Sometimes, companies receive more than expected demand for a particular product and during the slack season, the warehouse remains stocked with unsold inventory. To combat such a situation, companies are taking advantage of enterprise resource planning software systems to bringing sanity to the production, procurement, inventory and sales plan. The software helps in generating forecasts based on previous transactions and brings synchronization in other departments like supply chain, procurement, etc.
4. Improved Productivity
The effective implementation of the ERP software helps in improving business productivity on multiple fronts. It helps in streamlining the financial operations of the company; it helps in reducing data redundancy by providing real-time and integrated information to the concerned user, ensures prompt communication between inter-department boosting their productivity, etc.
5. Saves Time & Money
The main goal of every business is to reduce business cost and increase profit margins. The task of storing information manually, searching paper documents for finding any piece of information and storing paper files in cabinets eliminated when a company automates every task and consolidates information at one place i.e. in ERP software. So, it is not wrong to say that the effective implementation of the ERP helps in saving time and money by reducing cost of hiring multiple human personnel for these tasks and giving them advantage to perform work with a greater accuracy in lesser time.
To conclude, no large-sized or SME involved in manufacturing can run successfully without an ERP system. This software unifies the business data and allows employees to work smoothly and harmoniously. For getting the right ERP solutions, you can contact a reputed company like Webcity Technologies LLP.