ERP Solution: key features and benefits that will transform your business
ERP solution, or an Enterprise Resource Planning system is a business process management software. With such a software, a business can easily manage its different business operations from a centralized system. An ERP integrates a company’s core operations such as – manufacturing, human resources, supply chain, operations, financials and so on.
In this age of digitization, most organizations are leveraging automation to help in business functions like accounting management, HR management, inventory and sales. But gradually these companies are understanding the need of an all-in-one, centralized ERP solution. This is crucial for a business’s growth and profitability in the long run.
The key features and functions of an ERP solution
An ERP solution is a combination and integration among different modules serving different purposes. Such a system consolidates all the information and synchronizes the data across all modules to simplify decision making.
Let us take an example to better understand this. Suppose, there is a requirement for a product. Once the order is recorded, the production module gets notified to start production.
After the production, the product gets shipped to the buyer. Hence, the inventory module gets updated for the change. CRM module gets updated after the sale and subsequently, the accounting module records the monetary transactions.
This ‘interconnectedness’ between the system and the users is what defines an ERP solution. Yes, you can do all of these with separate specialized software but it will not be as efficient, accurate and cost-effective.
ERP solutions can be flexible and customizable based on specific functionality requirements. However, there are some key business processes that a typical ERP will have.
Efficient employee management is one of the most daunting challenges for a business owner. An ERP solution integrates all core HR capabilities like employee information management, payroll and benefits, leave and attendance and so on. Top ERP systems also offer employee performance tracking and training functions as well.
This is where all your expenditures and incomes get recorded and processed. This module also generates important financial and accounting reports. Other vital functions like tax management, budgeting, balance sheet, ledger, bank reconciliation, budgeting and financing can be easily managed through this module.
From the sourcing of materials to the monitoring of daily production – this module helps businesses make manufacturing more efficient. Product planning and distribution planning are also integral parts of this module.