The implementation of an enterprise resource planning (ERP) system involves the planning, execution, and continuous maintenance of the system.
Efficient ERP systems help to create comprehensive, accurate and formal information in a timely manner. These systems integrate critical management and business processes both within and outside the boundaries of your business. There are 3 main reasons for businesses to consider ERP.
The first objective of ERP is to integrate the financial data of your business. When you want to understand the overall performance of your business, you will come across multiple versions of information from different departments within an organization.
While finance will give you your own set of figures, sales will have their own version and other departments of your business will have their own set of versions.
However, ERP will help you achieve just one version of your business performance and it cannot be countered as everyone will be using this single system.
The next reason for using an ERP system for your business is to standardize the manufacturing process. If you have a manufacturing business, you will find that different units of your company make the same products using different methods and systems.
When all the processes are standardized and just a single computer system is used, it is going to help save time, improve productivity and also minimize the required workforce.