What is Enterprise Resource Planning Software and why is it valuable?
An enterprise resource planning (ERP) system is an enterprise software solution that integrates organizational business functions. Enterprise Resource Planning done right is a competitive advantage!
ERP solutions provide an organization with many benefits and values. Enterprise Resource Planning software provides a unified system and database that supports real-time business data access and improved data management. The primary reason for the ERP evolution was the result of increasing customer service demands, reaction to global competition, need for improved supply chain visibility, improved financial reporting, offer cost savings demands, and provide a holistic view of an integrated supply chain.
ERP is one of the most valuable and strategic tools organizations can deploy (if done efficiently and effectively) to deliver a significant competitive advantage.
Enterprise Resource Planning solutions allow for;
- more effective and efficient manufacturing
- improved business information and visibility
- a decrease in operational costs
- improved financial management
- improved inventory management
- and improved organizational communication.
Positive Impacts of Enterprise Resource Planning Systems
In fact, in terms of tangible dollars, ERP economic studies support the idea that ERP systems can directly impact the top and bottom lines by helping to increase sales, decrease labor costs, and decrease inventory costs. Through the integration of all business units together, ERP solutions help manage, control, audit, and streamline business information.
With improvements in timely and accurate access to business information, Enterprise Resource Planning solutions can benefit an organization’s financial position by;
- reducing costs
- improving accountability
- improving efficiencies
- and improving decision-making.
The global ERP market is expected to reach $41.69 billion by 2020 (Wamba, Kamdjoug, Akter, and Carillo, 2018), and the potential value and benefits of ERP are well understood.
Done right, Enterprise Resource Planning software is a business tool that provides timely and accurate business intelligence.
Nestell & Assoicates are your trusted ERP consulting partner.