Did you know there are twenty-two million active businesses in the United States? All of these different businesses come with different needs. A small business probably doesn’t have the same long-term goals as a corporation.
However, if both of these entities want to expand or improve their operations, then they can both benefit from an ERP. But exactly what is ERP? If you want to learn about this important type of software, then you’re in the right place.
In this article, we’ll be teaching you everything you need to know about ERPs and how they work. Let’s get started!
What Is ERP?
ERP is an acronym that stands for enterprise resource planning. This is a process that’s used by organizations to both manage and merge certain aspects of their business.
It’s helpful to think of an ERP as the binder that holds together all the different computer systems within a large business. This type of application is essential for businesses that are growing at a quick rate.
As the name suggests, ERP deals with resource planning. However, it can also integrate other areas of a business, including:
- Human resources
- Marketing
- Sales
- Inventory planning
- Finance
How Does It Work?
ERPs have changed quite a bit since they were first introduced. These days, most enterprise resource planning is managed using web-based applications that anyone can access remotely. There are a variety of different applications out there, so choosing the right one is determined by doing your research.
Some ERP applications work best with specific types of businesses or sizes. For example, golimelight.com is perfect for small to medium businesses that have outgrown Excel. Regardless of the application you choose, you must find one that allows real-time reporting, planning, and analysis all in one spot.
Benefits of Enterprise Resource Planning
There are a lot of different benefits that come from using ERP applications. However, one of the biggest ones is the fact that it eliminates redundancies. Without an ERP each different department optimizes its system for its specific task.
This can lead to serious mistakes and inaccuracies when information is shared across departments. So, an ERP helps eliminate these redundancies while also improving accuracy. It can also improve productivity.
Since it’s much easier to share information via enterprise resource planning it can lead to greater collaboration. This shared knowledge can lead to breakthroughs that bring on new clients and cut costs.
Want More Content? Keep Exploring
We hope this article helped you answer the question, What is ERP? While enterprise resource planning might seem confusing, the reality is that it can streamline the process of integrating the systems within your business.
However, it needs to be implemented correctly to be effective. As such, you should plan carefully before setting it up for your company. Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep reading to find more topics that you’re sure to love.
