The best features of Enterprise Resource Planning (ERP) systems are those features that promote integrated management and use of critical information across the enterprise. Following is a list of features that make ERP systems a valuable addition to your organization.
This is what ERP is all about. The core benefit of ERP is integration of systems and data to make business operations more manageable. Instead of having each business unit in a large organization manage its own human resources, financial, and manufacturing systems, ERP uses a single integrated system and database to maintain all of the management information for the organization. So for each of the following features, you can look at it as an "integrated" feature under ERP.
For most business operations, the most expensive resources are employees and other human resources (HR). Managing the information connected with these resources is a huge task, and no two systems are alike in the way they handle HR data. Standardizing HR data is a big benefit of ERP, and a key feature to look for in any ERP package is its HR module. Managing information regarding HR events such as hiring, training, promotions, benefits, and terminations are all critical to your operations.
ERP systems can integrate your financial and accounting systems and provide organization-wide views into your business that might not otherwise be possible. ERP also facilitates drilling down to a detail level to analyze financial data for services, products, customers, and markets. Using ERP to manage finance and accounting can help you put in place standardized long range planning and make that planning a part of your core business. For some organizations, finance and accounting is the most important ERP module.
Before there was ERP there was MRP, manufacturing resource planning. Keeping inventories low and using just-in-time production techniques requires precise planning and execution on the supply side of a manufacturing business. Supply chain management in ERP automates many of the tasks involved in ordering supply and maintaining inventories. For today's manufacturing business, supply chain management is a critical ERP feature.
When considering an ERP package, it is important to focus on the features that are most important for your organization. Make a detailed list of your requirements and compare that list to what your vendor can provide. Keeping in mind that each feature contributes to an overall integrated system, you can maximize the benefit of your ERP purchase.
Selecting an ERP system is no easy task. You have to select and configure a system that fits your exact business needs. Getting it right means a myriad of benefits, from increased productivity to reduced costs. Getting it wrong can be a quagmire. Our new comparison guide gives you the data you need to make an informed decision, all in one easy-to-use Excel file. more
Best-in-class mid-market businesses are over twice as likely to deploy their ERP solutions on the cloud. They choose the cloud for scalability, flexibility, usability, and cost. These organizations saw 1.9x improvement in profitability over the past two years as compared to those who have on-premise solutions. more
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Did you know that according to MorganFranklin Corp., only 46% of ERP users report a strong understanding of ERP features? That's not surprising when ERP software is so complex and difficult to implement. Our thorough infographic details the 15 most common ERP implementation and selection mistakes so that you can avoid them. more