Today ERP software's have come a long way and companies of different sizes from small, medium to large enterprises benefit from it in comparison to old times when ERP or MRP were meant only for manufacturing companies and to only those who could afford it. Introduction of new ERP software cater to the needs of distribution and service oriented organizations too and few ERP available as SaaS have provided an option even to those organizations who cannot invest large sums of money on IT infrastructure and purchasing and installing software.
The biggest benefit of ERP is its integration. Enterprise resource planning software brings all the departments of an organization under one roof, it joins the loose ends of the data and converts it into valuable information. It allows the management to access, analyze and monitor the functions of different departments throughout the organization. Most of the enterprise resource planning software uses one single database where all the data is stored, collected or inputted from different locations of the organization. This single storage system give access to the data in real time and transfer of information is quick to other departments too. The problem of time lag in transferring the information and loss of data is eradicated completely by the ERP system.
Compliance of rules and best policies and practices becomes very easy with the use of ERP software. This is one area which has been of biggest concern particularly for large organizations which might be having work locations in different countries. But today large organizations can ensure that best practices will be followed by their all the units irrespective of their geographical location. Different rules and regulations of different countries can be incorporated in the ERP software which benefits its users immensely as it smoothens their working, features like local tax structure, multi-currency, currency exchange and multi-language are of immense help to large organizations. These features are also beneficial for small and medium organization if they are dealing with international clients or partners.
Though to purchase and implement an ERP huge investment is required but once implemented properly and after sufficient training to the users ERP software reduce cost of operations drastically. This benefit of ERP is largely due to its integrating abilities as departments can communicate with each other in real time, exchange information and also can analyze the changing trends and demands of the market. This functional transparency saves lot of money by reducing excess inventory, wastage of raw material, proper production planning, quality control, reducing cost of sales and marketing and also lesser need of costly manpower and also saving valuable man hours wasted in non-productive works like making reports and collecting data.
ERP has also benefited its users by adding a new dimension to the ways of doing business. Web stores can be maintained very easily through ERP, customer care has become very easy and prompt and features like customer self service is possible only with a proper enterprise resource planning system. Front desk and sales force can utilize their time in closing the deals and searching new markets rather then searching new prices and offer of their own products and making comparisons with their competitors.