Regardless of which company you work for, chances are that you probably have heard of the term ERP being mentioned within the office. Those who do not know what it means will probably feel confused as the ERP that we are familiar with is the one on the roads. So, what does it have to do with companies? This post will therefore clear things up and illustrate what the ERP Software is all about within a business setting.
What is the ERP Software?
While it shares the same acronym with the ERP (Electronic Road Payment) that all drivers in Singapore have to deal with, the ERP Software here is a totally different idea. In this context, the ERP Software refers to Enterprise Resource Planning and it is defined as the system utilized by companies to manage their daily business activities, such as accounting, manufacturing and operations, to name a few.
What does it do?
The ERP Software helps to integrate various features into one complete system to streamline processes and information across the entire company, as well as manage information. The ERP Software usually includes, but is not limited to, the following functions:
- Product and purchase planning
- Project management
- Accounting and financial management
- Sales management
How does it work?
The ERP Software is designed around a data structure that usually has a common database, providing access to business data from multiple business activities. As such, it connects different features into an all-in-one tool, which makes it easy to use, eliminates data duplication, provides data integrity, and saves time. For example, companies can have tracking, project management, sales, and invoicing all within a single platform.
Why Companies are using the ERP Software?
There are a few reasons why companies are utilizing the ERP Software as part of their operations:
- The ERP Software provides meaningful insights from real-time information via reports.
- The ERP Software enables lower operational costs with a more streamlined business process.
- The ERP Software improves efficiency through common user experiences across multiple business functions.
- The ERP Software reduces risk through enhanced data integrity and control.
At the end of the day, all companies need to manage people, purchases, sales and finances. While the way each activity is handled varies by industry, every company will certainly perform these basic functions. In most cases, it is more effective to handle these processes through an integrated platform, namely the ERP Software.