An enterprise resource planning system (ERP) is a centralized database or collection of data used by multiple departments in an organization. An efficient ERP is used by many departments to make important business decisions. Manufacturing, Accounting, Finance, Sales, Marketing, Distribution, and Logistics use the ERP to efficiently track data throughout the entire business.
An ERP is an orderly way to make sense of millions of spreadsheets and a limitless number of databases from which employees must analyze, extract, and distribute information. The ERP ensures that the data is secure, uniform, and up to date. The data’s integrity is guaranteed for every department that uses it, thereby increasing accuracy and efficiency.
Organized from Suppliers to Buyers
ERP makes it easier for companies to communicate with disparate departments and personnel. For example, a lawnmower manufacturer that orders parts from suppliers around the country can track when and how they purchase inventory. Once the parts are in, the ERP system uses streamlined data to ID the supplier, part name, product ID, price, cost, and more information about the product. When a lawnmower is sold, the transaction data and the buyer’s information are added to the ERP. That information is shared with sales, marketing, accounting, customer service, customer retention, and any other departments that need to access the information.
ERPs Make Sense for All Your Data
If businesses want information that is secure, accurate, and organized, they should consider implementing enterprise resource planning systems. This centralized collection of data meant for wide distribution throughout their organization has multiple benefits including:
• Lower costs associated with efficiency,
• Enhanced business forecasts through more insightful data,
• Improved teamwork and collaboration between departments,
• Reduced risks because of data integrity.
As new technologies emerge, ERPs are getting more sophisticated. The amount of data available to businesses is endless. A good enterprise resource planning system can make sense of all this big data and make your business more efficient as well.