Making Smart Choices
Companies and business owners are constantly required to make smart decisions regarding their various operations with an eye to their overall growth, expansion and profitability. In an earlier era, these investment decisions revolved around new tools, superior machinery, employees with more creative ideas and so on. Now, however, software solutions have acquired an equally important place in any business investment plan. Though simple software solutions like Spreadsheet and Quickbooks seem to be apparently easier and cheaper, a lack of integration among the various software applications can seriously hamper the company’s growth and incur unnecessary expenditure. Here, Enterprise Resource Planning (ERP) software emerges as a one-stop solution.
What is ERP?
Enterprise Resource Planning or ERP is a business management software that provides a system of integrated applications to run a business effectively with maximum efficiency and optimum use of all the available resources. It provides a master database, cutting across all the facets of the business ranging from product planning, development costs, invoicing, financial accounting and manufacturing to sales and marketing, shipping and payment, warehousing and payroll. This enables an efficient management of the diverse business operations on a day-to-day basis. The use of a single application further empowers the company not only to have an integrated system of accurate records but also facilitates wise business decisions.
ERP or QuickBooks?
Many small companies choose software like Quickbooks, Spreadsheet and Peachtree since these seem sufficient, at least for the time being, for their needs. However, as the business grows, these simpler solutions can seriously affect them through apparently minor errors and failure to provide an overall visibility of the various operations. In spite of being user friendly, they can hardly compete with the benefits provided by an integrated ERP.
Real Time Benefits
ERP offers a whole range of benefits including:
- Complete visibility across the whole spectrum of business operations
- Enhanced sales performance
- A better view of the company’s financial growth
- Better management of the varied business operations through the use of a standardized and common format and centralized database
- Reduced labor cost
- Improved DIFOT (Delivery in-full and on-time) rate and better customer satisfaction
- Increased profits by means of integrated business processes and consistent policies across the various levels of operation.
- A constantly updated record that provides increased control and better planning
Thus, the ERP software presents a cost effective solution and its desirability is further enhanced by the fact that it can easily be customized to suit the needs of any business – be it general manufacturing, retail business, CPG industry, life sciences industry, process or service industry or distribution company.