You know that ERP stands for enterprise resource planning. But what is enterprise resource planning, anyway?
Depending on who you ask, you could get a different answer but essentially it is a form of software created to take a bunch of information and processes and simplify them into one system.
If you want to learn the basics of ERP in a simple, understandable way, read the guide below.
What Is Enterprise Resource Planning (ERP)?
Enterprise resource planning (ERP) was initially used in the manufacturing business to help companies manage their inventory. The more modern version now includes accounting, project management, compliance, manufacturing, and more.
You can think of ERP as a suite hosting many different functions at once, facilitating communication across teams. The project managers and the finance department can now seamlessly communicate with the marketing group and the CEO.
Moreover, they can share things like financial reports, procurement statistics, and even human resource information.
How Do Companies Use ERP?
If you still aren’t completely sure what ERP is, don’t worry. It will start to make more sense as you learn how small and large companies alike use it to support their business.
ERP is most commonly used in manufacturing, healthcare, and construction. However, it is now used by technology companies, financial consulting firms, and various startups.
Consider an ERP used by a construction company. This platform can allow them to track all materials required for the project, the labor they will need to complete it, the design of the project overall, and all other potential expenses.
Throughout the project, the construction company can monitor their progress, track how much material has been used and whether more should be ordered, and ultimately increase their return on investment (ROI).
How To Find ERP Software
When it comes to finding the right ERP software there are ERP Value-Added Resellers (VARS) that are responsible for ERP lead generation.
As an informed consumer, you should explore a few ERP software options before making a decision. Be clear about what your company requires and whether the ERP can provide it.
The ERP experience is also an important consideration. Your company will be using this system regularly, therefore the interface should be easy to navigate. You want employees to be able to easily learn the new platform.
The pricing for ERP systems varies and is usually billed on a per-user basis. The VARS representative you choose to work with should be able to give you a quote on pricing before you make any kind of investment.
Here’s a Recap
So, what is enterprise resource planning? It is an all-in-one software offering used by businesses for organization, communication, and documentation. Companies use ERP for many things but they all have the ultimate goal of improving efficiency.
If you are looking for ERP for your business, get in touch with a VAR, and ask all relevant questions. Adopting an ERP system could change your business forever.
Looking for more business advice? Browse our other blogs!