Enterprise Resource Planning (ERP) is a system that allows companies to manage all essential business activities in one place.
Organizations can automate data transfers between ERPs and other tools, such as CRMs or e-commerce platforms, to reduce manual work and keep their data in sync.
Most people associate ERP systems with digital accounting and financial management. However, they also benefit all other business functions, including manufacturing, supply chain, procurement, and commerce.
How does ERP software work?
ERP software eliminates data silos by enabling data flows across the organization and making financial, operational, and transactional data accessible to all departments via a centralized database.
Let’s see how ERP systems can help different departments to connect their data, automate processes, and accelerate growth.
You can use ERPs to process supplier invoices, analyze financial information from various sources, generate invoices and credit memos for customers, and manage accounts payable.
Real-time dashboards provide you with a complete overview of the organization’s financial data, thus facilitating more informed decision-making.
Thanks to the automation capabilities of ERP systems, you can reduce manual work and focus on ensuring regulatory compliance instead.
You can rely on ERPs to assess employees’ performance, update employee information, create budgets and hiring plans, accept time-off requests, and manage onboarding activities.
Such systems also allow you to track and improve employee engagement and productivity.
Sales, marketing, and support
With an ERP system, you can access all customer data, including preferences, order history, and previous interactions, in one place. This allows you to deliver a consistent experience across all touchpoints, thus improving the overall customer experience.
Supply chain management
ERP systems allow you to monitor inventory levels, place purchase orders, anticipate demand, appropriately allocate resources, and plan future production.
Automating the tasks associated with planning and executing supply chain processes helps you cut costs and improve overall efficiency.
What are the main benefits of an ERP system?
Today, organizations of all sizes rely on ERP systems to manage data and processes more efficiently, optimize operations, and grow their business.
Here are some of the main benefits of using an ERP system.
- Less manual work, fewer human errors, and optimal allocation of time and resources, leading to enhanced efficiency and productivity
- Data centralization which enables improved forecasting, planning, and decision making
- More alignment between departments and business processes
- Improved risk mitigation and regulatory compliance
- Better customer experience
Can my company benefit from using an ERP system?
Does your company heavily rely on multiple systems, databases, and spreadsheets that don’t allow data syncing? Do you input data manually and struggle to find the information you need?
If the answer is yes, your company can definitely benefit from implementing an ERP system.
An ERP system ensures that all your data is automatically backed-up and kept up to date and eliminates inaccurate and duplicate information. This improves the customer experience and makes your processes more efficient.
Additionally, it will free up your IT team since they won’t have to spend all of their time fixing and maintaining legacy systems anymore.
Last but not least, an ERP system will automate time-consuming, manual tasks and help you meet compliance and security requirements. This will lead to optimized processes, enhanced performance, and business growth.
How to choose the best ERP solution for your business
Here’s what to consider when choosing an ERP system for your business:
No matter what industry you’re in, you should look for a system with robust IT security policies. Look for risk management benchmarks such as industry certifications and security audits to find safe and high-quality solutions that you can trust.
Think about what ERP deployment model you want to use. You can choose between on-premise, cloud, and hybrid.
On-premise deployment means that the ERP system will be installed and run on computers and servers within your organization. Therefore, you won’t be able to access it over the Internet, and you’ll need an IT team to maintain it.
In the case of cloud deployment, the ERP systems are web-based and delivered via a network of remote servers. Therefore, you can access them from anywhere and on any device. What’s more, the system provider maintains the system and provides onboarding and training.
Hybrid deployment combines on-premise and cloud-based deployment. These ERP systems provide users with higher flexibility and allow them to get the best of both worlds.
If you want to keep using some of your legacy software, you need to ensure that they can integrate seamlessly with the ERP of your choice.
You can connect both Penneo Sign and Penneo KYC with your ERP systems to fully automate your KYC/CDD and digital signing processes. Check out our pre-built integrations or find out how to integrate with Penneo via API.