An ‘ERP System’ might be a term heard but not fully understood; let’s take a look at what it really means
Growing companies will normally face a pivotal moment where spreadsheets and stand-alone documents will no longer cut it. It is in these moments where enterprise resource planning (ERP) software will come to light – they present an opportunity to collect and organise key business information to help manage operations as a company expands.
Business professionals have most likely heard the term ‘ERP’ before, but it can be difficult to fully understand what it actually is. However, recognising what it is, how it works, and the solutions it can provide is invaluable in helping to make key business decisions for scalability and success.
What is ERP?
Fundamentally, ERP is a software that automates business process and provides insights and internal controls. It draws on a central database that collects inputs and information from different departments including, accounting, manufacturing, supply chain, sales, marketing and human resources.
The information being compiled into a central database provides leaders and stakeholders with cross-departmental visibility – enabling them to see, understand, and analyse various scenarios, discover process improvements and generate efficiency gains. Moreover, with less time digging and compiling data the better the productivity and greater the cost savings.
The best-known and most successful firms across the globe have turned to an ERP system, particularly as these software’s can now be configured and tailored to meet the unique needs of all-sized businesses.
ERP System Modules
ERP systems comprise of various modules that each address a specific business requirement. For example, accounting, inventory, customer relationship management, project management or professional services automation. Because and ERP can be customised, different businesses may turn to and use varying modules.
Each module will use and display information in a central database – the key component of an ERP system. This one-point, total visibility is one of the largest draws business leaders have for investing and integrating an ERP. Modules can include:
- Finance
- Procurement
- Manufacturing
- Inventory Management
- Order Management
- Warehouse Management
- Customer Relationship Management
- Human Resources Management
- Ecommerce
If you want to find out more about NetSuite’s modules and their benefits, read a complete breakdown here.
