Should An Enterprise Resource Planning System Be Used In Your Company?
Posted On June 15, 2019
The benefits of these types of systems usually depend upon the level of the person who is considering the system. Senior leaders find that it can be tough to get an overall picture of how the company is doing financially. Without a comprehensive system, they are likely to get separate reports from each business unit.
In many instances, these reports are all in different formats as well, which increases the frustration of the senior management team. A standard, enterprise-wide software system will allow the company leaders to receive a single version of their financial status.
This is because each department will be using the same method. Software systems of this nature are most famous for the ways that it helps companies who have a manufacturing focus. It allows customer order information to all be held within a single system.
This means that everyone from the salespeople to customer service reps to the shipping all has access to the same information. It does not have to be added to multiple systems, one for each department. It just has to be done once. That will make your company much more efficient. It will also provide more excellent service and value to your customers.
Another problem with having separate systems for each department is that when there are changes that must be implemented, each policy must be updated. If you choose to use an ERP solution, the vendor is responsible for overall changes due to regulatory changes, etc. that must be made.
Growth is another area that your company will benefit from using an extended enterprise system. Most systems that are used by smaller companies are built to get the company started. However, as the company grows, you will quickly discover that your order has limitations.
The purpose of ERP solutions is to allow flexibility. They are designed to be used by both smaller companies as well as larger ones. The Human Resource department will also benefit substantially when this type of software system is implemented.
Some companies have HR reps for each smaller business unit, but others have one HR department that manages all employees, regardless of their department. Without a company-wide system, the HR will have to use several different methods to complete the same function, depending upon where that particular employee works. Although these systems are based on the most common business practices, there is still the option for flexibility.
Most ERP vendors have specific modules available that might fit your companies needs better than others. They should also be able to offer custom solutions if you have a need that is not currently handled within their system.