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The 6 basic components of a modern ERP

Enterprise resource planning (ERP) software can be a significant benefit to your business. Most systems have a large selection of features and functionality. ERP software has the ability to help you manage finances, customers, projects, service, commerce, and more. With an ERP system, you’ll have the ability to adapt and change, improve processes, reduce errors, and track and manage assets.

ERP’s are fast becoming a sought after platform for businesses, with the market expected to hit $47 billion in revenue by 2022. However, there are certain key components your ERP software should have for it to be effective in your organization. Let’s look at the six basic components of a modern ERP.

When selecting and implementing an ERP, there are many considerations. Those considerations will be influenced by the major components that every system should have. When you have functionality that aligns with your business goals, you are more likely to see results. In fact, 95% of businesses that implemented an ERP saw an improvement in their processes. Another study found that the top three benefits of ERP usage were reduced process time, increased collaboration, and centralization of enterprise-wide data.

Top components your ERP needs

Human resources

Managing employees is critical to your success so your ERP system should do this job well, handling the entire spectrum of employee administration. This includes onboarding, offboarding, benefits, and time tracking.

The most important feature you need within the HR capabilities is payroll software. You don’t want your HR staff doing this manually as it’s time-consuming and can lead to human error. An HR component can automate payments in addition to tax and benefit deductions. With an integrated time tracking system, hourly employees can be paid automatically, with no need to manually input timesheet information.

Customer relationship management

Another high priority for any business is managing customers and leads. Every company needs a highly functional customer relationship management (CRM) platform as part of its ERP. The insights you’ll gain from a central hub will enable you to sell and market better to your target audiences.

Use a CRM to track buying behaviors, conversation histories, or interactions to determine how to best communicate with customers and leads to generate more revenue.

Business intelligence

When using a cloud ERP, you’ll want to make sure it has business intelligence functionality. This component can collect and analyze data, providing your team with actionable insights. Look for a system that provides reports on valuable business intelligence insights so you can have a clear view as to what actions to take.

Supply chain management

Having an efficient supply chain is imperative, and with the right ERP system, it can be easier to accomplish this. With powerful features, you can optimize your supply chain and collect data in real-time. This allows you to respond immediately when there is a problem.

Inventory management system

Inventory management goes hand-in-hand with the supply chain management piece. It will also help you manage other processes like fulfillment and stocking. You’ll want to find a system that enables this tracking to be automated, reducing manual practices.

Financial management

All the other data from your ERP feeds into financial management, as basically, every business process involves money. You can have a clear view of all your financial data and see spending trends that could help you reduce costs.

Choosing the right ERP system can be tricky. There are lots of options. We can help. We offer an ERP system that has all these components and more. Contact us today to learn more.

The key to growing your business you might be missing

If you’re a small business owner focused on growth, you’re already invested in marketing and scaling up your ability to deliver goods and services. One thing you might be overlooking, though, is a software-based tool that can support your company’s growth through data collection, sharing and workflow automation. This tool is known as an enterprise resource planning (ERP) system, and it’s so important to modern businesses that the market share for ERP software is expected to grow to $49 billion by the year 2024. Here’s what you need to know about modern ERP solutions and how they can help your business grow.

What is enterprise resource planning?

Put simply, ERP systems are software solutions that bring processes from many different parts of a business operation together under a single roof. ERP solutions can be used to manage everything from finance and accounting to customer relations and product distribution. Tying these different departments together through a unified software solution allows for easier data collection and sharing between departments. All this leads to making your business more efficient and productive.

Keep your business growing

One of the most important advantages of implementing a modern ERP software in your business comes in the form of improved workflow. ERPs provide for automated workflows that will take your employees through tasks in a step-by-step manner, making it less-likely for oversights to occur. In this way, your SMB can exert higher levels of quality control on its processes and spend less time correcting human errors.

A modern ERP solution can also support your company’s growth by providing you with valuable marketing insights. Thanks to their ability to collect and share data, modern ERP platforms can be used to measure the effectiveness of growth strategies such as expanding into new markets or penetrating further into existing ones.

Using operational insights produced by an ERP solution, your business can refine its marketing, adjust pricing and even develop a more complete customer profile for future targeting.

Improve customer service

Of course, the benefits of a modern ERP solution aren’t limited to the back end of your business. ERP software can support the customer-facing side of your SMB by providing improved systems for inventory control, sales and even customer relations. When your team can communicate and collaborate easily through a unified ERP platform, your customers are likely to have a much better experience and encounter fewer difficulties.  

Cloud-based ERP solutions offer strong security protections that can be managed by a third-party vendor without draining your limited resources away from more critical tasks. If you want to keep your SMB on track for sustained growth by implementing good data security and cybersecurity practices, a cloud-based ERP solution can be a useful tool.

Conclusion

From improving efficiency and use of resources on the back end to supporting your marketing efforts and customer relations on the front end, ERP software solutions can provide incredibly useful tools for driving business growth. By making it easy to collect and share data between different departments, a modern ERP system can help your company make the best use of its resources and improve the customer experience it provides.

If you want to maximize the growth of your SMB, consider having your IT staff or managed services provider implement an ERP solution that will meet the needs of your company.