What is Enterprise Resource Planning?
What is Enterprise Resource Planning (ERP)? This seemingly-simple question often results in complex answers. Let’s pare it down to the essentials.
In basic terms, ERP software uses a shared database to integrate and streamline a wide range of essential business processes. This creates immediate benefits for business owners, employees, and customers, including:
- Breaks down barriers between business units so employees can do their jobs more effectively
- Provides access to real-time business intelligence data
- Automates core business functions
- Improves customer service by providing a unified order-to-delivery experience
Use Enterprise Resource Planning to integrate business processes
There are literally hundreds of business processes that could be integrated using ERP software. Today we’ll take a look at six of the most common processes:
- Supply chain and vendor management processes include monitoring and managing demand, supply, manufacturing status, logistics and distribution.
- Manufacturing management processes include aligning manufacturing and inventory processes, accelerating production cycles, and reducing costs by making inventory management more efficient.
- Customer relationship management processes include managing invoicing, monitoring contract status, and identifying customer needs and buying patterns .
- Human Resources Management (also known as “Human Capital Management”) processes include employee administration, payroll, legal reporting, and managing resource, workforce and talent.
- Project management processes include selecting appropriate projects, assigning resources, reporting time and expenses, and tracking profitability,
- Finance and accounting processes include meeting financial and tax requirements, accessing real-time expense and revenue contribution information, and delivering accurate and timely financial reporting.
How much Enterprise Resource Planning functionality does your business need?
When determining how much ERP functionality your business needs, here’s a good rule of thumb. Businesses with complex processes, rapid business growth, or quickly changing business need s typically require more extensive ERP.
The HotWax Commerce Platform is a robust e-commerce platform that has built-in ERP functionality. The platform grows with your company. Use only as much ERP functionality as you need at any given growth stage. For more information about HotWax Commerce, contact one of our experts.
Notes and Credits:
Excerpts/ideas included in this blog post were compiled from the following sources:
10 Features to Consider for any ERP Solution
5 Common Misconceptions about ERP Software, Part 1
What is ERP?