Why is ERP important to a company?

Practically I could find Many technical problems at the introduction stage. I presume It will take time to arrive a perfect system for complete solutions. (Personally opinioned)

I think we can say it in sample answer , Its System you can Put data and execute them with2 concept (( Timely & Accurate Basis )) Plus you can divide the work flow according to the stuff you have.

ERP systems integrate all business management functions, including planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, human resources, and more.

• Streamlining processes and workflows with a single integrated system.
• Reduce redundant data entry and processes and in other hand it shares informartioin across the department.
• Establish uniform processes that are based on recognized best business practices
• Improved workflow and efficiency
• Improved customer satisfaction based on improved on-time delivery, increased quality, shortened delivery times
• Reduced inventory costs resulting from better planning, tracking and forecasting of requirements
• Turn collections faster based on better visibility into accounts and fewer billing and/or delivery errors
• Decrease in vendor pricing by taking better advantage of quantity breaks and tracking vendor performance
• Track actual costs of activities and perform activity based costing
• Provide a consolidated picture of sales, inventory and receivables

Enterprise Resource Planning or ERP has been around the world for quite sometime. It’s a popular notion that, implementing an ERP solution improves the efficiency, provides a clear view on productivity and growth. Here are3 important reasons why growing businesses need ERP solutions.

1. Operational Efficiency for growing businesses

When the business is really small with less than50 employees and few defined processes, its easier for managers to organize, control and track things. But, imagine, when the business has grown quite a bit with1000+ employees, countless different processes, activities, numerous workflows and procedures. Out of these numerous procedures, some of them might be manual and some automated. Chances are minimal that these activities and procedures are well documented.  In this highly competitive world, this kind of disjointed and not so integrated system will bring down the productivity and profitability. This in turn will affect the growth.  Implementing an ERP solution could help businesses streamline variety of processes, log them and track them on an hourly basis. In addition, it reduces operating and overhead expenses.

2. Improved Consistency & Accuracy

Another major advantage of implementing an ERP solution is that, it helps maintain information in a consistent and accurate manner. Especially in organizations where different departments are not properly integrated, information is inconsistent and sometime inaccurate. The views of different departments vary and hence the information they provide the Manager will also be different. This sometimes leads to confusions and wrong decisions being made. These problems might impact revenues over a period of time, if not considered seriously. Implementing an ERP solution will ensure that all information are maintained and managed in a consistent manner across the departments.

3. A Helping Hand for Employees

Implementing an ERP solution will ensure that the routine reporting work of employees at all levels are reduced.  Ramco OnDemand ERP, for example, allows field staff to enter data on the go and hence it helps Managers to get accurate information real-time. It also helps key decision makers of the company to understand their workforce in a better manner – from analyzing individual performance across different business sites to visualizing the overall performance of an entire operational zone. This helps organizations to take strategic decisions as well.

Overall, ERP solutions can serve as an excellent information tool especially for medium and large businesses, for better decision making and accomplishing required goals. Hence it’s a must for every growing business.

1- organization that has no ERP will be running on many kinds of software that do not allow interaction

2- powerfully integrated ERP system enables interactions of marketing, sales, quality control, products processes, supply lines, stocks and many other areas and it can be in a single database. This will eliminate the occasional loss of and retyping errors

3- ERP system also automates business processes by placing them into a useful format that is standardized and common for the whole organization