Managing the daily activities in a business can be daunting, especially if you are handling massive employees. ERP can deliver an integrated suite of business applications. The erp system has tools to process and data model that covers deep and broad operations end-to-end processes, such as:
- Finance
- Human Resource
- Distribution
- Manufacturing
- Service
- Supply chain
ERP system benefits
ERP has different benefits for your business, such as:
- Accounts and contacts centralization
- Data duplication reduction
- Stronger forecasting and visibility
- Easier ordering and quoting
- Cross-departmental collaboration
- Correct inventory and quoting
4 major applications of ERP
Enterprise Resource Planning system is integrated software that functions on standardizing, streamlining, and integrating business processes within finance, procurement, human resources, distribution, and some other departments. The functionality, scale, and scope of ERP systems vary. Here are the four major applications of ERP:
Enterprise-wide integration. Business processes are integrated across the business units and departments. A new order automatically begins a credit check, updates the distribution schedule, and queries product availability. The invoice is sent after the order is shipped.
Common database. Data is defined once for the company with each department utilizing the same meaning. Some ERP systems are splitting the physical database to enhance performance.
Real-time operations. Giving receipt takes just seconds, so problems are identified instantly, which gives the seller more time to do the correction.
Consistent feel and look. ERP vendors realize that applications or software with a consistent user interface lessen training costs and appear more professional. If other software is obtained by an ERP vendor, the common feel and look are sometimes abandoned, favoring speed to market. New releases enter the market, an erp solution provider restores a consistent user interface.
The types of ERP solutions
ERP systems are classified in tiers according to the complexity and size of the enterprises served. The typical tiers include:
- Tie I ERPs. It supports large, global enterprises, and handles all internationalization issues, it includes:
- Currency
- Language
- Alphabet
- Postal code
- Accounting rules, etc.
- Tier II ERPs. It supports large enterprises operating in multiple countries but lacks global reach. The Tier II customers can be business units or standalone entities of large global enterprises. Most of these ERPs have internationalization, but lack Tier I breadth. It depends on how the vendors are classified.
- Tier III ERPs. It supports mid-tier enterprises. It handles a handful of currencies and languages, but only a single alphabet.
- Tier IV ERPs. It is designed for small businesses and often focuses on accounting.
- Tier I Government ERPs. It supports large government agencies. Vendors supporting the nuances of:
- Government accounting
- HR
- Procurement
- Tier II Government ERPs. It focuses mostly on local and state governments with federal installation.
Choosing an ERP solution is so challenging.
