Enterprise resource planning, shortened to ERP, is a software platform used by small, medium-sized, and larger businesses to integrate essential business processes.
Business software itself automates several business processes (e.g., accounting, project management, time management, customer relationships, etc.), but these processes working separately don’t help contribute to the efficiency that automation naturally provides.
This is why ERP helps bring everything together, making completing your everyday business processes much more efficient.
Checkout Five Processes That Can Be Integrated With Enterprise Resource Planning:
Here are a few processes that can be integrated using ERP software for your business.
1: Budgeting and Planning
Budgeting and planning are the keys to knowing how and when to make certain business decisions. Integrated software solutions that offer a budgeting and planning function consolidate everything into one convenient place where all stakeholders can collaborate. Accurate financial data is displayed in real-time, and any changes made are immediately reflected in the system.
Demand planning can also be helpful and easily integrated into your budgeting and planning software functions. This type of planning helps you determine what you’ll need for future demand and also future supply. This makes it easier to create work orders, especially when this function is integrated with your financing solutions, inventory, and procurement.
In addition to budgeting and planning, your finances are the foundation of your business. Knowing and keeping track of your finances helps you make the majority of your business decisions, and integrating your core financial functions with budgeting and planning makes this much easier.
Some of the core financial functions include:
- Invoicing and billing
A financial function within your business software will integrate effortlessly with CRM (customer relationship management), human resources, order management, and even inventory management.
Your finances affect virtually every part of your business, so it’s helpful to have software that integrates everything with one solution. This is a core business function, and integrating every other function with this one allows everything to run more smoothly.
3: Human Resources
Another business function that can be easily integrated with your financial functions is human resources (HR), which includes everything relating to your employees. For example, you’ll be able to efficiently process payroll and stay up to date with payroll calculation changes and payroll taxes.
This will also be helpful if you have remote workers (and customers) in other parts of the world, as some financial software systems have a function that easily converts currency, translates languages and follows foreign tax laws.
4: Inventory and Procurement
Keeping track of your inventory is one of the most important tasks when it comes to running a business. Integrating your inventory management with other business processes, such as your financial processes, makes it easier to replenish your inventory more efficiently.
This also works well with procurement, especially when you have a list of approved vendors to purchase from and you have your budget and planning within the same system. Vendor records, billing documents, and receipts are all automatically linked with your procurement.
5: Sales and Marketing
Sales and marketing functions integrate seamlessly with your CRM and financial functions. With sales and marketing being automated and CRM giving you more insight into how your customers are interacting with your business, you’ll be able to see which marketing strategies are working (and which ones aren’t).
All of this insight from this integration will help you improve your sales. JDE EnterpriseOne provides these integrations with their ERP solution, making running your small business that much easier.
Just about every function in your business relates to each other in some way, so integrating all of them makes managing your business easier. Automating your mundane business functions naturally increases efficiency, but when it’s combined with integration services, these mundane tasks are now synchronized and will be achieved at a much quicker rate than if you had separate software systems working on each of them individually.
Overall, integration from ERP systems increases the efficiency of your entire business because it allows you and your employees to focus on tasks that directly contribute to customer/client experience.
However, it’s important to realize that ERP integration services aren’t a “cure-all” for all businesses. Your existing business structure must be organized and the ERP service you choose must also be compatible with your current technology. Even if your old software worked fine, you may still have to upgrade to software that works with a certain ERP service. ERP is supposed to integrate everything seamlessly so that all your business processes run smoothly.
Arnab Dey is a passionate blogger who loves to write on different niches like technologies, dating, finance, fashion, travel, and much more.