The advantages of implementing an ERP software

Many companies have chosen to manage their resources with ERP software, these integrated and modular management solutions. When well adapted to your needs, these software packages bring a host of advantages to your company.

 What are the advantages of implementing ERP software at the heart of your organization?

  •  Facilitate Digital Transformation and Process Optimization

Digital transformation inevitably rhymes with ERP. They are at the heart of the transition initiated by companies because they allow process optimization. Management software plays a dual role in the digital transformation of companies.

They are both part of this revolution but are also a support for streamlining and organizing information flows and business processes.

The ERP solution will also allow you to better organize communication between all sources and resources of your digital transformation.

  • A Global Vision and Management of the Company

Companies need data to know what direction to take and what decisions to make. ERP software aims to centralize and homogenize the entire information system of a company. ERP are modular suites linked by a unique database. This type of software will allow you to gather data from different sources: your different departments and services, your factories and warehouses, your supply chains, your finances, your website, your social networks, etc.

This unique database guarantees the uniqueness of all the company’s data and a real-time update.

With all the information centralized in one place, it is now quick and easy to make reports and take the right decisions because you have data to rely on. With a single management tool, you guarantee your company and your activity: an increased coherence, a global vision, and a better control of the information.

  •  Increased Efficiency and Collaboration

ERP systems allow your entire company to operate from the same shared, centralized database. This allows for the provision and exchange of information between all modules and users. Employees can easily share information and data, opening the door to collaboration. ERP allows you to break down information silos and create a more open, transparent, and collaborative workplace.

  •  Automation of Tasks and Processes: Productivity and Time Savings

One of the major advantages of implementing an ERP software will be to automate certain redundant tasks and processes to meet the requirements and needs of users. Thus, the adoption of an ERP and automation opens the door to improved process efficiency and time savings. For example, in terms of accounting or finance, automation can manage payments, ensuring that payments are made on time and in accordance with current regulations. Better visibility with suppliers through electronic invoices and fast payments ensure better financial management. This speeds up and optimizes the accounting function, reducing the administrative costs associated with the former manual management of these activities.

Automation also leads to a reduction in errors associated with manual processing. Automation allows you to free up time for your teams to focus on tasks with greater added value for your organization and to improve productivity.

  •  Lower Operational Costs and Return on Investment

Let’s not fool ourselves, no matter what the subject is within an organization, when a cost reduction or a return on investment is mentioned, it becomes the main benefit. That’s the whole logic of implementing ERP software: when processes are optimized, collaboration between teams is efficient, legal compliance is ensured and errors are handled quickly or greatly reduced, it goes without saying that operational costs drop considerably. Streamlined business processes and optimized financial management will result in reduced operational costs.

  • Scalability of the ERP Solution and Growth

Implementing an ERP solution is a source of multiple advantages. To take advantage of all these benefits, the solution you choose must be well adapted to your organization and allow you to ensure the sustainability of your business. It is also important that the solution be able to meet the demands of the world in which we evolve. The last few years, the crises and the pandemic have caused many upheavals to which we have had to adapt.

Today, modern ERP software and especially SaaS and scalable solutions allow a smoother adaptation to the changes of your company but also of the professional world. Scalability is now vital for any ERP system, as you will be able to generate growth and increase production with the streamlined operational performance and optimized productivity that an ERP provides. Having a scalable ERP software solution will help you manage growth and ensure that you are able to handle new customers and accounts as your business grows.

At Inmind, we help you choose and implement these scalable solutions to better meet your business needs and turn your technology challenges into business opportunities.

We offer you the entire Microsoft ecosystem as well as our innovative and patented Business Intelligence solutions for your organization.

What is an ERP software ?

Definition, History, and Concept of ERP Software

ERP stands for Enterprise Resource Planning. It is the translation of Enterprise Resource Planning (ERP).

ERP software is a business process management solution composed of applications and tools that help all areas of your business communicate more effectively with each other by integrating all facets into a comprehensive information system.

With ERP systems, all vital business functions such as production, finance, sales and purchasing, marketing and human resources share a central source of up-to-date information. ERP systems streamline the collection, storage and use of your organization’s data.

In other words, an ERP software is the backbone of the enterprise.

The history of ERP dates back to the early 19th century, in 1913 to be exact, Ford engineer Whitman Harris developed the Economic Order Quantity (EOQ) model, a paper-based manufacturing system for production planning that was the standard for several decades. In the 1960s, material requirements planning (MRP) solutions that combined EOQ concepts with a mainframe computer came along and changed the game.

MRP would be used until Manufacturing Resource Planning (called MRP II) was developed in 1983. MRP II is characterized by “modules” – the software architecture – and integrates essential components including purchasing, bills of material, scheduling and contract management. For the first time, different manufacturing tasks are integrated into a common system. MRP II showed companies that they could leverage software and its data to boost operational efficiency through better production planning, reduced inventory, and less waste.

In the 1970s and 1980s, concepts like MRP II were developed to manage business activities beyond manufacturing and production by integrating finances, customer relationship management and human resources data. It was in 1990 that technology analyst named this new category of business management software Enterprise Resource Planning.

Main features and benefits

The right ERP system to ensure the best possible resource planning and, consequently, better productivity must have the following functionalities:

  • Finance and accounting
  • Customer relationship management
  • Production management
  • Warehouse management
  • Inventory management
  • Supply chain management

By collecting and optimizing data across these various functionalities and the various departments of your organization, ERP will offer real strategic advantages to your company:

  • Streamline, make more reliable and protect your company’s inherent data.
  • Real-time visibility into operations to help your business continue to operate in compliance with international laws and regulatory guidelines.
  • Identify challenges, uncover opportunities, and make faster decisions that will benefit your business with powerful financial reporting and forecasting tools.
  • Provide instant access to supply chains, inventory, and warehouses.
  • Automate and streamline tedious tasks and redundant processes.
  • Access anytime, anywhere (offsite and from mobile devices).
  • Facilitate collaboration between teams and with third-party suppliers.

Why does your company need it ?

In addition to the benefits you have already received, the first objective of an ERP tool is to homogenize the company’s information system by replacing multiple files and software for a single solution.

Thanks to this system homogenization, you align your company’s information and processes and obtain significant gains: improved performance, accelerated operational impact and greater flexibility.

In practice, there are several questions that can help you determine whether your organization needs ERP software.

For example: Are you using applications that do not communicate with each other? Do you see inconsistency in data? Do you have full control on your operations? Are your company’s processes adapted to the reality of the market and the industry?

On a more factual note, in a previous article we listed some of the signs that your company needs an ERP. It gathers the main reasons why your company needs an ERP (or to change it).

Developments and Trends in ERP Software

Since the 1990s, ERP solutions have developed further to better meet the needs of businesses. Modern software now focuses on the cloud while offering the possibility to reduce implementation and support times to react faster to market fluctuations and industry trends, but most importantly to the flexibility, needs and growth of your business.

A modern ERP solution offers flexible deployment options, greater security and privacy, sustainability (upgrades, new features, extended lifecycle, etc.) and customization options. Most importantly, it strengthens your processes with information that will help you innovate quickly today while preparing your business for tomorrow.

At Inmind, we help you choose and implement these solutions of the future to better meet your business needs and transform your technological challenges into business opportunities.

We offer for your organization the entire Microsoft ecosystem as well as our innovative and patented Business Intelligence solutions.

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