ERP is an acronym for Enterprise Resource Planning. It refers to software and systems used to plan and manage the core supply chain, manufacturing, services, financial and other necessities of the enterprise. It is a consolidated process of gathering data for an enterprise through an integrated software suite. This data is then used to track consumer behaviour and implement various strategies to boost the business.
It includes various applications which automate business functions and operations like production, sales, quoting prices, accounting among others.
It focuses on managing the office and automating business functions. The make the data more accessible and make it convenient for the employees to use to the firm’s advantage.
ERP tools share a common process and data model, covering broad and deep end-to-end processes, such as those found in Finance, Human Resource, distribution, manufacturing services and the supply chain. The main purpose is to increase or boost organisational efficiency by improving managerial proficiency.
Today, most organisations and companies are depending on ERP. This is primarily due to its perspicacity and its simplified structure.
ERPs have gained the accreditation they deserve due to several factors. It is notably reducing inventory costs, the software manages the records, thus, the cost of assigning an employee for that particular cost is diminished. It provides distinct coordination between the supply chain and the warehouse. An ERP platform will oversee the functioning of the two and point out inventory issues in time.
It efficiently manages Human Resource by speeding up all those administrative and data storage challenges that the human resource department may face. It provides role-tailored dashboards that are easily configured for each employ. Thus, it increases the quality of work by eliminating any confusion or reason for chaos.
As managerial proficiency is introduced into the system, the day-to-day operations are highly simplified. A healthy relationship is formed between the employer and employee. Therefore, the quality of the product or service and subsequently the sales is increased.
Some of the prominent Enterprise Resource Planning platforms include SAP Business One, Microsoft Dynamics and Odoo.
The ERP software market is huge and predicted to rise further in the future. The industry is expected to rise to USD 71.68 billion by 2026, depicting an increase of 8.5% Its current market share.
The COVID-19 pandemic has increased the use of Enterprise Resource Planning platforms. The lockdown resulted in a lack of physical coordination between the employers, managers and employees. This resulted in losses. There were mass layoffs. The position of the mangers and inventory staff has been assumed by these platforms. They have played a vital role in helping businesses regain their position in the market.
