What is an ERP System and its Benefits in a Company?

Modern organisations are operating in a more competitive landscape than ever before. While we have new technology and methodologies that can open doors to other markets and industries, this globalisation has created a need for companies to deliver refined, affordable services in order to remain viable.

As such, it is imperative to introduce new ways of working that can elevate – and integrate – each separate pillar within a business.

In this article, we will explore, ‘what is an ERP system?’, as well as how to use them and why a modern company needs to consider this investment.

What is an ERP system?

An ERP (Enterprise Resource Planning) system is a sophisticated form of software taken on by organisations to better manage and automate various business processes, such as their accounting operations, human resources tasks, procurement duties, and customer relationship management.

While there are many different options available on the market and ways how you can use ERP systems in your company, the main features include:

  • Financial management: Modules for accounting, budgeting, and financial reporting.
  • Supply chain management: Modules for inventory management, order management, and procurement.
  • Human resources management: Modules for tracking employee information, managing payroll and benefits, and handling recruitment and training.
  • Customer relationship management: Modules for managing customer data, sales, and marketing.
  • Manufacturing and production: Modules for managing the production process, including scheduling, quality control, and inventory control.
  • Project management: Modules for tracking and managing projects, including budgeting, scheduling, and resource allocation.
  • Business intelligence and analytics: Modules for data analysis, reporting, and decision-making.

Overall, an ERP system aims to provide an integrated view of an organisation’s data and processes and allows for more efficient and streamlined management of business operations.

What are the Benefits of ERP Software to Your Company?

Are you or your team members wondering, ‘why do we need an ERP system in our organisation?’
ERP software is a powerful tool that can help companies of all sizes improve their operations, increase productivity, and streamline their business processes. It is an integrated software system that connects a company’s different departments and functions, allowing them to share information and work together more efficiently.

Here are some key benefits of implementing ERP software for your company.

Increase Operational Efficiency & Productivity

ERP software integrates all your business’s key processes with accounting modules, inventory management software, and customer relationship management, into a single system. This allows for real-time updates and streamlines communication between different departments, resulting in increased operational efficiency and productivity.

With all the information centralised within user-friendly cloud software, it becomes easier for employees to access the data they need, when they need it, wherever they are located. Having these capabilities eliminates the need for duplicated, manual data entry tasks and increases the speed of business processes. ERP software can also automatically perform tedious duties like invoicing, purchase orders, and inventory management, freeing employees to focus on more critical responsibilities.

Minimise Human Error

Every business owner or manager knows you can only make appropriate decisions and avoid costly mistakes when using precise data. ERP software provides either existing or customisable automation capabilities around many manual, repetitive tasks that are prone to human error, such as data entry and process tracking. Utilising these tools helps reduce the risk of common mistakes plaguing your operations and increases the accuracy of your business’s data.

Additionally, many ERP systems include built-in error-checking and validation services, helping to ensure that the data entered is accurate and complete.

Data Security

Despite the benefits of cloud-based technology in terms of accessibility and efficiency, many organisations need the peace of mind that there are sufficient measures in place to protect the information within their accounts.

Reputable ERP software options provide a secure platform for your business’s data, with built-in controls and permissions to ensure that only authorised personnel have access to sensitive information. This helps protect your company against data breaches and other security threats, as well as access to disaster recovery and backup features, which allow you to quickly restore your data in the event of an emergency.

Ensure Industry Compliance

Modern businesses must align their operations, services or products with various industry standards, ensuring not only the protection of their employees, but also that all deliverables are offered under acceptable terms.

ERP software can help your company to comply with industry regulations and standards by providing the necessary tools and processes to track and report on compliance-related data. Features include audits, compliance reporting, and controls to ensure that your business meets all industry standards. Moreover, many ERP systems have built-in compliance reports, making it easy to meet regulatory requirements and avoid costly penalties.

Enabling Better Scalability

ERP software is designed to grow and adapt with your business, allowing you to easily scale your operations up or down as your company’s needs change. Whether you’re bringing on new teams, outsourcing a selection of roles, or developing new services, these tools ensure that your business can continue to operate efficiently as it evolves.

Users can add new modules and features as needed, so their ERP systems can quickly adapt to align with their new and existing business requirements. This scalability is particularly important for businesses experiencing rapid growth, as it allows them to keep up with changing demands without replacing their entire system.

Real-Time Reporting

ERP software provides real-time access to key business data, allowing you to make informed decisions in a timely manner, improving your company’s overall performance and competitiveness. With real-time data, you can quickly identify and address any issues, such as inventory shortages or customer complaints. ERP systems also include built-in reporting and analytics, making it easy to track key metrics and monitor your business’s performance.

Why Use Frameworks in Your Company?

Frameworks is the leading ERP solution for suppliers in the building, plumbing and electrical trade industry. We have refined our platform to ensure you have everything you could ever need with your management software, with features including:

  • • Fully integrated financials
  • • Project management tools
  • • Trade desk sales
  • • Inventory management
  • • Integrations with 3rd party systems
  • • Automated workflows
  • • Point of sales capabilities
  • • Industry-specific features, such as timber handling and pack management, buying group
  • • integration, and plumbing, rebates, linked purchasing, and cost hiding

Get in touch with our team today to learn more about how to use our ERP systems within your company.
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