What is ERP and Why Entrepreneurs Need it

views

ERP is a word that is getting thrown around more and more in the work world without many truly understanding what it means. Enterprise Resource Planning or ERP is not a new concept at all in the work world. It has been with us for at least thirty years, although it was only in the past few years that we have truly begun to innovate and make it much more useful for a business to use. ERP helps a company to integrate their primary functions, such as HR, finance, supply chain, and many others into one piece of software or hardware. This makes it that much easier for a company to keep track of all aspects of their business and make changes as necessary.

Within ERP, there are three different versions of it: on-premise, cloud-based, and hybrid-cloud. On-premise ERP is exactly how it sounds. The software is installed on machines and pieces of technology within the business itself and therefore cannot be accessed from the outside by its workers. Cloud-based ERP pushes the software online and allows for workers to access the data from anywhere in the world as long as they have the correct credentials to do so. Finally, hybrid-cloud is a combination of both, utilizing the benefits that each ERP method has. If you are able to learn more about how this can help, you will find yourself utilizing these ERP systems much more. They are guaranteed to help simplify your business and allow you to take your company a step further in the corporate world.

Here are some reasons why you as an entrepreneur need ERP within your business.

Automation

ERP software helps to automate many core features making it much easier for workers. An example of this could be a cloud based inventory management system. Some businesses run where if a product is bought, an employee must make a note that it is gone and then adjust the inventory count manually. This can be extremely tedious and frustrating as normally businesses conduct thousands of transactions every day. This worker’s skills are much better used elsewhere. By using ERP software, the inventory management system can be automated, and when the item is scanned, the software will automatically remove it from the inventory. Not only does this speed up the process dramatically, but it also allows you to reduce the human error that can occur when doing a job like this.

While the automation software is great, it is often recommended to conduct a manual inventory count at the end of each month to see if products were stolen or taken without being scanned. The last thing you want as an owner is to find that you are wasting money on workers doing meaningless tasks. While reallocating your worker is an option, you can also let a worker go if the task can easily be automated. Not only that, but these machines do not need breaks and do not get distracted, meaning that they are able to work at 100% efficiency at all times. Good ERP software will allow you to automate many of the processes that would normally be tedious and cost money for you to run.

Allow work from anywhere

 

By switching to a cloud-based ERP software, you can let your workers take their work wherever they go, allowing them to be as efficient as possible. The problem with on-site ERP is that once the work day is done, that is it. Your employees go home and will not have access to their data until they return to work or take extra measures to get it to their home. A cloud-based ERP will let your employees access their files from anywhere and pull up company data as needed. The one issue with a cloud-based ERP however, is that employees might have access to too much sensitive information away from the workplace.

Therefore, a hybrid based system combines the ability to work from anywhere with the security that an on-site system uses. An ERP can be programmed to allow sensitive information to be accessed only when using the on-site system, while all other data and information can be accessed through the cloud. This helps to ensure that no data is leaked and workers can still remain productive wherever they are. Maximize the productivity of your company with a good ERP system and watch as your profits increase.

ERP is constantly revolutionizing the workplace and using it correctly can greatly increase the value and efficiency of your company. It can provide a great deal of automation, allowing you to use workers in much better ways. Along with that, it can allow your workers to work from anywhere, making business trips that much more possible. Don’t be afraid to make the switch over to an online ERP. What will you look to automate?

Share this
Tags

Must-read

Why Does Beer Taste Better When Ice Cold?

You've probably noticed that beer tastes much better when it's ice cold, but have you ever wondered why? The answer lies in the science of temperature and its effect on the perception of flavors. When beer is chilled the cold temperature numbs the taste buds slightly, which can make the beer taste crisper and less bitter. This cooling effect can also...

Chang Beer: Thailand’s Beloved Brew

Known for its unique blend and global acclaim, discover what makes Chang Beer Thailand's beloved brew since 1995.

Kozel: The Czech Republic’s Smooth and Flavorful Beer

Mix your ideal blend with Kozel, the Czech Republic's smooth and flavorful beer, and discover a new world of taste.

Recent articles

More like this