What is ERP and Why is it Used in a Company?

ERPs connect every aspect of an enterprise. An ERP software system infuses better performance and project management, helping an enterprise plan, budget, predict, and accurately report on its financial health and other office management processes.

What is ERP?

ERP stands for Enterprise Resource Planning.

It refers to software and systems that are employed to plan and organize all essential tasks in an organization. It looks after the vital supply lines, manufacturing processes and details, financial department, Human resources and other processes of an organization.

An Enterprise Resource Planning software is instrumental in automating and simplifying individual activities that take place in an organisation. These activities include accounting, project management, attendance management, managing merchant details, attendance management, compliance and employee management.

How Does an Enterprise Resource Planning System functions?

The primary objective of an ERP system is to improve the organizational efficiency of a company.  This objective is achieved by organizing and planning the ways in which the company’s resources can be utilised in a more effective manner.

The key to effectively improving a business’s growth and profitability is to assess how much required resources can be increased or decreased without sacrificing the quality of their work output.

You may also like to read : Affordable and Complete ERP Solution for SMEs

Enterprise Resource Planning Systems generally cover all facets of business operations in an enterprise. Some of the primary features of ERP are :

1. 1. An integrated system platform
   2. A common database
   3. Real-time processing
   4. Dedicated portals for all system operations
   5. Common user interface
   6. Employee Self Service
   7. Flexible and remote access

Different Types of ERP 

ERP has different variations depending upon the requirements of every enterprise. The most common types of ERP systems are :

On-Premise ERP 

An On-premise ERP software works in specific office locations.

It is instrumental in maintaining a physical office space within an organization. This software is only hosted on the computer systems and servers of the organisation. This grants the organisation and the admin full control, assistance and possession of the entire system.

Cloud-based ERP

A Cloud-based ERP software is the most celebrated form of ERP. It is an internet-based solution and is a SaaS (Software as a Service).

This Enterprise Resource Planning system assisted companies in getting back on track after the pandemic caused offices to shut down. With cloud-based ERP software like Juntrax, an organisation can access, store, process and utilise all their data simply with the help of an Internet connection and a system to run the software. This system is guarded by security credentials and allows flexible and remote access to its users.

Also read : Reasons why your organization must have a Mobile ERP

Hybrid ERP software 

Hybrid ERP software refers to an amalgam of a cloud-based EFP system and an on-premise ERP system.

As the name indicates, these ‘hybrid‘ solutions offer a combination of deployment and hosting services to the organisations.

Operating Areas of ERP 

In many  Enterprise Resource Planning systems like Juntrax by Juntrax Solutions, common operational areas are grouped as ERP modules.

Some of these modules are:

1. 1. Accounting
   2. Human Resources
   3. Manufacturing
   4. Payroll Processing
   5. Employee Benefits
   6. Project Management
   7. Employee Portal
   8. Attendance Management
   9. Timesheets
   10. Claims and Reimbursement
   11. Purchase Order Management
   12. Sales and Purchases

Ways in which ERPs can help a business grow and improve 

ERP systems are used to assist businesses, irrespective of their magnitude, withstand challenges and come up with a business management setup that allows them to function in a better manner.

ERP systems tackle numerous different departments and processes of a company.

Here are some of the ways in which ERP can help a business grow and improve:

Collection and Comparison of metrics

Enterprise Resource Planning Software allow companies to collect and compare their metrics across different departments of their office. It then assists them in formulating reports based on the data. These reports are effective in identifying flaws, formulating better action plans and gaining a complete insight into the workspace without any chaos.

Central information database 

An ERP software provides a central database of information. This supports the enterprise in enriching its analytics and assessment. It serves as an outstanding business intelligence tool that records and stores data at a common platform that can be accessed in a convenient manner. Reports that would consume a lot of time, if formulated manually, take hardly to present a tabulated data structure.

Most ERP solutions like Juntrax provide a customizable dashboard so executives can see reports and cards when they first log into the system. These cards may include everything from income and expense statements to sales and purchase information. The means to have access to these reports quickly enables you and your team to make favourable decisions more promptly.

Organize Regulatory Compliance. 

Managing Regulatory compliance is very important from a legal and ethical perspective.

ERP software monitors these factors and provides built-in auditing tools to assist companies with documenting their tax provisions. This also makes formulating reports and sharing them with the concerned authorities/departments easy and saves time.

Scalability

An Enterprise Resource Planning system infuses convenience and accuracy to the work setup. Since it is automated it reduces a considerable amount of burden from the shoulders of the manager and the admin. This allows them to focus on planning and expanding their infrastructure without worrying about the challenges of manual management.

Mitigate and reduce risk

ERP systems automate all the core business procedures of an enterprise. They serve as an advanced alternative to manual engagement with the company’s processes and management. On account of their automated setup, the ERP system is effective in creating an error-free database.

It also provides tools for managing risks and builds accuracy throughout the office setup across all departments. Some ERPs also come with forecasting tools and allow their users to assess their data and predict factors related to budget, profits and accounting.

Enhance teamwork

It breaks down communication barriers for efficient collaboration and coordination to improve job efficiency. It is also instrumental in improving the supply chain and distributing network reliability.

Synchronisation of  reports 

ERP software like Juntrax helps in coordinating reports from different office management systems. This feature helps in saving time and makes it easy to filter and fetch information between different departments. It provides a well established integrated platform that makes it easy to assess, overview and handle important information.

Conclusion

ERP software have proven to be resourceful for numerous industries. From large enterprises to SMEs and startups, it assists companies in boosting their productivity and potential. From inculcating transparency to the workspace to automating all major office management processes, ERP brings convenience and efficiency to the office.

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