Regardless of size or industry, most growing businesses have one thing in common: a need to share information across departments. A technology called enterprise resource planning (ERP) automates this process and allows for real-time sharing of critical data.
For example, a 70-person manufacturer company might use ERP to log incoming orders and immediately determine whether necessary parts are in stock. If inventory is needed, the system can automatically begin the purchase process, and schedule a date for order fulfillment based on the components' expected delivery date. This new order can be recorded with existing work to manage employee workload and guide hiring needs. Finally, when the order is ready to ship, the ERP system triggers invoice creation and customer service follow-up.
These applications traditionally have been complicated and costly to develop. However, they can now be delivered through the Internet, simplifying the implementation process and reducing integration costs for growing businesses.
The different departments within your business can benefit from ERP solutions in a number of ways:
- Reduce inventory costs: Real-time access to incoming orders and automated inventory analysis allow companies to maintain slim inventory margins and accurately forecast needs.
- Consolidate purchasing: Tracking inventory through a shared, automated system prevents over- or under-buying and makes it easy to consolidate purchases across departments.
- Speed accounting functions: Sharing real-time ordering and fulfillment information accelerates invoicing, automates data collection, and reduces reporting errors and time spent on administrative upkeep.
- Automate human resources administration: Tracking employee assignments and workload results in more accurate payroll and hiring forecasts, and reduces administrative burdens.
- Increase sales force efficiency: ERP tools speed the fulfillment process, allowing sales teams to place and deliver orders faster and keep customers continuously updated on order status
- Streamline project management: Automated data sharing eases timeline, budget, and resource management.
- Enhance customer service: Customer support managers can use the timely and accurate information ERP solutions provide to stay informed about account activity, history, and client needs.
The data flow that Internet-based ERP applications enable can be extended to suppliers, customers, and prospects outside an organization. By providing direct and secure information access to these parties, companies can expedite business processes. Doing so enhances customer service and improves cash flow, and ultimately lowers the cost of order fulfillment and frees up staff time to work on high-level business functions.