Before understanding how does ERP work or benefit a business, it is necessary to understand what is ERP? In simple words, ERP is enterprise resource planning. Every business, big or small works with a certain amount of available resources.
All businesses try to use these resources optimally to generate more revenue and profit. After a few years, when the business can afford to own more resources, its capacity expands and the resource planning alters accordingly.
However, this entire process may seem easy but is not effortless. Several challenges, operational hazards, market fluctuations, unseen problems, etc., make optimal use of available resources difficult.
Additionally, generating more revenue and expanding the business also becomes hazardous when resources do not find their optimal utilization.
Therefore, optimal resource utilization is necessary for all businesses. This is where ERPs help. The easiest answer to the question of what is ERP system remains that it is a software solution that offers 360-degree automation to a business.
From the human resource department to finance, from invoice generation to vendor management, ERP integrates every part of a business and offers holistic results.
The followings are a few departments of any enterprise that can get integrated with ERP applications.
· Customer Service
· Inventory
· Human resource
· Purchasing
· Manufacturing
· Sales
· E-commerce