Components of the ERP System Used by Most Companies

Enterprise Resource Planning systems have been embraced by many companies, especially those that are progressing to modern management systems. ERP systems can be configured to meet the needs of the various companies. However, there are features that are key to enterprises that use the ERP software.

Manufacture and Distribution

The manufacture and distribution feature helps business owners to look at the supply and demand components of the business. One of the dangers of manufacturing is producing more products that do not sell so well in place of those that are highly profitable. Manufacturers are highly dependent on the reports from the ERP system to guide them on the products that are still in stock and those that are running out. This creates a balance between producing what is needed and the changing trends, based on products that are in high demand, and those whose demand has fallen.

Financial Management

This is one of the core components of ERP software. Every investor starts a business to make a profit. The only way you .will know if your company is productive is by looking at the financial status of the business. Managing your finances manually has loopholes that may be difficult to trace.

By the time you discover you have been losing money, it may be too late for your company to recover. The ERP system gives you a detailed breakdown of your revenue and expenses. You can easily identify the returns from an investment in marketing. You can easily identify a marketing strategy that is not working and the one that is worth greater investment. Integrating the ERP system with your company’s financial system will help you make informed decisions regarding the direction you would like the company to take.

Payroll Features

Errors in salaries are common in companies that have hundreds of employees. The human resource component of the ERP system has the payroll feature for easy access to employee information including payments. This feature ensure underpayment and overpayment are not a problem in the running of the business. This facility also helps in scheduling, especially if you have seasonal employees who do not work the regular shifts. In case there are changes in management, having this system ensures anyone who takes over in the human resources department has all the required information in a single location.

Customer Care and Management

Customer feedback is critical for every business, whether it is positive or negative. This feedback is critical when you are coming up with a marketing strategy for your products. The feedback will help you decide the areas you need to work on if you are to streamline your business to be profitable. The ERP system will help you satisfy your customers’ needs, thus improving your ratings.

Inventory Figures

Stock control is vital for every business that sell goods and services. It is sometimes easy to lose track of the inventory when you are busy, or if you are concentrating on other departments of the company. The computerized software automatically records when an item is ordered, such that it Is deducted from the available stock. This way, there is a comparative analysis between products sold, items still in stock, and the revenue collected.

Before requesting for an ERP system, it is important for you to understand the ways in which it will change the way your company runs.