Enterprise resource planning (ERP) is among the most powerful management tools that can benefit businesses. It aids in managing financial data, measuring employee’s performance, and examining customer relationships.
Despite these capabilities of an ERP system, some organisations fail to use the software to their advantage. This probably happens because they’re not fully aware of the features that will help them reap many rewards.
So if your company have already invested in ERP software, make sure that you maximise its utility and explore every feature it has.
Here are six key features of ERP tools that you need to understand and take advantage of:
ERP Features That Are Worth Investing In
Integration - ERP management software reigns supreme over other management solutions because of its ability to integrate with other systems.
It boasts a suite of applications that can assist businesses in running day-to-day activities including accounting, procurement, project management, and supply chain operations.
Through ERP’s intuitive platform, users can perform a myriad of data-driven tasks with greater efficiency, and reduced costs or discrepancies.
For instance, with the integrated customer relationship management (CRM), end users can access customer information and orders in the same system. The acquired data helps them in aligning their sales efforts, and developing those relationships effectively.
Tracking - Reliable cloud ERP system offers comprehensive tracking and visibility. This functionality allows businesses to track not only tangible objects, but different sets of information as well.
Many ERP tools today enable tracking of inventory, from raw materials to work in process (WIP), and finished goods. This visibility helps supply companies to understand and foresee issues such as delay and stock outages.
With this software, taking care of the company and its people can also be hassle-free. Thanks to its HR management module, tracking vital human resources data is convenient.
The module even has advanced management features for time and attendance, employee benefits, risk and compliance, and other such important matters.
Automation - ERP software has the capacity to automate common tedious tasks. Examples of such monotonous jobs include sending email, payroll and accounting, invoicing, and so on.
With this management tool, businesses can calculate and deduct federal tax, or other things automatically. It makes payroll management a laid back chore, allowing accounting professionals to focus on more important tasks.
This automation feature of ERP is not only limited to payroll processing. It also comes in handy when sending emails to both existing and prospective customers.
Top executives and unit heads can send personalized, automated and outbound emails via the integrated email marketing solution. They can use this extension in running email campaigns, and sending automatic newsletters to target recipients.
Accounting - Financial management ranks high among the most important functions of an enterprise resource planning software.
Since managing finances is a core aspect of ERP, every ERP system contains strong accounting capabilities. It has a range of features that can free accountants from the tedious tasks to work more on developing KPIs, budgeting for growth, and improving cash flow.
Among these trans formative accounting tools is general ledger, a master record of all financial operations and accounts payable (AP), which allows managing of vendors in a single place.
ERP management software also encompasses accounts receivable (AR), payroll, project accounting, fixed assets, billing, tax management, and more accounting-related functionalities. When utilized well, these functions can give businesses a snapshot of their performance whenever needed.
Data Analysis - As a cloud ERP collects and processes data from all the business functions, it also helps perform quick and comprehensive data analysis.
This other core function facilitates all business operations that depend on client data, production statistics, and sales data. Businesses, for example, can find trends and patterns in their processes when they examine the acquired data.
By analyzing vital business data, users can gain empirical insights that enable practical actions to improve organisational efficiency.
Put simply, this ERP function enables certain people to reflect on the effectiveness of specific tasks, and provide forecasts for future business decisions.
Reporting - Data analysis and reporting are intertwined. Without the latter, the former would be pointless.
When it comes to generating reports, companies can rely on enterprise resource planning software. ERP’s reporting capability allows the packaging of analysed data in visual ways that capture the attention of end users better than raw statistics.
This data visualization is achieved through an array of built-in tools: customization dashboards, Gantlet charts, pie charts, bar graphs, and so forth.
In effect, this is data storytelling. Like pop-up bedtime stories for kids, these eye-catching representations put faces onto abstract figures. Flaws in business processes are thus revealed plainly, and can be mended with a high degree of buy-in from all involved parties.
Make Your Business Ready for
ERP Software - ERP is an ideal solution for businesses looking to automate their dreary routines, and improve productivity. However, it can become time-consuming and counterproductive when put in the wrong hands.
To ensure that you get more out of your ERP system, familiarize yourself with it first. Explore the software’s core capabilities and its limits, document your user experience in plain language, and instruct your team members step-by-step on effective ways of using the planning tool.