There are countless software solutions available out there for an array of business processes. No matter what your company is into, it is likely that there is already a solution in the market meeting your specific requirements. One such solution that is perfect for businesses of all sizes is ERP Software.

But what does ERP stand for and how does it work?

We know this will be your immediate question – so here we have put together a handy guide that helps you understand everything there is to know about ERP systems.

Without further ado, let’s get started!

What Does the Term ‘ERP’ Stand For?

The term ‘ERP’ stands for Enterprise Resource Planning.

What Are ERP Systems?

An ERP system is basically a centralized database that stores every information related to your business operations, from Customer Relationship Management (CRM) to Human Resources, under one roof!

It enables you to integrate and automate your business functions, which further reduces the manual work of your team.

These systems also help you gain a broad perspective of your business’ ongoing workflow and allow you to easily handle reports generated by individual processes within the same umbrella.

Some of these processes include:

• Human Resources (HR)
• Customer Relationship Management (CRM)
• Sales
• Inventory/Warehouse Management
• eCommerce
• Finances/Purchases

What Benefits Can Businesses Reap By Using Retail ERP Software?

The most obvious answer is, Retail ERP Software can improve your business’ profitability and efficiency.

But when you delve in a little deeper to find out how else this software can help, you discover various other benefits.

Along with increasing your efficiency and scalability, ERP software can:

• Lower the overhead expenses by integrating various business applications and tools within the same system.
• Speed up operations of individual departments like HR, Accounting, Inventory, etc.
• Streamline particular business processes that require additional manpower.
• Enhance data analytics to offer actionable and accurate business insights.
• Have a positive impact on your existing and potential customer relationships by accelerating your functions.
• Be easily customized and aligned with your present business requirements and objectives.

However, the best part about ERP systems is its seamless user interface.

If your company still relies on paper or spreadsheets to manage essential business operations, it is time to start leveraging a modern ERP software. This is because it has the potential to alleviate and accelerate your processes in no time!

Almost every ERP software can be integrated with any smartphone, computer, or tablet. This further helps reduce your business expenses since there is no need to purchase a brand new computer or system; the software can work with any of the existing systems.

Lastly, having an ERP software on your smartphone enables you to constantly keep tabs on the operations even when you are on the move.

For several businesses, especially those that want to always stay on top of everything, this is an excellent benefit.

How Does an ERP System Function for a Business?

A cloud-based ERP solution offers businesses an automated communication tool to effortlessly handle sensitive data between external and internal teams. This further helps you with your everyday to-do list and project management through a centralized database.

With an ERP system, your organization can manage day-to-day intricacies and keep a track of the current objectives with complete ease!

What Are the Core Elements of an ERP System?

An ERP solution comprises various business activities, tools, and applications. This is what allows your system to handle almost every process of individual departments, if not all of them.

Here we have compiled a list of various essential business modules that are usually a part of your ERP system.

Let us clarify that by no means this is considered as a comprehensive list. Also, based on your organization’s structure, needs, and goals, these features go way beyond the below-mentioned key areas.

• Finance and Accounting

• • • Accounts payable
    • General ledger
    • Accounts receivable
    • Trial balance
    • General journals
    • Financial reporting
    • Cash forecasting and management
    • Bank reconciliation
    • Budgeting

• Distribution and Manufacturing

• • • Purchasing and tracking of inventory
    • Shipment tracking by serial and lot numbers
    • Sales shipments
    • Inventory management
    • Quality tests
    • Production expense tracking
    • Labor, manufacturing, and overhead expense tracking
    • Conversion tracking

• Sales

• • • Order generation
    • Processing sales order
    • Online sales
    • Purchase order creation

• Service Management

• • Monitoring and tracking post-sales service
  • Service contracts
  • Product warranties
  • Product lifetime costing

Conclusion

Has the growth of your business come to a standstill or does your organization lack the required essential resources?

Regardless of the situation, leveraging ERP software is the best way to go about it.

With an ERP system, you get a better handholding of every business function since it is equipped with various processes under the same software. It also gathers and creates reports for individual departments, which helps you save time and get rid of a lot of headaches.

Integrating ERP software with your business can quickly reduce the overhead expenses and improve your bottom line!