Enterprise Resource Planning

There are several reasons why organizations, regardless of their size can greatly benefit from an Enterprise Resource Planning (ERP) system. Usually, startups, resist using an ERP system since they consider such systems too complex or too expensive for them handle. However, what they fail to realize is that there are a number of ERP systems which suits their operations and budget. The value realized from investing in an ERP undoubtedly overshadows the cost. Actually, the majority of Enterprise Resource Planning Systems generate a good ROI in a short period.

What is an ERP system and why is it so important?

Just like how significant the nervous system is to the body, Enterprise Resource Planning similarly plays a key role in modern businesses. Basically, an ERP is a system or software that businesses use to manage and process information from all sections of their departments. ERP safely stores that information in a single database, giving businesses a clearer notion at how all their systems are operating.

Built-in best practices

ERP systems boast of built-in business processes which help define an organization’s workflow, and that may ultimately act as the basis for organizational procedures. Adopting the built-in best processes saves time and resources because the organization doesn’t have to reinvent the wheel especially when it comes to creating and documenting essential procedures.

Workflow and business process modeling

Most of ERP tools include workflow capabilities, and some more advanced ERP systems may even allow organizations to modify and adapt the built-in business best processes. The advantages of workflow are normally speed and traceability.

Workflow allows the organization to define who is in charge of a specific assignment for every project being undertaken. It also notifies the people in charge of these assignments when an activity is awaiting their attention. Obviously, this expedites and streamlines the flow of information among organization departments; eventually saving you time.

When it comes to Business process modeling (BPM) an ERP allows organizations to get rid of non-value added steps in various business processes. Additionally, BPM defines default situations so that members of staff don’t have to spend unnecessary time on tasks that have no significant impact on bottom line. In a nutshell, both BPM and workflow help improve efficiency and boost information velocity.

Improved visibility

ERP systems provide greater visibility throughout the business cycle, from on-hand inventory to open purchase orders, demand forecasts, and even cash flow projections. This enhanced visibility helps in speeding up the decision-making process. Notably, it ensures that every decision made is grounded on facts instead of guesswork.

Although it is possible to manually input all these business cycles by using disparate systems or spreadsheets, these methods tend to be time-consuming, error-prone, and cumbersome especially when compared to a competent ERP system.


ERP systems are designed in such a way that, all the modules involved use a common or collective repository of core data, such as general ledger accounts, item numbers, supplier, and customer records. This collective data ensures there is accuracy and speed compared to manual systems.

You can also look at this common data as an in-house or “shared” language for the company. This is because every member of staff can recognize the importance of the data shared in the system and be able to use it accordingly. Common data usage also ensures that the employees refer to the same entries as they execute their respective tasks. This certainly helps in minimizing errors.

In short, despite the initial investment, a correctly implemented Enterprise Resource System improves business processes and eases the process of decision making. Different ERP systems are available in the market; therefore, if you are not familiar or not sure the system that can best fit your business, you can always consult us. Give us a call and our ERP solution experts will be ready to respond to your queries and help you get started.