ERP Software Systems to Make Your Life Easier

ERP software systems evolved over the past few decades from material resource planning (MRP) applications, which had been successful in improving the performance of manufacturing companies. ERP solutions extend beyond manufacturing to control all major business units, including finance, customer service, and logistics. The applications reduce costs and improve efficiency to deliver rapid ROI and long-term productivity increases.

Evolution of ERP Software Systems

Client-server technology popular in the 90’s introduced the benefits of ERP to businesses with remote and international locations to better coordinate activities from the manufacturing floor to the supply chain and more. For companies with distributed manufacturing and warehouse facilities, an effective ERP software system is no longer a luxury; it is essential component companies must have to stay competitive in the global marketplace.

ERP software systems help make one the most difficult tasks in a manufacturing environment, production scheduling, easier. Production scheduling has long been a struggle with the constantly changing environment of the shop floor. Included in an effective ERP software are sophisticated tools that the production scheduler uses to manage the entire process from the instant an order is received until the part is shipped.

Automated scheduling can streamline a repetitive process to reduce potential bottlenecks before they occur, while accuracy is improved and costs are reduced. With an ERP-driven company, realistic and achievable delivery dates can be kept so that customers are more satisfied and remain loyal.

ERP software systems are effective because users connect to real-time business and transaction data in a number of different ways, which allows for more effective planning, both day-to-day and long-term. ERP provides more accurate information on which senior executives can base decisions.

Numerous management reports can easily identify problem areas in the manufacturing, supply chain, or logistics processes, allowing for corrective action to be taken quickly and effectively. This leads to fewer defective products, fewer returned goods, and more satisfied and loyal customers who will spread positive word-of-mouth advertising for the company.

ERP software systems also have the ability to streamline a business by enabling it to effectively manage the different activities that are necessary on a daily basis to produce a product or service. Slow design and production processes can be corrected with real-time information. Inefficient scheduling of valuable resources, such as labor, raw materials, and equipment, will be remedied. With one central database to store all information, redundant and inaccurate data is no longer an issue as information is keyed into the system one time and one time only.

One of the biggest headaches an ERP software system can eliminate is the hassle of preparing quarterly, fiscal year-end, and income tax reports and returns. What once took days or even weeks can now be executed with the click of a mouse in many cases. The same software that allows for a real-time look at company finances can be used to generate all year-end accounting reports, such as balance sheets and cost of goods sold, accurately and quickly.

ERP software systems are the cure for what ails many companies, and they make life easier for employees from the top of an organization down to the shop floor.