What is ERP and Why Should You Care?

what is erp and why is it used in a company enterprise resource planning system

Approximately 50 percent of companies have either already invested in an ERP (short for enterprise resource planning) system or have plans to upgrade to one soon.

Are you on the fence about ERP? Do you have questions about what it is and how it works?

If you want to learn more about this type of management program, keep reading. Explained below are answers to all your ERP questions, including “What is ERP and why is it used in a company?”

What Is ERP and Why Is It Used in a Company?

Enterprise resource planning is all about integrating various business processes so that things can run more smoothly and efficiently for your company. Consider all the different processes it takes to keep your business functioning. From inventory and order management to accounting and human resources, there are a lot of moving parts.

Many companies use different systems and software programs to handle each of these processes. That can get confusing and inefficient pretty quickly, though, especially as your business starts to grow. This is where ERP systems come in handy.

An ERP system integrates all the different functions into one system. It streamlines everything and makes sure that information is available across your entire company. As a result, all of your employees, no matter which department they work in, can access the data they need without having to jump through lots of hoops.

ERP systems can help you save money, too. They are a big investment upfront, but they can significantly reduce your IT costs. They also streamline the repair process in the event that anything goes wrong. 

How to Choose Enterprise Resource Planning Applications

An ERP system is starting to sound pretty great, isn’t it? You might be wondering, though, how you can choose the best one for your company.

The following are some of the most important factors to do when shopping for ERP software:

  • Review your existing processes and identify specific pain points
  • Consider your technical needs and make sure it’s compatible with your equipment
  • Review the costs of the software with care 
  • Ask about implementation and employee training
  • Assess features and consider which ones are most beneficial to your team

When you visit ERP software sites, you’ll see that easily accessible customer support is also important. Look for an ERP software provider that is readily available to assist you whenever you have questions. They should also be able to address those questions through various channels (chat, email, phone, etc.).

Is an ERP System Right for Your Business?

You now know more about ERP and can answer questions like “What is ERP and why is it used in a company?” What do you think of enterprise resource planning systems and software? Is an ERP system the right fit for your company?

Keep the information outlined above in mind as you weigh the pros and cons of investing in ERP. If you need more assistance or want to learn more before making a final decision, check out some of the other articles in the Tech section of the Everything Entrepreneur Blog today.