The Three W of ERP: What, Where and When?

What is an ERP?

ERP is a business management software. An ERP software will help you take care of the business operation smartly.

Let's say you have a garments business. Typically, the operation of the manufacturing business is complex. Considering that, a cloth-making company is no different.

An ERP can make the entire process of garments making easier with automation. On top of that, you can monitor all tasks from different sectors in one place.

What is a Business Operation Like without an ERP?

Continue thinking you have a cloth manufacturing business. In order to make clothes, first, you need to identify the quantity of a piece of cloth you want to make. Next, you need to collect materials from different vendors.

Other than these, you will have tasks for checking the progression of the manufacturing process. Also, you need to ensure a particular dress is being delivered to your customer in time. There are many more tasks from material collection to sending it to the customers.

Now, you have two options here to carry out all these tasks. Some businesses perform them using some simple software and computers. And these are done by utilizing manpower mainly.

Another option is using a business management software, in other words, an ERP. If you use an ERP, you can complete all the tasks with the help of the software.

Yes, you will need the help of human resources. But ERP exists to confirm the exploitation of the potential of human resources. Also, you can ensure the completion of the task without any errors. And all these can result in increased sales and more customer satisfaction.

Where Do You Need ERP?

ERP can help you with the whole operation of your business. That includes all the existing sides of a particular service, such as—supply chain, finance, customer service, reporting, manufacturing, human resource, and so on.

All these sectors of a particular business move manually. Note that, if not an ERP, uses of the latest hardware and software are not enough for running all the sectors of a business.

Apparently, it takes longer, and it's just hard to complete them error-free. So, these are some serious concerns that one needs to address with an ERP.

Once you start using an ERP, you will gradually see that operation is smooth running for the automation. Consequently, you can expect increased sales.

Which Businesses Can Benefit from an ERP?

ERPs are designed to serve businesses from various industries. Yet, you will mostly see supply chain businesses deploy an ERP for keeping track of all the parts of a business operation.

Here are the top six types of businesses that reap the benefits of an ERP.

• Manufacturing and distribution
• Hospitality
• Construction
• Health care
• Professional services
• Non-profit organizations

What Size of the Business is Suitable for an ERP?

Once again, ERP is an excellent help for businesses of all sizes and operation procedures. Nevertheless, ERPs are most suitable for small and medium enterprises.

The reason is - small and medium-sized businesses aim to expand their business. As a result, they look for effective strategies to maximize profit. And, an ERP software happens to offer them extensive help for that.

In addition, small and medium businesses don't restrict their chances of growing a business. Hence, they are open to new technologies. As a result, small and medium companies often opt for ERPs.

On the other hand, notice the sizes of the businesses. The operation of small companies is relatively less complex, right? As a result, they have the upper hand in transforming from a traditional business operation to entirely software-based.

However, it's not like the giants among the industries never go for ERP. The decision for them is a little difficult to take. The reason for that is—the vast business operation.

As the business operation is more extensive, the process is more complicated. Overall, it will take a big business longer to shift to an ERP. But you must know that ERP can offer help to businesses of any size.

When Do You Need an ERP?

Until now, you have known that any business can utilize ERP systems. Also, you might have realized that the sooner you decide to implement an ERP, the better!

Now, these are only two factors. Let's look at it in a way. That is to say—there are a couple of signs that tell you to need an ERP for the service as follows:

• You are maintaining several separate files for collecting data on finances, sales, and marketing. Hence, you are updating them separately as well.
• You can't tell the operational duration of a specific task can't be determined, which means your business lacks insight.
• It's not easy for different departments to share essential files. So, the collaboration of all departments doesn't take place most of the time.
• You are failing to connect or respond to your customers in time.
• Employees are failing to calculate the completion time of the existing task. Also, they are taking too long to finish some tasks.
• You are often miscalculating the inventory, which is creating budgetary issues, and you are failing to serve the customer properly.
• You can't perform essential tasks of your service remotely.

Final Notes

ERPs are getting more popular day by day. Small, big, or medium, all businesses are choosing to use ERPs to automate the business process. As a result, they are gaining more profit. Even if the process of ERP integration is fairly challenging, it's the best way to do business in the present day.