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Smart companies are interested in using enterprise resource planning as it integrates external and internal management information. It wholly embraces customer relationship, accounting/finance, manufacturing and service/sales. The activity is automated by the use of an ERP software application that facilitates a smooth flow of information of the business functions. With ERP systems, smart companies can run on a wide variety of network configurations and computer hardware that employs a database in storing this key information.
Going back to the 1990s, enterprise resource planning was first used by the Gartner Group. ERP as an extension of manufacturing resource, computer-integrated and material requirement planning. ERP represents those terms in order to reflect the application integration apart from manufacturing.
Additionally, ERP is a term in industry that refers to a set of activity in order that a business manages its undertakings. The information available in the ERP system will provide the visibility of “key performance indicators” required in meeting the company’s objectives. ERP software and its applications can entirely be used in managing inventories, providing service to customers, tracking orders and interacting with dealers. It may also include modules for human resource and finance in all aspects of business. Typically, ERP uses an integrated database system.
No doubt enterprise resource planning is considered an important tool for smart companies. More businesses are competing nowadays. Therefore, it is critical that they streamline their processes and operations. However, ERP is not trusted as a cure to most problems that smart companies may face. A wide number of pros are linked to this technology and only those people who understand it will most likely achieve their goals.
Luckily, smart companies achieved a wide range of benefits upon using ERP software. It guides them towards reaching their goals. Their system architecture is put at the right place, that is why this technology has been introduced. Most of their business processes are streamlined as they entirely become a cohesive unit. As a result, smart companies now operate at a much higher level of productivity.
In fact, smart companies earn more profit upon using ERP software due to the quality of information. They took advantage of the ERP software that provides a greater level of information flow. Smart companies can easily transfer information starting from one place down to another. Once the information has been transferred efficiently and quickly, they can instantly act on a particular data. They effectively manage their own inventory apart from data quality and information flow.
Additionally, the most vital part in this technology is the elimination of costs. The favor runs to smart companies as they no longer incorporate the use of different software tools. Instead, they visibly run ERP systems that serve them in purpose. When the process has already been integrated, the costs involved in the transfer of information and maintenance become low.
The good news is that smart companies make use of their extra money in investing new marketing strategies or products. They can quickly adapt to periodic changes that occur in the market. Upon knowing the exact reasons why smart companies use ERP, why not use it as well to achieve competitiveness for your business?
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