What Are Two of the Main Objectives of ERP?

A good ERP system helps companies manage core business functions, including inventory, manufacturing, supply chain management and customer relationship management. It streamlines and automates these processes to make operations more efficient and improve data accuracy. It also provides real-time visibility into all areas of the enterprise. This allows for faster, better decisions and easier scalability.

#1 Common Database

One of the primary objectives of erp is to centralize and streamline information across departments by using a common, centralized database. This eliminates the need for multiple databases that are controlled by different functional departments and allows all users to access real-time data from a single source.

#2 Visibility

Another big objective of erp is to provide everyone with visibility into processes and data that they may not control or oversee. This transparency can help teams work together more effectively and ensures that no one is missing important information that can affect their work or that of their colleagues.

#3 Data Analysis

An ERP system can take the data produced by all aspects of your business and combine it into insightful reports that can highlight problems, opportunities, and successes. These reports can serve as a roadmap for the future, helping you plan for growth and determine the best course of action to take.

#4 Reduced Operating Costs

ERP systems can automate tasks that were previously manual and time-consuming, freeing up team members to focus on “value-add” projects. These improved efficiencies not only help the company save money, but they can also improve productivity and increase employee satisfaction.

#5 Get the Product Mix Right

An important part of ERP is to use consumer insight and market research to understand what the public wants. This can help assure that your company is making the right products and in the right quantity to meet demand.

#6 Reshoring/Domestic Manufacturing

A lot of companies that shifted their manufacturing to China and India are now returning a portion of those programs because they’re finding that it can be more cost-effective to manufacture some products closer to home. This can also cut down on shipping costs and speed up the time it takes to bring a product to market.

One of the biggest challenges with implementing an ERP is getting people on board. If employees are resistant, it can slow down or even derail the implementation process. It’s important to find a solution that meets the needs of all groups, and that offers training and other resources to help ease the transition. It’s also important to recognize that an ERP system won’t solve all problems or eliminate all inefficiencies; if you have old, error-prone processes and policies that are holding you back, it will still be up to you to change those. However, an ERP system can expose these issues and create the opportunity to rethink your processes and workflows for the better. The key is to have a well-defined plan and implement it correctly. Otherwise, your ERP can be a costly liability instead of an asset.