A company cannot thrive — nor sustain its hard-earned growth — without a robust technological system underpinning its core infrastructure. Speed is today’s dominant currency. High-growth and mid-size companies must stand on the shoulder of an agile technology that keeps up with its changing business needs. This is where the ERP system shines.
With a market size expected to reach nearly $62 billion by 2025, the ERP system is making waves in industries of all kinds and its demand continues to soar globally. Research shows that 50% of companies are currently acquiring, upgrading, or planning to update their ERP system. This blog series attempts to shed light on what ERP is, how it came to be, how it works, and all the information you need to know to truly grasp the transformative power this tool can bring to your business. Let’s start off with explaining what an ERP system really is.
What is ERP?
ERP stands for Enterprise Resource Planning. It is business management software that unifies different processes, automates certain core business functions, and centralizes data into a single fluid system. It breaks barriers between key departments such as HR, Finance, manufacturing, and supply-chain management, allowing them to ‘talk with each other’ through a common system.
Imagine this: Your R&D has poured labor and capital into developing a new product. You have a sourcing agent working with a manufacturer in another country. Due to unforeseen circumstances, the manufacturer is unable to meet the production demand on schedule. Unaware of this delay, the supply chain coordinator continues to plan and monitor the product shipments and wonders why it isn’t delivered yet. Meanwhile, the customers are bombarding your business with calls asking why they haven’t received their order.
Here’s what happened: Key departments in your business didn’t have access to your sourcing agents’ data, preventing them from learning about the delay. The sourcing agent had to manually respond to each email to notify them of the postponement, which added to the follow-up time. They also had to manually inform the accounting team about the smaller profit margin at the last minute, since production delays spiked the product price.
While scenarios like these are inevitable, ERP systems can significantly shrink the extent of delays and other repercussions. It facilitates inter-department collaboration and transparency. This means the supply chain coordinator becomes aware of the shipment delay ASAP and adjusts production planning accordingly. It means the sales department can trigger an email to all customers notifying them of the delivery delay. Your accounting team’s reporting will also automatically reflect the price increase.
Enterprise Resource Planning systems augment transparency in workflows. Its automation and integration features eliminate the need to maintain separate spreadsheets and databases or manually merge them to build reports. And, it provides the workforce with deep visibility into every facet of an organization; encouraging smarter, data-driven decisions.
Ever since its creation, ERP software has been dedicated to streamlining data and improving firmwide processes. To dive deeper into the world of Enterprise Resource Planning, we will continue this series with a breakdown of ERP’s evolution, the different types of ERP software, and the benefits provided. Be sure to follow us on social media to stay up to date with the newest releases.
Would you like to know if an ERP system is right for you and unlock the specific values it can bring to your business? Contact Us today to learn more. Let us help you get started on your ERP journey.
About 9Gauge, an E78 Partners Company
9Gauge will work with you to make sure you leverage your ERP system to its fullest potential. We conceive and build a solution for your business from the ground-up or optimize your existing system so your ROI is supercharged. Let us help you navigate these changes to ensure a seamless transition into growing your business and accelerating your vision. We look forward to using our technology and management expertise to help your business grow, pivot, and transition to new heights of success.
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About the Author
Ken Schatz, Director
As the Practice Director for 9Gauge Partners’ Technology Enabled Services-NetSuite Practice, Ken’s ultimate goal is ensuring the successful implementation of NetSuite to our clients. In this role, he is involved in everything from people management to delivery and sales enablement and is tasked with growing and maturing our industry-leading NetSuite team.