3 Basic Functions of an ERP systems

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Whether you know it or not, you are already engaged in enterprise resource planning. Any time you look at how to get the most out of your software, your equipment, or your people, you are working with resources and trying to plan for their most effective application. ERP management software provides a powerful tool that helps you do this more efficiently. The software available can vary widely in usability and functionality, but you can expect any ERP system you use to perform a few basic functions.

1. Accounting Management

The earliest ERP platforms focused on accounting. While options and functions have expanded, managing your money will always be a core aspect of your enterprise resource planning. An effective ERP system will help you pull together your legacy and current accounting software so you can manage and track your numbers--both currently and over time. It also organizes information in ways that allow you to dive deeper into the data. You should look at the analytics available in any system you consider to ensure you can use it to get the information you need.

2. Human Resources Management

The best CEOs and business owners understand that an effective organization works for reasons that go beyond accounting spreadsheets. ERP software available today helps you use your company data to manage your employees more effectively. You can run payroll, track time, measure performance and efficiency, and examine a multitude of metrics to help you identify your strongest performers, reward success, and identify potential HR problems. You can also look at changes in performance over time to measure the value of leadership meetings and performance evaluations. By taking advantage of the human resources functionality, you can focus in on how to get the most out of the people on whom your success depends.

3. Customer Relationships Management

Finally, enterprise resource planning software helps you examine your customer relationships. You can place orders more quickly and track how promptly you fill those orders. Over time, you can also look at volumes for different customers to help your sales team focus efforts appropriately. Success depends on good customer relationships, so using your ERP system to track and develop those relationships gives you a powerful market edge.

Using ERP software to develop and focus your enterprise resource planning helps you manage your entire organization more effectively. Click below to learn how Custom IS can help you get started.


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