Is ERP software solution the great source of business growth?

Enterprise Resource Planning (ERP) systems long since established their strength of enhancing business growth. ERP software solutions empower organizations to gain access to real-time information and facilitate the power of managerial decision making. An extremely significant enterprise application system, ERP streamlines all disparate business functions into one consolidated whole and tracks information flows among departments.

The need for a new ERP implementation or replacement for most existing businesses starts at the root of their operational intricacies like high inventory costs, shortcomings of the existing system, inability to reign over competitors, and so on. Most business processes thus have to be reengineered to be properly defined in the ERP system. This is one reason why ERP system companies are so popular. They are changing the way enterprises conduct themselves. By offering highly customized software, these ERP-dedicated companies offer tailor-made solutions to meet organizational challenges mentioned above and take businesses toward the success path of increased productivity and success.

To put a validating stamp on the effectiveness of an ERP software solution, one must consider the following advantages it offers.

1. ERP stores, controls, retrieves and distributes information across functional processes and helps break down information barriers that hamper the coordination among departments such as production, materials, planning, engineering, finance and sales/marketing. By using ERP software solutions, organizations achieve high quality results, productive returns on investment, lowered costs, client satisfaction and marketing gains.
2. Many companies find it hard to keep up with the rapidly transforming business processes and their internet-based capabilities. They often feel that their existing ERP system is not enough. Modern day ERP technologies are built for a web-enabled world with vast competencies for e-commerce. These help companies to collaborate better
   
   with their external partners, stakeholders, investors, and customers.
3. Most companies see reduced inventory costs as one of the biggest pros of an ERP system. Many companies actually achieve the savings that they foresee at the planning stage. This
   is in fact made possible with good implementation efforts and a dedicated focus on procedures that create inventory cutbacks without creating supply shortages.
4. Companies no longer require maintaining department-specific ERP systems. Technological ERP provide process transparencies thereby creating complete information visibility for sen
   ior management. There is a coherent and smooth transition of workflow among departmental functions. Turnaround time for completion of important tasks increases signifnt=uicantly.
5. Since ERP software creates a
   centralized repository of valuable business data, automatic storage and retrieval becomes easier. Also, these systems nt=uare more secure as common organizational po
   licies can be applied to them making it possible to keep a transactional check on the activities.
6. ERP for distribution management also proves extremely beneficial as all post-production activities can be tracked and monitored thus ensuring that the demands of end consumers are being tim
   ely met.
   

It is not an unknown fact that almost all ERP technologies are expensive due to their high costs of planning, customization, technical configurations, testing and implementation. Therefore, it is important for businesses to realize that active user participation will prove useful only with extensive trainings and knowledge-based seminars. Once an effective user-interface is established, there is no looking back.