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Benefits of Enterprise Resource Planning

With the growth of the business comes the need to establish and expand different arms of an organization. With further operations in each aspect of the business, multiple arms of the business may be too difficult to keep track of without digital means.

By including the use of computers and electronic devices, companies have been able to expand their activities to greater heights. The use of software also can not be overemphasized. Softwares like spreadsheet packages or calculation-based programs can also be used to fast-track company activities.

One of the most cost-effective and resourceful ways to ensure the growth of a company would be by the use of Enterprise Resource Planning software. An Enterprise Resource Planning software or ERP is computer software that integrates information from every aspect of a company’s activities onto a single place to provide information and resources for organizational-wide use. It is used to manage time, human resources, costs, and much more.

Acting over a network set up by the company, an ERP software serves as the go-to software when it comes to getting information on the activities of a department within the company. For example, if the marketing team wishes to get information on the target audience or feedback, they can find such information on the ERP software.

The Benefit of Investing in an ERP

When a small company or even a multinational organization acquires an Enterprise resource planning software or program, there are multiple benefits they stand to enjoy. Although with different companies comes the different benefits they wish to achieve. Below is a general list of the beneficial aspects of using an ERP.

Greater Communication

Organizations have multiple branches and within those branches, there are different departments. By using ERP software or tools, information concerning operational activities can be sent almost immediately. This information is sent in real-time and can improve decision-making.

Improved Operational Efficiency

ERPs work by storing information in a centralized software so that everyone within the organization can obtain information from it. This information is updated in real-time and this means everyone has access to correct information. This greatly improves the operations of each department within the company. Departments that rely on each other to function can work better. It also reduces confusion and misunderstanding amongst department members.

Reduced Cost

ERPs also help to reduce costs before, during, and after productions. Pre-production activities like ordering raw materials or acquiring feedback from customers are made easier to handle and process. With access to the right information, managers and stakeholders can make correct decisions that can save the company money and time. Also, armed with the right information, advertising to the right audience can be done with fewer expenses.

Customizable System

One problem people usually have is that they believe ERPs are rigid and are made for one specific type of company. However, the truth is that ERP software is flexible enough to accommodate almost all types of business operations. It is also believed to be for only large organizations but in truth, it fits perfectly into the operations of Small and Medium Enterprises.

Understanding the 2-Tier ERP

Enterprise Resource Planning tools and software have proven to be highly useful in carrying out company activities smoothly. While many companies are used to just one software that gets the job done, there is another type of Enterprise resource planning software that appears to be better.

The 2-tier ERP software comprises two arms with varying levels of customizations. These two tiers serve different individuals. These are:

Tier 1: This is made to assist big organizations. It serves to meet the needs, sophistication, and scale of said companies. It is also highly customizable.

Tier 2: These are less customizable and less resource-intensive. They are more standardized and serve partners or subsidiaries of the company.

These 2 tier ERP software tend to do more than operate within and for the organization. With both a company and its partners having a means of exchanging information freely, business transactions can be done in record time. Gathering information from subsidiaries under the company is achieved in a greater capacity and better decisions are made that would favor everyone.

ERP Software Providers

There are many companies out there that provide ERP software. Although 2 tier ERPs are not common, you can get a reliable Two tier ERP strategy from Be One Solutions.

Conclusion

Be One Solutions is currently at the forefront of the global rollout of 2 tier Enterprise resource planning tools. They are specialized in harmonizing separate systems across different subsidiaries into one effective, working network.

A post by Kidal D. (5482 Posts)

Kidal D. is author at LeraBlog. The author's views are entirely their own and may not reflect the views and opinions of LeraBlog staff.

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