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The key to building great business

“Your business may have simply outgrown its existing software, or as the business grows you may have more employees working across a range of different areas and departments.”

ERP enables growing businesses to re-focus, automate processes and reduce costs

Enterprise resource planning (ERP) solutions are software products developed to improve and automate the flow of data between frontline departments and critical back-office functions.

The Gartner Group first started using the ‘ERP’ acronym for systems that were being developed out of manufacturing planning modules and by the mid-1990s ERP systems included modules for financing, distribution, accounting, inventory management, sales, marketing, planning and human resources. The ERP concept is arguably still not that well understood, but definitely well worth getting to know. ERP can be a valuable tool for many different kinds of businesses, enabling them to improve their processes and make company operations much more efficient.

Who should use ERP?

Your business may have simply outgrown its existing software, or as the business grows you may have more employees working across a range of different areas and departments. Despite your best efforts, your business is starting to become fragmented and inefficient. At this point you need to re-assess your business processes and how your departments interact with one another to maximise efficiency and streamline your operation in today’s highly competitive market-place. If this sounds familiar, then an ERP solution could be just what you’re looking for. 

What are the benefits of the ERP system?

An ERP solution allows companies to streamline many of the important day-to-day tasks across the entire business, freeing up staff to focus on initiatives that require more personalised attention. This not only boosts productivity but can dramatically reduce operating and overhead expenses. Another major benefit of ERP software is that it allows for the generation of business specific reports, especially true of MySQL based solutions which enable data extraction and report creation in almost any format. Most importantly, an ERP solution makes it easier for employees at all levels, from front line staff to senior managers, to assess company performance and understand their impact on it. 

Which ERP system is best for my business?

As ERP solution vendors begin to focus their efforts on small and mid-market businesses, more and more companies are starting to implement ERP solutions, reaping significant benefits from doing so.

The chosen system should be easy to use by all staff on all levels and care should be taken to assess future support costs and the cost of customising to suit specific business needs.

Directors should further assess future growth of their business and ensure that adding additional modules won’t cost a fortune, as the end goal of implementing an ERP solution is to save money and increase profitability.

A well-priced full business management suite is therefore of high value and more cost- effective in the long term.

Authors: Simon Clive and Paul ras are both Directors at True ERP SA.