You may be wondering why you would use ERP or Enterprise Resource Planning Software. The reasons companies invest in this technology vary but reporting, productivity enhancements, and cost reduction are typically the main factors.
An ERP system is an integrated system that can manage both internal and external resources in a business, and enables interactions across multiple departments and locations tied into the accounting and reporting function. For example a company that runs an ERP system can have a customer service center in Dallas, a warehouse in Baltimore, and their main accounting office in Seattle.
An ERP system also automates business processes through standardization, which is meaningful for the entire organization. Information flows constantly and allows you to track the progress of inventory, shipments, service, and profitability in one place. With this level of company-wide integration you can move product faster, process orders quicker, invoice customers more rapidly, and get those financial statements to the boss on time. This overall improvement in business performance helps communication with all departments, improves interaction between staff, and helps everyone make better decisions for the business.