Enterprise resource planning (ERP) is an advanced software platform in which companies of all sizes operate to automate different business functions. These include production, sales, purchase, inventory management, finance, accounting, logistics, payroll, and human resources. This software system has a central hub from which these companies can streamline workflow and data processing across different departments. Even the managers responsible for these departments can share information with the owners and top managerial personnel when the need arises.
An overview of ERP Integration
ERP integration is the process of connecting and synchronizing an ERP platform to other software applications within the companies’ IT infrastructure. These generally include the e-commerce storefront, customer relationship management system, electronic data interchange platform, and other important business applications. ERP integration ensures proper automation of workflow between the front-end and back-office functions of these companies. This allows owners of businesses to monitor the flow of data from the initial to the final stages of processing customers’ orders.
How does ERP integration benefit companies in the long-run?
Industry experts say all companies want to achieve their overall organizational goals and increase their bottom-line profits. Taking the necessary steps towards implementing ERP integration can help these businesses to attain these objectives. In doing so, companies enjoy the following three benefits as well-
- A centralized hub for processing data
Enterprise resource planning integration allows companies to maintain a single accessible location for processing data relating to their business operations. This helps in streamlining workflow and improving internal efficiency. Employees of one department do not have to wait for their colleagues in other departments to provide the necessary information. When a sale is made, all the relevant details of the transaction will be on the central hub of the ERP platform, saving a lot of time for the business.
- Facilitates accurate market predictions and implement strategies
Companies can obtain accurate information on their customers’ purchasing habits by integrating their ERP platform with other software systems. This helps businesses determine which of their brand products have a high demand in the market. The companies also get to know which products they need to phase out over time. On the basis of this information, they can implement suitable marketing strategies that can boost sales revenue.
- Reduction in human error
Most companies acknowledge that manually entering data from one software system to another can be a laborious task for their employees. As a result, they are bound to make errors and even duplicate existing entries. Rectifying these mistakes can be a time-consuming and expensive process. Fortunately, these businesses do not face these problems when they opt for ERP integration. In this case, the employees record entries into one software system.
ERP integration can help companies to significantly improve the internal efficiency of their business operations. These businesses are able to process data relating to their commercial activities from a single accessible location. This reduces the possibility of inadvertent human mistakes and duplication of existing records. Moreover, the companies are in a position to make accurate market predictions on the basis of information in the ERP software platform. They can even implement suitable strategies to provide better services to their customers.