6 Core Features of an ERP System

An enterprise resource planning (ERP) system is a critical element for the success of your business. It’s computer software managers use to plan and manage specific business functions from a centralized location. You can run a business without ERP software. However, having it in your business systems would be a fantastic idea. It helps streamline business operations to save time and money.

Therefore, if you want to build a successful business and remain on top of the competition, you need an ERP system. However, you must be careful in your ERP system selection process because not all systems in the market can best suit your company.

That said, here are some core features of an ERP system:

1. Integration

One of the essential features to look for in an ERP system is integration with other business tools. This refers to how well the selected ERP software can work with other installed applications.

Installing an ERP system that can’t integrate with other tools can harm the efficiency of your business. Besides, it can lead to increased costs. This is especially true when you decide to replace all other tools to accommodate the purchase of ERP software. Indeed, most ERP systems can easily integrate with other business tools, but some aren’t compatible. That’s why integration is an essential feature of any ERP software.

2. Scalability

Although ignored by most small business owners, scalability is an essential feature the right ERP system should have. This feature enables the system to accommodate a specific business in all stages of growth.

You might be managing a small company today, but your business will likely grow with hard work and taking the available opportunities. When that time comes, you might have a lot of challenges if you’re utilizing an unscalable ERP system.

Therefore, to ensure you run a successful company for the foreseeable future, it’d be a good idea to find scalable ERP software. It’ll support your small business today and even in the future when it expands.

3. Customer Relationship Management

Customers form an integral part of your business growth. These are people who bring in revenue in exchange for goods or services. In simple terms, customers allow your business to make sales. Your firm won’t grow without customers.

While that’s true, attracting customers isn’t always sunshine and rainbows because of the high competition in the market. And even when you win a few customers, retaining them becomes another big problem. That’s why the customer relationship management feature is a must-have in any ERP system.

Customer relationship management enables you to collect data on your target audiences. As a result, you can develop buyer personas to help provide customized services. This goes a long way towards allowing more customers to remain connected with your company. Before paying or installing any ERP system, confirm whether it has a customer relationship management feature.

4. Human Resources

Another essential feature of a sound ERP system is human resources. It provides a platform where you can manage all your workers. Besides, the human resources feature of the ERP system helps streamline your business recruitment and onboarding process. As a result, you’ll likely connect with the most suitable employees for your company.

5. Accounting

Accounting plays a critical role in running your business. It lets you track your income and expenditure. It also forms the basis of developing final business accounts like the balance sheet, income statement, cash flow statements, and statement of changes in equity.

While accounting is essential, you must produce accurate data. This might not be possible with manual processes. Manual accounting processes are prone to clerical errors. Besides, it may consume a lot of time. It, therefore, makes perfect sense to find an ERP system with the accounting feature. This helps automate all your accounting tasks to save time and money.

6. Marketing

You’ll likely find several other businesses like yours out there. There’s high competition for the available customers, so you may want to invest in marketing. Marketing is the practice of promoting your business to the target audiences. It helps increase the visibility of your business to connect with many customers.

That said, marketing isn’t as easy as it sounds since it requires dedication, time, and enough resources. And if you’re not careful, you might not get better returns from your marketing efforts. But you can streamline the process by finding ERP software with a marketing feature. It lets you simplify your promotional campaigns to connect with the right customers.

Takeaway

Having an ERP system is essential as having the business itself. It enhances the planning of activities and resources. However, you must find a tool with the essential features explained in this article.