Enterprise resource planning (ERP) is a management software system that allows your building product and commercial equipment supply company to quickly and easily manage everyday, back-office tasks. From human resource functions to technology services and more, ERPs benefit everything from enterprise operations to small, family-run construction companies.
However, understanding the ins and outs of ERP software can often be confusing. But with answers to these common ERP questions, you can learn the basics of implementing and utilizing a system that will help make your company run as smooth and efficient as possible.
What exactly is ERP? ERP is a high-tech software system that assists in managing the key factors and functions necessary to run a successful business. For division 8 and 10 distributors and specialty equipment suppliers, ERP can keep tabs on shipments, access employee information, process payrolls, track inventory, manage delivery and maintenance scheduling, and much more.
How Does An ERP Work?
ERP systems are typically configured with a relational database, or a collection of data items that are organized as a set tables, charts, and graphs. This relational database collects information on all of your business transactions and automatically organizes the data in a way that allows you to quickly access what you need.
Why Should I Use An ERP?
Though ERP can ultimately benefit almost any and every business, most of the companies that adopt ERP software are looking to reach performance or financial goals. Since ERP functionality is practically limitless, you can adopt a module for every aspect of your company that produces and utilizes business data.
What Are The Benefits Of ERP Systems?
Because ERP is so versatile, it offers several beneficial functions that help you run a better business. Some of the leading benefits include:
– Real-time Visibility: ERP provides real-time information on everything from the availability of resources, to progress on orders and builds, and much more. This function gives your business the power to be agile, letting you respond quickly to any challenges or setbacks that could stand in the way of reaching your goals.
– Interconnectivity: ERP systems can also connect and share real-time data with third-parties, such as contractors, partners, and others involved in the project.
– Security: Even with interconnectivity capabilities, ERP comes with the best protection possible such as firewalls, virus scanners, spam control, and backup systems. This prevents any of your company’s valuable information from landing in the wrong hands.
How Long Does It Take To Implement An ERP System?
Gathering all of your company’s data and configuring it into the system takes time. And while each ERP software system varies, most ERP solution companies guarantee a three-to-five month implementation process before your company can go-live and start utilizing and benefiting from the system.
How Do I Get An ERP System Installed?
Traditional ERP software packages are commonly in-house systems that require a substantial amount of work for both IT professionals and servers. However, with more ERP customers not wanting to burden their IT departments or hassle with installing an in-house system, vendors have developed popular alternatives that make implementing an ERP system hassle-free.
Software as a Service, or cloud ERP, gives you access to on-demand technology that’s hosted and maintained by an outside provider. This option is ideal for small or mid sized companies that might not have the IT resources to provide a stable platform for an in-house system. Because it is a service, you’ll also have access to helpdesks that provide maintenance, technical and support for the software.
Another option is to use a single in-house system called a two-tier ERP. With this model, you’ll use one large ERP implementation that covers the whole company and a smaller ERP implementation that caters to the individuals needs of different departments within your company. This installation option is recommended for large companies that have several divisions, branches, or locations.
Will The ERP System Still Work If The Company Grows?
ERP is scaleable, meaning there is no limit to the number of users you can add as your company grows. As you add more users, however, you’ll likely have to purchase more user licenses in order for your growing number of users can all log-on to the system at the same time. These licenses can be purchased at any time.
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To learn more about whether ContractERP is right for your business, contact us today.