Today, with the
advancement in science and technology, when all the businesses are looking for
expansion, ERP is in major demand and is gaining importance due to its multiple
abilities to deal with complex problems and provide solutions at one go.
Reduced cost is inversely proportional to the revenue and the profitability of
a firm. Tasks become tedious and time consuming if performed daily. Cloud based
ERP systems can be used to access information, automate the tasks, can make use
of a subscription model that can divide the cost into small chunks, can provide
a single database and thus can give a holistic view of the business operations
at any time to the employees.
Many companies are gaining a competitive advantage with the
implementation of ERP systems. The top 3 ERP vendors include SAP, Oracle and
Rain’ – a beverage distributor is expanding and generating a double digit
growth with its ERP Solution – Microsoft Dynamics NAV and has the entire
company information in a single system rather than in multiple spreadsheets.
‘Colgate Palmolive’ has adopted SAP ERP system and has
implemented various modules such as supply chain management, human resource
management, order processing, and production management and employee
Chrysler’ has adopted SAP ERP products and has taken care of finance,
manufacturing and logistics management.
Air Company (Fed Express)’ is using Oracle ERP for electronic procurement,
spending report and other activities. It has also used PeopleSoft asset
runs on SAP and is now providing SAP Cloud based services (IaaS, PaaS) bridging
from the SAP core technologies to the cloud.
and ‘GE’ run on Oracle Apps and have implemented various SCM, CRM and Finance
modules and are now moving towards cloud.
All these competitors have gained huge advantage and have
seen rapid growth after engaging with ERP systems and in order to survive and
grow in this highly competitive environment, it has become a necessity to
include ERP in the business.
The growth of a business depends on all the segments and not
just one, be it sales, operations, inventory, marketing, human resources,
finance or IT. Managing each and every segment separately becomes a tough task
and lacks synchronization which leads to inconsistency. A system is needed
which can integrate all of these into one and can prove out to be advantageous
for the employees as well as for the business. Employees will have access to
the up-to-date information, can alter or correct inconsistent data, can help
customer solve their queries, automate various repeating tasks, can ease down
the accounting and financial reporting. Cost reduction will happen by the use
of a single software instead of using different softwares for different
purposes. Also there will be an increase in the sales along with a positive
customer experience. High performance will lead to high productivity which in
turn will help the business to grow.