An Enterprise Resources Planning (ERP) system takes care of the essential business operations required to run an organization. This includes finance, human resources, production, supply-chain management, services, sales, etc. ERP is also called an organization’s ‘record system’ since it helps manage tasks efficiently in a centralized system. Although different industries have different requirements, all industries need ERP to streamline their operations.
Why Does Your Industry Need ERP?
An ERP software system offers the automation, synchronization, and expertise necessary to conduct day-to-day corporate operations effectively. It houses the vast majority of industry data, and serves as a reliable source of information for companies.
Different departments of an organization need an ERP system for different purposes. Finance needs ERP to manage accounts, while sales requires it to manage customer orders efficiently. Logistics heavily relies on good ERP software to provide the necessary services and products to clients on time. A company’s management evaluates and analyzes performance metrics quickly with an ERP to make timely choices.
Banks and shareholders depend heavily on an ERP system’s credible information and analysis because they need almost perfect financial records.
According to a research study published on IGI Global, ERP systems provide numerous operational, managerial, and institutional benefits. This includes everything from cost minimization and shorter cycle times to better supply management and automation of work processes. ERP systems also provide bonuses such as greater employee satisfaction and a more robust business image.
An Americas Conference on Information Systems report states that ERP Implementation has a profound effect on an organization functions and the manner in which it affects its employees. ERP implementation success is found in modifying the organizational culture.
Which Industries Need ERP?
Industries across every sector require precise, real-time data and efficient business workflows to stay competitive and prosper in their respective industries. There are a variety of reasons why different industries need ERP. Here are some examples of what kind of businesses benefit the most from ERPs.
- ERP software helps manufacturers in numerous ways. Different departments within a company can coordinate among employees easily with the help of a cloud-based ERP.
- This helps to speed up the processes of each department. ERP software can identify the most financially-viable products so companies can manage their manufacturing processes accordingly and introduce innovations in some of their products.
Food and Beverage
- Manufacturers of food and beverages need to have an ERP system to produce quality, industry-compliant products. This can help them improve their product accounting, supply chain management, and production control.
- Food industries need ERP to match growing complexities of the food and beverage industry and the pressures of innovation. An ERP system provides quality assurance, insightful stock management, regulatory adherence, and traceability.
Healthcare Industry Needs ERP
- Hospitals and clinics can get extremely busy, so it is challenging for employees to provide high-quality patient care while also managing back-office duties. To solve this problem, the staff can concentrate on patient monitoring and treatment using ERP software to reduce the time and effort required for data collection and organization.
- Already, hospital ERP adoption is at 38% and it is continuously growing
- In addition to working on construction projects, building companies must also handle various administrative tasks to keep their workflow smooth and neat. They, therefore, require multipurpose software such as enterprise resource planning systems.
- Alongside financial reporting and service management, these can help with construction management. ERP systems enable them to invest more time in their projects by reducing the time and resources spent on clerical duties.
- Automotive industries need ERP to integrate supply chain processes, track projects, and implement designs while keeping costs low with the help of an accurate system.
- Each vehicle in the automotive industry is made from different parts with numerous types and unique roles, making the entire production process so complex.
- Because of this, ERP systems are very beneficial to the automotive industry. Since this industry has a global reach, ERP systems can help maintain information centralization and streamline international operations.
Other Industries that heavily employ ERP systems are distribution, Professional, Services, Construction, Industrial Services, Transport & Logistics, and Hospitality.
Why Do Industries Need ERP Customization?
Undoubtedly, ERP systems have become integral to almost every primary industry and have helped them streamline their operations more quickly and efficiently. According to a survey, ERP helped process management in all businesses by improving key business processes by 48.6%.
However, each sector has its own unique set of needs and demands, which is why industries need ERP system customization. If you can implement the right ERP system in your company, no matter what industry you belong to, the rewards can be everlasting!
Today’s business landscape is becoming increasingly fast-paced, making it challenging for businesses to keep up with emerging competitors. Employing ERP systems for your company can significantly improve your business operations and become more efficient in meeting your corporate goals.
You now know why all industries need ERP system is, but you must identify one that matches your company’s business model. If you’d like to discover more about how these systems work and why you need them, read our article on ‘7 reasons why organizations should invest in ERP systems’. This should provide you with more profound knowledge about the various capabilities of ERP platforms
DEHA vietnam JSC is an industry leader in utilizing Odoo and other ERP software. We have worked with a diverse group of companies from various industries over the years. Register for a free consultation to learn how DEHA can help you integrate your sales, operations, and accounting systems into a single, powerful, and user-friendly enterprise resource planning (ERP) system.