The right Enterprise Resource Planning (ERP) software is one of the best investments your business can make, allowing you to manage various tasks easily and efficiently. ERP solutions today are more complex and advanced than ever before. They’re packed with features, many of which might be completely unfamiliar to you.
To make matters more complicated, a lot of organizations forget to look at how their ERP application will interface with other applications, processes, and teams (and vice versa – I have a friend who is an accountant who says that they are always an afterthought). Doing anything in a vacuum, especially with something as critical as an ERP system, can have major upstream and downstream effects. Any decisions made on an ERP system should include stakeholders from all departments and LOBs.
To help you make the best choice when it comes to your ERP software and better understand the suite of tools these platforms come with, we’ve put together a list of the most important ERP features.
Let’s start with a quick reminder of why ERP software is so valuable.
Why Is ERP Software Important?
ERP software allows businesses to manage their resources and operations more efficiently.
It brings together various areas of the business like finance, data, and inventory in one place, allowing you to gain fast insights, collaborate across different functions and departments, and make better use of your data.
Must-Have Features in ERP Software
1. Automation
The best ERP software is capable of freeing up huge amounts of time while increasing accuracy and effectiveness, all thanks to automation.
AI and machine learning have been catapulted into the mainstream, but good ERP solutions have been using this technology for years. Automation features to look for include order processing, invoicing, data entry, and reporting. Machines often perform these time-consuming tasks more reliably than people, leaving your teams free to focus on uniquely human work.
2. Scalability
As your business grows, so will its needs around resources and the way those resources are used and organized.
This means it’s essential to choose an ERP tool that can scale with your business. Will your solution still be able to meet your needs in five years? If not, you face the expensive, time-consuming, and risky process of beginning your search for an ERP tool all over again. Your ERP should grow smoothly with your business and help you achieve and surpass your goals.
3. Financial Capabilities
Some of the most important functions of ERP software are related to finances. Your ERP should be capable of handling accounting tasks like payroll and invoices, as well as storing and analyzing key financial data like budgets and forecasts.
The ERP’s real strength here is bringing various aspects of the organization together, helping teams gain a centralized, holistic view of financial information that would otherwise be scattered across different departments and even different software platforms. When choosing an ERP, think about how it can integrate with your existing financial tools.
4. Customer Relationship Management Tools
Customers are central to the success of your business, and the way you manage and nurture your relationships with customers is critical.
Good ERP platforms come with built-in CRM (Customer Relationship Management) features, which gather useful data to provide valuable insights into who your customers are, their past interactions with you, their purchases, and much more. This allows you to build and maintain better relationships with your customers and deliver more rewarding experiences.
5. Inventory Management
Keeping track of the products you sell can be a monumental task, and the stakes are high. The right ERP software makes it possible to stay on top of where your goods are stored, how much of each item is in each location, and even the physical conditions of the storage unit like temperature.
An ERP can also help manage the logistics of your inventory — letting you know when goods need to be reordered and even automating those actions. As always, your ERP solution should take a holistic approach, ensuring your inventory data is available to other areas of the company like accounting and sales.
6. Strategy & Planning
Your ERP should be able to play a key role in the running of your business. By providing ongoing data-driven insights in a range of areas, an ERP tool allows you to make strategic decisions and understand the intricacies of your business on a broader and deeper level.
This has a ton of benefits. It allows you to make smarter, more informed choices, identify areas for concern quickly, communicate decisions to other areas of the company, and set clearer and more focused goals.
7. Managing People
Customers aren’t the only important people in your organization. Your own staff are the lifeblood of your company, and without the right set of talented individuals, you’ll struggle to achieve any goals at all.
The best ERP software comes with human resources features like the ability to manage hiring, onboarding, payroll, and tax reporting. It can also help you make strategic HR decisions by identifying hiring requirements, tracking the performance of current employees, and analyzing budgets and expenses.
Complement Your ERP Strategy with DYOPATH
ERP software works best as part of a well-functioning IT infrastructure protected by strong security features.
At DYOPATH, we can take care of many aspects of your IT, including building robust and reliable security processes to keep you safe in an increasingly risk-riddled world. This way, your ERP software can function at the highest levels for best results.
Schedule a demo with us to learn more.