What is Enterprise Resource Planning (ERP)?

What is Enterprise Resource Planning (ERP)?

By: Appficiency Team

Published: August 7, 2024

Introduction: What is Enterprise Resource Planning (ERP)?

To sum it up,  Enterprise Resource Planning, better known as ERP,  refers to a type of software that businesses use to help them with their daily tasks including accounting, project management, procurement, supply chain operations, among other functions. A thorough and robust ERP system, such as NetSuite, is also composed of enterprise performance management software, that helps businesses plan, budget, predict, and report on a company’s financial performance. 

When companies choose to have an ERP platform in place, they often see an increase in productivity, business insights, and employee collaboration, while at the same time improving their Customer Relationship Management (CRM).

Why You Need a Enterprise Resource Planning System

Scalability and Efficiency

The NetSuite ERP platform bridges gaps between systems in your company’s tech ecosystem, and creates crucial highways between your processes and data. In short, they make all functions in a company “speak”, and seamlessly interact with each other.  The NetSuite platform is scalable, meaning that it will expand and grow with the changing tides of your business, and evolve with your growth.

Potential Adoption Issues

However, it’s crucial to note, if your ERP system is not optimized properly, or your staff is not trained on how to use it accurately, your system will not magically eliminate pressing issues within your organization.  Best practices and strong user-adoption rates are key to reaping the benefits of the platform. Appficiency provides  extended NetSuite expertise with our Premier Support and Services program for your platform adoption and aftercare that keeps your organization on track, and provides you with guidance on how to scale with your changing business needs.

Let’s take a look at some of the primary gains of integrating an ERP system into your business:

Key Benefits of Integration NetSuite ERP

Increased Productivity

Automation is at the heart of the NetSuite ERP platform, reducing the reliance on manual employee data input into excel sheets, or other error-prone redundant tasks. NetSuite in particular draws on a number of built in tools that provide your company with an automated system, creating real-time reports and harvesting intel that can help leadership make accurate business decisions, and plan effective strategies for the now, and for the future. While automating your processes, your organization can reroute paperwork, manage workflows, and monitor production and delivery of goods and services all within a few clicks. To further capitalize on this, Appficiency can give your business an added competitive advantage by leveling up your NetSuite primary system with best-in-class solutions taking you even further with your business goals.

Insight And Transparency

NetSuite ERP provides your business with transparency into processes by tracking all aspects of production, logistics, and financials. In addition, the centralized NetSuite dashboard provides users with data that is interpreted in charts, graphs, and metrics that maps everything from profit to costs, as well as project management, all of which are based on real-time data.

A great example of this is for general contractors and self performers that work within the construction industry who are often inundated with multiple items and tasks that need to be tracked, addressed, and monitored. For instance, from precon to project closeout, the laundry list may include the tracking of materials costs, progress billing, manufacturing, regulating compliance, production progress, logistical strategies, and the monitoring of vital financials. Appficiency’s Job Costing (JC) solution works in tandem with the NetSuite platform, and allows for transparency  into some of the more industry-specific applications mentioned above.

Better Employee Collaboration

When it comes to the merits of implementing NetSuite into your organization work processes, the impact on the employee experiences cannot be denied. The quality and distribution of goods and services is dependent on great work from employees that work cohesively and smoothly with one another. While NetSuite unquestionably empowers your business processes, it also has a ripple effect on increased collaboration between your employees. By boosting user-engagement, eliminating redundant and repetitive tasks, and creating a space where employees can interact globally via the cloud on a central system, the importance of teamwork becomes one of your greatest assets.

Improved Customer Relationship Management (CRM)

While taking everything mentioned into consideration, Customer Relationship Management (CRM) plays a fundamental role when moving from outdated legacy systems onto the NetSuite platform. With this move, NetSuite gives your teams comprehensive insight into your customer’s activity, by tracking all interactions – from emails to phone calls, orders, invoicing, payment receipts, and feedback. Appficiency can even further that by building made-to-order interoperability between your most used 3rd party vendors, (ie Amazon, Shopify, Ebay, etc) to track and manage purchase orders with custom integrations into your NetSuite system.

By aligning with your customer interactions and company communications on one dashboard, stakeholders have immediate insight to the customer journey, and in turn create unique opportunities to improve services and target communications.

The Future Of Your Business With NetSuite And Appficiency

Summary

The success of a business is reliant on a multitude of things, and having an ERP platform like NetSuite in place is only one piece of the puzzle.  

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