Efficient enterprise resource planning (ERP) should be one of the top priorities of all enterprises, regardless of size, industry, or type. Most businesses have effective tools like ERP software integrated into their enterprise tech stack to streamline overall operations.
Various ERP system vendors are available in the market with multiple features and tools that simplify and automate business processes. With so many cloud-based enterprise resource planning software; providers available in the market, it can be daunting for businesses to explore, evaluate and select the right ERP solution that meets their business goals.
Different vendors have different ERP features that help clients to streamline various aspects of their day-to-day approaches. Businesses must select and implement an industry-specific ERP tool to enhance the efficiency of their operations.
However, there are a few essential features that the enterprise resource planning tool needs to have to optimize its business processes and increase its productivity.
Also Read: Leveraging Cloud-Based Enterprise Resource Planning (ERP) to Future-Proof Business models
Following are 7 Must-Have Features of ERP software that businesses need to consider to accomplish their goals
Resources play a crucial role in every enterprise resource planning process, and business leaders need to have a strategic plan ready to make the most out of resources. Human resource management solutions should be one of the core features of an ERP system, so a centralized platform can be used to manage the end-to-end employee life cycle right from recruitment, onboarding, hiring, and payroll, to offboarding.
The best ERP solutions will have advanced HRM capabilities to automatically execute complex HR tasks such as tax deductions to save time and resources while overcoming challenges.
Enterprises with complex work processes can have Learning Management System capabilities to streamline employee development. Businesses that focus on workforce development have a higher retention rate.
Enterprises need to interact with multiple suppliers and vendors to procure raw materials and other essential components to manufacture finished goods for the end consumers. Supply chain management requires efficient planning that involves the procurement of raw materials and selecting the proper marketing channels to sell the finished product to the customers.
Managing supply chains is one of the most intricate, complex, and tedious tasks businesses must handle to accomplish their business goals. The success of supply chain management depends on the company’s ability to manage stocks in the inventory and restock them before replenishment.
Moreover, enterprises need accurate data to minimize the gap between supply and demand to reduce product wastage and shelf life. The ERP System must have supply chain management capabilities to overcome supply chain process inefficiencies. The top ERP software in the market will centralize the entire supply chain processes, from production and inventory management to transportation and distribution.
Businesses need a holistic view of their supply chain to ensure flexibility and cost-saving operational processes to get a competitive edge.
Data silos in any organization will result in inefficiency, lost opportunities, and gaps in different departments. One of the most significant reasons businesses need an ERP system is that they get a holistic view of their day-to-day business processes throughout the organization.
Businesses need multiple tools in their current IT infrastructure that streamlines the tasks for different departments. It is crucial for the ERP tool to seamlessly integrate with the other systems in the IT infrastructure to get a holistic view.
Hence, another core ERP feature businesses should look for is seamless integration with other systems on the business network.
As automation is the new normal, businesses must adopt this trend to get a competitive edge and reduce the team workload. ERP software offers businesses automation capabilities. Enterprises can evaluate the entire business operations to identify the opportunities that can be automated through an ERP solution and implement the right tool to reduce employee workload.
IT decision-makers should select the best enterprise resource planning system that automates order management, payroll, billing, financial reporting, and more. Integrating ERP solutions with the best automation tools will help increase the business ROI and deliver a top-notch customer experience.
Managing finances for the entire enterprise can be daunting because it includes financial management and ways organizations can optimize their expenditure to make the most out of their valuable assets.
CFOs need to monitor and utilize their financial data across all departments to make accurate business decisions to strengthen their cash flows and financial management processes. Essential features of the ERP system must have financial management capabilities to streamline the day-to-day operations of the finance teams by monitoring, evaluating, and reporting critical financial data.
Big enterprises need comprehensive ERP systems with sound financial management capabilities to optimize their cash flows throughout the organization.
Customers are at the core of every business success story. Enterprises need to maintain a healthy relationship with their clients to improve customer retention and deliver a better customer experience.
ERP software with built-in CRM capabilities will be able to gather customer data, analyze it and offer valuable customer insights. It is one of the most effective ways to centralize client data, like contacts, purchase order history, and other details to enhance the customer journey.
Hence one of the must-have ERP features is customer relationship management to improve the customer experience.
Also Read: Key ERP Trends Shaping Modern Businesses in 2023 & Beyond
Enterprise resource planning software with inbuilt CRM capabilities will benefit the presales, sales, and after-sales teams. These CRM features make it easier for the organization to seize more sales, upsell, and cross-sales opportunities.
Moreover, businesses with sales and marketing features in their ERP software can create purchase orders and quotes, make accurate demand forecasts and monitor every aspect of their profit margins and ratios.
These are the seven must-have ERP features that businesses need to have in their enterprise resource planning solution to make the most out of their implementation. Enterprises need to be vigilant about what ERP tools they integrate into their IT infrastructure.
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Nikhil Sonawane is a Tech Journalist with OnDot Media. He has 4+ years of technical expertise in drafting content strategies for Blockchain, Supply Chain Management, Artificial Intelligence, and IoT. His Commitment to ongoing learning and improvement helps him to deliver thought-provoking insights and analysis on complex technologies and tools that are revolutionizing modern enterprises. He brings his eye for editorial detail and keen sense of language skills to every article he writes. If he is not working, he will be found on treks, walking in forests, or swimming in the ocean.
