Parsimony - 20 ERP Use Cases to Consider Before Buying
February 18, 2023
We'll look at 20 ERP use cases that you should consider before investing in an ERP system.
Are you thinking of purchasing an ERP system? Before you do, it's essential to consider the various use cases and scenarios that the system will impact.
With careful consideration of these use cases, you can be sure that you are making an informed decision when selecting your ERP system. Read on to learn more about the top 20 ERP use cases before buying an ERP system.
By the end of this post, you should be able to make an informed decision about which ERP system is right for your business.
What is an ERP System?
An Enterprise Resource Planning (ERP) system is a business solution that integrates multiple functions across an organization. An ERP system helps automate and streamline many tasks associated with running a business.
It's a unified platform that can be customized to fit the needs of any organization, providing real-time insights into operational performance and process optimization.
An ERP system allows businesses to quickly track and analyze data for better decision-making. The result is improved efficiency and productivity, cost savings, and better customer service.
ERP Use Cases to Consider Before Buying an ERP System
When you're in the market for a new ERP system, it's essential to consider how it will fit into your current business operations. You'll want to ensure that the system's features and capabilities align with your needs and can effectively scale as your business grows.
To help you make an informed decision, here are 20 ERP use cases to consider before buying an ERP system.
Manufacturing is one of the most important aspects of running a successful business, and an ERP system can help streamline the process. An ERP system can help you manage your production line, including tracking orders, costs, resources, and materials. It can also provide visibility into the production status, helping you identify areas of improvement or inefficiency.
You can even use the ERP system to plan for future production by forecasting orders and materials. With an ERP system, you can easily keep track of all the components and processes of your manufacturing operations.
2) Inventory Management
Inventory management is one of the most critical use cases to consider when evaluating ERP systems. An ERP system should be able to track inventory levels in real time, allowing adjustments as needed. Additionally, the system should be able to provide accurate forecasts and order quantities based on current inventory levels, sales trends, and other factors.
ERP systems should also be able to provide access to multiple warehouses and vendors, allowing for the optimized supply chain management. Finally, integrating with third-party shipping providers is an essential aspect of inventory management, as it helps ensure that orders are shipped accurately and promptly.
When considering ERP use cases, finance is one of the most critical components to consider. An ERP system should provide the ability to track budgeting, accounting, and financial reporting. It should also offer features that help you manage cash flow, accounts payable, and accounts receivable. It is essential for companies with multiple departments and multiple currencies.
By leveraging an ERP system, you can ensure that your finances are tracked accurately and consistently across all departments. Additionally, you can simplify compliance reporting and take advantage of automated billing and invoice generation processes. With a powerful finance system, you can increase efficiency, reduce manual errors, and get better visibility into your financial performance.
When selecting an ERP system, it is essential to consider the sales use case. Many ERP systems provide features that allow organizations to manage their sales activities efficiently. These features may include order management, customer data and analytics tracking, inventory management, and more.
Additionally, an ERP system can help you streamline your sales operations by providing automated order entry and fulfillment processes. It can improve customer service and increase efficiency throughout your organization.
By using an ERP system, you can access up-to-date data on customer orders and track their progress in real-time. It helps ensure that customer orders are fulfilled accurately and on time.
An ERP system can be a powerful tool for marketing departments, allowing them to streamline their workflow, target campaigns more effectively, and analyze the results of their campaigns. A good ERP system should allow for easy integration with external marketing platforms, such as Google Ads or social media platforms.
It allows users to synchronize their campaigns across multiple platforms and manage them in one central location. Additionally, an ERP system should provide tools for tracking customer behavior, segmenting audiences, and measuring the success of campaigns.
This data can help marketers better understand their customers and refine their strategies. With an ERP system, marketing teams can also automate their campaigns, freeing up time and resources that can be used elsewhere.
6) Customer Relationship Management
When choosing an ERP system, it is essential to consider how it can help with customer relationship management (CRM). An effective CRM system allows companies to track customer interactions and identify potential growth opportunities. It can also provide insights into customer preferences and help companies tailor marketing campaigns accordingly.
The ERP system should be able to store customer data and provide a centralized platform to manage customer interactions. It could include tracking sales leads, managing customer inquiries, and analyzing customer feedback. Additionally, the ERP system should provide access to reports that can help businesses better understand their customers and identify areas of improvement.
With an ERP system, businesses can improve their customer service and ensure that all customer interactions are handled efficiently. It can help them build stronger customer relationships and lead to more sales.
7) Human Resources
When considering an ERP system, it's essential to consider the Human Resources (HR) use cases. Depending on the size and scope of your organization, there may be different HR needs that need to be met. An ERP system can streamline recruitment, onboarding, performance management, and training and development processes. It can also make tracking employee data more accessible and more efficient.
Using an ERP system, you can gain insight into employee turnover, potential areas for improvement, and employee engagement. With the ability to track and manage employee data, you can better understand your organization's human capital and make more informed decisions about resource allocation.
8) Project Management
Project management is essential to any enterprise resource planning (ERP) system. It enables companies to manage large, complex projects effectively and efficiently by tracking progress and resources. In an ERP system, project management features can provide visibility into budgets, timelines, and task completion. With a central platform for managing projects, teams can keep up to date on project progress and quickly identify areas that need attention.
Project management features in an ERP system can provide insight into project progress regarding tasks completed, budgets, and deadlines. This information can help teams prioritize activities and quickly identify areas that need improvement. Additionally, project management features in an ERP system can provide insights into resource allocation, enabling teams to make the best use of their resources.
With the right ERP system, teams can easily collaborate on projects with real-time updates and access to project documentation. It makes it easy for teams to stay on top of changes and quickly address issues. Additionally, reports generated by an ERP system’s project management module can help managers understand how projects are progressing and where they might need additional resources or guidance.
When considering an ERP system, it is crucial to ensure that it offers project management features tailored to your organization’s specific needs.
9) Document Management
Document management is one of the essential ERP use cases to consider when choosing an ERP system. Document management helps to streamline processes and provide visibility into the different documents associated with a company’s operations. It includes customer contracts, order forms, invoices, shipping documents, and more. A practical document management system allows organizations to access the information they need at any time quickly.
Document management also helps to improve compliance with legal requirements. Organizations can ensure that all documents are up-to-date and readily available for audit by having a system for document storage and retrieval. Additionally, many ERP systems offer advanced features for document management, such as automated document creation, approval workflows, and even collaboration tools. It makes it easy for teams to work together on documents from anywhere.
Choosing an ERP system with a robust document management system is essential for organizations that manage multiple documents and comply with legal requirements. It can also help organizations save time and money by providing an efficient way to store, access, and share documents.
10) Supply Chain Management
Supply chain management (SCM) is integral to any ERP system. An ERP system that includes supply chain management will be able to track the entire life cycle of a product, from production to distribution. It can also provide visibility into the processes and resources needed for each supply chain step. It can be invaluable for streamlining operations, optimizing inventory levels, and ensuring customer satisfaction.
An ERP system with supply chain management capabilities should include features such as order processing and tracking, supplier management, procurement and inventory control, warehouse management, and analytics. Automating these processes through an ERP system can significantly improve efficiency and reduce costs.
When considering an ERP system for your business, it’s essential to ensure that it offers the necessary features to manage the supply chain process effectively. An ERP system that includes supply chain management capabilities can help your business be more efficient and cost-effective while providing better customer service.
Regarding ERP, reporting is one of the most critical aspects. An effective reporting system can give businesses a bird's eye view of their operations, so they can make better decisions and manage their resources more effectively.
The right ERP system can enable businesses to track key performance metrics such as sales numbers, customer retention rates, and other critical KPIs in real-time. These metrics can be used to inform business decisions or to see how well the company is doing. With an ERP system, businesses can create custom reports tailored to their specific needs, giving them an accurate view of their business performance.
When evaluating ERP systems, it’s essential to consider what kind of reporting features they have. Look for systems with robust reporting capabilities and customize the reports to meet your specific needs.
12) Data Analytics
Regarding enterprise resource planning (ERP), data analytics is crucial. Companies of all sizes rely on data to make informed decisions and to better understand their markets. An ERP system allows organizations to access a central database with structured and unstructured data from various sources. It will enable a deeper dive into customer behavior, performance metrics, and cost savings opportunities.
An ERP system can help you track and analyze your data in real time. You can take advantage of features such as predictive analytics, which uses machine learning algorithms to forecast outcomes, and advanced reporting capabilities that allow you to slice and dice data in various ways. Additionally, you can create dashboards and KPIs that will let you see how your business is performing at a glance.
By using data analytics in an ERP system, organizations can make better-informed decisions that help them optimize processes and maximize efficiency. Companies also gain visibility into their operations, allowing them to identify improvement areas and address problems quickly and effectively.
Security should be one of your top concerns when considering an ERP system. An ERP system holds a wealth of data about your business and its customers, making it essential to ensure the system is secure from potential threats. Look for an ERP system with advanced security features such as authentication and authorization protocols, encryption, and firewalls.
It will ensure that only authorized users can access and protect data from external threats. It's also essential to ensure your ERP system complies with relevant laws and regulations that apply to your industry and any applicable security standards.
When selecting an ERP system, it’s essential to consider how it will help you comply with regulations. Specific rules must be adhered to depending on the industry and geographic region in which your business operates. A good ERP system should help simplify compliance by providing features such as real-time tracking, automated reporting, and audit trails.
The ability to quickly and easily access the data you need to comply with regulations can save you time and resources. Additionally, when considering an ERP system, check for any specific compliance requirements related to your industry and make sure the system has the necessary capabilities.
15) Mobile Access
When considering an ERP system, mobile access should not be overlooked. Mobile access enables employees to access data and information anywhere, anytime. It increases efficiency and productivity by allowing them to do their jobs quickly and conveniently. Mobile access can be provided through an app or web-based platform designed specifically for the organization's needs.
With mobile access, users can access customer information, make sales orders, update inventory, track shipments, and more. By leveraging mobile access, organizations can reduce manual processes and eliminate potential errors associated with paper-based systems.
Furthermore, mobile access can provide timely alerts and notifications to ensure employees are informed about changes and updates in the system. Mobile access for an ERP system can significantly affect how an organization operates and functions.
When choosing an Enterprise Resource Planning (ERP) system, one of the most important decisions you will have to make is whether to go with a cloud-based or on-premise solution. Cloud-based ERP solutions offer a wide range of advantages over their on-premise counterparts.
For starters, cloud-based ERP systems are easier to deploy and maintain since they are managed offsite by the provider. It reduces the need for in-house IT resources, freeing up valuable time and money to focus on other business areas. Additionally, cloud-based ERP systems can provide users with access to their data from any device at any time, making them much more convenient and efficient.
Cloud-based ERP solutions also offer greater scalability than on-premise solutions. Companies can easily add or remove users and functionality as needed, allowing them to adjust to changes in the market and stay competitive quickly. Cloud-based solutions also provide greater data security and reliability than on-premise solutions since data is stored and backed up in multiple secure locations.
For these reasons, many businesses are turning to cloud-based ERP solutions. By doing so, they can maximize efficiency, save costs, and stay competitive in an ever-changing market.
17) Streamlining Business Processes
When considering the purchase of an ERP system, it is essential to understand how it can be used to streamline business processes. ERP systems provide a comprehensive view of all data and processes in an organization, making it easier to make decisions about operations.
It can include inventory management, financials, customer service, sales and marketing, and more. An ERP system makes automating many manual processes, tracking progress, identifying trends, and forecasting outcomes easier.
ERP systems also allow for the standardization of processes across different departments and locations. It helps ensure that everyone is following the same procedures and that they are being done correctly and efficiently.
This standardized set of processes will help save time and money by avoiding errors and ensuring the highest quality of work. Additionally, ERP systems can provide insights into optimizing current processes or creating new, more efficient ones.
18) Open Source
When selecting an ERP system, consider open-source solutions. Open-source solutions are generally free or have a low-cost subscription fee. With open-source solutions, you get access to the same features and capabilities as a commercial ERP system without a substantial upfront cost.
Additionally, open-source solutions can be customized and modified to meet your business needs. However, it’s essential to understand that open-source solutions may require more maintenance and upkeep since you are responsible for the system’s performance.
It’s also necessary to research and compares vendors offering open-source solutions before purchasing one. It would help if you looked for a vendor with industry experience and quality support services.
When looking for the right ERP system, scalability is a crucial consideration. An ERP system can grow with your business and quickly scale up or down depending on your needs. It is essential if you’re a fast-growing company and need to expand your operations rapidly. Make sure that the ERP you choose is modular so that you can add modules and functions as required.
Look for an ERP that can easily integrate with other software and applications, such as HR and accounting systems, to create a unified system. Additionally, check that your chosen ERP can support multiple languages, currencies, and locations to accommodate an international customer base.
Finally, consider the future of your business and select an ERP system that will still meet your needs years down the line. This way, you’ll ensure that your ERP system is scalable and cost-effective in the long run.
20) Supporting Business Growth
When looking at ERP use cases, it’s essential to consider how an ERP system can support your business’ growth. An ERP solution can help you stay ahead of the competition by providing a highly configurable and scalable system. It will allow you to adjust quickly to changing market conditions and customer demands.
In terms of features, you should look for an ERP solution offering advanced reporting capabilities to gain insight into your business's performance. It will allow you to make better decisions and stay on top of market trends. Also, choose an ERP system that provides a comprehensive set of analytics and intelligence tools to optimize your operations and identify opportunities for improvement.
Finally, look for a solution with automated workflows that will help you streamline processes and improve productivity. It will reduce the need for manual intervention and give you more time to focus on strategic initiatives.
In the business world, technology is constantly evolving and changing to keep up with the ever-growing needs of businesses. With this in mind, any business owner or manager must have an ERP system to manage all their operations.
However, before making a final purchase, it is always wise to consider some of the use cases to which ERP can be put. This way, you can make an informed decision as to whether or not ERP is suitable for your business and what specific features would benefit you most.
Understanding the use cases and implementing the right system for your business can streamline processes, increase efficiencies, and save money. With the right ERP system, you can ensure that your business has the competitive edge it needs to succeed.