Bahaa Al Zubaidi shares his extensive IT experience with his audience. His articles cater to both beginner and experts. ERP or Enterprise Resource Planning refers to the use of business management software to help organizations automate and streamline their processes. ERP offers a suite of applications, so organizations can make their operations lean, accurate, and effective. This explains why ERP is so popular.

ERP works like the brain by ensuring all the other systems in the organization work cohesively and efficiently. The popularity of ERP can be seen by the fact that its market value is worth $41.69 billion. The many benefits that ERP offers explain why it has become so popular.

There are a number of advantages ERP offers to organizations. While traditionally, ERP is used in the manufacturing sector its use has now been extended to all types of organizations. ERP helps organizations bring customer management, inventory management, supply chain management, financial management, human resources, and business intelligence in one integrated system.

Bahaa Al Zubaidi lists the following changes that an organization is expected to undergo with ERP:

  • It makes the organization more agile. They would be able to quickly respond to change since the ERP is scalable and flexible.
  • The biggest flexibility ERP offers is increase in efficiency and productivity. Organizations can look forward to huge increase in productivity by using a good quality ERP software. The automation of repetitive tasks, improved inventory management, and time saved on reporting helps staff focus on more value-adding activities.
  • ERP leads to significant savings. While organizations worry about the initial costs, the savings offered over the long-term would more than make up for it. Improved efficiency, use of a single system, reduced training efforts, and reduced IT costs offers savings.
  • It allows for improved analytics. The ERP provides easy options for analytics and reporting. This is why the ERP is a business intelligence tool. It allows for faster report generation. An intuitive dashboard is available, so top executives get a birds-eye view of the entire system through reports.
  • Compliance to regulations becomes easy by using ERP. Keeping track of different compliances needs a lot of effort. This is made simple through ERP. The software would also have tools for improved risk management.
  • Improved inventory monitoring is a key benefit of ERP. The use of technology like RFID and barcodes makes it easy to keep track of inventory saving time and money.
  • ERP makes your system efficient. It allows customers to get quicker delivery and better quality service. It can help in improving customer satisfaction. Happier customers would translate to increase in revenue.

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