Why Do Companies Need an ERP System?


ERP stands for Enterprise Resource Planning. This is business process management software that makes it possible for an organization to use a system of integrated applications in the management of the business as well as the automation of several back office functions that pertain to technology, human resources and services. One of the key reasons why businesses of all sizes use ERP is because it integrates all phases of an operation. This includes product planning, manufacturing, development, marketing and sales. All this is integrated into one single database, user interface and application.

So, why should you consider spending money in an ERP? Here are some key benefits you will get from using an ERP software.

Automation of processes

The automation of business processes inevitably enhances productivity. ERP helps with the automation of different facets of the businesses processes. This in turn makes the processes less prone to errors, more efficient and faster. What is more is that automation helps free up employees from the mundane tasks like balancing data.


The ERP is scalable. It has the ability to grow with the company and change with the times. Although the ERP field can be quite slow to change, the last few years has seen forces that are shifting the entire area. The current trends in the realm of ERP include mobile ERP, Cloud ERP, Social ERP and Two-tier ERP. These are the new and continuing trends that continue to affect ERP. These changes show how ERP adapts with the times. The software further has features that enable it to accommodate any business need. This is the key reason why it is being used by both small and large companies without any problem.

Improved business analytics and reporting

The analysis on the ERP enables you to produce financial and boardroom quality reports and conduct analysis on the performance of your company. This is all thanks to automation and the ability of the system to be integrated in all levels of an organization.

Better CRM

ERP systems will help with customer relationship management. ERP can be implemented into all business activities. You can also incorporate modules for CRM and present it as a single unified package.

Overall improves productivity

All things considered, the implementation of an Enterprise Resource Planning system will improve the overall productivity of your business. The system achieves this by streamlining all business operations. Automating processes further means fewer errors which often bite into the resources of an organization. Needless to say, the use of many software tools will actually kill the productivity of the team. ERP is one system that unifies all the processes. It can be integrated virtually anywhere from production and distribution to the supply chain to the customer facing front end.


The above are just some of the key reasons why companies need to invest in an ERP system. There is a lot more to gain from this investment. If you are looking for some advice on ERP systems, reach out to us on info@inventrik.com. We are happy to help.