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blog | March 04, 2020

Why Companies Should Use an ERP System

What Is an ERP System and Why Is It Used in a Company? No matter what industry your business is in, ERP is an essential business tool meant to...

By Courtney Perry

What Is an ERP System and Why Is It Used in a Company?

No matter what industry your business is in, ERP is an essential business tool meant to break down business silos. With its ability to update in real-time, provide customizable applications and suites that assist different business departments and its comprehensive nature, an ERP system is a key ingredient for company success.

Now that you know just how important ERP software is for businesses, let’s break down in even more detail exactly why the solution is so coveted.


Why Is ERP Used By So Many Businesses?

Improved Productivity

Without ERP software, completing tedious tasks such as generating reports, monitoring inventory, processing orders and timesheet tracking are pretty much unavoidable. With those types of tasks that have to happen almost daily, there is a strong chance for mistakes to be made and tasks to run past their deadlines.

What makes ERP software such a handy tool is its ability to automate tasks that can often take hours to complete. Automation eliminates the chance of costly mistakes and there is a quick turnaround as to when those tasks are completed. This frees up time for team members to focus on larger scale products, where they can fully devote their time to completing quality work.

Better Customer Service Experience

One main reason why a business either sinks or swims is because of its lack of quality customer service. When your customers aren’t happy, whether it’s because of faulty products or slow response times, those indiscretions can truly hurt a business in the long run.

Businesses use ERP because of its CRM integration, which was designed to improve the relationship between a business and its customers. This integration contains information on clients including, contact information, order history and billing information. Having this information on hand improves communication between a business and its customers and can even improve lead generation and sales.

Improved Inventory Monitoring

Keeping track of information is crucial, especially for manufacturing companies. If you don’t know how much inventory is in stock in order to manufacture products, that can cause a delay, which can throw production schedules off and make for unhappy customers.

Most ERP solutions include inventory tracking, which replenishes the right amount of items when needed so production schedules don’t fall behind and products are created and sent to customers in a timely fashion.

Reliable Analytics

A true company database should include company analytics, data and charts. With those essential pieces, businesses would have no clue how they are performing which could spell danger. Be sure to confirm that the solution you are deciding to go with offers analytics.

For most ERP software’s, these analytics are typically provided and is extremely important. With company insights, businesses can see exactly where their business stands. You’ll learn of areas that need additional work and how to capitalize off your strengths.

Save Money

Different ERP software’s can come with big price tags, which can scare away companies who were initially interested in implementing the system. Ultimately, investing in this software can end up saving your company money in the long run.

ERP brings together different systems that may already exist in your organization from accounts payable to marketing and production. Under one centralized system, an entire staff will have access to this information, which saves money on having to run and update multiple systems. Training team members on how to use one system, as opposed to multiple solutions, also saves money.


ERP is a tool that helps save time, make more money and put smiles on the faces of your customers. If you want to know why so many companies use some form of an ERP software, it is because success is the end goal for all businesses and ERP makes it easy for them to reach their goal.


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