An ERP (Enterprise Resource Planning) system allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.

This type of software is wonderful for entrepreneurs because of the great deal of advantages presented below. There are many advantages of an ERP System in business which are beneficial for entrepreneurs.


ERP systems automate coherent workflow from one department or function within the company to another. Rather than having to use multiple, different software appliances, one single ERP system is more than sufficient to support the company in these fields.

This unity ensures smooth transitions and swifter completion of processes. Additionally, the unity allows proper tracking of the various departmental activities contained within the business.

It doesn’t just end there. With a unified, single reporting system, analyses pertaining to statistics is possible in real-time across all departments within the company. This makes it much easier for employees to communicate between different fields.


The visibility aspect of ERP’s allow businesses to track inventory levels on a daily basis. This includes future consignments to be received and inventory transits.

With these analyses, companies will be able to optimize their working capital requirements. Furthermore, by using the information granted through an ERP, organizations can run their enterprise in accordance to an optimal strategy, while simultaneously empowering them to make quick decisions to pursue opportunities.

Lower Costs

One of the main advantages of an ERP System is the lowering of costs. These reductions come in the form of lower inventory control costs, lower production costs as well as lower marketing costs. Significant cost savings can also be achieved through increased productivity, better control of material acquisition and reduced lead time.

In addition, by utilizing a single ERP system throughout the company, businesses are spared from having to buy multiple forms of software to suit each department. This saves not only a significant portion of money, but time as well.


There exist different types of modules within the ERP system. These can vary from Human Resource Management, Financing and Accounting, to Manufacturing and Marketing.

As ERP’s are a modular software system, it becomes possible to implement either a few modules or many modules based on the necessities of the company. Integration between different departments can improve with more implementations of modules. This is another one of the great advantages of an ERP system.

Final Thoughts

There are a myriad of benefits made available through the use of Enterprise Resource Planning systems. In general, ERP systems simplify order tracking, inventory tracking, revenue tracking, sales forecasting and other related activities. Companies will find it highly beneficial to integrate an ERP system into their infrastructure.

Aside from the technical pros granted by ERP’s, businesses can also gain competitive advantage over their rivals by utilizing this innovative software. As such, there are many advantages of an ERP system in business.

Have any experience with ERP Systems you want to share? Let us know below in the comments section!