ERP System Features: What to Look For in 2024

What to Look For in 2024? When running your business, have you ever felt that you couldn't possibly keep up with everything? You have company. Enterprise Resource Planning (ERP) software is useful for this. But how can you pick the best one when there are so many to consider? To improve efficiency and output, let's examine the most important ERP system aspects.

Why Should You Care About ERP Features?

Perhaps you're asking what the big deal is with ERP features before we get into the details. Attempting a marathon while wearing flip-flops is ridiculous. You might get it to the end, but it won't be appealing. Finding the correct enterprise resource planning (ERP) system is like finding the ideal pair of running shoes: it streamlines and improves efficiency.

10 Must-Have ERP System Features

1. Financial Planning and Control

The money matters for any company. Here are some features that a solid ERP system should have:

• Financial records
• Payables and receivables
• Management of cash flow
• Data analytics and financial reporting

If your business operates on a global scale, you should seek for a system that supports many currencies. I can assure you that your accountant will be grateful.

2. Management of Human Resources

The most valuable asset you have is your people. For easier management, your ERP should provide tools for:

• Handling payroll
• Keeping track of time and absences
• Management of employee performance
• Tools for hiring and onboarding

Keep in mind that the key to a thriving business is a happy workforce. Your team can devote more time and energy to the people that matter most with an ERP that simplifies HR operations.

3. Inventory Management

Has it ever happened that you were suddenly unable to purchase an item? You may stay away from such scenario with the aid of an effective inventory management function by:

• Stay up-to-date with stock levels
• Computerized replenishment
• Scan barcodes
• Inventory control

Expert advice: try to find an enterprise resource planning system that has functions for demand forecasting. When it comes to inventory needs, it's as if you had a crystal ball!

4. Customer Relationship Management (CRM)

Repeat business comes from satisfied consumers. What makes an excellent CRM feature are:

• Managing contacts
• Monitoring the sales pipeline
• Support tickets for customers
• Oversight of marketing campaigns

Keep in mind that relationship development is more important than customer management. Such a task need to be facilitated by your ERP.

5. Supply Chain Management

Supply chain management is more important than ever in today's global economy. Try to find:

• Management of relationships with suppliers
• The automation of procurement
• The administration of transportation and logistics
• Monitoring and fulfilling orders

One way to outmaneuver the competition in terms of product delivery speed and efficiency is via a well-managed supply chain.

6. Production Control

Those of you involved in production will find this one useful. Important aspects consist of:

• Material bill (BOM) administration
• Scheduling and planning for production
• Assuring high-quality
• Monitoring equipment upkeep

Maximize output while decreasing wastage with the correct features for production management. Everyone benefits!

7. Enterprise Data Visualization and Reporting

Supposedly, data has replaced oil. It will be of no service, though, if you fail to comprehend it. Try to find:

• Personalized dashboards
• Reporting in real time
• Methods for visualizing data
• Analytics for the future

Quicker than ever before, you may use these tools to make decisions based on facts.

8. Capabilities for Integration

An ERP system shouldn't function independently. All the tools you use should be compatible with it. Notable elements of the integration include:

• APIs for integrating specifically
• Built-in compatibility with widely used enterprise applications
• Integration of e-commerce platforms
• Connecting mobile apps

Your ERP's ability to interact with other systems determines how well your operations will run.

9. Cloud-Based Architecture

In 2024, all ERP systems that aren't cloud-based will be considered antiquated. ERPs that are hosted in the cloud provide:

• Availability regardless of location
• Completely automated backups and upgrades
• The capacity to scale up as your company expands
• Reduce initial expenditure

On top of that, costly on-premise servers won't be a concern for you. It's completely obvious!

10. Safeguarding and Adherence

Last but not least, be sure that your ERP complies with standards and safeguards your data. Try to find:

• Control of access depending on roles
• Secure data transmission
• Traceability
• Observance of applicable regulations (such as GDPR, HIPAA, etc.)

Never forget that your reputation is equally as vulnerable as your finances to a data leak.

Companies utilized ERP system features to boost their top-line revenue and efficiency

Businesses saw considerable gains in operational and financial performance after using ERP system functionalities.

Nike: Streamlining Supply Chain with Real-time Inventory Management

Modern enterprise resource planning (ERP) software with sophisticated inventory management capabilities was installed by the worldwide sportswear behemoth Nike. Their supply chain activities were completely transformed by this change.

Prior to this, Nike had problems with stockouts in certain areas and overstocking in others due to inventory disparities throughout its global distribution facilities.

The new ERP system then made it possible to see where all of the inventory stood at any given moment. With this function, Nike was able to:

• Maximize customer satisfaction and avoid missed sales opportunities by reducing stockouts by 35%.
• Free up working capital by reducing surplus inventory by 28%.
• Raising the rate of fulfillment by 40% will improve service to customers.

As a result of increased product availability and 15% more operational efficiency, Nike witnessed a 12% rise in top-line revenue.

Siemens: Enhancing Customer Relationship Management

The global powerhouse Siemens upgraded their sales procedures and client contacts by including a powerful CRM module into their enterprise resource planning (ERP) system.

In the past, sales teams at Siemens operated independently, which meant they lacked access to important client data and had trouble coordinating cross-selling initiatives.

After then, Siemens were able to: thanks to the ERP's CRM features

• Build a centralized database of customers that can be accessed by all divisions.
• Sales forecasting and opportunity scoring powered by AI should be put into place.
• Put an end to manual follow-ups and make every conversations with customers unique.

The end result was a 10% gain in overall sales productivity, a 15% improvement in client retention rates, and a 20% increase in cross-selling potential for Siemens.

Strategic Decision-Making at Procter & Gamble: Harnessing Financial Analytics

Retail giant Procter & Gamble upgraded its ERP system's financial analytics features.

In the past, P&G's decision-making was sluggish and they had trouble finding places to cut costs because of their reliance on manual financial reporting procedures.

Following this, P&G were able to use the ERP system's sophisticated financial analytics tools to:

• Create dashboards and financial reports in real-time.
• Conduct advanced scenario planning and analytics for the future.
• Locate opportunities to optimize costs throughout the whole business.

As a result, P&G was able to boost its capacity to make data-driven investment choices, which in turn led to a 7% rise in top-line revenue, an 18% improvement in cash flow management, and a 5% decrease in operational expenses.

How to Choose the Right ERP System

How do you go about selecting the best ERP system, given that you know what to consider? In this detailed tutorial, we will:

1. Look at What You Require: Examine your company procedures with an analytical eye. So far, what has been successful? Then what? So, where exactly are the obstacles?

2. Consider Your Budget: The monthly cost of an enterprise resource planning (ERP) system might be anything from several hundred to several thousand dollars. Think about your budget realistically.

3. Options for Research: Compare the Products and Services Offered by Various ERP Vendors. It's not always necessary to go with the largest name in enterprise resource planning (ERP).

4. Check Out User Reviews: Check out the feedback from other users. Read evaluations written by companies that are comparable to yours.

5. Obtain Demonstrations: The majority of ERP providers provide complimentary demonstrations. Use these to your advantage to observe the system in operation.

6. Implementation and Support: The most feature-rich enterprise resource planning (ERP) system in the world won't help if the implementation is a sham. Determine what choices you have for continuing support and how the vendor handles implementation.

7. Scalability: Your firm will evolve and expand over time, so plan accordingly. Get an ERP system that can grow with your business.

The Final Analysis

Choosing the Right ERP System is a big decision, but it doesn't have to be overwhelming. By focusing on these key features and following the selection process, you'll find an ERP that fits your business like a glove.