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Expert Answers to Biz Questions
Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.
Top 5 Industries That Need ERP Software
ERP stands for Enterprise Resource Planning, and it’s a large-scale program made for modern companies regardless of their size. There are specialized ERP software for manufacturers and other types of business, though to be fair it can be helpful for any type of company.
ERP software tracks records and paperwork in real-time and this offers innumerable advantages. It can give you an immediate picture of your company’s resources and expenses, and you can have an idea of how you are progressing according to a schedule. The program can also automate many documents and records processes, so that workers and supervisors can actually do their jobs instead of getting buried in paperwork.
It’s true that any business can benefit from an ERP program, since it can make accounting processes much more efficient. What company won’t benefit from that? However, these benefits are especially crucial for the following industries:
1. Hospitality Industry
The hospitality industry is actually a generic term that encompasses the tourism industry, the hotel industry, the various transportation services, and the theme parks. They all have something in common, however—they’re all about providing the best services for guests and tourists.
Whether you’re taking care of a single client or housing guests in your hotel, you most likely have many things to keep track of. A single hotel in Vegas can have hundreds of guests, and they need to keep track of their guests’ expenditures, preferences, and gambling practices. ERP software can keep track of the details of each guest even if you have hundreds of these guests, and you can make sure that your hotel has everything it needs to keep each guest happy.
2. Manufacturing and Distribution
When you manufacture and distribute products, you first have to keep track of all your raw materials and parts needed to manufacture your items. Then you have to distribute them to the places where they can be sold.
Keeping track of all these things is much easier with ERP software, which can warn you when there’s an impending shortage for necessary parts and materials. You can be notified quickly so that you can arrange for new sources so that you don’t suffer a shortage and cause a delay in your production schedule.
3. Construction
As a construction manager or supervisor, you have to take note of all your materials, your equipment, and your workers, so that you can make sure your construction project is proceeding within its allotted budget. You also have to factor in the time as these construction projects operate on a schedule.
With the ERP software, you can keep track of all these details. You can keep costs under control, and make sure that the necessary workers, tools, and materials are on hand to keep the work going smoothly. Even damage and accidents can be monitored so that the work won’t suffer unnecessary delays.
4. Health Care
Doctor’s clinics and hospitals can certainly use ERP software to track all their patients. The program can take note of all the treatments services that each patient receives, and payments according to health insurance plans can be calculated accurately.
In addition, the ERP program can track medicines and medical equipment so that they can be resupplied and replaced when it becomes necessary.
5. Non-Profit Organizations
These groups function very similarly to companies, though the focus is on serving and not mainly on profits. Of course, they can still make money to help further their goals, but everything must be transparent for donors and the media. With ERP software, it’s easy enough to track where each dollar goes so that everyone can rest easy knowing that each dollar is spent ethically.
If you run or work for a company in any of these industries, you should try to make sure your company switches to ERP software.
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