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Home » ERP » Who are the primary users of ERP systems?
An ERP system manages and streamlines an organization’s critical functions. It can optimize, automate, and make business operations more efficient by leveraging advanced technologies.
The primary users of ERP systems include manufacturing supervisors, sales & marketing heads, IT administrators, HR leaders, and finance/accounting directors.
Let us understand more about the primary users of ERP systems and why it plays a crucial role across various domains.
Lets discuss some of them:
An ERP software contains crucial features, including Bill of Materials (BOM), warehouse management, Master Production Scheduling (MPS), Material Requirement Management (MRP), Formula management, and monitoring shop-floor machinery. These features help to manufacture supervisors to make informed and quicker decisions leading to business growth.
CRM (Customer Resource Management) module helps cement excellent customer relationships. It allows CRM heads to conveniently manage customers’ data, previous purchase order history, and provide a single source of truth for handling customer complaints and feedback.
The ERP system assists customer relationship management CRM heads who are the users of ERP systems in getting a 360-degree perspective of customer preferences and market trends. This feature helps forecast which products have the highest-selling potential, thereby maximizing the company’s overall profits.
ERP software allows Finance heads to streamline tax & accounts-related challenges, such as accounts payables, accounts receivables, estimating the organization’s financial health, automatic management of account transactions, and preparation of balance sheets.
The best part is that finance managers who are the primary users of ERP no longer waste time doing trivial tasks like data entry and updating ledgers. Instead, they can focus on meaningful tasks like risk management.
The Human resource module allows HR leaders to recruit the top talent for the organization, strategize learning and development (L&D) programs, analyze employee performance, devise compensation strategies, and resolve conflicts at the earliest.
Supply chain management heads who are the primary users of ERP software, make use of it to enhance demand forecasting accuracy, control inventory cost, reduce production bottlenecks, and create effective job scheduling. In addition, ERP systems allow SCM managers to gain competitive benefits by minimizing overhead and operational costs and meeting customer demands.
An Enterprise resource planning enables marketing managers to classify customers based on geographic, demographic, psychographic, and behavioral parameters. Then, managers who are the primary users can brainstorm effective strategies based on these parameters and build a robust customer database.
On the other hand, ERP software allows sales managers to update and maintain sales pipelines, build long-lasting relationships with senior-level decision-makers across industries, manage quotes, and escalate customer complaints.
So, above mentioned were the prime users of Enterprise resource planning systems.
The Tier 1 user base involves multinational companies and State Governments of various countries. These powerful entities use an expensive ERP that provides multi-country, multi-currency features in addition to an extensible & fully-customizable system.
The Tier 2 user base requires slightly lesser features than the Tier 1 users. However, their requirements largely remain higher than Tier 3 users.
The Tier 3 user base includes Small and Medium-sized Enterprises (SMEs). These are budget-conscious businesses that require an ERP to bring operational efficiency, reduce costs and make informed decisions.
The Information Technology (IT) department is usually responsible for the installation and configuration of the ERP system. When a new ERP is deployed, the IT department integrates it with any existing systems in place. The IT department is also responsible for providing technical support and assisting employees with any questions they may have.
These are the segment of users looking to use an ERP for streamlining various business activities. ERP helps business users in numerous ways. For example, they can generate financial reports, forecast sales, manage suppliers, and perform quality control checks and data analysis with an all-comprehensive system.
The primary users of the Supply Chain Management (SCM) System are the same stakeholders involved in the supply chain operations. This includes organizational employees, management, and the finance department.
Employees are responsible for producing, packaging, and shipping products. Management is responsible for shaping the strategic direction of the supply chain operations. The Finance Department is responsible for tackling financial issues and ensuring the supply chain is adequately funded.
There are a multitude of benefits to using ERP systems for businesses. ERP acts as a single source of truth for all business information. Its analytical and business intelligence tools help in quick and accurate decision-making. It keeps optimum inventory levels to prevent stockout situations. The automated financial reports generation feature provides the highest level of accuracy and reduces human errors. ERP also helps in various other activities such as warehouse management, supply chain, quality management, and lead management, among others.
The e-business components provide access to digital marketing strategies and tools that are more economical than traditional forms of marketing. The business can target global users at affordable costs with no geographical barriers.
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