What is the Purpose of an ERP System?

Updated on: October 22, 2020

The goal of an ERP system is to optimize how a business operates and improve process efficiencies. When implemented properly, and regularly optimized, an ERP system becomes a strategic asset for any organization and enables short and long-term operational goals to be met with greater ease.



Video Transcription

With Chris Rossi, Principal of SC&H Group’s Technology Advisory team

ERP systems are intended to streamline and optimize how a business operates. An ERP system manages processes that span multiple departments including but not limited to accounting, purchasing, inventory, sales, warehousing, and production. An effective ERP system has been built with a detailed understanding of how each process needs to work to achieve the business outcomes while still meeting the specific functional requirements. To remain effective, an ERP system must constantly evolve to reflect changing customer, vendor, and employee needs. This is particularly true today, as rapid advances in technology are creating radical changes in every industry. As a result, ERP systems are not just a technology solution, but implemented well and continuously optimized and involved to meet business needs an ERP system is a strategic asset that enhances the company’s ability to compete in the marketplace.

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