Since 1970, ERP is growing every year which you can find ERP history report. Growing rate of ERP in the market is 30% every year. There are
many reasons behind this whose list, I am given below.
1.Good Inventory Control
In any ERP package, you will find the inventory control
system. With inventory control system, you can add and raw data of raw
material, work in process and finished goods in the database from anywhere. On
basis of this database you can find, you can track the information of inventory
availability. It is possible because ERP records are directly link with the
records of all purchasing, beginning and closing stock.
2. Produce the Products Fastly
In ERP, both production department and sales department are
inter-connected. So, when production department tracks the demand from sale
department, it can fastly produce the products without any delay. It will reduce
the production cost because correct and fast information will help to keep
small produced stock and less invests money in stock.
3. New Product Development
When developer sees all the information together, they get
more idea to create new product development. For example, recently, I saw in YouTube
analytics, comparison of one video in two countries. When this option will see
the YouTube video maker, he can take the development of new video for specific
location. YouTube analytics are also developing the developers. ERP is also
online software when they will develop its update, it will be helpful for
businessman and working team to develop new product which increase the profit
and decrease the losses.
4. Support of Multiple Languages and
Currencies
ERP systems support multiple languages and currencies. So,
more and more employees in different branches can work together because they
can understand database language through better translation support. Better
multiple currencies support will be helpful to do international business. When
ERP software has started to give the multiple currencies support, then it can
be helpful to calculate net gain from all the branches which are working in
different countries whose currency is different. For example, SBI has its
branches in almost all the countries. It uses bank link for managing the
business in different countries in different languages and different currencies.
5. Vertical Market Solution
Before understanding the usages of ERP in vertical market
solution, we should understand what is vertical market? As per Wikipedia,
A vertical market is a market in which vendors offer goods
and services specific to an industry, trade, profession, or other group of
customers with specialized needs. It is distinguished from a horizontal market,
in which vendors offer a broad range of goods and services to a large group of
customers with wide range of needs, such as businesses as a whole, men, women,
households, or, in the broadest horizontal market, everyone.
Now, you have understood what is vertical market? Software
developer can develop as per the need of vendor. Bank Vendor Company’s requirement
will be different from automotive vendor. Telecommunication vendor’s requirement
for managing his business will be different from transportation Vendor Company’s
requirement.
6. Client Server
SAP, Oracle and Microsoft are the top client server ERP. One
of main benefit, all files will be stored same store. All files will have automatically
back up. If there is any bug, we can restore the back up.
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