5 Reasons Businesses Need ERP Software

Resource planning software is critical for organizational management as the size of those organizations grows. That is true in everything from compliance to revenue growth potential.

In the following article, we will be looking at five specific reasons to go the ERP route if you haven't already. In a salute to ERP efficiency, let's be as productive as possible and not mince any more words.

Keep reading to learn more about the big business benefits of resource planning software programs. 

1. Saving Money

The top draw of ERP systems is that they almost always undercover operational efficiencies that allow a business to save money. It does this through clarity of process, less downtime, and ease of financial reporting. 

Enterprise resource planning also removes administrative costs. On the customer side, it helps an organization better manage that relationship so there is no loss of revenue.

2. Better Collaboration Between Departments

For large organizations (municipalities, for instance), it becomes easier for the different departments to communicate with each other. Think streets department communicating with engineering communicating with utilities on large-scale projects.

3. Strong Data

ERPs keep meticulous data points. This gives department heads and top brass a chance to easily read and tease insights out of the analytics that serves to better the organization. 

4. Risk and Compliance Benefits

Heavily regulated industries experience a high degree of risk with compliance and legal matters. ERPs give them more robust features to ensure everything is "to code" and any liabilities the organization may face are limited. 

5. Inventory and Resource Management Strengths

One of the biggest reasons to have ERP software in place is to better control your inventory and resources. This cuts down on costly matters like buying too much, internal theft, or location management. 

What to Look for in Software Solutions

Now that you know the reasons for enterprise resource planning systems, it is time to discuss what you should look for in the software. There are five basic features that remain the same no matter which industry. They are: 

Scalable and Flexible

A software program must be scalable to your entire organization. It also must be flexible enough to work with existing systems through both hybrid and transitional processes. 

Mobile Support

Mobile support untethers your employees from the office. It allows them access across devices and locations, thus putting your productivity on steroids. Any ERP in 2020 and beyond should have its mobile kinks worked through.


ERPs are very costly, and with a good reason provided they deliver as promised. That cost should have some type of track record to back up the expense. 

Fair Pricing

ERPs aren't cheap, but they should be fair. Examine the options in your industry, and make sure you're doing apples-to-apples comparisons. 

User Friendliness

Any system you purchase must contextualize well with your internal data and programs. It also must be more intuitive and easy to pick up on the user's end. Lastly, it should interface well with any customers and clients who will be accessing a final product.

Resource Planning Software Gets the Jobs Done

With resource planning software, you give your employees and organization a chance to revamp how business is done with an eye towards efficiency, revenue growth, and cost savings. Good luck as you implement yours. For more helpful business tech tips, check out some of our additional posts.

New Frugal Finance Blog Posts & Articles