Growth is one of the thumb rules of nature. One can stop his losses but not his growth. Since businesses also grow and enterprises enlarge in terms of turnover, employees, resources, number of offices etc. management becomes tough. To ensure that resources are managed efficiently and effectively, ERPs are required. Enterprise Resource Planning is a one stop solution for maintenance and management of existing and newly acquired resources. The primary objective of EPRs is to prevent wastage and align the resources whether fund, employees, infrastructure, products, services etc. in a manner that they can be utilized in an optimum way.
An old saying says, take care of pennies and the pounds will take care of themselves. ERP is an essential tool for management of resources which also works on the same methodology. To save unnecessary expenses, adequate supervision and utilization of resources is a must. ERP is a tool which enables it. It works on the concept of first understanding the nature of business, resources available and then plans out the best possible use of these resources to curb expenses and increase profits. Resources are not available to waste, they are at hand to be of appropriate use. ERP implementation is quite easy. These days there are softwares available which only require data and statistics to be entered into the system and the software after analysis, puts across various plans which can give the best and most profitable returns.
ERP aims at the objective of preventing losses that arise out of unnecessary and unwanted expenditures. It works on the principle of every penny saved is every penny earned. For example, as per ERP, an employee should switch off all lights and fans when moving out of his/ her cabin or cubicle. It puts forth ways by which these expenses can be put on hold. Although, implementing an ERP is costly, but the outcomes that come from applying it are worth the money spent.
Optimum utilization of resources is an important because they are limited and profits are to earned from them. In business profits are everything and earning them is the ultimate goal. A successful entrepreneur is one who knows the best possible utilization of the rescues at his/ her disposal. True qualities become visible only when a person has to manage among limited resources. We all have heard and seen the innovations of the jugaad approach. It is an ERP applied to earn a living from the resources available. Jugaad is the best example of optimum utilization of resources.
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