What is on Demand ERP?

Kristie Lorette

Enterprise resource planning (ERP) is a software program that allows companies to integrate the internal and external areas of a business. On demand ERP is software that is not hosted on the company server, but is instead hosted off-site from where the company is physically located.

On demand ERP may reduce the up-front costs required to run ERP software on-site.
On demand ERP may reduce the up-front costs required to run ERP software on-site.

The advantages of on demand ERP for companies are numerous. For one, the fact that the software is not hosted on-site reduces the up-front cost to the individual business to acquire the business software. Second, it decreases the ongoing costs to businesses to have ongoing access to software features and tools.

Accessibility is another major advantage of on demand ERP. Typically, on demand ERP software is accessed online, which removes the geographic barriers to those in the company who need to use the software. Since the software is not housed on a particular computer or the company server, anyone with Internet access that has the account log-on information can access and use the software.

On demand ERP software integrates various departments of a company. Some departments that may use the software include human resources, finance, sales, marketing, manufacturing and customer service. The software allows the company to manage the business aspects of human resource management, customer relationship management and the supply chain management of the company.

Since the different members of the various departments of the organization can access the software program whenever and wherever they need to, it allows for constant communication across the business channels. This also provides real-time data and information to the users. ERP software allows organizations to evaluate, analyze and implement changes that make the organization more effective and efficient than ever before.

On demand ERP software works best in situations where companies need to track and manage accounting for different business locations or different types of operations within the same company. On demand ERP software also works best for organizations that are looking to utilize the power of integrating the different departments or locations of the business, but are looking to do this at a reduced rate or cost.

For example, a small to medium-sized business that has a sales office in Florida, one in New York and one in California, with its manufacturing plant in North Carolina, can benefit from ERP software. Since the business bottom line relates to all of the different departments and locations of the business, on demand ERP allows the marketing, finance, sales and manufacturing professionals located in all of these different areas to have access to the same information in real time.

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