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Landed cost refers to the expense as a result of purchasing a good. It is the total cost the customer needs to pay to acquire the commodity from the vendor. For a locally bought product, you don’t just need to pay for the item itself, but also for the accompanying freight, insurance, handling charges, and so on.

If your company is buying a product internationally, then you will also need to pay additional tariff charges and customs duties. NetSuite’s landed cost category makes it easier to track expenses and ensure accurate cost of goods sold (COGS) calculations. All these costing occurs in the procurement department of the company and are then applied to the Item Receipt in NetSuite.

Significance of Tracking NetSuite Landed Costs For Your Business Operations

Suppose your company fails to record landed cost in NetSuite. In that case, your purchase price for the item will only be the cost of the inventory that you paid for the item alone, and will not include all the additional expenses incurred for acquiring the item. This can cause miscalculations when creating budgets, as landed cost sums up every cost involved from sourcing the item to its final delivery. 

NetSuite’s landed cost is of great importance for your business as it impacts:

1. Accurate Product Pricing: If the business does not record landed cost, it can make a wrong estimate of the product charges that may not cover all the shipping expenses. Using ERP for procurement enables businesses to reflect the true valuation of assets, which supports accurate and better decision-making. 
2. Profitability: Incorrect product pricing will consequently lead to decreased profit margins as the expenses will have to be managed.
3. Purchasing decisions: From the purchasing perspective, it’s important to understand the landed costs when comparing competitive pricing. For instance, a product that costs less per unit when purchased from overseas than domestically seems like a better deal – until international freight charges, customs duties, cross-border taxes, and insurance are not imposed, which takes up most of your budget and lowers profit.
4. Shipping Decisions: Monitoring landed costs over time can help you identify opportunities to reduce shipping expenses. You can also consider choosing a different shipping company that could lower your expenses or negotiate with your carrier for better deals.

Key Features Of Landed Cost NetSuite

1. Accurate COGs Calculation: Ensures that all the costs that have accompanied the acquisition of the good are incorporated.
2. Streamlines System Integration: Works with the NetSuite procurement system and financial modules for consistent cost tracking and inventory management.
3. Multi-location Costing: Enables businesses to accurately allocate costs across different regions. 
4. Flexible Cost Allocation: Enables efficient cost distribution based on weight, volume, quantity, or value

Methods Of Allocating Estimated Landed Cost In NetSuite

In real-world supply chains, landed costs are often calculated from multiple sources. For instance, your supplier will charge for the goods, a logistics company for the shipment, and a customs broker for the customs duties. With NetSuite’s landed costs from multiple vendors functionality, you can effectively allocate costs from different vendors to the same shipment or purchase order, further ensuring that your expenses are accurately calculated and reflected in the financial statements. By taking into account all these factors, businesses can ensure complete cost visibility and can manage accurate financial statements.

Mismanagement in NetSuite implementation service may result in inaccurate inventory valuation, leading to wrong or understated profit margins and misleading financial reports. The technique of incorporating multiple vendors and recording all the expenses then leads to the calculation of the total landed cost. Additionally, it is worth noting that calculating landed costs is not always an easy or quick process, especially when multiple products are involved and calculations are performed manually. 

The basic formula for landed costs calculation is adding together a product’s unit cost, shipping cost, customs duties, risks, and overhead, which can be demonstrated as follows:

Landed Cost = Product’s Unit Cost + Customs Duties + Shipping/Freight + Risk + Overhead

Where:

• Unit Cost = Price of each unit of the product
• Shipping/ freight cost = This includes packaging and handling charges
• Customs are allocated by each country, where agencies are responsible for collecting duties, tariffs, and harbor fees associated with goods crossing into and out of the country.
• Risk fees = This covers insurance, compliance, quality control, and the cost of all the accompanying factors that aim to prevent the company from running out of stock.
• Overhead Costs = They cover additional handling fees that include currency conversion, bank charges, and other surcharges. 

How to Set Up NetSuite Landed Cost

The following step-by-step guide outlines a complete guide for the effective configuration process in 2025:

Step 1: Enable the Landed Cost feature: Log in as Administrator and navigate to Setup> Company> Setup Tasks> Enable Features

Step 2: Click the Inventory Subtab

Step 3: Check the box for “Landed Cost”

Step 4: Click: Save

Enabling this feature will apply the landed costs to all item receipts and bills.

Creating NetSuite Landed Cost Category

Landed costs need to be appropriately categorized for accurate reporting. For instance, categories like customs duties, freight, and insurance help allocate the right costs to the right categories. 

To enable the cost category, the following steps should be followed:
Step 1: Enable the Landed Cost feature: Log in as Administrator and navigate to Setup> Accounting > Setup Tasks> Accounting Lists >New

Step 2: Choose Cost Category

Step 3: In the Name field, enter an explanatory title like: Freight charges 

Step 4: Choose an “Expense Account” that should be allocated for this  category

Step 5: Click: Save

Setting Up Item Records To Track Landed Costs

Tracking the inventory items becomes essential to allocate costs for each item sold. This is done through the following steps:

Step 1: Navigate: Lists> Accounting> Items

Step 2: Click “Edit” next to the item you want to configure

Step 3: Click the Inventory Subtab

Step 4: Check the box for “ Track Landed Cost.”

Step 5: Click: Save

Through enabling this option, every time you receive an order for this specific item, there will be additional costs allocated directly to it. 

Allocate Landed Costs Directly to Item Receipts Or Vendor Bills

Once the setup is complete, landed costs can be applied during the purchasing process. 

There are two options to do this; let’s explore both of them.

OPTION A: During the Item Receipt

Open the Item Receipt Tab. Navigate to the Landed Cost Subtab. Check “Used Landed Cost.” Select the “Cost Categories” and either enter the amounts manually or link them to the bill. Lastly, allocate the costs by categories such as weight, quantity, or value, and save the receipt. 

OPTION B: Link Vendor Bill To The Item Receipt

Create a Vendor Bill for the additional charges.  Navigate to the Landed Cost Subtab. Select the item receipt to which the bill is related. Enter the amounts and the related Cost Category and save the bill. 

Explore How NetSuite Landed Cost Per Line Ensures Fair Cost Distribution

As discovered above, not all items in the shipment share the same size, weight, or value, and so applying a fixed landed cost across an order may lead to inaccurate inventory valuation. This is where NetSuite Landed Cost per line plays its role as a powerful tool. This approach enables businesses to allocate additional expenses like freight, insurance, or customs duties to individual items on a purchase order or vendor bill instead of evenly distributing the costs across all items. 

This approach is enabled in NetSuite by the following steps:

Step 1: Navigate to the Vendor Bill or Purchase Order

Step 2: Select “Landed Cost Per Line” as your preferred method

Step 3: Choose how to distribute costs based on value, quantity, or weight

Step 4: Save the changes and review the updated cost allocation

Conclusion

This can be evidently proven that NetSuite project management cost can either add up or diminish the company’s value and revenue. With NetSuite’s landed cost feature, companies can efficiently track all the associated costs, whether local or international, in acquiring the inventory. Accurate calculations can help business owners make smart decisions, and they can further determine the best prices for acquiring the stock and avoid any expensive mistakes. 

FAQs

Q1: Is landed cost the same as COGS?

Landed costs include all the costs that are incurred from the sourcing of the product to its final delivery through any mode of transport. These costs are directly based on the factors that are explained above and may vary from country to country. Since they only reflect direct costs, they are not the same as COGs.

Q2: What is the difference between standard cost and landed cost?

Standard cost mainly refers to the predefined or budgeted cost assigned to the product based on anticipated expenses like materials, labor, and overhead, and is mainly used for budgeting and planning. On the other hand, landed cost represents the actual cost of acquiring the product, including the purchase price and all the additional expenses such as freight, insurance, customs duties, and other handling charges, making all expense calculations accurate. 

NetSuite extends its expertise in providing accurate insights on planning, forecasting, and budgeting. Our integrated applications, designed by financial experts, aim to address every pain point that is among the common functions of accounting and finance departments across all industries. NetSuite’s Planning and Budgeting Cloud Service (PBCS) has been recognized as the top Financial Planning and Analysis tool available today. 

From the perspective of financial planning and budgeting, NetSuite’s Planning and Budgeting (NSPB) is the leading platform available on the market today. It is not just a budgeting tool to help you analyze your existing financial statements or pull reports at month-end. Still, it is a smarter software with enhanced features and functionalities enabling clients to analyze, forecast, plan, and budget after gaining the financial insights using the built-in data analysis features. With the data at your fingertips, you can never lose track of your finances and can make well-informed decisions, encouraging teh achievement of your financial goals. 

What Is NSBP In NetSuite?

Finance teams have been struggling with annual budgeting for a decade. As soon as the books are closed, the budgets become outdated, and leaders are left guessing on how to adjust and align them. 

How about automating your budget plans in a way that it moves at the pace of your business? What if your company continuously innovates and the finance departments work in sync with all the changes, making the process of planning and budgeting efficient and easy? 

This is where NSPB transforms business processes and significantly upgrades and automates the budgeting process in a way that makes it no longer an annual task but instead a strategic investment for finance leaders. 

NetSuite ERP performs all the above tasks as it automates the process of accounting, inventory, and order management. However, it cannot meet the future demand or encourage strategic decision-making. Oracle NetSuite NSBP effectively addresses the gap by facilitating real-time forecasting and efficient workflow planning. These capabilities play a key role in shaping the future of your organization by planning for seasonal fluctuations, managing expenses, and ensuring that budgets stay aligned with the overall business goals beforehand. NSBP does not replace your ERP system, but in fact, it’s designed to complement it. As companies expand, their financial decision become complex, and it becomes essential for them to get real-time actionable insights that could encourage smarter and faster decision-making intended towards business growth.

NetSuite planning and budgeting cannot perform day-to-day operational tasks, but is designed for strategic forecasting. It won’t be wrong to conclude that when NSPB is positioned as a quick fix for ERP shortcomings, it can lead to misconceptions and unrealistic expectations. Companies should clearly communicate NSBP’s role as a future planning tool, enabling them to manage all uncertainties with confidence using data-driven insights, making businesses adopt all the market trends efficiently. 

Explore How NetSuite NSBP Improves Cross-functional Decision-making

In most companies, data used for planning and budgeting is scattered across different departments and teams. Oracle NetSuite NSBP collects all this information under a unified, integrated framework. By collecting this information in a centralized database, NSPB enables faster and informed decision-making through testing plans and assumptions before deploying them.

With NSBP Oracle, the finance team gains sufficient resources needed to confidently evaluate the existing budget and the cost that could be invested to scale the sales team, manage any supply chain disruptions, and further ensure that the departmental budgets are aligned with the strategic business goals. This integration transforms fragmented business plans into an integrated organization-wide strategic framework. Whether you call it NetSuite PBCS or NSBP, the end goal is the same – smarter, faster, and collaborative decision-making that adds value to your business. 

Implementing NSPB – Key Features and Functionalities

NetSuite’s Planning and Budgeting tool includes features that provide real-time insights into the company’s transactional data. Additionally, it includes analysis and budgeting features that enable your organization to set out the costs and revenues for a specified period of time. A pre-allocated budget enables companies to set out future financial conditions and goals, as well as potential revenue sources over time.

Secondly, forecasting is another key benefit of NSBP for your organization. The forecasting tool smart recognizes risk and, at the same time, identifies potential opportunities. This enables drafting or modifying the strategies and further ensures the processes are collaborative.

NetSuite planning and budgeting training is important to ensure that your organization is compliant with all the local and national regulations and tax laws so that you can serve across multiple countries. Failing to do so may pose a severe challenge to your organization if you are looking to expand your business across different locations. NSBP guarantees automated tax and fiscal compliance for over 100 countries, again making you expand effortlessly across countries and ensuring that you invest your time in operational optimization and growth.

This results in efficient and streamlined operations that take your organization to the next level. The statistical effectiveness through the implementation of NetSuite can be evaluated through a 38 percent reduction in planning processes, 32 percent less time invested in the management of financial reports, and a 12 percent increase in accurate forecasting. This can further be emphasized through Daniel Ruettieger, Senior FP&A Accounting Associate, as he said: “ NetSuite Planning and Budgeting helped us close our books 20% faster, giving us the flexibility to make faster, smarter decisions.”

Time To Make A Strategic Move Towards NSPB Oracle

A cloud-based software does not require any costs for system upgrades or maintenance, and instead updates automatically to ensure maximum utility throughout the year. NSBP has been specifically designed to enhance your operational performance and is adaptable to reflect your chosen performance metrics and desired goals.

Organizations that are getting benefits from this software are the ones that have truly understood its purpose. NSBP is solely built to address strategic challenges and play its role in future planning, forecasting, and alignment of financial information, and does not intend to replace your ERP system, which performs day-to-day operations. 

Your achievement of business goals starts with the training of your internal teams and stakeholders on how to make the right use of NSBP. Companies can make good use when planning to expand their business and could align their initiatives across departments, with higher confidence and flexibility. Are you ready to unlock the potential of NSBP? Connect with us and explore how you can implement teh features and functionalities to transform your plans into actionable insights.

FAQS

Q1: Who is NetSuite’s biggest competitor?

Anaplan is widely recognized for its cloud-based software, which is primarily used for planning and budgeting, offering strong capabilities in the same domain as NSBP. 

Q2: What is NetSuite Controversy?

There is a collection of issues mainly from data exposure vulnerabilities, and so it’s advisable to conduct security checks and to always choose experienced implementation partners. 

ERP integration for Shopify not only drives your business towards greater efficiency and increased productivity but also goes an extra mile by identifying strategies that can effectively transform your e-commerce business across all departments. Shopify ERP for e-commerce is tailored to seamlessly integrate the operations of finance, supply chain, and sales, ensuring the smooth operation of business and consistent growth.

If you are struggling and want to realign your strategies, employing an ERP software for Shopify can be a game-changer. The blog can be a useful guide to understand the Shopify ERP system and how you could employ the tips and techniques in your business to maximize the benefits.

Significance Of Shopify And ERP Integration

Shopify merchants can understand the pressure of managing all the various activities that require their attention and play an important role in enabling their online stores to thrive in the digital world. This is where Shopify integration with ERP steps in and becomes responsible for overseeing all aspects of your business from one focal point. This is a transformative step towards Shopify ERP automation and hassle-free business operations.

The ERP software acts as a central hub, taking control of the specifics of inventory control, customer service, and order management, and allows users to gain real-time insights into the supply and demand, stock levels, and further ensures customer demand is accurately met with the optimum resources. Additionally, this process eliminates the fear of excess inventory or stock shortages that could significantly disrupt your customer base. Since ERP operations automate the processes of keeping your database up-to-date, in the long run, this can lead to improved operations and boosted revenue. 

ERP Shopify Integration – Most-used Methods

1. Custom Integration:

To use this method, programmers can use Shopify’s API code and match it with the ERP system that is to be integrated, so that both systems align with the business needs. Here, since businesses develop their own customized integration, they are solely responsible for managing it too.

2. Vendor-built Integrations

It includes reliable and ready-to-go integrations covering common use cases for e-commerce merchants, and so provides a connection right out of the box.

3. Integration Platform As A Service (iPaaS):

iPaaS is a cloud-based ERP software for Shopify that helps build and deploy an infinite number of integrations. Since it employs cloud technology, this platform offers scalability, quicker synchronization, and faster implementation.

Whether it’s through customized integration, vendor-specific solutions, or utilizing the potential of iPaaS offerings, Shopify ERP streamlines operations that guarantee remarkable growth of your business. However, it is essential to select the right Shopify ERP compatibility that suits your business needs and structure. 

ERP For Shopify – Revolutionizing Your Online Store

Operational productivity in e-commerce is synonymous with having proficiency in the order-to-fulfillment process. With Shopify ERP development, your labor-intensive sequence shifts to automated workflows serving as the linchpin for managing emerging complexities. By embracing Oracle ERP processes, you optimize the communication channel within your business, which is essential for maintaining a dynamic and responsive e-commerce presence. 

Let’s now discover your business processes that can be automated through a typical ERP system:

1. Inventory Tracking

Among the multiple key benefits of Shopify plus ERP integration, inventory management and order fulfillment tend to be among the critical areas that could either make your business stand out and attain a competitive advantage or drive it to a major failure. Especially when managing these, Shopify ERP integration can bring a huge transformation in accelerating the process and fulfilling it promptly. Automation provides direct visibility into your inventory levels and ensures that the products are always ready to meet the evolving customer demands, and further leads to informed decision-making.

2. Order Management

The robust automation extends through the sales process; the once labor-intensive tasks of order processing and fulfillment become smooth, as there comes a noticeable boost in productivity and improved customer satisfaction due to timely delivery. This brings to a conclusion that ERP for Shopify not just monitors the inventory levels and the number of orders but also revolutionizes your business with incredible efficiency, making it compatible enough to secure a competitive edge. 

3. Financial Reporting

Preparing comprehensive financial records tends to be the most daunting task and takes hours of manual effort, making employees frustrated and significantly reducing their ability to engage in any further activities. Integrating a robust financial management module that syncs perfectly with your store systemizes the process. Whether you need to analyze sales trends, estimate revenue, or track expenditure patterns, the financial management ERP module offers enhanced reporting capabilities that deliver accurate insights into all these areas and further provide resources needed to access your company at any point in time. 

ERP Integration For Shopify: Step-by-step Guide

To ensure you are on the right track in selecting an ERP system that is compatible with your business needs, read through the following steps.

Step 1: Evaluate the data or information that is most relevant for your business to integrate. This can include financial information, inventory data, customer data, or order details.

Step 2: Identify business processes that are repetitive, inefficient, or require too much manual effort, which could disrupt your team’s efficiency. These are the tasks that should be prioritized and automated to improve your business efficiency and productivity.

Step 3: Determine Shopify ERP compatibility to ensure that then chosen ERP syncs with your business needs accurately. Additionally, you will need to decide if you want to deploy your ERP in the cloud or on-premises. This decision is fully dependent on your data’s security and volume.

Step 4: Explore the multiple options for choosing the right integration method. You can use Shopify API ERP, your ERP’s native e-commerce integration capability, or a third-party integration, whichever suits best based on your business. 

Benefits Of Shopify And ERP Integration

1. Improved Customer Experience

Your customers will be quick enough to notice the benefits of Shopity ERP automation. With an integrated ERP system, you will be able to deliver a smoother and better customer experience due to an automated CRM module that manages your shipping, tracking, and payment efficiently and further increases the productivity of your business. 

2. Increased Accessibility

ERP itself allows you to oversee hige sets of data in one place, making your task much easier and hassle-free. However, connecting Shopify to an ERP will enable accessibility anywhere and at any time, which will significantly speed up the decision-making process.

3. Cost Effectiveness

ERP Shopify integration enables you to take control of your stock, orders, and customers in real-time, ensuring just-in-time management for every process. For instance, to manage your stock, you will only buy or manufacture what is needed, and the rest of the process is automated, making your operations cost-effective.

Can ERP Software Replace Traditional Project Management Tools

While ERP software manages end-to-end business operations, it often includes a project management module for tasks like budgeting, forecasting, and resource allocation. For industries like manufacturing or construction, where the main departments comprise Finance, Supply Chain, and HRM, ERP alone can perform the operations. However, businesses that require visuals and creativity would need an ERP for project management to perform their major tasks. Hence, the decision completely depends on the nature of the projects and the complexities. 

In terms of ERP integration for Shopify, if the ERP system is not planned properly, your business might face setbacks.

1. Outdated systems: If your systems are not upgraded with the new updates, especially the ERP, then connecting to Shopify would be additional work, as the transformation would require a lot of effort and increased complexities.
2. Cost: For small companies, the installation of these systems would require additional allocation of budget because of the high upfront cost needed as an investment. However, in the long term, ERP systems do give your business an ROI. 
3. Customization: If your existing ERP module has already been customized, new integration strategies may not work for you and will require another set of strategies to integrate the customizations required for the new system. 

Who Should Be Your Shopify ERP Development Service Provider

There are numerous ERP systems that are working in the market with their own sets of strengths and weaknesses. Among these, NetSuite ERP Solution Provider is leading among the Shopify retailers. Integrating Shopify with NetSuite will enable real-time insights into inventory and orders. Additionally, with an automated approach, a perfect check and balance can be maintained of the customer demand and the resulting inventory supply.

The key features of NetSuite Implementation Service are as follows:

1. Inventory Management: Automates inventory management by tracking stock levels and the relative supply and demand trends. 
2. Order Processing: Shopify orders flow into NetSuite without any manual entries which significantly reduces human errors and streamline order fulfillment.
3. Financial Statements: Automating financial processes results in accurate calculations of revenues and tax and up-to-date financial information.

Conclusion

Shopify ERP for e-commerce , is the foundation for the success of your company in terms of efficiency, productivity, and reliability. Through automating processes, you are taking a strategic step towards equipping your Shopify store with the ability to navigate and capitalize on the emerging market opportunities. With all the potential benefits of ERP as discussed, it is important to find a right service provider for a customized integration solution that benefits your business as well as customers. NetSuite ERP for Shopify Service can be your right partner fulfilling all your business needs efficiently. To schedule a demo, get in touch with us today!

The ERP functional architecture features an integrated platform that consolidates all business data and operations into a single location. The most common business functions in ERP include Finance, HRM, Supply Chain, CRM, and Project Management. Additionally, ERP system functions also incorporate Artificial Intelligence (AI) and Machine Learning (ML) capabilities to automate business processes and make it easier to identify ongoing trends, predict outcomes, and anticipate business demands.

Industries are heavily relying on ERP functions to ensure productivity, enable efficient operations, and help leaders make well-informed decisions. While the functional modules of ERP cover a range of capabilities, they often require integration with specialized software for more advanced functionality across all domains.

What Are The Core Functions Of An ERP System?

ERP features and functions are not only restricted to large corporations, but they also enable small companies to optimize their business with products that ensure a scalable solution that fits every business size. 

The blog aims to empower companies towards making an informed decision for choosing an Oracle ERP functional for their business needs. Let’s quickly dive into the ERP function bios to understand the benefit of each module for your business.

Financial Management: 

This module encompasses core accounting functions that can include payables, receivables, ex[emses, cash flows, and revenue recognition. Additionally, advanced business function in erp might incorporate complex features such as forecasting, budgeting, and asset management. Collectively, such functional modules of ERP can enable organizations to streamline all financial operations. 

Accounting

This ERP system functions as a standalone accounting software consisting of tools that are extensively used for preparing the general ledger, managing cash flows, recording expenses, and preparing invoices. This software enables pulling data from different source systems, synthesizing it, and then storing it in a central repository where it can be used for all the important financial functions. 

Order Processing

The process refers to optimizing operations from taking orders to fulfilling them. The incorporation of an ERP system makes managing information from different departments efficient and easier to proceed with order fulfillment across multiple departments. 

Integration

This ERP functionality is the complex aspect of the software, as it enables business data to be shared between systems for faster insights, and this is how ERP functions improve decision-making, lead towards more agile collaboration, and automate data transfers without the need for any manual help. 

Data Analysis

If your business operations involve activities such as forecasting, budgeting, or performance tracking, erp functionality checklist will create actionable insights by storing all business data in a centralized location, providing better insights to decision-makers who can then plan an appropriate course of action. 

Businesses aiming to get the most out of their data reporting should definitely consider incorporating Oracle ERP functional modules that allow users to create custom dashboards and reports, making the complex data easier for the decision-makers to evaluate. 

Automation

Businesses always search for opportunities that could reduce their manual efforts for repetitive and repeatable tasks. Automating processes not only reduces the hassle of completing work but also makes business processes productive and efficient. Instead of working on low-value and repetitive tasks, your employees can invest that time in learning new technologies or incorporating operations that could add value to your business. 

You should evaluate your business tasks and decide on the ERP features and functions needed to accurately meet the needs of your business. 

Supply Chain Management

The supply chain feature in industries enables industries to track demand, monitor inventory levels, ensure optimum manufacturing, and efficient distribution. Therefore, it is crucial to study the in-depth supply chain features that could add value to your business and how the process can be integrated with ERP functions. 

The ERP functional requirements for supply chain management systems should help companies set achievable and realistic inventory goals and create effective distribution plans that could maximize the company’s profit. Moreover, incorporating ERP software would enable businesses to pinpoint areas of inefficiency and give them greater control in balancing their supply and demand. 

ERP systems that include CRM features can bring customer relationship data into your centralized database. This way, every business activity that you perform ties back to the value you’re delivering to end-users.

In seconds, employees can access all the information they need on each account, including contacts, order history, and prospect status.

When this information is digitized and automatically updated, team members can easily perform tasks, such as:

• Completing purchase orders
• Creating accounts receivable reminders
• Alerting account executives to follow-up on prospects in the sales pipeline

Many types of CRM software are sold as standalone systems and focus on outward-facing activities, such as:

• Customer interactions
• Pipeline management
• Sales tracking
• Prospecting activities
• Marketing campaign development

However, there is a great advantage to integrating CRM and ERP functionality. When you do so, you can align your customer-focused activities with your back-end processes and operational data. This enables centralized control of accounts and contracts.

If the systems are separate, users must retrieve this data by bouncing back and forth between two platforms. By integrating, you can eliminate the risk of data duplication or inaccuracy, and you can facilitate cross-department collaboration.

What Are The Differences Between ERP And Traditional Business Software?

There is a huge difference when comparing ERP with traditional business software, not just in terms of automation, but various business activities that have positively affected businesses and increased their value over time. Business functions in ERP have experienced the following key enhancements in their operations:

1. Smarter Decision-Making: ERP functions refer to the collection of data from multiple datasets and arranging the information altogether. This allows accessibility to a huge information that allows companies to make informed decisions. Instead of conducting extensive research only when the need arises, the software enables companies to have access to a stream of data that can be easily transferred across different departments, enabling companies to stay ahead of the market trend.
2. Improved Productivity: The continuous flow of information across different business departments allows employees to identify the performance gaps and areas of improvement through which they could mutually work to achieve business growth, resulting in improved productivity and efficiency. 

Since the functions of ERP helped employees to be better informed of the ongoing trends and they were able to closely align with the business needs, the company succeeded in achieving a competitive advantage. 

Automation

Incorporation of sources like AI and ML to gather data and evaluate past activity plays a major role for businesses in identifying trends and to anticipate future demand top stay ahead in the industry by making themselves well-equipped with all the evolving trends.

ERP solutions are primarily focused towards speeding up business processes by significantly reducing manual efforts. This helps minimize frustration among employees and since the employees are no longer involved in manual tasks, they could concentrate more towards areas of improvement and how to achieve better performance metrics.

Cost-effective:

A direct advantage of automating business processes is reduced operational cost and further achievement of better enterprise resource planning. 

For example: NetSuite Implementation Cost focused on executing plans that could improve efficiency and make optimal use of business resources. 

Improved Data Security

ERP software designed by highly skilled Oracle ERP functional analyst offers huge confidentiality of data. It ensures the business data is safeguarded and further eliminate the threat of any information being transferred into wrong hands. ERP functions ensure to maintain log reports that monitors the accessibility of users and further enable managers to allow employees to only access the data that is relevant to their job need. 

Conclusion

The blog has comprehensively highlighted various ERP business functions. Understanding how each enterprise resource planning function and feature works for your business is essential towards achieving your business needs.

As NetSuite ERP Solution Provider, we are well-versed in evaluating your business needs and can help you understand how each ERP function bios might align with your business goals. If you need help in understanding how an ERP system can transform your business with end-to-end growth and efficiency, book a consultation call with us!