ERP (Enterprise Resource Planning) systems have numerous benefits for a small business. The software can greatly improve resource utilization and connect all the different parts of a company together. It also provides effective methods for inventory management, shop floor control, and purchasing and receiving. While there are many major reasons to undertake an ERP for improving overall business function, it is important to first analyze what unique objectives your teams need to achieve, before investing in a new ERP system. Here are several reasons to adopt an ERP solution.
Streamlined and automated workflows.
Irrespective of what your objectives are when deploying ERP software, improving productivity and efficiency has to always top the list. This is made possible by streamlining and automating tasks across the whole company, which in turn frees up your employees to deal with more complex matters. ERP also allows multiple departments to function as a single unit, so that silos can be eliminated and valuable data can be prevented from falling through the cracks.
A centralized console can also improve processing and turnaround times, as employees don’t need to toggle between multiple applications and search for the same data in different repositories to get tasks done. Improving productivity and efficiency via an ERP system also depends on how resource planning is carried out overall, so your company can save time, stay on budget and deliver quality with every output.
Saves time.
A second benefit of ERP programs is the amount of time it can save your employees. They will be able to follow up on leads at a much faster rate and determine which ones have the most potential for success. They also won’t have to spend as much time on data entry since the information will only have to be entered into the system once. The time saved can then be used for more important tasks.
Centralized databases.
You will also gain a greater level of information consistency with an ERP system. If a member of the sales department needs to look up a piece of customer data, they can do so by searching a single master database that is shared across the entire organization, and updated on a real-time basis (usually with version control, to record details of any changes made). This can help save time and reduce the propensity of errors when a client needs to be transferred between different departments.
Reduces costs.
A fourth advantage of ERP is that it can help to reduce operational costs. Your company will use less paper and postage since the tasks that required them will now be automated. You will also have lower payment processing costs and not have to spend as much money on unnecessary inventory. Cost reduction is one of the main characteristics of a reliable ERP system, as it is one of the biggest drivers of ERP adoptions in the first place.
Greater transparency.
Another benefit of ERP is the organizational transparency the system provides. Multiple supervisors across varying departments can observe how an employee responds to a particular issue, while also being able to access histories of how they have dealt with similar problems in the past. Apart from providing great attention to detail which can be particularly beneficial during crises and compliance audits, transparency of such high caliber can also lead to better accountability and performance management on the part of your organization’s employees.
Optimized accounting and reporting.
A final reason that your company needs an ERP system: it will help you to achieve global standards for accounting and reporting. While many leading accounting ERP software providers will automatically make sure that you are meeting compliance regulations which are relevant to your city, state and country, it can also do the very same for international business functions and transactions.
Reporting and analytics are a crucial component of any enterprise software - let alone ERP systems. As a result, leading enterprise ERP systems are infused with reporting and analytics tools to offer you and your teams valuable insights on the daily workings of your business, as well as a bird’s eye perspective of business health, such as sales forecasts, compliance reports, inventory analytics and much more.
Depending on what your business’s specific needs are when it comes to reporting and analytics, comparing cloud-based ERP software on a vendor basis can help you determine which products precisely fit your needs, before you make the big decision to finally purchase and deploy one.
