Investing in ERP Software in a Down Economy
With the current status of global economics and the constant strains in the supply chain, an ERP system is a valuable asset to any company to organize and manage information about company resources. ERP solutions are rapidly gaining popularity across all types of companies and industries, and as a result, the technology that powers ERP systems is transforming to fit all the changing and growing needs of unique businesses.
What is an ERP system?
ERP systems can help improve and streamline your business across departments such as:
- Accounting & Finance
- Human Resources
- Customer Relationship Management
- Supply Chain Management
- Risk Management
- Compliance & Security
Cloud ERP is growing more quickly than many other hosted software solutions and this trend toward the cloud will only continue as more companies realize the benefits of ERP (and can afford the technology earlier than in the past).
What are the benefits of an ERP system?
The main business benefits of ERP include:
- Improved Productivity
- Increased Efficiency
- Improved Reporting
- Better Customer Service
- Enhanced Customer Experience
- Improved Vendor Relationships
- Enhanced Data Security and Integrity
- Reduced Risk and Improved Compliance
Another benefit of modern ERP systems is data flexibility, which makes it easier for more people to use business data to not only create reports and track operations but also make important decisions for the future of the company.
In what ways does ERP help in decreasing costs?
- ERPs cut operational costs and improve efficiency
The centralized and integrated nature of all business processes thanks to an ERP system can help your company cut down costs and improve information exchange among all departments. This will allow your company to automate tasks and require less human labor and the costs associated with that.
- Improve communication and collaboration
The ease in information exchange among all departments thanks to an ERP system software creates a sense of transparency within the company.
The automation aspect of ERP is able to reduce the number of human error mistakes and provides your company with accurate data and analytics to help automate your business even further.
- Decreased process times
The centralized nature of business functions thanks to an ERP system can help standardize and automate all business processes such as accounting, inventory and supply chain management, and everything else that is related to your business.
ERP is able to standardize these functions and avoid employees mindlessly changing processes. Company management is able to set these functions to be standardized and followed by all employees. This will create more uniformity within the company and avoid mistakes such as duplication/deletions and the barrage of consequences that come along with it.
The analytics dashboard that comes with most of the top ERP systems can give your company quick insights about key processes and help troubleshoot problems as they come and avoid any serious consequences.
- Inventory and supply chain management
An ERP system is able to integrate all things related to inventory and supply chain management. All information regarding ordering, refilling, and reviewing supply needs can be done conveniently using ERP software. You will be able to always stay on top of your supply chain and avoid running into any shortages.
An ERP system can help you track your inventory needs, do waste analytics, and damage assessments, and evaluate aspects of production that may no longer be essential to your business. The information provided by an ERP can also help your company budget for supplies better and plan for inflationary price hikes better.
- Added CRM functionality
You can easily integrate your customer relationship management software (CRM) with your ERP system. This integration can help you track all customer interactions all in one dashboard allowing you to address customer needs as they arise.
This integration can also help assess your customer segmentation patterns and communicate in a targeted manner with such audiences. An ERP can help you vastly improve the quality of customer service your company will provide.
- Reduced IT and labor costs
The centralized nature of an ERP as a knowledge hub reduces all unnecessary expenses that come with manual labor processes and also reduces any related IT repair and maintenance costs of having to maintain separate databases/software when there’s a convenient all-in-one solution.
Is it worthwhile to invest in ERP technology?
An ERP software system is a quality-of-life recommendation for your business that we cannot recommend enough.
With the current delays in obtaining supplies and the inflationary cost of acquiring new supplies, an ERP system will be your company’s biggest asset. Being able to see the information about your supply chain in a single dashboard can help your company manage resources and continue to operate without a hitch. Being able to foresee supply requirements before they come up and being able to automate even the supply purchasing process can be a big game-changer for your business.
After implementation, you will need to use the ERP system for a while before fully being able to experience how it can help your company. As your ERP system learns more about your business processes, the software can provide more accurate data for you to continue to improve your business.
An ERP system can help your company stay ahead of the competition by being able to anticipate business needs in a down economy. An ERP system is able to scale up along with your business as well; you will be able to stay on top of a more robust and thriving business with the aid of an ERP system.
When should you invest in ERP?
It is clear now that an ERP system is a worthy investment to centralize all business processes into one platform. The best time to invest in an ERP system was yesterday but if we have convinced you of the business benefits an ERP system can provide, we can help you narrow down the options for the best ERP vendors in the market currently. Firstly, we recommend that you consult with our ERP buyer'ss guide to learn more about this unique software. Next, you can compare all the ERP software vendors to decide on the right selection for your company.