“How can this software help my business improve efficiency?” This question often arises in the minds of business owners when selecting an ERP system in Singapore.
Conversely, a company’s IT division also has important questions during the ERP software selection process. “What about security? Can the vendor guarantee the safety of our data?”
Furthermore, employees who will use the ERP system in the company have their own concerns. “Will this system be easy to use? What if it makes my job more difficult?”
Are you among those who have similar questions?
If the answer is “yes,” then you’re reading the right article! Continue reading, and you’ll be able to decide if it’s time for your business to adopt this smart technology.
The primary benefit of the ERP system is as a central data platform for all your business operations, providing comprehensive reporting that can be used to enhance productivity and save various costs for you as a business owner.
Comprehensive and cost-saving company reports are indeed the main advantages highlighted by ERP system vendors.
However, in this article, we will help you understand more deeply what this technology can do for your business. Are there capabilities provided by this system that your company does not yet have?
How can the ERP system help you save business expenses and help you develop the company?
Here, we will detail 15 advantages that the ERP system Singapore can provide for your business.
Key Takeaways
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Increased Productivity
The ERP system can enhance productivity in various ways. One is by automating repetitive tasks, allowing employees to focus on more important work for the company.
This automation not only enables them to complete various tasks more quickly, but the ERP system also simplifies work processes and reduces the time needed to search for required information.
With this high productivity, you won’t need to increase employee numbers as much as before the implementation of ERP. Because it’s automated by the ERP system, employees can take on new tasks and other projects that require their skills.
Cost Savings
This is the main reason business owners adopt the ERP system. By reducing business expenses, you can gain more business profits, often in significant amounts!
The aforementioned automation is one way the ERP system saves or even eliminates administrative and operational costs. For example, manual data entry, which requires considerable paper, can be eliminated with an integrated system.
Moreover, the system’s ability to identify higher-than-usual spending sources allows you to immediately make improvements to reduce those costs and lower the potential for employee fraud.
The ERP system is also equipped with business intelligence features for more accurate planning to prevent urgent orders, overproduction, or over-ordering, which definitely increases costs.
Workflow Standardization
Like data standardization, another benefit of enterprise resource planning is workflow standardization. Work methods in each department might differ in handling certain processes.
Even two employees within a department may not follow the same steps. The ERP system eliminates these differences, ensuring every employee follows the same best practices.
Often, work is done in a certain way because it has become a habit over the years, not because it is the best and most efficient method. The presence of ERP system Singapore in your business will cut unnecessary processes, making work faster and easier.
Increased Efficiency
Thanks to the automation of repetitive tasks and the availability of up-to-date information, several processes can be completed more quickly. This not only benefits the company but also your loyal customers, as it not only reduces operational costs but also increases profits.
For example, a factory that produces 20 products with an average profit margin of 20%. With an ERP system, businesses can easily and quickly see which products are the least profitable.
After reviewing the data, it’s found that labor costs are higher for the two items with the lowest margins. After talking with the staff handling these products, it turns out that the work done to produce these two items is still manual and time-consuming.
From this data, the company decides to buy machinery to automate the production of these two items. As a result, the margin rises to 25%. In this way, the ERP system saves billions of rupiah annually.
Higher Mobility
In some companies, employee mobility is no longer a facility but a necessity. For example, in the construction industry.
Field workers and employees who often travel from one construction site to another will certainly have difficulty if they must use a computer or laptop to view the latest company data, such as the availability of raw materials, monitoring project progress, and the number of available workers.
The best ERP system should be mobile-friendly, and accessible anywhere and anytime through the employee’s mobile phone. Because users access the cloud system via the web, they can access dashboards, reports, and other information from their mobile browser.
Many ERP system vendors already provide mobile apps to offer convenience for use on smaller screens.
Improved Customer Service
Increasingly tight and competitive competition makes businesses compete for the same customers. The ERP system helps improve service by providing all customer-related information, such as contact details, order history, and any customer support received, on one dashboard.
The completeness of data provided by ERP allows you to offer faster solutions and a more personal experience when customers need help. Another way the ERP system can improve customer service is by providing accurate inventory and order information.
With this inventory and order data, customers will always receive the right items and arrive on time. With better service, customers can become repeat buyers or recommend your business to their contacts or colleagues. In the end, using ERP makes companies more competitive in an increasingly competitive market.
Curious about what benefits the ERP system can provide for your company? Don’t forget to find out what the pricing scheme is like! Click the image below to download the ERP software pricing scheme from HashMicro.
Real-time Reporting
Accurate reporting is one of the most sought-after benefits of the ERP system. The system has the ability to customize reports for various functions, such as finance, inventory, procurement, sales and marketing, to HR.
With this, you can not only track the performance of each business component but also identify which departments are driving business growth and which are hindering it.
To obtain accurate reports, you need the latest or real-time data. If it takes two weeks just to make a revenue report from the last quarter, then the information you receive may already be outdated and no longer relevant.
Better Scalability
Have you ever felt that the software you are currently using is no longer able to manage the operations of a company that has grown further? If you feel this way, it means that the software does not have good scalability.
The best ERP system should be able to grow with your company. The system should offer the best functionality while leaving the possibility of adding more modules in the future.
Cloud-based ERP systems are the best choice for business owners who want to easily add resources. This system also reduces the workload of IT teams who would otherwise have to manually add servers if still using on-premise systems.
Data Security
Undoubtedly, data is the most valuable asset for a company. With data, business owners can make the right decisions for their company’s future. The ERP system can help protect that asset.
With data centralization from the ERP system, rather than data scattered across various systems with different security levels, protection of company data can be enhanced. This system replaces spreadsheets and other documents scattered across each employee’s device or in emails.
The security layer is reinforced with cloud-based (cloud-based) ERP systems. In this way, company information is usually distributed to several remote servers to avoid hacking of sensitive customer data.
To find out what advantages are obtained from the implementation of cloud ERP or on-premise ERP, you can read a complete explanation by reading the following article: Various ERP Systems for Managing Your Business.
Another advantage of cloud-based ERP systems is that you can also limit who can view and edit data. ERP usually has an easily controlled permission system to ensure employees can only see the data they need to avoid the opportunity for fraud.
Standardized Data Management
Without data centralization, staff will have difficulty finding the data they need. This is because data from each division is scattered across various applications and worksheets (spreadsheets). Unfortunately, this often results in duplicate data with inconsistent formats.
The ERP system Singapore helps standardize all important company data. Since all data is stored in one system, each piece of data is created in a uniform format, so you won’t have trouble when making reports or performing analyses.
Standardizing information in this way allows you to collect all the data you need and make decisions based on more accurate data. This way, you can save more time and money.
More Accurate Forecasting
How often do you find your business unprepared for sudden changes? For instance, unexpected spikes in demand during specific events, or conversely, a drop in demand leading to excess stock in your warehouse?
This situation often arises from a lack of accurate forecasting. The forecasting we refer to is not mystical, but rather based on historical data of demand, costs, and other figures to predict future changes.
With the aid of an ERP (Enterprise Resource Planning) system, forecasting becomes much more accurate and comprehensive, as all necessary data is centralized. This enables better preparation for various possible scenarios.
For example, if the ERP system predicts a 30% sales increase, you can stock up more inventory or boost production. In service industries, hiring additional staff in anticipation of increased demand might be a strategy. Conversely, if forecasts indicate higher expenses than revenues, it prompts you to find ways to cut costs.
Ultimately, accurate forecasting helps your business maximize profits and minimize unnecessary expenditures.
Increased Visibility
One of the most sought-after benefits of ERP system Singapore is increased visibility. Take, for instance, its application in the manufacturing industry.
If the procurement team can monitor the status of purchase orders, they can better estimate delivery times, avoiding overstocking or shortages. This ensures smooth production processes, preventing costly production delays due to material shortages.
Visibility into the status of tasks and data managed by other departments helps all teams and employees perform their jobs more effectively.
Enhanced Collaboration
ERP systems facilitate collaboration across departments. With visibility into the operations of other teams and access to shared information, employees can easily collaborate or offer assistance to their colleagues.
Gone are the days of teams working in silos, using applications that are not integrated with the systems used by other departments. A unified system with standard protocols improves communication and cooperation across divisions, enhancing overall business operations.
Flexibility
ERP systems are designed to assist diverse companies, regardless of their size or structure. Leading ERP vendors emphasize flexibility as a key feature, allowing customization to meet the unique needs of each company, such as specific workflows and unusual metrics.
This flexibility is crucial as companies grow and their workflows and KPIs evolve. It ensures the system remains relevant and effective without needing replacement.
Risk Management
ERP systems aggregate data from various business divisions. This data enables quick and easy identification of potential risks, such as financial, supply chain, or operational risks.
After identifying these risks, ERP helps evaluate them through data analysis and potential risk calculations. For example, an ERP system Singapore with accounting software can assist in identifying credit risks by analyzing customer data and payment histories.
Once data is gathered and analyzed, creating a risk mitigation plan becomes straightforward. In supply chain management, for instance, a backup supplier plan can be formulated to ensure uninterrupted production.
Choosing the Right ERP System
The ideal ERP system for your business should offer most of the benefits mentioned above. When selecting an ERP system, conduct thorough research and inquire in detail about how the system can support your company.
The suitability of an ERP system depends on various factors like company size, industry, business model, and future goals. Also, consider which modules are relevant now and can be added later.
Therefore, it’s crucial to choose an ERP system Singapore that not only meets current needs but also has the scalability and flexibility to support future growth.
HashMicro: A Leading ERP Vendor in Singapore
HashMicro, a prominent ERP vendor in Singapore, serves over 1700 clients in Singapore and Indonesia. Offering integrated solutions suitable for various industries, HashMicro’s ERP system can manage all business aspects on a single platform.
From retail, manufacturing, finance, services, to technology, HashMicro’s ERP system, with its extensive features and modules, can be tailored to your business needs.
For more insights into how our solutions can aid your business, obtain a free HashMicro ERP software demo now!
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