You have learned about what ERP is in the previous chapter. In this chapter, you’re going to about how ERP software can help your business.
There are many advantages of using ERP software for various types and sizes of businesses in different industries; such as manufacturing, retail, wholesale, food and beverages, real estate, construction, and so on.
Here are some of the main benefits that you can expect to gain from using an ERP system.
1. Streamlined Business Processes
ERP software simplifies a variety of complex processes such as production planning, inventory tracking, financial statement generation, and many more.
For example, the accounting department does not need to spend a lot of time or use a lot of spreadsheets to create income or cash flow statements. The ERP system allows them to generate in-depth reports with just a few clicks.
2. Reduced Costs
With ERP software, companies can reduce both administrative and operational costs.
Since most business processes are automated, companies can also cut labor costs. They do not need spend extra money on several different applications as well.
In addition, with comprehensive and accurate business reports, companies can also forecast their revenue, consumer demand, inventory needs, etc. so that they can manage budgets more wisely.
3. Optimized Efficiency
ERP systems help companies eliminate manual work so that various processes can be completed more quickly. For example, order picking can be done in just seconds so that the manufacturing company can pack the goods and send them to customers more quickly.
ERP software also allows stakeholders to monitor KPIs of each division in the company through an easy-to-understand dashboard so that they do not need to meet the manager of each division directly when they want to ask for updates.
4. Integrated Information
ERP software allows each department across an organization to access various information they need without disrupting the work of other departments.
For example, someone from the marketing department wants to discover customer shopping behavior. With the help of a collaborative system, they do not need to ask for the data from the sales department since they can generate it directly from the system.
5. Accurate Insights
Insights play an important role in the business decision making process. Advanced reporting tools in ERP software allow companies to generate accurate in-depth reports that enable them to make better forecasts that can help grow their businesses.
6. Improved Mobility
Cloud ERP or web-based ERP systems allow business owners to monitor their business operations from anywhere and at any time with mobile devices.
Without ERP, business owners are required to be physically present just to ensure that all the operations are running smoothly. This is hard to be achieved especially if they have multiple stores or warehouses located far apart.
Retailers or wholesalers can receive and manage orders as well as track their stock availability whenever necessary so that shipment delays can be avoided.
7. Increased Productivity
Since various repetitive tasks are eliminated, employees can focus more on their core work and they have more time to complete other tasks or projects.
8. Better Data Security
You don’t need to worry about data security, because ERP software monitors access points tightly. Data restrictions can also be controlled by the admin who manages the system, so you can make your ERP system as safe as you want.
Cloud ERP software keeps all important company data safely. Data can still be stored offline when the internet network is interrupted and will be synchronized when the internet connection is back.
9. Improved Customer Service
An ERP system gives you quick access to customer information and history so you can better understand their needs. It also helps you increase customer satisfaction by speeding up the process of order fulfillment.
10. Enhanced Competitiveness
Technological changes and aggregate demand force business owners to update their systems to win the competition within their industries.
ERP solutions are designed to offer flexibility, adaptability and scalability for business growth. With the right ERP software, even SMEs can compete effectively with bigger players.