Think of an ERP system as the brain of your company’s technology system. In the human body, the brain controls all areas of your body by telling them what to do and ensuring they all work together. The human body is unable to function without a brain, and a retail company cannot function without a proper ERP system. It integrates all facets of a business including product development, manufacturing, marketing and sales. By synchronizing all of these areas, businesses are able to gain visibility, increase productivity and operational efficiency, reduce costs and enhance competitiveness.
According to the latest statistical data, 81 percent of companies are in the process of implementing ERP or have successfully implemented it. They would never consider implementing ERP in the first place if the systems don’t have advantages for their businesses. Let’s break down the benefits of an ERP system for your business.
Enterprise Resource Planning systems serve to simplify a variety of business processes that take a lot of time and effort when done manually. Repetitive tasks such as tracking inventory, assigning tasks to employees, monitoring working hours, distributing salaries, generating financial reports, all can be done automatically.
By automating complex processes, your employees can focus more on their core deliverables without bugging each other. For example, the marketing team can generate daily web traffic data without having to request it from the IT team, or the accounting team can generate sales-related reports without having to rely on sales managers.
ERP systems also provide fast data access for managers and stakeholders in the company. Decision-makers can monitor key performance indicators throughout the company through the dashboard. All required data can be generated in real-time.
Increasing Team Collaboration
Cross-departmental collaboration is a crucial and often necessary part of a business. An ERP system breaks down barriers between departments in a company. With the data stored in a centralized and consistent ERP software, a department can access data from other departments. SaaS or cloud-based ERP can extend existing inter-team collaboration across multiple offices in different locations over the internet.
Reducing Operating Costs
ERP systems also help companies save on operational costs. Since most operational activities are automated, various interruptions, delays, and breakdowns can be properly anticipated. All of the complex work can be completed more quickly, thus reducing lead time. Companies can also reduce the amount of labour because ERP solutions take over a variety of day-to-day tasks.
Improving Data Security
ERP solutions have firewalls and restriction controls to prevent data breaches. The system keeps all the data concentrate on one point so the access points can easily monitor. Admins that are responsible for managing company data can provide limited access rights to employees. For example, HR managers can hide some important data only for themselves and stakeholders while granting employees permission to view their financial data.
Admins can also quickly deactivate the access of laid-off employees and grant access to the new ones. ERP solutions also show user activities, so the admins can easily identify unauthorized actions or suspicious activity patterns in the system.
Making Realistic, Accurate Forecasts
One of the most crucial things for business advancement is the ability to make accurate forecasts. Stakeholders rely on reports to make forecasts that will ultimately affect the decisions they make. Therefore, it is very important for businesses to get real-time, complete, and consistent reports. ERP can facilitate all that.
ERP reporting tools use sophisticated filters and analytics that can filter inconsistencies in the data. The system also ensures that the data obtained is generated in real-time. Accurate business reports will help stakeholders make the best decisions for their business.
Make your business more agile
In a rapidly evolving business climate, being able to respond to change is essential. A good ERP system is flexible, modular and scalable enough to adapt to shifting market dynamics and changing customer needs. You can initially implement specific applications that make sense now and add on seamlessly integrated applications as needed as your business grows.
Drastically increase efficiency and productivity
Inefficient spreadsheets, manual workflows and outdated software can inhibit your business growth. An ERP system can streamline your entire organization and put your data all in one place, enabling more accurate reporting and a more efficient, collaboration-based and data-driven work environment.
Save on unnecessary costs
Running your business with an ERP system creates efficiencies that make your business leaner as it grows. Many businesses report that they are able to expand without adding additional staff or IT costs. The cost of implementing an ERP system is easily eclipsed by the ROI of a more efficient, fully optimized business environment.
Improve security and accessibility
You can reduce your risk and hardware costs by moving your ERP to the cloud. Embrace the future of information systems with a modern ERP hosted in a secure cloud. Moving your ERP applications to the cloud allows you to scale, extend and upgrade quickly. It also increases visibility and accessibility even further, taking full advantage of an ERP system’s capabilities.
Gain a professional partner
When you upgrade to an ERP system, you also gain the partnership of your ERP implementation provider and all the support – from implementation and training to software support to community membership – that they have to offer. Some ERP systems have dedicated user groups and communities that open up entire networks of industry innovators and dynamic brands.
Grow your business
An ERP system can eliminate inefficiencies, wasted time and wasted resources, empowering your business to thrive and flourish. If you’ve been burdened by an inability to keep up with demand because you’re limited by conventional systems or stagnant legacy ERP systems, upgrading to a modern ERP system frees your business to realize its true growth potential.