Enterprise Resource Planning (ERP) software can manage all aspects of a company’s operations, including inventory management, order processing, accounting and much more. An ERP system is often used by a company which has outgrown its introductory systems and is looking to scale its growth. Here are some benefits that come with using ERP software.
- Improved customer service
When using ERP software, all information is stored in one database and operations across departments are streamlined. This means that when employees with the right user permission assist customers, they are able to access accurate information at the click of a few buttons.
Customers who can easily place orders and have them delivered speedily are more inclined to become loyal to a business. If any queries are answered without delay, this loyalty increases.
- Cost savings
Cost savings will be very apparent in companies that switch to ERP software after using manual processes and disparate systems.
When it comes to inventory management, the increased accuracy of shipping processes reduces costs associated with lost inventory, returned merchandise and customer service. The tools for accurately predicting buying patterns reduces the costs of holding dead stock.
In accounting, automating many of the processes reduces the time and costs of manually entering data into a number of different systems. It becomes easier to compare budgets with actual costs within specific time frames and to track spending.
Implementing the software as a cloud solution means expensive server hardware is not necessary and IT maintenance costs are lower.
- Advanced reporting
Using disparate business software systems can lead to messy, non-standardized data. Unorganized and bad data can become a serious impediment when certain business decisions have to be made and it costs a company dearly. When data is stored in a single location instead of distributed throughout various databases, it’s possible to extract consistent, up to date information to gain insight into the real-time health of the business.
It’s easy to pull the information into reports to send to the appropriate stakeholders. They can compare functions across departments and analyze them without having to concern themselves with multiple spreadsheets.
Year-to-year comparisons and forecasts are often built in and presented in dashboard format in ERP software. Being able to access real-time, consistent, reliable data helps a great deal with decision-making for management and sales teams. They are also more likely to be able to spot areas of opportunity.
- Increased efficiency and security
ERP software allows companies to do more with fewer resources. Automation removes the need for manually entering information into multiple systems which takes time, costs money and increases errors. Increased automation frees up employees’ time to do tasks that actually generate revenue.
By streamlining business processes, it becomes easier to manage data and access information, irrespective of the department. Most ERP systems are also equipped to help with regulatory compliance for business processes such as data security and financial accounting.
Modern ERP systems have advanced user-permission settings. Users are only able to access information they need and so data is more secure.
- A solution for business growth
For a very small business, it might possible to survive without an ERP. The problem arises when a business starts to grow and the orders continue to increase.
A mid-market ERP system provides additional functionality and offers a virtually unlimited database size and transaction volume. A business can keep using the ERP software it expands and starts to serve more markets.
ERP systems are designed to meet the needs of many different organizations, with advanced features that cater to specific industry needs, such as eCommerce integration. These systems are adaptable, flexible and designed for growth.