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Implementing ERP for your Business
Benefits

Benefits of Implementing ERP for your Business

What exactly is an ERP? An ERP, or Enterprise Resource Planning software is a tool that simplifies complex processes, automates repetitive tasks, and stores the entire information related to the company’s business in a centralized database. It helps to free your human resources and divert their efforts towards core business tasks, leading to increased productivity and efficiency.

ERP software encompasses features related to the following:

  • Accounting
  • Customer Relationship Management (CRM)
  • Manufacturing
  • Inventory Management
  • Human Resources
  • Analytics and Reporting

Most businesses today use enterprise resource planning or ERP software. The following are signs that a business needs to either implement an ERP solution, or upgrade their existing one:

  • The business has grown, is growing, or about to grow significantly
  • The business is unable to manage its processes properly
  • There has been a merger or acquisition and systems need to be streamlined across companies
  • A business has a legacy system that is incapable of being upgraded, and is not serving needs of the business any more

Though there are several indicators for the need to implement an ERP solution, businesses in industries like the following enjoy the most benefits from it:

  • Manufacturing
  • Distribution
  • Construction
  • Industrial Services
  • Healthcare

Now that we have established that, let’s take a look at the benefits offered when you install ERP software.

Standardized Processes

As ERP software is built as per industry best practices, it facilitates the standardization of processes and systems within an organization, leading to all-round efficiency and enhanced productivity. Standardized processes offer dependable results that enable you to continually improve your business operations. Manual errors can be avoided with automation of several processes, leading to better synergy between departments.

Competitive Edge

Though ERP software implementation means a big investment, not making that investment may prove to be more expensive n the long run. By avoiding commonly made business mistakes, you can experience improvements across departments and operations and stay ahead of the competition. Also, with most companies using an ERP to streamline their processes, you cannot afford to lag behind.

All-round Business Visibility

An ERP solution offers complete access to all the important processes in your business as information from every department in available to peruse by the senior management. It allows you to increase overall efficiency and control your working capital.

Accurate Business Reporting

ERP offers excellent reporting tools, that gather information in real time, analyse the data and offer actionable insights. As all the information is centralized in an integrated database, it is much easier to know what is happening in any part of the organization at a glance.

Flexibility

ERP solutions are very flexible vis-à-vis other enterprise products in that it can be tweaked completely to include modules that are specifically required by an individual business.

Enhanced customer service

As the ERP software offers better access to customer information, it helps the employees to foster strong relationships with customers. They can respond quickly to customer requests, improve accuracy of orders and delivery times, and keep customers happy. Customer acquisition and retention can both be improved significantly with the help of an effective ERP solution.

Improved Inventory Costs

The ERP will help in knowing how much inventory you need to carry so that you have adequate stock to fulfil customer orders, but not so much that you incur heavy carrying costs.

Enhanced Collaboration and Workflows

For a business to thrive, it is vital that there is excellent collaboration between departments and teams; ERP software facilitates collaboration by streamlining the process; employees get access to requisite data when needed via interdepartmental databases which collates information from various sources and funnels it in a central location. This allows employees to see the big picture, and empowers them to take proactive decisions and make valuable contributions. This leads to improved intra-company communication and real-time updates of projects.

Better Cash Flow

With enhanced invoicing and collections tools, you can bring the cash in quicker, and have more cash on hand for your business operational needs. With better planning of inventory and management of purchases, enhanced vendor relationship management and the delivery of improved customer service, you can reduce the overall expenses, thereby improving profitability.

Better Data & Cloud Security

Our ERP solution has multi-layered security protocols in place that protects your system from installing malware, and from cyber-attacks like ransomware, phishing, and data leaks. The data is distributed across multiple servers to mitigate the risk of breaches. By granting various access levels, you can also safeguard the data from being tampered with or leaked from within the organization.

Efficient Management of Supply Chain

Businesses that need to physically move production and inventory get excellent supply chain management benefits with ERP implementation. You can reduce lead times and ensure deliveries to be prompt, leading to overall operational improvement, and business growth. With precise forecasting of customer demand for products and a lean inventory, you can bring down the bottlenecks in production, and gain more transparency throughout your business, and manage your supply chain much more efficiently.

Regulatory Compliance

Meeting compliance requirements can be a daunting task; it is not an easy task to ensure preciseness in your financial records. ERP helps to secure and validate data with the help of inbuilt reports, and therefore helps to adhere to regulatory compliance. The reports can be configured to be generated automatically so that continual audits can be avoided, and the expenses can be reduced.

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