Why companies should have ERPs
Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. It integrates all departments and functions across a company in a single computer system that is able to serve all those different department’s particular needs. An ERP system also automates business processes by placing them into a useful format that is standardized and common for the whole organization.
BENEFITS OF IMPLEMENTING AN ERP SYSTEM
A major benefit of using an ERP solution in a modern business is that you can manage many core business areas with just one system.
An ERP solution integrates all of these disparate business functions into a single system and allows them to communicate with each other. As an example, when your sales team confirms an order, your ERP system will automatically generate a transaction for the finance department, produce a work order for the production floor, update your inventory, and notify the purchasing department to replenish stocks of the product sold.
2). Streamline your Processes
When implementing an ERP system, companies are forced to consider or reconsider their business processes and workflows. It’s a perfect opportunity to assess what makes sense, what works, what’s important, and what can be improved. And by running the ERP system, your organization can gain speed, efficiency, and accuracy in its business operations. A more efficient business is good for everyone. A modern ERP system will help you meet the demands of your business partners and external stakeholders, and it can help keep your employees happy and productive too. So through automation and integration, the ERP system can increase your organization’s productivity while reducing time and labour costs.
Many companies have mounds of data related to their business. Analysing your company’s data is extremely valuable, as it gives you unique insights you won’t get anywhere else, such as your busiest and slowest sales periods, for example.
The trouble is, pulling insights from your business data can be challenging. It’s time-consuming, the data can be out of date and hence unreliable, and you’re often trying to make sense of hundreds of siloed data sets from various areas of your business.
ERP solutions can transform the way you gather and analyse data from across your business, helping your data teams identify accurate insights into your entire operation quickly. They do so by offering real-time data on business processes, resources, and work status. This means that users can rest assured that the information they see is up to date and relevant, which is often not the case with legacy systems.
What’s more, most ERP systems now offer advanced business intelligence (BI) functionality or integrations. This can help a company get even more value out of their data—and gain insights into the business. But before you buy any additional BI applications, it’s important to define how much business intelligence your company needs and how important it is to meeting your business goals.
Your customers have high expectations, whether they are individual consumers or other organizations. Companies like yours often make changes to meet these expectations.
Many consumers now expect to have a seamless multichannel experience for example, browse a product catalogue in-store, place an order online, receive the item at the closest retail outlet, and have it picked up for repairs from home.
To adapt their processes and meet these high expectations, businesses have invested heavily in technology.
An ERP software system provides a centralized communication tool for all departments. It gives employees a global view of all customer communication, from the first point of contact to the most recent. So when a customer calls in to get a technical issue resolved or to purchase additional services, the employee at the end of the phone can quickly review the customer’s previous communication with the business to see the customer’s transaction history, preferences, service history, etc.
The end result is that employees can provide a more efficient and personalized service to meet customers’ high expectations.
Technology changes quickly. Moreover, the cost of updating the programming of an old system often mounts up quickly. At some point, companies will find that it doesn’t make sense to keep an old system in place; it’s practical and financially sound to migrate to a modern, integrated solution.
ERP solutions are designed to offer flexibility, adaptability, and scalability for growth.