What is ERP?
Enterprise resource planning (ERP) software is used to manage a number of business functions, but how is it any better than other solutions? Even though ERP may have similar goals to other solutions, its unique features make it a distinctive competitor in the software market. Here are five reasons why the importance of enterprise resource planning systems should be considered by any organisation:
1. Reduce Costs
First, ERP unifies many of the systems that may currently be fragmented in your organisation. From product development to accounts payable, your staff will be able to access all the necessary tools for their job from one centralised system.
By unifying systems, you help your staff utilise their time more efficiently. With ERP, users don’t have to hunt down a piece of information across multiple systems. With the central database, information is much easier to retrieve. Moreover, your organisation saves money with ERP by eliminating the need for users to be trained on several systems.
2. Team Collaboration
The features of ERP applications can vary slightly depending on the program you are using, but generally, all systems improve collaboration in some way. As mentioned before, the centralised database is an integral part of what makes an ERP unique. With this database, you provide your company with a single source of data to work from.
Additionally, there’s no need to merge information across various systems or sources. Because all of the data is compiled, stored, shared and accessed through a single system, there is no concern about how accurate, complete or secure the data files are.
3. Better Analytics
A central database of information also aids in improving your analytics and reporting. Since an ERP records and stores all the data users input it makes for an excellent business intelligence tool. As long as your vendor provides strong functionality, ERP software makes it easier and faster for your team to generate various reports instantly.
Most ERP systems provide a customisable dashboard so executives can see reports when they first log into the system. These reports may include everything from income and expense statements to custom KPIs that offer insight into certain functions. Lastly, reports typically come with access levels; ensuring only relevant staff see valuable company data.
4. Improved Efficiency
With traditional methods, tedious tasks are completely unavoidable. Tasks like generating reports, monitoring inventory levels, timesheet tracking and processing orders have historically taken employees hours to accomplish.
If you choose the right solution, an ERP system can automate your most tedious tasks. The database within ERP software eliminates redundant tasks such as data entry and allows the system to perform advanced calculations within minutes. This frees up your team members’ time to do more thoughtful work, increasing your ROI when it comes to labour. From this, ERP increases your organisation’s productivity, efficiency and profitability.
5. Customer Satisfaction
Managing your customers has never been so important. In our digital age, more and more people are turning to the Internet to receive advice and read reviews.
The best way to improve customer satisfaction is to provide client-centred goods and services. ERP provides this in a few different ways. First, most ERP systems are equipped with a customer relationship management (CRM) tool or can be easily integrated with one. With an ERP, your CRM has access to data across business functions.
Along with contact information, an integrated CRM can show you details such as order history and billing information. This enables your team to see your clients more holistically to gain a better understanding of their wants and needs. The increased customer visibility helps you formulate your sales strategy for improved lead generation.
Why not speak to one of the X3 expert consultants and find out more about why ERP would benefit your business and how it could consolidate all your business functions and allow your business to grow.