The 10 reasons why you need an ERP Software
Strategic Transformation Leader | ERP, IT & Enterprise Solution Project Manager | Master Business Analyst | Management Consultant | Driving Innovation Through Process Optimization, Culture Development, and Automation Technology | 20 January, 2019 (Sunday)View 2410
No intro, let’s get to the 10 points!
1. One platform for everything
ERP stores all entered data into a single database, allowing all departments to work with the same information. Additionally, all this data can be organized, analyzed and made into reports.
ERP systems bring together customer management, human resources, business intelligence, financial management, inventory and supply chain capabilities into one system; still fulfills all departments' needs, faster.
2. Accurate information & effective communication
As ERP integrates and connects departments together in one platform, it eliminates the chances of getting wrong or incomplete information from different sources. It won’t be necessary to collect information from different sources and try to put them together. Therefore the communication between functional departments become easier and faster.
3. Cost saving and minimization
ERP system helps you to track down all the cost involved with a specific order or customer. It can show you which order is making money and which order is not. It can give you full insight of your cost, from there you can easily identify which area to look at and save cost. Without an ERP system, it is almost impossible to do such level of analysis and save cost.
4. Automatic documents & reports – high productivity
With ERP system you can generate hundreds of Purchase Orders in minutes. This is saving a lot of time. Not even that, it also preventing calculation errors which could happen if done manually.
Purchase Orders, Production Requirements, Invoice, Challan, Sales Documents everything can be created in minutes with the help of ERP software.
Reports that could take days of research and compilation could be done in a minute through ERP system.
ERP system offers the least data entry by automation as well as quick retrieval of information. This will save a lot of working hours. The advances calculations are done in seconds. The people can focus on planning and other thoughtful work instead of data entry.
5. Happier customers
By having full information in one central database, you would be able to do analysis and see your clients more holistically. You will be able to understand customer’s real needs which will help you to formulate better sales & marketing strategy for improved lead generation.
From ERP, you would be able to know which customers have generated most revenue, which products giving you the higher profit. You will be able to decide which are to focus for your better sales.
6. Right decision making – risk management
The ERP system provides a bird-eye view of the company in one dashboard with income & expense statements and KPIs. This ability to access the reports quickly enables you to make decision based on the real fact. This helps make the right decision. You no longer need to worry about wrong data or incomplete data from different sources. This helps you to get out of risks.
The forecasting tools of ERP allow users to predict events when it comes to demand, labor and budget. With this information in hand, you can create more secure budgets, schedules and product development plans.
7. Strong inventory control
ERP system offers the real-time inventory information including the quantity, locations and status. You can easily track down why inventory is raising and what needs to be done. ERP system utilizes barcoding, RFID tags and serial numbers at every stage. This enables you to strongly control your inventory in the way you want by removing all guesswork.
8. Realistic supply chain & planning
The main point behind establishing supply chain is to have the full visibility of orders, production status and inventory level in one page; so that the production planner and material planner can make decisions and set realistic planned completion dates. Also follow up the production status in shop floor and properly adjust plan when needed to maximize the capacity utilization. This is possible only by having integrated ERP software.
9. The master level of financial management
Having utilizing the above benefits of ERP, you are at your master level of management. You will able to see in one screen what’s going on in your finance. You will know everything that’s happening in your business, in the market. You are in full control of what to decide and what to do. Ultimately this will enable you to manage your most important resource – money!
10. 50% implementation cost can be reduced!
The benefit of ERP systems far outweighs the initial cost, time and effort involved during the implementation. Therefore don’t be afraid if you see the initial cost is high. Still many organizations are afraid of ERP because of high initial cost.
Actually there is a way to reduce the ERP implementation cost 50%. Contact us for advice.
----------------------
#ipebulbul #360BA
#ERP #OerationsManagement #BusinessAnalysis
