Facts of ERP #1: Routine Task Automation
Implementing an ERP system enables organizations to automate their repetitive and boring processes. On the basis of the information provided into the system, it also generates automated standard reports. Employee time and effort are saved, which can be used to scale up for the best work performance.
Businesses that utilize ERP can develop smarter workflows to simplify their current processes. Such procedures can then be improved for greater departmental effectiveness. These processes will also lessen the possibility of human mistakes and omissions. By maximizing people, resources, and processes, ERP may, overall, increase business efficiency while pushing profits to new heights.
Facts of ERP #2: Effective Departmental Coordination
ERP software stands out because of how interconnected its functions are. In order to conduct an intelligent analysis of data, company functions such as production planning, inventory purchases, accounts, sales, and marketing are linked and synced in real-time. It aids in enhancing the harmony between a company’s interconnected sections.
Facts of ERP #3: Lowers Inventory Cost
Being unprepared for inventory costs your money in terms of warehouse costs and turnover time in addition to holding back a large percentage of your cash flow for the purchase of the inventory. Through management reports, ERP installation assists in the analysis of the manufacturing and inventory cycles, allowing you to spot and fill inventory shortfalls.
You can maintain optimal inventory by using the information and analyses produced by ERP software. This means that the company can limit lengthier client service times while avoiding overhead costs associated with inventories. Additionally, by finding vendors who can offer the best credit, the lowest prices, and the fastest delivery, such analysis can assist the organization in better planning its procurement.
Facts of ERP #4: Improved Supply Chain Management
A business’s supply chain management can be improved with a successful ERP implementation. Forecasting the demand for the upcoming months is aided by the analytics and information connected to each department. In turn, this aids in managing shorter inventory cycles while being ready to carry out the production schedules. In other words, there is more transparency among the business’s stakeholders.
Facts of ERP #5: Better Customer Relationship Management
ERP for business can be utilized to store customer-related data. An effective tracking system from lead through delivery and post-delivery support provided by a contemporary ERP system enhances customer communication.
Customer history information can be utilized to better understand client profiles and propose discounts and offers for their favorite goods and services. The company can select the closest supply locations, priority scores for the provider, and service standards overall based on customer order and geography. It can help with both better delivery timing and customer service timing. Additionally, routine process automation can greatly reduce order shipment errors.
Facts #6: Enhanced Cash Flow
Every firm depends on cash flow to survive. Transparency of financial records, including payables and receivables, is made possible through ERP deployment. Automation enables quicker and more accurate invoicing information, which improves receivables collection. Faster collection results in better cash flow, which increases the amount of money available to the business.
Facts #7: Reliable Data Analysis & Reporting
For business owners, managers, and employees, the data entered into ERP can turn into a really important piece of knowledge. The software can examine information on clients, production, inventories, sales, purchases, financials, and other aspects of various business operations. The key decision-makers ability to make business decisions that can lead the organization along a path of growth may be facilitated by the availability of such information at the push of a few buttons
Facts #8: Better Tracking
The information entered into ERP aids in monitoring the operations of each department, including sales status, manufacturing stages (raw materials, semi-processed goods, or finished goods), inventory availability at various warehouse sites, accounts receivable turnover, and much more.
ERP is not a magical hand that would do all works. But the best practice is how human is operating to get the best result. It also depends on functions and diversified feature. Ultimately, it will support businesses to save money.