Enterprise resource planning (ERP) software is a core system for mid-sized businesses and above in many industries, particularly those with manufacturing and inventory management requirements. Here’s a quick overview of some important ERP benefits that your business can achieve.
Use an ERP solution to integrate all your systems into one
As a single integrated software suite, an ERP system provides a robust platform to support all major business processes and operations. Common modules include financials, human resources, manufacturing, supply chain management (SCM), customer relationship management (CRM), and management dashboards. Typically you can choose to activate particular modules on an as-needed basis. The alternative to an ERP solution is to use a custom-integrated group of best-of-breed solutions – for example, a CRM system connected to a major accounting package, with a different warehouse management system. However, this may bring added complexity or require greater in-house resources in order to manage multiple systems and integrations over the full software lifecycle.
Improve business processes through ERP software
Businesses often find that the implementation of an ERP system is both a trigger for and an enabler of process improvement. Before implementing a system, companies typically embark on a process mapping and improvement exercise to ensure that the new ERP workflows provide appropriate support to the business. This ensures that the business systemizes an efficient process, rather than just locking in old ways of working. Once an ERP system is in place, it provides a wealth of insight and data to guide further process improvement, and the toolkit to deliver it. This enables the company to periodically review their business processes, and adjust them to boost productivity and operational efficiency.
Gain insights into your business performance
Rather than data sitting in functional silos across the business, an ERP solution enables management to have visibility on key performance metrics across the entire organization. This insight allows for significant improvements in decision-making and helps ensure that resources are properly aligned to support the company’s strategy.
Boost governance and security with an ERP
A single integrated system also allows for more effective management of access permissions and data security. This ensures that only the appropriate staff can take particular actions, as well as providing visibility that enables management to improve financial control and manage risks. This is arguably one of the most overlooked ERP benefits.
Provide a robust platform for growth
As a scalable and robust solution, ERP software provides the foundation for your business now and well into the future. With the right ERP system, not only are your current business activities well supported, but additional functionality can be brought on-stream as required with new modules. It also gives you confidence that as transaction volumes grow, your business activities can readily scale to support it.
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So that’s our quick summary of common ERP benefits. If you’re considering buying a new ERP system for your business, we encourage you to take advantage of our free Get A Shortlist service: simply tell us your needs and we’ll seek to match you up with a shortlist of 3-5 relevant providers who are well placed to help your business achieve the benefits above. As a trusted third party, Software Shortlist doesn’t develop or sell ERP software ourselves. We focus simply on connecting you with relevant vendors to help you improve your business.
