Take an in-depth analysis, the result you get is mind-boggling, competition from the small, medium, and large scale enterprises can’t be further ignored. The global market has become your “next door neighbor” but fortunately, ERP has come to your rescue.
An ERP (enterprise resource planning) system can be seen as the binding force that glues together the different computer systems for your brand. ERP applications ensure that the different departments in your brand are able to communicate and share data quite easily.
With ERP securely in place, you gather information about the activity and state of different divisions and make this information available to other component parts of the brand, where it can be used productively. ERP applications can help a brand become one workable unit by linking information about the production, finance, distribution, and human resources together.
ERP system is able to harmonize accounts payable, stock-control systems, order-monitoring systems, and customer databases into one system. A comprehensive look at the following 15 reasons brings to the fore why you can no longer ignore ERP.
1. Competitive edge
You may be put off by the fact that ERP software requires a major investment, but the other side of the coin is that you may have to incur an even bigger cost in not making the investment. Some brands are known to stick to the tried and true methods of the past, while others tend to seek technology solutions.
You can no longer ignore ERP implementation as your competitors are eagerly investing in ERP and also reaping the rewards that accrue.
2. Improved process efficiency
You don’t want to be encumbered with manually entering information as well as indulging in repetitive processes, your ERP solution takes care of that for you. An added bonus is streamlining business processes and making it easier and more efficient for your brand to gather data without the attendant departmental hiccups.
This is in tandem with the lean principles and the many lean manufacturing tools.
3. Realistic estimates
An ERP software affords your employees, and especially managers, the tools they need to come up with more accurate forecasts. As the information within the ERP is trusted to be as accurate as possible, your brand makes realistic estimates and more actionable forecasts.
The time for siloed business when each department functioned as a separate entity is gone. Collaboration between departments is of the utmost essence and an absolute necessity on the part of any business.
When data is entered into ERP systems it becomes centralized and consistent, therefore, departments can easily work as a team. The software also touches on almost every aspect of a business, this creates room for collaborative, interdepartmental efforts.
Forbes reports that a joint study between the Institute for Corporate Productivity (i4cp) and Rob Cross, Edward A. Madden Professor of Global Business at Babson College, found that companies that promoted collaboration among their workforce were 5 times as likely to be high performing.
5. Unified data
You will no longer have cases where your data is spread across separate databases. All your information will be kept in a central location for easy accessibility.
You will have the opportunity of integrating platforms like your CRM software with the enterprise resource process system. This will also ensure that your data is consistent, accurate, and unique.
You can easily know your customer, their orders, and your inventory, all in one fell swoop.
6. Cost Savings
If you are able to focus on a central source of accurate, real-time information, which ERP software enhances, you reduce both administrative and operational costs. With it, your brand can proactively manage operations, prevent disruptive delays, break up information hiccups, and help employees make decisions more quickly.
If you’ve chosen the right solution for your business, and the right vendor who meets your needs, The result is a mouth-watering ROI.
One beautiful thing about ERP solutions is having access to a centralized database from anywhere. With this, you can even work at convenience from your home, office, or wherever, using your mobile-friendly solution and application.
8. Bumper production
If you don’t have to run from one department to another chasing data, you effectively save time and efficiently increase productivity levels. Since you will be able to automate your redundant processes, employees have more time to work on other pressing projects and tasks.
They’ll also be more comfortable since the solution was designed for ease-of-use. Brands that have been able to harmonize their operations are reported to be making 208 percent more revenue from marketing efforts.
9. Customer service
In today’s customer-centric market setting, you will be able to provide high-quality customer service using an ERP solution. Sales and customer service people can relate with customers better and improve feedbacks from them through faster, more accurate, and real-time access to customers’ information and history.
10. Data authenticity
Perhaps, the most beautiful thing about ERP is that it provides reliable data that can be accessed from different locations and through varied devices. This is a big plus in this era of big data.
You also enjoy the advantage of updating in real time, with improved data accuracy as well as consistency. ERP user data also comes with added security through firewalls and built-in protection resources.
As beautiful as ERP systems are, you can encounter failure if you are reluctant in abandoning old working processes that are incompatible with the software. You must also endeavor to prevent ERP projects from being split into many smaller projects, which add to the operational cost overruns.