Why ERP Systems are Important to a Company?
by Edwin Alexander Marketing ManagerOnce used exclusively by large-scale manufacturers, enterprise resource planning (ERP) systems today are increasingly being used by smaller organizations across many industries. While these systems may not be practical for the smallest of companies, many small to medium-size business (SMBs) have adopted ERP.
ERP
solutions are designed to meet the specific needs of different types of
organizations. Today, a multitude of competing ERP software solutions exists,
even in niche markets.
Major benefits and advantages of ERP systems:
Saving Money
ERP packages are not cheap, so it can seem unlikely that the
program would actually save your organization money. However, this is exactly
what can happen. An ERP unifies many of the systems that may currently be
fragmented in your organization, and this ranges from everything from product
development and supply chain management to IT support, management and more.
By unifying systems, you will create cost-efficiency and
improved business processes. More than that, your organization can save money
by eliminating the need for different users to be trained on different systems.
All will be trained on one system, and there are cost
and time savings associated with this.
Improved Collaboration
The features of ERP applications can vary depending on the program
that you are using, but all of these systems enable you to share and edit data
as well as to improve security and access. There is 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.
Better Analytics
The right ERP can make it easier and faster for your team to generate
various reports, and this may include everything from income and expense
statements to customize reports
based on metrics and trends. The ability to have access to these reports
quickly enables you and your team to make better decisions more quickly. You
will not need to rely on your IT staff to generate the reports that you need.
Improved Productivity
Without an ERP, you and your staff members may have redundancies
in operations, or you may have to waste time completing repetitive tasks
manually. This can ultimately have a negative impact on your bottom line. An
ERP will eliminate this time waste, and this can ultimately have a positive effect on
your organization’s productivity, efficiency and profitability.
Happier Customers
An ERP is an internal system, so you may not think it has much to
do with customer satisfaction. However, this is not the case. The right ERP
software solution can be used in various marketing tasks, and this relates to
processes that include lead generation and customer acquisition to late-phase
customer service and customer retention. Ultimately, it can help you to better
communicate with your customers and clients through all stages of the process.
Simplified Regulatory Compliance
If your organization is like most, your team may spend a
considerable amount of time trying to comply with regulations related to the
Federal Information Security Management Act, the Sarbanes-Oxley Act and others.
Successful execution of your ERP project can help you to gain and maintain
compliance through the improved ability to manage and secure data and to
generate suitable reports.
Improved Inventory and Production
Management
If your organization utilizes the inventory and has a production
process, you can also benefit from improved management in these areas. An ERP
can be used to simplify the task of reducing overages, improving production and
delivery schedules and more. It makes it simple and easy to optimize your
efforts rather than to create an informed guess about volumes, processes and
more.
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Created on May 24th 2018 05:50. Viewed 248 times.