Enterprise Resource Planning (ERP) is a process of gathering and managing business data from the disparate departments of an organisation using dedicated software. ERP software is a tool used by businesses and other organisations to streamline various business operations like accounting, supply chain, inventory management and more. It provides an integrated, often real-time view of core business processes in a single centralised system.
The benefits of this are many. From increased security to greater efficiency and enhanced transparency throughout the organisation, you can capitalise on these benefits to gain a competitive edge and make your own operations happen more efficiently. Read on to learn some core benefits to utilising an ERP system in your organisation.
1. Standardised Data
The information from all departments is stored in one place. This makes it easier for employees in different departments to track down what they need. What’s more, the critical data is all standardised into a consistent format as it is all in a single system. This makes the generation of reports and analytics simpler and more accurate, saving time and money.
Data has become a big target for cybercriminals and an ERP system can help protect it. The data is all in one place with a single, comprehensive security system in place. Documents and spreadsheets are not passed around in emails and information is spread across various remote servers to avoid a single point of failure. There are also facilities to limit who can view and edit data with easy-to-implement permissions.
3. Improved Productivity
ERP systems provide multiple productivity benefits. Many basic tasks can be automated, freeing up employees to focus on work that is of more value. Many tasks can be completed faster with straightforward workflows and streamlined access to information. With everything accessible in one place, employees also will not need to spend time looking for individuals to answer questions and provide information.
4. Better Compliance
With accurate, up-to-date records, there will be less work required for compliance. With customisable reporting tools, compliance can be tracked and adjustments made accordingly. This improves your auditability as well.
Many cloud vendors such as NetSuite, who offer their ERP as Software-a-a-Service ensure the software is fully compliant, even across a wide range of countries with differing regulations and requirements. Whenever changes are made, the software will be updated to accommodate them and maintain full compliance.
The best ERP systems allow you to employ the functionality you need while adding more capabilities in future as you grow. This makes them highly scalable, and you can add new users as teams expand. Even significant changes in your business can usually be accommodated by your existing ERP. Cloud-based systems are usually the most scalable, with additional resources available as required to keep everything running smoothly as business growth occurs.
6. Greater Visibility
It can be very useful for everyone to have visibility into various aspects of the organisation. Decision-makers can work faster and more efficiently with all the data they need. All teams can better understand what related departments and teams are doing to assist with their own work and collaboration can happen more smoothly and organically.
ERP systems are known to significantly lower costs in the long run for many businesses. The automation features alone can wipe out many operational or administrative costs. The insights the platforms provide can provide many other opportunities for cost savings, and improvements to planning mean issues like rushed orders, over-ordering or under-ordering are all but eliminated from the equation.
Although ERP implementation can seem scary due to some initial upfront costs, the longer-term cost savings outweigh this. And with increasingly affordable packages available from cloud ERP vendors, requiring little to none on-premise hardware or software, ERP is becoming more affordable than ever before.
Employees are used to using mobile devices for many tasks and many modern ERP systems are mobile-friendly. Users will be able to pull up dashboards, reports and other systems they need remotely on any device, with many vendors even offering dedicated mobile apps. This is essential for some businesses with workers in the field who need to be able to access the systems wherever they are.
This also facilitates working from home, and was quite simply a life-line to many businesses during the Covid-19 pandemic who’s employees could still access the business software remotely.
9. Real-time Reporting
Reports are one of the primary focuses of ERP systems, with endless possibilities for customisation across different business operations. Whatever you need to measure, ERP systems can perform the calculations. This enables tracking of performance throughout the business and comparison of departments to understand strengths and weaknesses. The ‘real-time’ element means you always have access to the most up-to-date data to inform decision-making.
Because reports are put together from one centralised database of information, they can be trusted fully, allowing real-time decisions to be made quickly and based on accurate information.
10. Organised Workflows
With the help of experts whilst implementing your ERP, you can find ways to complete tasks more efficiently within the new system. The way your company has always done things may not be the best way, and an ERP might be able to help reduce the number of steps in workflows to get things done more quickly. These new workflows can be standardised to eradicate discrepancies in the way things are done between different departments.
11. Enhanced Customer Service
You are competing with your competitors for a limited customer base. Providing a great customer experience is essential, and ERPs can help with this by putting data like customer contact details and order history in a single location. You will be able to provide streamlined solutions and personalised experiences for your customers and also utilise inventory and order information to ensure customers sales orders are always fulfilled in full and on time.
12. Efficient Operations
ERP solutions touch every part of the business so everyone can experience improvements in the form of more automation and greater availability of information. Processes are completed quicker and operating costs can be decreased to boost profits. By identifying strengths and weaknesses and processing data instantly, an ERP system could save you huge amounts of money each year.
ERP platforms are designed for organisations of all shapes and sizes. Their flexibility means systems can be tailored to your specific needs, including accommodating uncommon metrics and unique processes. This flexibility also goes along with your business evolving over time – the system can still work for your business as it can be changed accordingly as change occurs within your organisation.
As we touched upon earlier, visibility into the workings of other teams and their data can make it far easier for collaboration to take place. Teams are no longer on separate islands using things that only they can access – they can share data with one another and communicate freely as required. Duplicate work can be eliminated and better ways to process daily tasks can be developed in tandem with one another.
15. Accurate Forecasting
Businesses need to have an idea of what’s coming. Forecasting relies on historical data and other inputs to predict how demand, expenses, revenue and other figures will look in the future. Forecasting becomes more accurate with the use of an ERP system because of the access to detailed and broad information. With more accurate forecasts, you can prepare more effectively for what is going to happen and take steps to capitalise on future opportunities or mitigate future challenges.
16. A Competitive Advantage
Though an ERP can be an additional expense, it can put you way ahead of your competition by offering a level of business intelligence they do not have. With real-time data and increased agility, you can zero in on competitive advantages that are untapped, respond quickly to change and drive product development more effectively. In a competitive environment, the organisations that are using an ERP system will have a distinct advantage over those that are not.
Why choose Eventura for your ERP project?
Eventura has been providing robust business solutions to countless organizations for over two decades. We are ERP experts and can identify all of your business needs, and deliver a comprehensive ERP solution that works for you.
As Sage 200 Partners and NetSuite Solution Providers, we can help you identify which solution will fit your business needs the best. Our expert team of business analysts, developers, consultants, technicians and support staff can guide you through your entire project, from initial scoping through to implementation and on-going support.
We’re also managed IT service providers meaning we can help you identify your entire IT infrastructure requirements from day one. If you would like to speak to one of our ERP experts, you can request a free call back here.