Adopting new technologies can be difficult for any business, so it is crucial to recognise how the components that you have put in place make an impact in reaching a common goal.
ERP systems are used in practically all fields such as education, healthcare, or even hospitality. Enterprise Resource Planning simplifies burdensome tasks within an organisation like planning, managing, supervising, steering, reviewing, and controlling operations, actions, resources, or any other components associated with businesses.
Integrating various applications in a single unified platform offers improved features such as inventory management, sales and marketing, finance and accounts, supply chain management, and even human resources.
It is very hard to run a successful organisation, and even harder to maintain its success. To achieve this, all business stakeholders including the chief operations manager, finance, marketing, IT, and others should work collaboratively towards a single goal. An ERP system facilitates this from the outset.
In the last few decades, almost every area of business has become globalised and this includes information systems, technology, and services alongside industry processes. This has transformed the way all divisions work and has created opportunities.
Adopting a single resource planning tool has given rise to advanced self-service business intelligence and multi-dimensional analysis, enabling firms to perform SWOT analyses with ease. The various benefits of ERP integration include transparency, ease, control, availability to track every step of a process in detail, elimination of tedious manual work, and *most importantly*, efficiency.
Following are a few advantages that come with employing these systems:
1. Digitalisation Enhancing Productivity
Imagine an ERP as your company’s self-sufficient employee. It can handle bulk invoice processing, inventory management, and even planning, which increases the time your workforce can spend on productive tasks.
To illustrate, a manufacturer may utilise an ERP system to reorder raw materials automatically when stock reaches a certain predefined threshold. With no missed deadlines and no overstock, ERP systems are pure efficiency.
2. Teamwork and Communication Improvement
Critical information is bound to be lost when a business is organised into sections. An ERP system allows for compulsory cross-departmental communication through obstructions by providing a common source of information.
For example, the sales team no longer has to rely on inaccurate stock levels and can see what is available in real time. Moreover, the marketing department can access the latest buying patterns to plan their campaigns.
3. Informed Decision Making from the Analytics
Most companies run on data but only real-time, readily available information that can easily be interpreted is useful. ERP systems simplify business intelligence by retrieving information from all departments, merging them, and generating analytical dashboards and reports.
Think of immediately determining the products that are most profitable or directly identifying weaknesses in your supply chains.
When you have an ERP, it is easy to access or obtain useful information.
4. Scalability and Flexibility
Your business should not be hindered by growing pains. The rapid expansion of your business activities will not stress an ERPS. Most ERPS today are cloud-based which means new modules and users can be added as you expand the business.
Consider starting with the core modules for finance and purchasing, inventory control followed by customer relationship management (CRM) or advanced analytics when additional needs will stem.
5. Cost Reduction and Increased Profitability
An ERP system is indeed an investment, but one that saves the business in the long run by streamlining the system greatly. Activities such as automated workflows will drastically reduce human error, while controlled inventory management will cut down on waste, and data you can actually use will be at your fingertips to help make business decisions that will drive sales.
All in all? It means now you are spending less and making more. That is what every business owner is searching for.
How to Choose the Right ERP System
The argument made for an ERP is clear, however the question that arises is how to select the one that aligns with your business needs? Follow this simplified step-by-step process.
Step 1: Assess Your Business Needs and Requirements
Before looking at possible ERP solutions, analyse your business processes. What are the areas that need re-working? What do you envision in a few years?
Consider:
Is it difficult to manage our inventory?
Is our team having problems with reporting issues?
Are there any plans on growing into new territories?
In short, this example is similar to making a grocery list. You want to outline specifically what is needed before going into the store.
Step 2: Determine ERP Vendors and Options Available in the Market
No two ERP vendors are the same. In most cases where there is out-of-the-box software, there is usually a catalogue of solutions tailored for specific industries. For example, there are ERPs focused on manufacturing businesses, others on healthcare or even retail.
Important points include:
Hosting Features: Do you feel the ERP will be able to successfully serve the business operations?
Ease of Use: Will extensive training be needed or is the platform very user-friendly?
Scalability: Can the software solution expand and develop alongside your business?
Cost: Will the pricing of the service fit within your company’s budget?
Never trust brochures and demo videos, if it is applicable ask for a trial period and read reviews from other users.
Step 3: Take Into Consideration Implementation and Education
The process of implementation can determine the success or failure of your ERP journey. Look for vendors with excellent support and training during the onboarding phase to ensure everyone is taken care of.
Some helpful questions for consideration are:
What is the average time required to implement the system?
Will the training be conducted on-site or online?
What kind of ongoing support would you need?
As always, remember that an ERP system has the best chance of delivering long-term value if it is executed seamlessly at the outset.
Growing Technological Adaptation in Business With ERP Systems
ERP systems are increasing in value and relevance. Today, organisations cannot afford to ignore them if they wish to remain competitive. Streamlining operations, collaborating better, and making data-driven decisions are just some of the ways an appropriate ERP system gets work done. In fact, it completely changes how you do business.
The need for flexibility and intelligence is the future of ERP. Businesses will increasingly benefit from advances in artificial intelligence (AI), machine learning and IoT (Internet of Things) which will bring greater automation, predictive analytics, as well as real-time data insights.
Contact us today if you want to know more about how to leverage an ERP system caring for your business needs. Reap the benefits of enhanced efficiency, profit, and organisational agility, but only when you have done sufficient research on the vendors to trust. An appropriate system is already out there waiting for you.
