G2Crowd defines Enterprise Resource Planning (ERP) systems as integrated systems that manage all aspects of a business; aligning financial management, human resources, supply chain management, and manufacturing with the core function of accounting. ERP systems are used to provide transparency into the entire business process by tracking all aspects of production, financials, and materials.
These expansive systems act as a central hub for end-to-end workflow and data. ERP systems tie together and define a plethora of these business processes, and enable the flow of data between them. By collecting an organization’s shared transactional data from multiple sources, ERP systems eliminate data duplication and provide data integrity with a “single source of truth.” Today, ERP systems are critical for managing thousands of businesses of all sizes and in all industries.
As technology continues to advance and evolve, 2019 is the time to consider investing in an ERP system if your company doesn’t have one in place already. As your organization grows, new challenges arise – processes get more complicated, supply chain management is harder to control, and financial expenditures increase. Your efficiencies can tend to wane if you are not utilizing all of your information in productive ways.
Provides Real-time Information and Data
One immediate impact of implementing an ERP solution is the systematic and uniform flow of business data and information across all departments in an organization. Being provided this real-time information allows you to make better business decisions and ensures you that all the information and data is completely up to date and precise. Many business organizations get a step ahead in real-time analysis with complete access to standardized and reliable data.
Lack of collaboration and poor communication are usually a result of employees lacking availability to the information they need. By giving them access to data from other departments, ERP software increases collaboration, as the employees are given the ability to see the company’s “big picture.”
Allows for Increased Productivity
A considerable number of businesses experience remarkable enhancements in their efficiency and overall productivity with investments on ERP solutions. They can help eliminate repetition in business processes and tedious manual tasks, as well as improving efforts following the implementation of an ERP software – which saves employees valuable time. This, plus so much more, allows them to focus better on other areas of business operations or processes that need improvement.
Simple Estimating and Quoting
ERP software helps make reporting and quoting much easier and more customizable. With improved reporting capabilities, your company can respond to complex data requests more easily and users can even run their own reports without relying on help from IT. This saves your users time to use toward other, more important projects.
360-Degree View of Business Operations
There’s always a possibility that a customer may need to make a change in their order, and since you can never say no to a client, you have to improvise and figure out how to make the necessary changes AND make the original delivery date. With an ERP system, client changes won’t be as stressful because of the 360 degree view into your business — sales, customer service, planning, accounting, production, distribution, HR — they’re all integrated and data is shared across all levels, all relevant departments are notified when the schedule or product changes.
Provides Seamless Integration
A successful and competent ERP solution uses an integrated centralized database that supports all core processes of a business. This leads to the effortless integration of silo departments and processes within the entire organization. Having seamless integration within an organization allows for greater sharing of ideas, coherent decision-making and improves customer experiences. It also helps with informed (and better) decision making.
Improved Customer Service
ERP systems usually tend to come with some sort of Customer Relationship Management (CRM) application, along with sales, financials, and other front-office functions. The CRM function of an ERP is extremely important, since the main way a business stays competitive and “in the game” is obtaining returning customers – which results in profitability. For instance, sales and customer service department employees can communicate with customers better and improve relationships with them through faster, more accurate access to customers’ information and history that an ERP system provides.
Promotes Cutting Operation Costs
Last, but certainly not least, integrating a powerful ERP solution helps reduce a business’s labor and operating costs. With it, businesses can better manage their time and entrepreneurial resources, eventually saving their money and seeing maximum ROI. It also allows them to consolidate their financial reporting and other costs (like administration).