Whether you're looking into implementing an enterprise resource planning (ERP) system or have one currently in play, you may find yourself unaware of all the benefits it can give you. It's akin to purchasing a new smartphone: You know how to do the basics, like make a call, and you know it comes with a lot of features, but you just aren't sure what they are yet.
1. Big or Small, ERP Solutions Work for All
While larger businesses may have more complex operations, small businesses will benefit just as much from implementing an ERP system. Since budgets tend to be smaller, streamlining processes can save money, and this money can be put back into the business to help it grow. ERP solutions for small businesses are generally cloud-based, scalable to size, meaning that it provides the benefit of having an ERP solution without breaking the bank.
2. Streamline Business Processes
ERP software can help streamline business processes by consolidating multiple operational systems into one. By having a single system that manages your business, you can save time and focus more on your customers and your work. This consolidation provides benefits throughout the company, which will be discussed.
3. Manage Your Business on the Go (via mobile tech)
A benefit of having an ERP system running business operations is that whether you're at the business or away on a trip, operations will not halt. That's because ERP systems can be controlled via mobile devices (smartphones or laptops). Automated processes can be triggered remotely, ensuring that business runs smoothly and on time.
4. It Boosts Customer Satisfaction
Because all data is consolidated into one system, every department will constantly have up to date information. This is especially helpful for the customer service team, who needs to have this information to best serve customers. If a customer talked to one department and made an arrangement the customer service team is unaware of, this will result in a negative customer interaction. Having this information ready and updated allows the customer service team to more easily help a customer, saving them time and allowing them to more quickly help another.
5. ERP Software Increases Profits...
Because ERP solutions assist your customer service team to perform their job better, you're more likely to have satisfied customers that will become repeat customers. And since your business processes are streamlined, you can ensure that your employees and business is on track. No more waiting on materials that weren't ordered in time because of miscommunication. Have fewer mistakes and quicker turnaround.
6. ...And Saves Money
ERP software allows the business to function as one unit. It will help you recognize how your business is working and where there are inefficiencies. A single system helps automate tasks, such as data entry, which will reduce the number of errors and avoid costly mistakes. These automated processes can also help limit unnecessary labor costs by performing functions once carried about by employees. Overall, your business saves.
7. Sharpens Decision-Making Skills
Since ERP solutions allow for full company visibility, decisions are made more quickly and intelligently. ERP software can help you make decisions on the business's future based on its presentation of detailed information. You can also more readily identify changes in the company that could present negative consequences. Noticing negative changes earlier allows you to take steps to correct them and avoid losses.
8. Improves Internal Communication
Businesses that rely on multiple operational systems to manage its various departments inhibit their workflow. Information may need to be orally or digitally communicated to other departments; in an ERP solution, all information is updated into one system, which is accessed by all departments, thus increasing workflow. This reduces miscommunication and improves collaboration among departments. An ERP solution can also help increase communication with partners and vendors, especially if they need to communicate with several areas of the business.
ERP solutions help you intimately understand your business and its daily functions by providing information in a single, highly visible manner, giving you the necessary tools and knowledge to make the best decisions for your business's health.
About the Author
Hannah loves writing about any topic, and financial systems are no exception. She currently writes on behalf of the consultants at TGO Consulting. When not marrying words, Hannah enjoys reading science fiction, fantasy, and dystopian works; sipping margaritas (always frozen); and trying to make the world a happier place. Tweet her @hannahmnava.