In 2020, many companies have used ERP systems to streamline their operations. Especially, as the COVID-19 pandemic began to spread, we can say that businesses that have already implemented ERP systems are one step ahead of the competitors, because the ERP system allows companies to monitor all business processes and make business decisions based on the data, anywhere and anytime. As the globalization squeezes the market for many industries, it is essential to seek out the systems to give your business a competitive edge. That is where ERP systems come into play. In this article, we will find out 5 reasons why ERP is a business necessity.
ERP (Enterprise Resource Planning) systems are used by companies to manage their business functions within a centralized and integrated system across department such as sales, operation, production, distribution, HR, and accounting. ERP systems centralize business data in real-time to make it useful for future business plan.
We know that ERP system is used to manage a number of business functions, but what makes it better than other solutions? Why do companies need ERP system? Here are the 5 reasons why ERP is a business necessity:
Time and cost efficiency
Once a company has implemented the right ERP system, it will be easy for user to see how ERP creates an efficiency in terms of increasing revenue and reducing costs. It is the first reason why ERP is a business necessity.
ERP unifies many of the systems that may currently be fragmented in your companies. From sales to bookkeeping system, they will be connected into certain business processes. If companies do not have a centralized system, their staff may need to contact some departments to access the data. By unifying systems, their staffs do not have to spend their time to find a data across multiple systems because the data is much easier to retrieve.
Moreover, by implementing ERP, companies can save money by eliminating the need for users to be trained on several systems. Instead of scheduling several training sessions with several different partners, companies only need to communicate with one.
To improve team collaboration
In general, all ERP systems improve collaboration in some ways. As we have mentioned before, the centralized data is a part of what makes an ERP system better than other solutions and why ERP is a business necessity.
A centralized data avoids any delays and errors, since all team members have access to the same company data. In addition, staffs do not need to input information across various systems. Because all of the data are compiled, stored, shared and accessed through a system, there is no concern about how accurate, complete or secure the data files are.
Most ERP solutions provide a customizable dashboard, so that every user can see the reports easily and quickly. These reports may include some aspects, from income and expense statements to the reports that offer insight into certain functions. The ability to have access to the reports quickly enables staffs and management to make better decisions. Companies no longer need to rely on their IT department to generate the reports. It is important to remember that ERP also ensures the company security. Reports come with certain rules, ensuring only “authorized users” that can access the valuable data.
To optimize customer service
The best way to improve customer satisfaction is to provide goods and services based on tren market during a specified period of time. ERP helps companies improve customer satisfaction in some ways. First, most ERP are equipped with a CRM system or can be easily integrated with a company’s existing CRM system. With an ERP, CRM system will have access to the data across business functions.
An integrated CRM can show users the details such as order history and billing information. This ability enables staffs to understand customer better to gain a better understanding of customer wants and needs, even it helps companies formulate their sales strategy to increase new customer conversion.
To improve productivity
If you choose the right solution, an ERP can automate the most tedious administrative tasks. This frees up your team members’ time to do more thoughtful work or use their time for decision making. From this function, ERP can increase your company’s productivity, efficiency and profitability. Those are the key reasons why ERP is a business necessity.
The importance of ERP far outweighs the initial cost, time and effort involved in implementation if companies choose the right solution for their operational needs. By partnering with the right ERP solution provider, companies will find ERP provide all the benefits listed above, maybe even more. Reach us at [email protected] for further consultation about why ERP is a business necessity.