How efficient are your business operations? Do you constantly lose critical information between departments? Does your staff continually point fingers when they can’t find the necessary information?
You’re not the only organization with these issues. Truth be told, data administration is a common issue. One solution to ease some of these difficulties is implementing an Enterprise Resource Planning (ERP) tool. Here are five business benefits of using such a system.
1. Interconnected Data Management
Businesses, especially growing ones, have issues managing their data. Expansion and the onboarding of new staff may cause information gaps between departments. An ERP system avoids this scenario through integrated data management.
In other words, everyone sees the same data no matter the department. Data entered by the sales team is viewable by shipping or accounts payable. Any changes are reflected down the line in real time.
There’s a simple explanation for this. An ERP system is constructed around a single data scheme with a common database instead of differing storage capabilities. In doing so, it creates standard definitions for record storage and retrieval.
Interconnected business processes are created through the above processes. In turn, standardized workflows are seen by different departments. What is seen by one department is viewable by another.
2. Rapid Implementation
Businesses need solutions that work on the first day. They can’t wait for extensive customizations and staff training. If they do, the business risks customer dissatisfaction and revenue loss.
Overall, you need a turnkey ERP solution ready for immediate activation. The best product is one where the user interface (UI) and user experience (UX) come closest to your company’s needs without extra changes.
3. Enhanced Communication
Solid communications make for a strong business. Take that out of the mix, and your employees end up squabbling over the smallest things. Typically, the reason these arguments occur is simple miscommunication over lacking data.
While not completely eliminated, disagreements are severely minimized with the implementation of an ERP system. Since every department sees the same data, there is a way to verify records. If there is a problem, ERP users can track the issue back to its source. Therefore, arguments turn into productive troubleshooting sessions.
4. Increased Workforce Flexibility
A difficulty companies still encounter is a lack of flexibility. They still run their operations off of internal, server-based networks lacking remote capabilities. Therefore, record entries must be done in the office. Work efficiency decreases for this reason.
Companies utilizing modern ERP services don’t run into this difficulty. Instead of a software package, the platform runs in the cloud. Thus, the addition and retrieval of information can occur virtually anywhere. As long as there’s a solid internet connection, that is.
The increase in flexibility means your employees can work from home or in the field. Plus, sales representatives don’t have to hold off on data entry until they return to the office. It’s done on the spot to ensure accuracy and minimize costly mistakes due to misinterpretation.
5. Lowered Costs
The goal of all companies should be maximizing revenue and lowering operational costs. However, there are obstacles to this with inefficient data collection and storage. For instance, duplicate entries could mean multiple order mistakes and frustrated customers. The lack of an appropriate delivery address causes drivers to waste gas rerouting to the proper location.
An ERP platform minimizes these continual issues. Granted, it’s not an end-all solution if errors continue due to manual entry. Nevertheless, since the information is seen by multiple users, there’s a better chance of correcting common errors.
For instance, a sales representative may detect an incorrect delivery address. In another example, different teams are alerted to reorder inventory if the current stock is low. Also, if a customer is unable to pay for services on time, the accounts payable department can alert sales and service representatives to resolve the issues.
Overall, an ERP platform performs an important task for a company. Through the five benefits listed above, you see that it consolidates data for maximum efficiency and communication. In doing so, it helps lower a company’s costs and increases customer & employee retention. Of course, you shouldn’t choose the first ERP in your search. Consider each vendor carefully before you decide on a platform. Make sure they have solid answers to all your questions and concerns.