ERP or Enterprise Resource Planning is a software that is adopted by companies to consolidate many backend functions into one and automate them. Functions such as sales, human resources, purchases, accounting etc. are interrelated and share database. An ERP software takes advantage of this and delivers real time information to the user.
Irrespective of the size of your business, ERP software can do wonders and save resources. Here are a few ways in which an ERP software can bring immediate business success:
1. Robust supply chain management(ERP Software)
A question that managers are facing from decades is what ERP can do for supply chain management? In the initial years of technology, ERP solutions were non-customizable & hence it never meets every industry’s unique supply chain demands. But today, things are different. These days ERP softwares like RujulERP can be customized upto that level which can meet every firm’s requirements. Moreover, it allows the manager to connect with suppliers, customers and every person involved in the supply chain. It allows real time data to be easily exchanged, which is very much helpful when customer demands are dynamic but suppliers are not flexible.
In such cases where inventory planning is highly complex, because of unpredictable customer demand trends, an ERP solution becomes must. An ERP solution can easily provide every forecasting reports needed. This also leads to on time delivery and perfect coordination among supply chain players leading to instant business growth.
2. Increased data insight
The ERP system collects data from different sources such as sales records, inventory, marketing, customer service, supply chain etc. All of these sources collect data with regards to both consumer insight & factory insight. If these data sets are studied individually, they do not provide a complete picture of consumer trends and preferences. One needs an ERP system to have a comprehensive insight into consumer preferences. Traditionally, a manager use to export different sets of data into excel to analyse them. Now, with an ERP Software, the system itself generates the reports, which leads to easy analysis. Moreover, it also provides a real time data resulting into faster and accurate decision-making. Which can be deployed to tweak marketing strategies, product offering and pricing.
3. Improves work efficiency through standardization
One of the biggest advantages of ERP is that duplication can be eliminated. If a business process is followed across multiple business locations, with an help of software it can be easily standardize and automated. This could stop discrepancies in customer experience across locations. This is especially helpful when it comes to businesses that operate in multiple countries. Moreover, There are different ERP modules available to automate processes such as accounting, customer resource management, distribution, finance, human resources, inventory, manufacturing, payroll, sales and many more. Which leads to improvements in the workflow among departments. Ultimately, the time saves and productivity increases.
4. Higher revenues and reduced costs
The ultimate objective of every firm is profit maximization. Automated workflows reduce overall costs by streamlining tasks and removing bottlenecks created due to delay in information sharing between employees. This leads to year on year reduction in operating costs, which could be very high in certain industries. Moreover, since worker productivity improves, overtime costs can be reduced. Also, keeping wastage to a minimum can reduce production costs.
Since bottom line improves, product decisions are more accurate which leads to higher revenues. For example, historical sales data combined with real time demand can be used to determine future demand trends. This can help in reducing over production and losing money in the form of inventory carrying costs. Also, from an IT perspective, the customizable feature that an ERP system offers reduces the costs incurred to modify IT systems over a period of time.
In conclusion, companies that are successful in exploiting ERP software solutions achieve higher operational efficiency, reduce costs and increase their profits. They can boost their business in ways like never before. From tracking all supply chain activities to on-time delivery, from improving product quality to decreasing production costs, ERP can improve all facets of business operations!