The global demand for enterprise resource planning (ERP) software continues to expand, and its market is predicted to grow to about 86 billion U.S. dollars by 2022. But not everyone is acquainted with the variety of benefits that ERP brings to a company. Because globalization is creating a market squeeze on many industries, it’s crucial that your business deploys tools that give it a competitive edge. For a number of companies, ERP software is the best tool to supply that edge.
How Do Companies Use ERP Software?
The centralized, unified platform that is the foundation of an ERP system helps companies manage their business processes all in one place. ERP is also used in supply chain management, when tracking the fast-moving stages of manufacturing and production is mission-critical. Companies put ERP systems to work across a number of departments to manage staff, customers, and inventory. And ERP’s flexibility allows organizations from diverse industries such as healthcare, food and beverage, construction, and hospitality to handle both their day-to-day operations and their business forecasting.
In an ERP system, data is entered into a single database, so all departments in an enterprise can see and access it. Data centralization in this system simplifies the organization, analysis, and reporting of actionable information in real time. ERP’s versatility empowers companies to use information according to what they need, when they need it.
Why Should a Company Use ERP?
ERP’s modularity, adaptability, and flexibility allows companies to use it in diverse ways. But what are the distinct advantages of an ERP system that make it superior to other solutions? Here are the most important benefits that show why a company needs to use ERP:
- Cost savings. Investment in an ERP system yields an excellent ROI, and less money is spent on buying and managing standalone systems.
- Greater collaboration. There is no waiting on other departments for information when all team members can access the same data and benefit from a single source of truth. Fewer errors are made, resulting in more efficiency and reduced costs.
- Improved analytics. An ERP system stores all inputted real-time data, making it an exceptional business intelligence (BI) tool, and its strong functionality makes it quicker and easier for employees to generate reports for decision-makers to review and take action on.
- Stepped-up productivity. The amount of employee time and effort on redundant tasks such as time sheet tracking and monitoring inventory levels is greatly reduced, so that staff is freed up to more purposeful, efficient work.
- More satisfied customers. ERP features a customer relationship management (CRM) module that provides the means to have more visibility into a customer’s journey.
- Simplified compliance and risk management. All industry-specific regulations can be followed using ERP software, and reports can be formulated to create audit trails. Also, ERP’s financial management module helps to reduce risk because fewer errors occur.
- More accurate inventory control. Inventory in every stage of the supply chain can be tracked, and there is more transparency for warehouse data.
- More insightful planning and management. ERP enhances understanding of all manufacturing operations by enabling optimization of production schedules, equipment, and labor as well as creation and editing of bills of materials (BOMs).
SAP Business One, the leading ERP system, can benefit your company in the ways listed above, and more. Consultare is an SAP Gold Channel Partner awarded with Recognized Expertise in SAP Business One. To find out how an SAP Business One solution can work for your enterprise, get in touch with us today.