Benefits of an ERP System
In this post, we will be addressing some of the most important benefits an ERP system can bring to your organization. This will help you understand the benefits and significance of an ERP system.
Automating Businesses ERP systems can be vital in evaluating how well your business is growing. This is done by defining KPIs and performance metrics, and this is likely done manually if your organization does not have an ERP system. As the company grows, it becomes increasingly harder to keep track of various metrics. By defining metrics within an ERP system, the system automatically keeps track of such metrics based on data inputted.
For example, suppose one of the organization’s goals is to generate X amount in sales. Then, whenever a new sales contract is registered in the system, it automatically counts towards the metric. However, complex performance metrics can be set in many ERP systems.
Additionally, ERP software allows for sharing data across teams and employees. This brings a degree of automation to every business process, enabling the automatic generation of summarized reports that team leaders can refer to. Also, immediate access to data can solve many problems companies face today.
1.Enhancing Workflows
ERP allows for a more streamlined, efficient, and collaborative workflow. By using user-friendly interfaces and interactive dashboards, employees can quickly get their required information. Essentially, employees get faster, adequate access they need to do their job. As a result, this saves valuable employee hours. Additionally, employees can create customized reports directly from within the system for presentations. Similarly, this saves employee time, leading to increased productivity. Also, it holds employees more accountable.
2. Streamlining Processes
One of the main objectives of any ERP system is to unify all of a company’s processes into a single, centralized platform. Many companies do not have a centralized location where they store their data, and consequently, this leads to employees wasting their time searching for data. Essentially, by centralizing this data, ERP contributes to greater efficacy within the company.
3.Integrating Processes
There are several processes a company can have that are essential for running it. ERP systems can streamline each of these processes individually. However, that is not all. ERP systems integrate these processes. Thus, the processes can share data between themselves, allowing the processes to become more effective.
Examples of such processes include, but are not limited to:
- Inventory management
- Sales management
- HR management
- Customer relationship management (CRM)
Sharing data between all these processes creates a single database that is extremely effective, and it can support whatever requirement a company may have.
4.Simplifying Accounting
Accounting for any business can be a complicated process. If your business is growing and you do not have a powerful tool in place for accounting, the chances are that you will make a lot of errors. With an ERP system, your sales, accounting, finance, and HR departments all have access to the same shared data. This makes reporting, everyday accounting, and financial reports much easier to create. Additionally, any employee can do this easily with a few clicks. ERP integrates and automatically analyzes financial data. As a result, this helps in improving employee productivity and reduces delays.
5.Organizational Transparency
Data is an extremely important asset for any company. Having data can allow you to make better, informed decisions about various aspects. ERP systems collect and organize data on a large scale. Anything inputted into the system is permanently stored and is used to generate various reports.
Using an ERP system can increase transparency in your organization by allowing employees access to data. Employees can be given permissions based on their positions. For example, team leaders can access sales data from their teams, and an executive can access data from multiple teams. This allows for checks and accountability within the system. A smaller number of employees can be given administrator access to the system for customization. In essence, the role-based system provides much better transparency to the organization
6.Eliminating Redundancies
Redundant data is simply data that has been stored on the system twice. This may be due to multiple employees uploading the same data, which can lead to inconsistencies and confusion between employees. One of the most beneficial aspects of ERP is that it reduces redundancies from the system, which helps the system save a lot of space. Additionally, it helps users easily find the most recent data. ERP solves this by providing a centralized location where everything is stored.
7.Combining Data and Processes
ERP software integrates data and processes. This ensures that employees always have an entire view of any process. It could be something as simple as checking a customer’s contact details. Or, it could be something as complex as viewing the number of sales a particular customer has provided the company with on a particular product. Additionally, ERP systems help forecast sales using historical sales orders, allowing you to prepare in advance
8.Enhancing Customer Satisfaction
Customers are one of the most important aspects of any company, and they provide the reason for the company’s existence. A company always needs to ensure that its customers are happy to be successful. ERP systems keep every customer satisfied. It manages sales and inventory efficiently to ensure customers always have the products they require.
Additionally, it allows you to interact and support your customers much better. It tracks leads and opportunities automatically. Certain ERP systems can be set up to automatically gain leads from the web or mailing lists, and marketing emails can also be sent out to customers. Similarly, customer support becomes much easier with an ERP system. You can create reminders for following up with customers, automate support, and much more.
9.Securing Data
Due to its very nature, ERP software provides high security for organizational data. ERP systems can be set up on-premise or in the cloud, and both of these options provide high levels of security.
Additionally, ERP systems enable permission-based (or role-based) restrictions. Generic accounting software does not allow companies to restrict access to certain parts. However, with ERP software, each employee can access the parts they require to do their job effectively. This ensures that the employee does not make erroneous decisions.
CorporateStack ERP offers all of the features mentioned above. Additionally, it provides other valuable features such as dashboards, automated quotations, payroll management, and many others. If you are looking for ERP software in UAE, Dubai, or the Middle East, Get in touch with us. We would love to assist you with any queries. Take the step today, and help your organization become effective and efficient!
