Technology

11 Benefits of Enterprise Resource Planning

If you’re a business and you’re looking for ways to improve your process and efficiency, then enterprise resource planning (ERP) systems could be the answer. 

ERP is just a fancy way of saying that it’s software that coordinates all of your company’s information, financials, supply chain management, human resources into one system. Fomoco News has some more benefits of enterprise resource planning.

It’s about as close as you can get to having everything in one place without relying on manila folders and Post-It notes. ERP systems are pricey, but spend the time to get your ducks in a row, and you’ll see the benefits in no time.

Here are some of them!

What is Cloud ERP and How Does It Work? | NetSuite

1. Reduce Costs

One of the biggest benefits of ERP is that it reduces costs by automating business processes. For instance, instead of having multiple departments send separate reports about your company’s financials to an outside spreadsheet, ERP will do it for you and put everything into one location. It also means there’s less overhead because manual processes will be streamlined with automation. 

2. Track Progress Effectively

There will be 2 kinds of people when it comes to using ERP for business. The first is the type who loves to track numbers and data. 

I can’t tell you how envious I am of this kind of person because I’m the complete opposite. I like things that are black & white, simple, and easy to read. However, there are many who love analyzing data and seeing their progress in real time.

3. Fewer Mistakes Means Fewer Headaches

When you start consulting your ERP system on a regular basis, you will find that making mistakes is much less likely than it was before. This is because it’s much easier to look up a specific budget or sales number in a single location. 

The best thing about ERP is that once you’ve entered all the data in the system, everything becomes synchronized so there are fewer chances for human error.

4. Need Employees To Stay Focused? Bring In The Software!

If your business is a small shop or one that’s located in a remote location, then it’s extremely difficult to stay on top of all the details. If you’re still filling out those tiny little Post-Its, then do yourself a favor and run to your local computer store to purchase an ERP system. 

Not only will it be easier for you to keep track of these things, but it’ll also be much easier for employees as well! Forget spending 1/2 hour on Outlook trying to change schedules or adding up that pesky payroll.

5. Accurate Data Means Accurate Reporting

Those of you who went to school for business or marketing probably remember hating those reports and projects that required you to come up with a long list of questions. When you’re doing it on your own, it takes forever. 

What if you could create those same surveys and spreadsheets automatically instead of taking all day? That’s what ERP is all about! You can use pre-built reports as is or customize them as needed. 

6. Track Your Wins While Honing In On Your Losses

You’ve probably heard the saying, “A rising tide lifts all boats.” This is almost exactly what happens when you set up your company with an ERP system. 

Your entire company can see that success breeds success. For example, your sales team will be motivated to hit their goals because they know that it will help the rest of the company out.

7. Get More Done Faster

If you’re spending all day trying to track down specific data or poring over paperwork, then you’re not putting in your best work. That’s what ERP is for. You can spend more time on productive tasks (like making money!) instead of focusing on the boring stuff like updating spreadsheets or combing through reports.

8. Greater Efficiency = More Profit

The number one reason I hear for businesses not to use software like ERP is that it takes too long to set it up. That’s nonsense. Yes, you’re investing some time into setting it up, but that’s the cost of doing business. 

Once you’ve got it up and running, your future savings will more than make up for getting everything synced into one system. If you want to increase your profits without racking your brain, then implement an ERP system today!

9. Save Time & Money

The biggest benefit of ERP is that it saves you time and money by automating your business’s processes and making them easier to navigate. Take a look at the checklist at the top of this article and see how much time and money you’ll save with something like an ERP system! You can even set up an automatic payment system so that your employees get paid on time and you don’t have to worry about transaction processing.

10. Streamline Information Management

The more information you’re able to get in one place, the easier it is for people to find what they need when they need it. It also prevents you from having to spend time searching for the information. 

This is especially true when it comes to marketing and communication. For instance, with an ERP system, it’s easy for employers to find employee profiles and pay stubs without having to comb through multiple files and folders.

11. Reduce Training Time

This is a benefit that most people don’t think about when they’re deciding whether or not to purchase ERP software for their company. 

When you’re just getting started, there will be a lot of time spent on training other employees on how to use it effectively, but this will decrease as employees become more comfortable with the software.