6 Reasons to Implement ERP
Tags: ERP   Workflow  
22/10/2011 12:19 AM

In the past, enterprise resource planning software (ERP software) was the sole domain of large corporate enterprises which could afford the significant capital investment associated with setting it up. These days, however, ERP software has been designed to accommodate small-to-medium businesses (SMBs) as well, helping to close the wide chasm that once existed between big and small business. In this article, we'll take a look at six of the benefits SMB's will see upon making the decision to utilise enterprise resource planning.

1. Streamlining of processes
The chief objective of any ERP software is to integrate all the functions of a business into a unified platform. Many businesses are still stuck in the unenviable position where their data is stored in multiple locations and systems. By centralising this data and streamlining the means of accessing (as well as adding to) data, ERP contributes to greater efficiencies within a business model.

2. Improved workflow
Because all processes are streamlined and access is simplified through user-friendly interfaces, employees are better able to acquire the relevant information that is necessary to do their job. Whether it's responding to a customer query or formulating a report for presentation, ERP software makes each employee's job easier, leading to increased productivity.

3. Increased customer satisfaction
We've already mentioned this in the previous paragraph, but the improvements in workflow that occur as a result of ERP business software implementation lead directly to greater customer satisfaction. Employees are able to respond quicker to customer queries, while delivery times of products and services are improved as well. Overall, there is a greater quality of service leading to a happier customer base.

4. Better data management
Some businesses that don't have a centralised means of data storage find themselves stuck with the cumbersome process of attempting to access and collate data from a range of locations. At times it can be like trying to find the proverbial needle in the haystack. By keeping this data in a centralised location with a unified interface for employee access, important data in your company will be better managed.

5. Elimination of redundancies
One of the biggest problems with a non-centralised data management system is the continued occurrence of redundant data. Redundant data is simply data that has been repeated twice, which can lead to inconsistencies and confusion down the line. It's a common problem with businesses that have multiple data storage locations and is something which can be rectified with the use of ERP software.

6. Lower costs
The ultimate benefit any business is looking for is a lowering of overall costs, and ERP software is critical in helping SMB's achieve this goal. Better planning, tracking and forecasting, the elimination of redundant processes and an overall improved level of customer satisfaction leads to lower costs. In most cases, the return on investment associated with ERP software can be seen within the space of a year, and the cost-benefits continue to be seen over time as the scalable software adapts to the growth of your business.

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