Top 5 Benefits of ERP Software
Tags: ERP   Stock   Productivity   BPM  
26/07/2011 12:00 AM

ERP, which stands for Enterprise Resource Planning, is the name given to software designed with the task of managing the resources of an entire business. It aims to integrate all of the regular functions of a business – including quoting, planning, inventory management, sales and marketing, manufacturing, human resources and more – into a single and effective solution. In this article, we’re going to take a look at the top five benefits of ERP Software. Whether you’re running a small, medium or large enterprise, you stand to gain a lot from ERP.

Better integration
As we’ve already mentioned, ERP software works by combining various aspects of your business, such as accounting, HR, manufacturing and distribution, into a single software solution. This software can be easily accessed from a central database. Because of this ease, each department within your organisation will be able to access and share information quickly and easily. Employees will be able to make better and more informed business-related decisions.

Reduction in redundant data entry
If you and your employees are currently using manual processes and stand-alone programs for entering data, there’s a very strong chance that data is being repeated unnecessarily. The disadvantages of this inefficient practice are plentiful. For starters, it can be a time-consuming process – every extra keystroke is costing you money in staff hours and productivity. The possibility of human error also increases dramatically – forgetting to update a piece of contact information, or updating said contact information incorrectly can result in gross miscommunication between staff and customers.

Uniformity of business practices
Bringing ERP software into your business equation allows you to establish consistent processes across all departments. These processes will be based on best business practices that you have identified and which can be implemented on a company-wide scale due to the centralised nature of the business software. You’ll no longer have to worry about different data storage practices taking place between your departments, which can result in time being wasted cross-checking and attempting to figure out inconsistencies. ERP software integrates all of your departments into an efficient and effective centralised system.

Increase in efficiency
When it comes to running a business, maximising profit is all about getting the most out of your resources. ERP software can help in this regard. It’s perfectly designed to identify and establish the most efficient possible workflows, which can have remarkable effects on both staff and customer satisfaction. Staff morale is improved due to the general feeling that they are achieving more in a shorter space of time, while customers benefit from faster delivery and a higher quality of products and services.

Reduction in overall costs
Of course, the bottom line is, indeed, your bottom line. That is to say, all of the above reasons contribute to this, the fifth and most important benefit of this type of Business Software: ERP can save you money. While you’ll need to make an initial investment in the software, you will begin to see ROI in a very short space of time as you gain a more comprehensive insight into your business, allowing you to optimise processes and sustain productivity.

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