1. Manage Your Business Under One Single System

The very major reason why you should use an ERP system is that it helps you manage your core business operations and various departments using one single system. As said earlier if your business uses multiple resources or paper sheets to manage various functions, there are very high chances of human errors and discrepancy in the data. A lot of manual labor work goes into this resulting in chaos and decrease in overall business performance.

An ERP system binds together all the business processes with unified interface allowing you to have access to real time data. It also helps to automate the operational process. Let’s say you are using an ERP system, then all your various departments can base their decisions and actions based on the same set of data. This means that all the departments are able to run the operations using the same information, resulting single version of truth. Another example is, when your sales team confirms the order, your ERP system automatically generates the transaction for the finance department, produces a work order for the manufacturing department and notifies the inventory department for replenishing the appropriate stock.

2. Helps You Save More Money

Investing in ERP supplies with superb ROI. Running your business with an ERP system creates operational efficiencies that helps making your business leaner as it grows. Many businesses that we have worked with reported that they were able to expand without adding additional staff or any IT costs. If your business is using stand alone systems in order to handle various business functions such as Customer Relationship Management (CRM), Supply Chain Management, Finance & Accounting, Human Resource Management (HRM), you can benefit a lot from ERP system that has the ability in unifying all these together. Having a seamless flow of information across these different departments will provide you benefits of cost-efficiency as well as data accuracy. Your employees will also be able to save time by eliminating the need to do any kind of redundant data entry minimising human error.

3. Improve Productivity

By using traditional methods, tedious tasks such as generating reports, monitoring inventory levels, timesheet tracking and processing orders takes an employee hours to accomplish. These type of traditional methods consume lot of employee’s energy reducing morale and making them prone to human errors. Even your best staff member is bound to make mistake.

An ERP system has the ability to automate the most tedious tasks. With an integrated ERP solution, information can easily flow across different departments. The database within the ERP system helps in eliminating redundant tasks such as data entry, allowing the system to perform advanced calculations within minutes. This will ultimately have a positive effect on your business's productivity, efficiency and profitability, increasing your ROI when it comes to human labor.

4. Make Realistic, Accurate Forecasts

Another major reason of using an ERP system is that it transforms the way you gather and analyze data from across your business, helping your employees to have accurate insights into your entire operations quickly. An ERP system offers real-time data on various business functions, resources and work status. This clearly means that your employers can rest assured that they see is up to date and is relevant which cannot be guaranteed for traditional methods.

A comprehensive ERP system helps you get real-time, complete and consistent reports. Infused with artificial and business intelligence, ERP reporting tools use sophisticated filters and analytics that can filter inconsistencies in the data. The ERP system also ensures that the data obtained is generated in real time. Having access to accurate reports helps you and all other stakeholders make the best decisions and forecast operational requirements.

5. Improve Inventory Monitoring

One of the major challenge for any growing business is to track and monitor their inventory levels. Having lower amount of inventory levels or even high amount than required, can affect your business finances. By utilizing various functionalities under ERP such as barcoding, RFID tags, and serial numbers, you are able to keep a tab on your inventory at every stage of supply chain with a single click. With these tools, you can easily track which items are in transportation and which items are on the shelves. Inventory monitoring bolsters reporting, as tracking technologies provide more accurate data. The increased warehouse visibility helps you take decisions more faster and accurately.

6. Regulatory Compliance & Security

A fully integrated ERP solution helps you ensure that your back-office operations are in sync with the regulatory rules of your industry. A good quality ERP solution offers built-in auditing programs to help with assigning things like compound usage and tax provisions. This makes it simple to generate reports and send them to the concerned departments. ERP system not only simplifies data processing and streamline your internal operations, it also enhances business security with features like regulated data access and in-built firewall systems. The integration of multiple processes into one unified system makes it easier for your administrators to control and monitor security.

7. Improve Production Planning and Resource Management

Along with managing the inventory, ERP system also helps in managing the manufacturing and resources more efficiently. ERP offers insights into all the manufacturing operations including the shop floor. This helps your employees plan and maximize production programs, resources and equipments optimizing the production capacity. ERP even manages Bill of Materials (BoM) and fixed assets. With the help of this users can easily create and edit BoMs altogether keeping an eye on any previous changes made. Your employees can easily schedule equipment maintenance to decrease sudden downtime, enhancing your endurance and supply chain connections.

8. Make Your Customers Happy

In today’s digitized era, managing customers has become most important. More and more consumers are turning towards digital mode for experiencing good customer experience. The best to improve customer satisfaction is to provide customer-centric goods and services. ERP helps you achieve this in few different ways. The Customer Relationship Management (CRM) tool plays a major role in managing your customers and providing them with the exact experience they want. With an ERP, your CRM has access to data across all business operations. A CRM not only shows you customer’s contact information it also shows you details such as order history, billing information. This helps your Sales & Marketing team to see the customers more holistically to gain better understanding of their wants and needs. It also helps your team to define Sales strategy for improved revenue generation.

In today’s increasingly fierce business competition, you should be able to keep up with the ever-changing technological trends. If you keep running your business using traditional and outdated methods it will only leave your business behind. If other businesses from your industry have automated their business operations, then what’s stopping you?

No matter whether your business is small, medium or large size having an integrated ERP system helps simplify various business operations, increase operational efficiency, reduce costs and optimize the productivity of your business.

Now that you have learned the importance of ERP system and how it can help you, the next thing is to identify all the challenges your business is facing and the solutions required. In case you are not sure of the features you need in an ERP system feel free to connect with Zizbey. We are experts in developing custom ERP solutions offering our expertise in automated solutions to streamline the business operations.