How ERP Helps in Delivering Better ROI (Return on Investment) For Your Business?

We all have heard about ERP and have seen it being implemented in our company for a variety of purposes. But do we actually know how it is aiding businesses in reaching the next level!!! 

I think one is only aware about the basics unless they are a designer and have designed one themselves. In this blog, we are going to uncover some of the lesser-known facts about this amazing business software and how it is helping businesses in achieving better ROI.

What is ERP?

ERP, short for Enterprise Resource Planning, is one of the most commonly used business process management software which helps in managing and integrating a company’s operations, supply chain, manufacturing, financials, human resource and even reporting activities. Over the years, business needs have changed tremendously and this makes it even more crucial to have a smart ERP system in place that can keep up with the changing needs.

In 2016, a report generated by Panorama Consulting Solutions revealed that more than 81% of the companies are either in the process of implementing a fully-fledged ERP software or have already implemented one (surely the percentage has increased now). With such a huge number of organizations relying on ERP, there’s no room for any doubt that it is in fact a system worth investing in.

ERP – Yesterday and Today

Earlier the ERP software that were being used for HR, finance or accounting processes had to work separately and weren’t connected at any level. The modern world ERP system is very different, as it allows amalgamating all the processes in one fluid system.

The current state of ERP software is such that each department can see what the other is doing. This results in an easy collaboration between departments, for example, HR and accounting can effortlessly collaborate with the sales team and the customers.

So, how implementing ERP is allowing businesses to grow effectively…

1. Effectual Information Sharing

With ERP in place, the users can easily upload, edit and even share critical information and data with other concerned staff members and clients in the organization. This coherent data sharing capability enhances the quality not only of the deliverable but also the communication between the employees. You can’t deny that with a more prominent work partnership in business comes more precise and on-point outputs.

2. Agile Decision Making

An ERP offers operational efficiency like no other business software, but it is also known for being a primary resource while making critical business decisions. There are various modern ERP software that even permits C-suites to access the critical data in real-time via cloud technology. Correspondingly, there are cloud-enabled ERP systems that can help small businesses to track their vital analytics and metrics in real-time.

With all the above-mentioned benefits, I can’t think of any reason why any business would be hesitant to invest in such a profitable system. Nonetheless, it is imperative to observe beforehand the influence of ERP on your own organization’s most cherished part i.e. your employees. ERP plays a vital role in improving employee’s performance and issues that concern them can be addressed more effectively.

3. More Savings & Centralization of Software

Initially you might think that you are spending too much on ERP implementation in your business, but you’ll be employing the benefits soon. Higher ROI is obviously one of the attractions, but there are many more. For example, an ERP system will merge all the departmental systems and processes that were disintegrated before. This actually helps in creating a centralized and unified system that allows the staff members to easily access the data. This is just one of the advantages, there are others like a high level of security which implies less money spent on training your workforce to manage their particular departmental system. The logistics efforts are also eliminated; what else can you ask for.

4. Cost-Efficient

When you combine the core functions on which a business run in a single system, then it’s unchallenging for the business to streamline all the disorganized processes and save a huge amount of money. Also, there’s no requirement for setting up different systems for different departments and thus no time or cost would be wasted on adding more systems or training additional users.

5. Enhanced Productivity

If you are still stuck with an outdated resource planning module, then you know how expensive it is. Also, it doesn’t upgrade the productivity level of the employees. This isn’t the case with ERP software, as with such a system in place the workforce gets to experience more efficiency in the business procedures. You will observe that attitude of your employees has changed and now even a repetitive and distressing task can’t bother them.

So, are you an old school person?

You might think that adding a software into your business procedures can lead to navigating through complex processes and is time consuming. But this is just your misconception, as implementing ERP will help in reducing the time taken for manually entering all the data and hence improving the overall productivity. Especially the small business owners for whom working on Excel is a headache, can avail the benefit of automation through ERP. The inter- departmental activities can also be automated offering access to real-time data to all the staff members.

6. Better Supply Chain Visibility

Supply Chain Management is one of the major sectors where ERP is very beneficial. With installation of ERP, small scale or large-scale organizations that involve shipping, can properly interpret supply chain numbers and hence optimize expenditures in the inventory and purchase department. The outcome of this is better apprehension of the related supply chain operations that can help the owners in making informed decisions. When it comes to being updated with supply chain issues and dealing with them, then there’s no better way than ERP to do this.

7. Adds Intelligence to Business and Communication

Interpreting and analyzing business-related data is nothing near to taking a walk in a park. But this job can be made easier with a sound ERP software that is capable of organizing the company’s data in an individual system and offers a better business perspective by using various types of analytics tools. This will not only help in overcoming the competition in the industry but will also improvise the communication between the teams as they won’t be working on different systems.

8. High Customer Satisfaction

Happy customers act as fuel in running a successful business and one can do it easily by offering excellent products and services. Other options include implementing an ERP system that can assure satisfied customer experience in multiple ways. Contemporary ERP systems come equipped with CRM tool that offers all the essential data about the clients like billing details, order history, shipping address, etc. These details proffer a better understanding of what the clients’ need.

9. Human Resources

With a proficient Enterprise Resource Planning system, all the HR-related tasks can be streamlined that supports the organization in improving numerous business operations. All the data storage and administrative challenges faced by the HR department will be automated and smoothened.

10. Improved Accounting & Analytics

Maintaining records of all the financial accounts when the business is in the growing phase is a tough task, especially when there is no centralized system. Enterprise Resource Management software offers a greater solution for this as it allows keeping track of all the transactions, automating data entry tasks, avoiding human errors and preventing employees from wasting time on repetitive work. With a fused system like ERP, it’s easier to generate reports for business intelligence and analytics. You get to work on a tailor-made board that includes functionalities for all the employees working in the company. 

As the ERP system can be combined with any of the tasks concerned with different departments, it is the most valuable resource that will help you in times of need. With features like traceability, you can do wonders with simple ERP software. It will make sure that your company has everything it needs for smooth business operation within the selected legal framework.

12. Collecting Real-Time Data

A business in a growing phase demands extremely enthusiastic manpower; people who are ready for any situation that might come up. For such a team, you need to give them high quality and reliable resources to work with. An ERP is always the best choice for such a resource, as it can store all the information of the company to be accessed by only those who have an account from anywhere around the world. So, even if your employee is travelling, he/she doesn’t have to worry about carrying all the heavy database files.

Conclusion

The above-given benefits are the major ones and you just can’t overlook them. The businesses, specifically small-scale companies (those who work on multiple tools and systems to manage business processes) must include ERP software to get 24 x 7 support in the ever-changing business world. ERP solutions are changing and getting advanced day by day and they can do a lot more than you think. I hope, you have got all the understanding you needed before opting an ERP system and is all set to talk to a consultant to get an ERP.