5 ways to boost your business’s success with an ERP system
Blog Post Written By | ERPFocus
5 Ways ERP Implementation Can Boost Business Success
ERP systems are no longer confined to sprawling corporations and businesses. Now even small-to-medium-sized enterprises are tapping into its capabilities. But what specific areas of your business could be boosted by a successful ERP implementation?
More Efficient Supply Chains
Businesses can improve the efficiency of both the up-and downstream supply chains through ERP implementation. Tackling the paperwork mountain becomes a little easier, as forms and files can be replaced by electronic equivalents. Greater efficiency means that orders and BoM can be electronically submitted to suppliers. Tracking the supply chain within your ERP system will also give your company greater supply traceability and accountability.
The consequences of speeding up and streamlining communications between supplier and customer include lower lead times, faster order fulfillment and more prompt settlement of invoices.
Better Internal Communications
This may not be a benefit that suggests itself immediately, but nevertheless, it is one of the key advantages of implementing ERP. Manual processing by its nature introduces errors and inconsistencies. When a software system is used to record updates and communicate with ley stakeholders automatically, everyone can stay fully informed at all times.
“Once you get instantaneous communication with everybody, you have economic activity that’s far more advanced, far more liquid, far more distributed than ever before.” – Marc Andreessen (American Entrepreneur and software engineer).
The efficiency of Business Processes
Don’t expect that implementing an ERP system will suddenly make your business magically efficient. The software is a tool for enforcing and maintaining efficiency. The very process of implementing an EP system will make it essential to review business processes and optimize them for the best performance.
Several different computer programs, different spreadsheets used by different departments, multiple attachments and versions of the same document doing the email rounds. Any of this sound familiar? Bringing together existing silos of information during your ERP implementation is a way to reduce costs, errors, conflicting information, and time wastage.
The famous bottom line is also given a boost by the effective implementation of ERP. As mentioned previously, costs and losses can be reduced significantly due to efficiency savings. However, ERP can also be used by a business to increase income. Better customer service standards and speedier order fulfillment directly improve the potential for repeat orders and loyalty. In addition, uniting the data with CRM functions can help to alert the team to future sales opportunities, which can then be pursued by the sales team.