This article will cover the benefits of ERP Software and how ERP can transform your business. You will find out that ERP software is no longer a luxury. It should be a requirement to run any business.
The global enterprise resource planning (or ERP for short) software market is growing at a rapid rate right now. The market has reached more than $50 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of more than 10% from 2022 to 2030.
If you haven’t started using ERP software for your business, now is the time to reconsider it by learning the functions of an ERP system. Read on for more information about what ERP is. You’ll also learn the 11 most significant benefits of ERP software.
What Is ERP?
ERP software aims to integrate all the different functions and processes you have in place for running your business. It combines everything, from accounting and human resources to customer relationship management and inventory management, into one complete system. According to JD Edwards Consultants Corning Data, this makes everything much more streamlined and puts all the information needed for an entire organization into one accessible location.
The defining feature of enterprise resource planning software is creating a shared database that supports various functions. All the different divisions within a company can use the same software and access the same information to ensure that everything runs in the most cohesive, accurate, and efficient way possible.
Top 11 Benefits of ERP
Now that you know what ERP is, let’s understand why you might want to use it. Here are 11 of the most significant benefits ERP has to offer:
1. Better Information Management
One of the most significant benefits of ERP systems is that they allow companies to manage their information better.
ERP software implementation makes it easier than ever for business owners (and team leaders) to measure progress and evaluate performance. It puts all the data people need in one easy place and allows folks from various teams and departments to access it.
For example, an eCommerce store owner can look at their order-to-delivery process, see how quickly orders are moving through the system, how many days orders are in transit, and more. They can also see how long it takes to get from a customer’s first click on the website to a completed order. These are just a few examples of how using ERP software for your business makes tracking your progress easier than ever.
With so much information accessible, it’s easier to make informed decisions that best benefit the company. Folks can also use the data to set achievable, practical goals for the future.
2. Improved Workflows
Simplified workflows are another benefit you can get with an ERP.
ERP software will help your company to simplify workflows in a significant way. With the help of user-friendly interfaces, employees can easily access the information they need to carry out their jobs. This, in turn, helps them to get projects completed faster and move on to the next task without having to worry about sacrificing accuracy in the process.
Offering multiple modules, such as inventory management, accounting, sales, and marketing, helps to reduce the complexity of business operations.
This, in turn, allows businesses to focus on their core competencies. It also ensures better integration with other business systems. For example, an inventory module can be integrated with accounting, and accounting can be integrated with sales, etc.
Inventory management is one of the most crucial functions of any business. Without a well-planned inventory management system, you can never expect to achieve good profit margins. It is also the key to building a strong customer base.
3. Streamlined Processes as a Benefit of an ERP
One of the benefits of using an ERP system is that your company will streamline whole processes.
When you use an ERP software program, your business’s functions are combined into one unified program. This saves you and your employees from having to toggle back and forth between various programs and systems to find the information you need. Data is centralized, which allows for easier access and streamlined business processes.
Data is centralized, which allows for easier access and streamlined business processes. They can be accessed from any device at any time. No more waiting on IT to finish a report or waiting for someone in your office to get back to you. Also, the data can be shared with clients, partners, and other stakeholders. With the use of the cloud, data is kept secure and accessible.
4. Easy Integration
At first, putting all your business’s various functions together might seem daunting. You might assume it’ll take days or weeks to get everything combined and working smoothly. That’s not the case with ERP software, though. This is a strong benefit when integrating a system like ERP.
The integration process is very straightforward, and it’s easy to integrate everything. There’s always a bit of a learning curve when you first start using a new system, of course. You’ll be amazed at how quickly your employees adapt, especially when they see all this new software can do for them.
5. Easier Business Accounting with ERP Software
This is another important benefit of an ERP system.
ERP software makes all functions of a business easier. It’s particularly beneficial for those in the accounting department, though.
Accountants often have to chase down heads for various departments to access financial information when creating reports of filing taxes. With the help of ERP software, though, they’ll have instant access to everything they need. This helps them get work done in more efficient ways, especially during the busiest times of the year.
6. Increased Transparency
One of the most important benefits of an ERP is transparency which is essential to any business that wants to succeed long-term.
When certain company members are in the dark about matters, especially concerning finances or business performance, it’s harder for them to do their jobs well. They might make risky decisions that they wouldn’t have made had they had more information about the company’s current position, for example.
7. Eliminated Data Redundancies as a Benefit of an ERP
Who wants redundant data? Redundant data can bring analysis paralysis for many people. Redundant data makes life harder for everyone involved in running a company. So, you want the right data, in the right place, in the right form, and at the right time. So, this is one of the more important benefits of an ERP system.
When information gets inputted multiple times, it leads to confusion and inconsistencies throughout the business. ERP software helps to eliminate redundancies by providing everyone with access to the same data, so no one has to worry about inputting something more than once by accident.
8. Your Company Will Benefit Through Better Insight from an ERP System
It’s easier for business owners and higher-ups to make strategic decisions when they utilize ERP software. This software gives them a 360-degree view of their company and helps them ensure they’re making plans and setting goals that will benefit everyone.
An ERP system is the backbone of your organization, providing the information you need to make smart decisions. If you don’t have a system that can help you manage your inventory, track customer orders, monitor the performance of your sales staff, and more, you could be missing out on major opportunities.
9. Improved Customer Satisfaction
When businesses run more efficiently and have more accurate information at their disposal, customers naturally become more satisfied. And do you have a higher benefit of an ERP system if it will bring you satisfied customers?
ERP software helps you ensure you’re always putting your best foot forward for the people who keep your company in business.
10. Improved Security
ERP software allows more people to have access to the same information. There are still security measures in place, though, to keep certain pieces of data private from people who don’t need to access them. You can decide who gets to see what to maintain transparency without revealing too much to the wrong employees.
For instance, you can set up user accounts with restricted access to specific information. You can also set up an access list to control what information is visible to whom. With an access list, you can control what information people see by allowing or denying their access to specific records.
11. Better IT Budgeting
As the experts at Tomerlin-ERP have pointed out, ERP software allows for easier and more accurate IT budgeting. The upfront investment in this software is high, but it helps to unify IT costs and allows for greater efficiency across the board.
Since they’re only using one system, businesses can often save on overall IT costs, too. This happens because there’s less room for error, and getting everyone trained on one system is easier.
Invest in ERP Software Today
Now that you know more about the benefits of an ERP system, are you ready to invest in this software for your company? You can experience better organization and major business growth with the right program.
Do you want to learn more about other tech options before you make a final decision? If so, check out the Technology section of our site today. You’ll find many great resources to help you make the right choices for your company.