Introduction
Every business has its own objectives, processes, and requirements. Above all, today’s businesses need technologies with complete functions which can bridge the gap between business processes and people. To run an organisation successfully, an ERP system gives a helping hand by synchronising all information and communication within the organisation.
ERP is a combination of software and a company’s activities performed to manage operations. With ERP, the entire project value chain is aligned, and critical processes are streamlined effectively.
When & why do you need ERP?
When your business starts dropping the ball, lacking proper communications or you observe you are giving more time doing paperwork than actually running the business, you need to have an ERP system.
Implementing an ERP system within an organisation changes the way people work. Its implementation is practical and benefits how the business as a whole functions. The following points are good justifications why a company needs an ERP system.
Automation processes
ERP allows companies to achieve actual business process automation, managing important tasks on a daily basis across an organisation, freeing up staff to focus their efforts on more critical initiatives which require personal attention. This not only boosts the productivity, but also dramatically reduces operating and overhead costs. Furthermore, without ERP, you can’t have cross departmental collaboration and prudent workflow execution.
More efficiency
Another reason to deploy ERP is to achieve operational efficiency. Error-prone, manual processes can drain a company’s money and time. And therefore, companies must automate critical activities and augment the business process efficiency. No matter how big or small your business is, or what type of business it is, requiring different teams and departments to operate as a single unit can be quite challenging without an effective ERP system.
Better information management
Many organisations still have inconsistent information across the business. For instance, if the accounts department and call center access two different databases that are not integrated, customers with a billing question will not likely get a precise answer if they approach the call center for help. Such problems may look small on the surface but can add up over time, resulting in bigger customer satisfaction and retention issues which can adversely affect revenues and market share.
The pace of business is faster than ever before, which means employees across your company need immediate access to key data. With ERP, organisations can get a holistic view of business operations at any time, while other staff can get the information they need to do their jobs more effectively.
Better performance measurement
ERP makes it easier for company staff at all levels to measure a company’s performance and understand the impacts within the company. ERP also empowers organisations to be more receptive to shifts, rapidly changing tactics to address new customer requirements as they emerge. Moreover, ERP automatically generates reports making performance management more accurate, faster, and smoother than before.
Seamless accounting
Often, the first noticeable signs that your company needs an ERP system will come from your accounting department. If your employees rely on paper-based invoices and sales orders and spend hours every week manually entering them into different accounting and sales systems, you need to consider how much time is being wasted on tasks that ERP can handle in an instant.
The same goes for financial reporting. If it takes ages to consolidate or reconcile financial information across systems and through countless spreadsheets, ERP can make a significant impact. With all financials in a single database, accounting staff won’t have to spend hours cross-posting information, re-keying numbers, or reconciling data manually. Your accounting staff will be more productive, freeing them to deliver critical reports without delays and frustration.
Better inventory management
As companies grow, one of their biggest challenges is often inventory management. Ensuring that the right amount of products is in the right location at the right time is a vital part of business operations. When sales, inventory, and customer data are maintained separately, it can create serious problems across your company. If you run out of a popular product, sales will be off until the next shipment arrives. Meanwhile, if a customer calls to enquire about an order and employees can’t track it, your company will start to develop a poor reputation for reliability and service.
With ERP, every department will have access to the same, up-to-the-minute inventory information. Furthermore, ERP can help intensify internal interaction, improving communication between the organisation and its suppliers. If suppliers can coordinate easily with finance, marketing, and sales, then productivity is sure to increase. Thus, the availability of real-time communication for different groups within an organisation allows rapid responses and managed inventory coordination through the use of ERP.
A unified system
One of the biggest downsides of having multiple systems across your business is that your business management can become a nightmare. Customising these systems, integrating them, and maintaining them can be complex and costly.
Rather than adding more software and complexity to an already ineffective system, ERP can give you the agility to respond to changing business needs rapidly. With ERP, you can easily upgrade your business management as the business grows and changes.
Experience robust growth
In a nutshell, businesses need improvement in internal business processes and overall business performance. They want to achieve this by having:
- Reduced labour costs
- Increased business growth
- Increased visibility whenever, wherever
- Constant access to information across branches and locations
- Reduced IT expenses
- Improved interactions between staff, customers, and suppliers
If you are looking to improve your business by giving it an edge with end-to-end ERP automation and management, ERP is the ultimate solution for your business.
Start growing your business with ERP
Important links
- https://www.lorge.co.za/solutions/cloud-erp-pricing/?pid=0000002400
