How ERP Improves Productivity and Efficiency
Updated: Mar 19
In recent years all efficient and productive businesses consider their ERP systems as integral to their growth. If your business, regardless of size, is not close to being on this stage, consider an ERP.
Business owners normally have different software for different roles throughout different departments. Inventory could be tracked with a system different from the one used by Sales to oversee deliveries. It could also be that the system safeguarding workforce data is completely separate. But what if, for instance, the Inventory and Sales departments need to collaborate? It becomes a complicated task just to transfer data accurately and on-time.
Businesses have now begun to understand that ERP integration helps solve this communication problem. When the Inventory Department updates the system with expected dates for stock availability, the Sales Department will have instantaneous access to the same data in the same software and as a result, be able to promise attainable delivery dates to their consumers. As such, ERP systems remove the issue of inconsistent information within separate departments of the same organization.
It can be difficult to find certain information like the number of customers closed after calling once; the number of days off by an employee in the past six months; the precise number of orders taken; or the precise number of raw material available on a specific day. Knowing this information can sometimes prove vital when making business decisions but it tends to be difficult to access. But with ERP, when needed, decision-makers can access the entire organization’s data with an integrated system thus equipping themselves with important information in an organized way. This allows for more accurate and quicker decision-making since it is based entirely on the collected data. This then increases both the efficiency and productivity of the organization. Because of ERP systems, data collection is effortless and the only work left is data analysis.
ERP systems are essential for Customer Relationship Management. From the first call to sale closure with additional data such as the quantity to be delivered, on what specific date, and at what specific location, all this is maintained in a single database. When a customer reaches out with a query, the Customer Service Department has the customer’s entire history available with the click of the mouse. Because of this access, coming up with solutions for customers becomes easier and as a result assists in recurring customers. When using an ERP system the nature of client orders is traceable, i.e. follow-up details, quantity, and urgency. With this, meeting their expectations comes more easily.
Using an ERP system, decision-makers can track all costs incurred regardless of magnitude and trace them back to specific overheads. This might look like a simple task, but it has the potential to easily cut costs when automated. When all of an organization’s costs are entered into the same system alongside fundamental details like cost history, the after-effects of incurring these costs, and which department incurred the costs, it helps in decision-making which then boosts the efficiency of the organization. If done consistently it plays a role in significantly decreasing the organization’s operating expenses.
ERP systems can function parallel with future or ongoing projects and help determine the efficiency of assigned project groups. An ERP system can contain all necessary data related to a specific project and, in addition, integrate the data with goals that were attached to a specific date. ERP systems can also help a decision-maker achieve and set SMART goals (Specific, Measureable, Achievable Results, Focused and Time-Bound). For example, an executive is exploring a potential market for the organization. This person can look at the existing response to the prospect organization in similar markets using ERP records and use it to establish expansion goals. Since the goals have now been fed into the system, they become measurable as each step taken toward the goals is now recorded. Additionally, completion dates scheduled alongside achieved results now clearly accompany the project details. Therefore, an organization can grow with the utmost grace and ease by using a simple ERP solution.
Choosing to integrate a full-fledged ERP system into operations will exponentially increase the productivity of your business and allow the tracking and minimization of costs, resulting in increased efficiency and tracked data as it relates to customers. With cloud computing platforms making their presence felt, Cloud ERP is quickly gaining popularity amongst businesses. By making better solutions available to all your clients, they will be satisfied every time they come to you and will continue to allow you to keep a check on the holistic outlook of their business. You have just saved hundreds of hours which could have been wasted researching data and saved a significant number of resources which would otherwise have been carelessly spent without any fruitful results. In consequence, you’ve just discovered an efficient and productive future for your business.