What Does ERP Do For A Business: Top 5 Advantages Of ERP
In this fast moving world, the rate of competition is high. Surviving in this dynamic market is difficult for the businesses around the world. Every competitor is trying to equip every possible weapon for surviving in the market. At this point, several businesses tend to equip themselves with an Enterprise Resource Planning (ERP) software. It is a solution to all the problems for a business.
In the modern day business, the use of ERP software is said to be the backbone of the business. With the help of an ERP software, all business functions such as sales, logistics, human resources, and statutory compliance are brought together on a single platform.
The ERP system is capable enough to collaborate with the other important people for the business. It includes employees, customers and the vendors. According to several studies, it has been found that companies who use ERP software are 66% more efficient and faster when it comes to delivering an order.
The ERP systems are used by almost all types of businesses in order to streamline their business processes. If a business which is not in the favor of using an ERP system gets a healthy competition from a business which makes the use of ERP systems, the surviving of the first one in the market would be next to impossible. Some reason to support the statement are as follows :-
Real – Time Information
Real time data helps keeping up the pace of the business. Also helps employees needs to be updated with the information around the organization as soon as possible. The ERP software creates a single database for the business and makes this possible with real – time information updating within the organization. This allows the employees to keep up the working of the business effectively and establish a communication system with no hindrances.
On the other hand a business with no ERP software will have much slower working. The employee in such a business will have to run from one department to the other to gather information. This will automatically frustrate the employees and cause frequent mistakes by them which may be costly.
Automation of work
The automation of some really time consuming work is probably the best feature provided by the ERP systems to the business. Measuring the performance metric of a business is very difficult as the company keeps on growing. The calculation of sales margin, profit and loss and the other metrics are difficult during the growing stages of a business. These metrics are easily calculated for the business with the automation of work by the ERP software.
It helps to save a whole lot of time for the business. This would overcome the need of maintaining the manual records. Maintaining the manual records and creating them during the growing stages of a business is very time consuming. This shifts the focus of the business and can delay the decision making power of a business.
Data is Transparent yet secured
The data in a business is the most important asset for it. Through data security it can be ensured that your data and important business information is in safe hands. Also, it will be accessed only by right people. With the use of an ERP system, a business may be released from the tension as the data will be totally safe and accessible only to the authorized ones in the business.
The ERP software allows the information to be kept at one place. Also, it can be only updated by the authorized person. On the other hand, a business with no ERP system has a constant threat to its data and there is no guarantee that the data will be safe and only be accessed by the authorized person. This level of threat can take down a business within a night with no one even knowing about it. Data Governance Consulting can help you with big data governance in your organization for safety.
Control over the inventory
The inventory of the businesses is usually well stocked and is full of items. Keeping a track of these items may be a difficult task. With the use of an ERP Inventory management software, every product at the inventory gets a unique identification number. It can differentiate each and every product. With the proper tracking of the goods, a business may also keep a track of the delivery and distribution of the items. It makes it much easier to serve the customers.
The businesses which are far away from the use of an ERP software, have no option for tracking their goods and automatically have to suffer due to lack of knowledge about the item. It creates a bad impression among the customer.
It is impossible for a business to survive in the market without the use of an ERP software to support it. The ERP software plays a major role when it comes to defining the survival of a business in the market.