An ERP system is software that supports the business processes within the company and that has several advantages. The system can best be seen as the spider in the web of an organization.
There are different providers on the market, in different price categories. But what is the added value of such a system for your organization and why is it more than worth the investment? In this blog, we explain five reasons why your company should have an ERP program.
1. Increases Effectiveness
ERP software supports the various business processes within a company. An ERP consists of different parts that all come together within the system. Because it consists of different components, you as an entrepreneur get an optimal picture of how the company is performing. You have insight into the processes at any time.
As an entrepreneur, it is important that you have insight into the business processes because this shows where there are areas for improvement within the various departments of the company. For example, this offers the possibility to optimize the workflow, which ultimately ensures increased effectiveness and efficiency of employees.
2. Lower Operating Costs
The insight into the business processes and the increased effectiveness and efficiency within the organization has the advantage that it reduces operating costs. Because you have better insight into the business processes, you know exactly what is happening at every level in the organization. For example, you get more insight into the stock, so that the purchasing department can purchase more efficiently and effectively, which reduces storage costs.
3. Everything In One Place
An ERP system consists of several components that come together in the system. All company data from the various departments within the organization are centrally located in one place and are accessible to the employees. The advantage of this is that you no longer have to work with different systems.
If you opt for an online ERP, it has another advantage: the system is accessible anytime and anywhere. Ideal if the company has multiple locations. Nowadays, more and more providers offer the possibility to work mobile. Employees can all work in the same system. All you need is an internet connection and mobile, tablet, or computer, and everyone can get started.
4. Integration Software Packages
Perhaps you already work with a CRM program and other software within the organization such as an accounting program or invoicing system. All this different software can be integrated into the ERP program. As a result, not only the internal business processes are mapped, but also the external processes. This improves communication and cooperation with suppliers and customers, among others.
5. Improved Internal Communication
In addition to the business processes, internal communication is also being improved. Previously, various departments in an organization worked more side by side, with an ERP program departments work together. Employees no longer have to wait for colleagues to receive information.
Because everyone works in the same system, everyone has access to more information. And the information is always up-to-date because all systems are aligned. This improves communication between the different departments and allows everyone to do their job optimally.
6. More Efficiency
One of the main goals of an ERP system is to work faster, better, and more efficiently. By skipping or simplifying actions and limiting errors, you can do the same work in a shorter time. Most mistakes made in a business process are attributable to human errors. Minimizing errors by using a digital system saves a lot of work and time.
7. Lower Inventory Costs
Too many products in stock cost money. Not having a product in stock, on the other hand, also costs money because of lost sales. It is therefore important to find the ideal balance between not too much stock and not too little. An ERP system helps you reduce costs by automating your purchasing process.
It is only logical that you can always see important data that you need at that moment. Even more important is that this data is correct and up-to-date. A static file on your computer or a piece of paper does not meet these criteria. A cloud-based ERP system does give you the correct and most current data that you need at that moment.
8. Respond Better To Changes
Making choices and responding to change usually involves data that you receive and consume. Based on that data, you anticipate and make choices. It is handy that the data on which you base your choices are displayed neatly and clearly and are always correct.
9. The Same Current Data Accessible To Everyone Within The Company
In a growing company with different departments, islands quickly and unconsciously arise. Data and figures are lost, are put down on notes somewhere and different people or departments work at cross-purposes. An ERP system ensures that different departments use the same current data source to perform their work.