How Does an ERP System Improve Business Efficiency & Performance?
How does an ERP improve business efficiency? Discover how you can minimize waste, save time and money, and maximize profits with an ERP.
If you’re looking to improve efficiency in your small or mid-sized business in 2021, you’re not alone. Business efficiency remains the key to business success, regardless of which industry you are in. The more efficiently your business operates, you can expect more time and money saved, less waste, and a boost in profits. An effective way to improve business efficiency in your company is by adopting enterprise resource planning (ERP) software.
How can an ERP system improve business efficiency?
What is ERP? An ERP system consists of numerous modules that centralize your business data from different departments. Simply put, ERP systems can improve business efficiency by:
Streamlining and automating your business processes
Centralizing your data and allowing collaboration between departments
Providing customizable reporting and a better view of organizational performance
Let’s dive into this a bit deeper.
1. An ERP system streamlines and automates business processes.
Manual processes are tedious, time-consuming, and prone to human error. It can also create inconsistencies in your customer experience. With an ERP system, all your business processes are standardized, ensuring that they are executed efficiently and accurately each time. Automatic alerts can be set up to inform managers of any exceptions so issues can be addressed proactively. You can automate processes across different departments, from accounting and finance to sales to customer service.
Automating processes becomes doubly useful if your company operates in multiple locations or divisions, has global offices, or works with an extended supply chain. A modern ERP solution can streamline your operations and processes across multiple locations, making it easier for multi-site companies to consolidate and share information.
2. An ERP system will centralize your data allowing for more visibility and collaboration.
With siloed applications, your employees need to enter data into different applications across departments or exchange data back and forth between systems. With an ERP, data from all your modules are in the same system. Data only needs to be entered once and is distributed to all parts of the business. This reduces time wasted on data entry, improves accuracy, and reduces error-related costs. Plus, it will be easier for your employees to learn how to use a single solution well instead of figuring your way around multiple applications.
A standardized data system provides visibility across departments, which makes the company function more efficiently and helps employees meet customer requirements more quickly. By increasing organizational efficiency, ERP systems will help decrease operating costs. The expedient flow of data is also useful for management as they can respond faster to new opportunities or address minor problems before they become significant issues.
3. An ERP system offers an in-depth look at your company’s performance.
An ERP system can offer a 360-degree view of how your company performs and can provide you with actionable insights. A modern ERP system allows you to visualize your data into charts and detailed reports. An ERP system can help you to monitor your financial performance easily through built-in reports, Excel, and more. This allows you easily pinpoint financial patterns, analyze trends, identify areas of waste, and improve business planning. An ERP system also goes a long way in simplifying your reporting process and reducing data-entry errors, and streamlining your month-end close.
Streamline your business operations in the cloud for more cost savings
If you are considering an ERP solution to improve your business efficiency but wonder if your small or mid-sized business can afford ERP software, the answer to that is yes. Thanks to modern cloud ERP solutions, SMBs can reap the benefits of an ERP system while also realizing cost savings. For instance, Microsoft Dynamics 365 Business Central is a cloud ERP explicitly designed for small and mid-sized businesses and can help boost a company’s efficiency and productivity, improve customer experience, and realize cost savings.
Whether you are experiencing signs that indicate your company needs an ERP system right now or are anticipating growth in the future, investing in an ERP system will help sustain profitable growth for your company. It will alleviate common growing pains and accelerate your business performance.
If you find you have outgrown your accounting software or business management solution or want to discuss ERP options, get in touch with our ERP consultants to ensure, you are on the right track from day one!