In the past couple of decades, there has been a ginormous change in the way businesses work. The technological innovations have made things simpler and flexible, but as the business grows, there have also been a surge in the complexities. According to a survey carried out by Harvard Business Review, a whopping 86 percent of the executives believed that their business processes and decision making had become so complex that it was hindering their ability to grow and keep up with the growing competition. ERP is a golden gateway to improve your business performance and ensure that complexities do not cripple your hard-earned business. ERP software gives you a plethora of benefits to completely revamp and transform your business.
A remarkable metamorphosis
When digital transformation is done right, it is like a caterpillar turn into a butterfly.
- George Westerman
Businesses have to manage a large amount of data. You might have different systems for different departments to take care of all the data but what is lacking is a common visibility and a powerful integration. For the sustainable growth of any organization, it is of utmost priority to have effective communication and collaboration between all the key departments so that there are no discrepancies. By implementing ERP software, eliminate these virtual borders by having a single database and hence generate transparency across the entire enterprise.
Invent new possibilities, escalate business performance
How ERP Improves Business Performance
1. Gives speed and accuracy by automation
Automation is the heart of ERP. From doing entries in the excel to generating key documents, there is a lot of tedious and repetitive manual work that has to be done with accuracy. By automation, documents can easily be generated on a click and redundancies can be reduced. Time saved is money earned! You can manage all your accounting and financial needs feasibly by automating activities like sales invoice, purchase invoice and purchase entries. Accounts, one of the key departments can be managed with acute accuracy.
Automation is driving the decline of banal and repetitive tasks.
- Amber Rudd
From generating automatic depreciation entries, automated ECS accounting, automated payment reminders to automation in multi-currency accounting; with ERP at your disposal, all tasks can be managed with ease. Financial reports can be generated and analysed, thereby always ensuring the right decision. If employees are repeating the same tasks over the day again and again, they are bound to make mistakes. It is rightly said that “ To err is human ” ; automation hereby prevents paying a hefty price due to errors or discrepancies.
2. Ensures customer satisfaction
It is said that a company’s greatest assets are its customers. For any business to survive in the competition, it is very crucial to make customers a priority and never let them down . ERP provides an innovative way to skyrocket customer satisfaction.
Customer Retention Statistics say that 65% of the business comes from existing customers. 68% of the customers leave you because they perceive you are in indifferent to them.
Customers stick with those companies which give them fast and effective services. With ERP, customer’s data can be stored and hence customizing products or services as per the requirements becomes faster and easier. ERP enhances customer support and handling. Imagine a customer who just wants to know the stock availability or status of his order, is getting frustrated because of poor service. Who would ever want that! ERP providing you one database, one application across the entire enterprise makes it feasible to check inventory levels, customer data and history, payments, shipments such that it is answerable from any department. In this way, get a comprehensive view of your customer because of all the details anytime, anywhere. This enhances your customer relationship management and makes support faster, ultimately leaving you with a happy and satisfied customer.
Customer experience is the next competitive battleground.
- Tom Knighton
It is said that customer experience, the next “ competitive battleground ” will be a major deciding factor for the survival of a business. With ERP, you can ensure to have victory in this battle, thereby shooting up your business performance.
3. Innovates your human resource
According to a survey carried out by SHRM, the leading job satisfaction contributors are : respectful treatment at all levels, timely compensation/pay, benefits and security.
Your team is the backbone of your organization. How your business performs is very largely dependent on your human resource. It is very essential to build a highly motivated team comprising of the right talent, such that it bridges the gap between you and your goals. ERP allows for systematic and accurate storage of data and thereby significantly improving the quality of talents hired because who doesn’t want to hire the best out of the rest! The company can manage with accuracy the employee’s attendance and the number of leaves they are taking. Always have your employees satisfied with timely payrolls and appraisals. With automation, there will always be accuracy and no delays. ERP helps monitor expenses and reimbursements to employees. In this way always keep track of the costs incurred and effectively manage overall costs.
Resources are hired to give results, not reasons.
- Amit Kalantri
Something that is overlooked is that employee satisfaction is closely related with customer satisfaction. Employees are eventually the driving force behind customer satisfaction. An employee who is happy and motivated at work will set a positive tone for the customer. If not, he might indirectly ruin the customer relationship with the company thereby welcoming some serious and unwanted consequences. With ERP, have an effective human resource management and improve the experience of employees working in the organization.
4. Helps ensure the right purchase
Catapult your Purchasing potential, churn out more profits!
For an organization, it is essential to have the right quantity of raw materials in the right quality at the right time. Incorrect purchase can lead to undesirable losses for the business. Hence, it is important to have accuracy and optimization in the purchase department. It deals with goods to be purchased from multiple vendors. With ERP, since there is a centralized database, you can record all the necessary details of the vendors, can create quotation and send it to multiple vendors and select the best quote among them. ERP generates automatic purchase requisition when the stocks go below unwanted levels. Who would want to face the aftermath of having insufficient goods in the inventory!
It is very crucial to have transparency and integrity between the purchase and accounts department. With ERP, you can ensure a strong and effective collaboration between both the departments. When a purchase invoice is generated, it goes into the account payable entries and the purchase amount is transacted to the vendor account. The perk of having such a technology is that everything can be handled in a hassle-free manner over a common database thereby ensuring efficiency, accuracy, visibility across all platforms.
5. Efficient inventory management and supply chain visibility
Enterprises have to effectively strike a balance between the demand and supply. For this, correct inventory levels have to be managed and it is important to have accurate inventory information including quantity, price and location at all time, which will ensure correct purchasing decisions and also customers demand is met. Imagine if there is a high demand but insufficient stocks. A lot of revenue will be lost, and it will also lead to customers getting turned down. Hence having essential data at fingertips is important so that you are always prepared during the uncertainty.
Being properly prepared is one the key assets in any business
- Keeth Smart
ERP ensures that you have full control and visibility over your inventory, so that there are neither delays nor discrepancies in the delivery and stock management. This will eventually make your bottom-line soar high. Right from purchasing to shipping, it is vital to have the status of inventory at all levels. ERP boosts your supply chain visibility so that your departments always take decisions based on real and accurate data on hand. This proliferates productivity and profitability and ensures sustainable growth of your enterprise.
A study shows that about 68% of the organizations are moving towards innovative, cloud-based inventory management systems to streamline processes.
Everything clubbed under a single database, same data across the enterprise.
Streamlined processes and flow of information between all departments.
Strong integration, thereby eliminating the virtual borders.
Enhanced customer and employee satisfaction.
Ensure correct decision by having accurate real time data on fingertips.
With cost cutting and time saving benefits, churn out more profits.
Having such robust and innovative technology at your side will give a boost to your business performance, thereby always keeping you in the forefront. It is completely scalable and suitable for all kinds of businesses. Manually doing loads of repetitive tasks, not being able to properly keep track of all the data with accuracy and getting prone to errors and confusions is a bane for any organization. ERP becomes your saviour to help you bounce back and always ensure that your business is always performing top notch!
MD, Finbyz Tech Pvt Ltd