How enterprise resource planning systems take a methodical approach to solving business problems
Enterprise Resource Planning (ERP) takes disparate systems and combines them into one methodical approach to benefit your business. We take a look at just some of the ways that this methodical approach works.
Defining Enterprise Resource Planning systems (ERP)
Enterprise Resource Planning (ERP) is a type of software that combines the different systems within your business into one integrated whole.
Typically, this means moving from spreadsheets that need to be manually updated and cannot be accessed by the departments that need them to an automated system where inventory, sales, finance, production and more are seamlessly shared and updated.
In short, all of the processes needed to run your company can be brought together into one easy to access and accurate system that improves visibility, accuracy and efficiency.
How can Enterprise Resource Planning systems help your business?
There are a number of reasons why a business might implement ERP software. These include reducing costs, making processes more efficient, reducing waste and gearing up for expansion. Here are some of the key reasons.
More accurate data
A business that relies on spreadsheets risks inaccurate data being reproduced across the business. Once this occurs, the error might have been copied multiple times without the ability to get the genie back in the box.
With ERP, your data is automatically updated and housed in a centralised location, so that a single source of truth is available to all who need it at the click of a button.
Now you can rest assured that your data is accurate and that any mistakes cannot be replicated.
A single source of truth means more reliable reporting and better decision making.
What’s more, you can access data in real-time, rather than waiting for spreadsheets to be updated manually whenever a report needs to go.
Many businesses benefit from this speedier and more reliable approach, meaning reports can be generated at any time to inform the decision-making process – meaning you can plan, budget and forecast to major stakeholders with immediate effect.
More efficient processes
A major problem with operating without an ERP system is the inability to access information that partners and customers need to know.
Housing data from across the company means anyone who needs the information can be updated in real-time, leading to faster response rates and better customers satisfaction during an era of e-commerce and high expectations.
Once your company is running more efficiently, you can begin to benefit from better communication, fewer delays and an improved bottom line.
More collaborative processes
A Business that fails to facilitate collaboration between departments is missing a trick when it comes to maximising its potential.
Rather than operating in discrete silos, productivity can be enhanced by improving communication between different areas of a business.
This way, all stakeholders can be informed of any change in plans and flag concerns as soon as they happen, rather than being hit by a nasty surprise later down the line.
More collaboration reduces waste, ensures fewer mistakes are made due to lack of communication and improves job satisfaction.
Are you interested in learning more about the methodical approach that ERP can offer your business? Click here to speak to a CBO consultant.
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