How ERP Benefits the Business

Posted by Stephen Whitehouse on 21 Feb


How ERP Benefits the BusinessSmall to medium businesses can benefit greatly from Enterprise Resource Planning (ERP) Management software programs.  ERP programs form part of a company's integrated and automated management system enabling sophisticated incorporation of various back-office systems and functions within the business such as accounting, sales, inventory, human resources, planning and manufacturing with other areas of the business within a single database solution.

So, What's Special About ERP?

In the search for the holy grail in Warehouse Management Software (WMS), ERP software may not hold all the answers, but if you're looking to automate and correlate your front and back office functions with your floor processes then WMS with ERP incorporated is an important business management strategy which can significantly improve the functioning of your business.

The beauty of ERP software lies in its ability to streamline processes by improving customer relationships and internal communications.  Using ERP software it is possible to substantially shorten procedures, increase productivity and standardise processes. Using an ERP software program for storing and collating data according to required systems will ultimately increase revenue and reduce delay, resulting in increased profits.

The Major Benefits of ERP Software in Small to Medium Enterprise

One of the major benefits to small businesses of implementing a system like this, is the ability to obtain a birds-eye view of your entire business process at any point along the supply-delivery chain. 

Real Time Capabilities

Using ERP software, business owners are able to make immediate business decisions based on real-time information which is filtered and collated within the system.  This means that time isn't wasted on inventory shortages, or delivery delays.  Information is constantly accessed in real-time, making it possible to streamline manufacturing processes as they happen and prevent unnecessary delays. Production is thereby increased and losses substantially reduced. 

Benefits of ERP Software in the Manufacturing Industry

  • Expediting manufacturing processes and automation within one integrated system.
  • Minimising redundant data processing and processes and sharing data across all departments.
  • Setting up uniform processes which take into account best business practices.
  • Increased process efficiency.
  • Better customer satisfaction due to fewer delays, better product quality, shortened delivery times.
  • Lower inventory costs due to better planning, tracking and pre-planning.
  • Fewer billing and delivery errors.
  • Lower vendor pricing thanks to quantity breaks and being able to monitor vendor performance.
  • Enhanced activity-based costing.
  • A consolidated picture of sales, inventory and receivables can be obtained.

Who Needs It?

ERP software applications are ideal for manufacturing concerns where lean manufacturing processes are the focus of operations and which feature multiple complex processes which need to be amalgamated into a smoothly operated management system. Achieving financial goals may also be aided by the implementation of ERP management software programs. Older ERP programs may need to be replaced by more contemporary ones, in order to facilitate modern systems and methodologies.  The management of operations is substantially expedited by the installation of the type ERP software which is appropriate for your small or medium business. 

Achieving total automation for a small to medium business should be the goal for any manufacturing concern.  The majority of companies make use of multiple processes, systems and activities to ensure the smooth day-to-day operations of their businesses.

Currently there are some very effective and targeted ERP software systems which have been tailor made for the small and medium business sector.  ERP systems that focus on the specific manufacturing requirements of small to medium firms have been honed in the marketplace to now offer some very unique benefits to this market.  ERP allows companies to operate individually, or to branch out, even globally, using the same management software and approach.

Learn How To Tell You  Need an ERP System

Topics: ERP Software, Business Management Software

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