Realize the Benefits of ERP Software

The decision to implement an Enterprise Resource Planning (ERP) solution has been made by thousands of companies for very solid reasons. The benefits of ERP software are numerous, but several key factors that are more beneficial than others. Improved visibility into business operations, reduced operating costs, accurate regulatory compliance, and the reduction of data errors are several major advantages that come with the addition of an appropriate ERP system.

Improved Visibility

Considered to be the greatest benefit from ERP, the visibility provided managers into business operations enables better and more informed decision making. ERP solutions employ a centralized database so that all information is available to every user, according to their access privileges. Daily tasks become easier to organize and can be execute more efficiently.

Monitoring resource utilization or production is made possible because ERP systems support real time data tracking. Easy to access real time information enables executives to make informed decisions based on live information instead of follow-up reports. A new level of accuracy is provided for planning future infrastructure investments. Overall, the ability to make quick, accurate decisions provided by ERP software is a powerful tool for any company.

Reduced Operating Costs

One of the first benefits that companies see after implementing an ERP system is a reduction in operating costs. Efficiencies gained are not generally limited to one area but are felt throughout the company as costs for production, marketing, human resources, financial management, and inventory control are minimized. An ERP solution is able to manage information and present it in such a way that many common business practices can be optimized without the need to completely change the way a company is run. Typical estimated cost savings from ERP range from 5%-20%.

Standardized Business Processes

The way information is stored and presented within ERP systems minimizes the risk of human error and enables standardized and more efficient business processes to be implemented. Because modules are integrated and use a centralized database, redundant data entry is eliminated and users are more productive using the familiar interface for all activities. Every ERP solution embraces industry best practices and common sense workflows that are proven to work.

By structuring your company around the ERP model, while enabling customer configuration when needed, the flow of business is unhindered, reducing costly mistakes and misunderstandings. Synchronizing departments and functions is not always an easy task; implementing a powerful ERP system will greatly increase the effectiveness of standardizing a business model.

Improved Compliance

Government rules and regulations are constantly changing, such that maintaining compliance is difficult at best for most companies and almost impossible for those in heavily regulated industries. Before ERP, it was often necessary to outsource all compliance to specialists. Today, companies that have implemented the leading ERP solutions are able accurately comply with many standardized regulations, such as the Sarbanes-Oxley Act and employer tax reporting requirements.