13 Advantages of an ERP system
The unpredictability of all operations, ranging from accounts to sales, of a business prevails no matter how flourished a business is. Thus, every excelling business, or one which is trying to do so, thrives to obtain a system that can let it have control over its processes for strengthening the connectedness within the business and making more accurate forecasts and respective measures.
For attaining a stance whereby a business would have a firm grip on its activities, a platform of a digital system is needed. A platform that can interlink the departments of a business. A system that can eradicate manual exertions and make the business go digital!
Such a system is known as an ‘Enterprise Resource Planning’ with a simple abbreviation of ERP. This system allows a business to run itself in a much sleeker manner. All the stakeholders of the business would achieve the convenience of online execution of tasks, which are swift in nature and lead to optimization of resources. A system like this has its advantages and disadvantages as well, which would be discussed in this blog, hereafter.
An ERP system allows a business to utilize its activities in a manner that most of the resources are used for profitability in their respective tasks. If an employee can save his time from the manual recordings of a billing process, supposedly, then he could use the saved time in a task, such as re-ordering the inventory, that was pending or that could be an addition in the process.
The most valuable feature of an ERP system is that it has the tremendous ability to provide numeric results and executions that are error-free and can give the most truthful insight into a business situation which can be further used to generate reports.
Access to Information
In a digital system, access to information that is required by an individual is just a few clicks away. The person relevant to the information and have certain authority over, such as a manager, can be granted access easily by the publisher/owner of the system, making the communication channel convenient.
In the modern business model, every department is dependent on at least one other department in some way. In most cases, almost all departments are dependent on the Human Resources department for the creation of benefits and compensations. Such dependency once made digital, is easily shared among them.
In a business where processes are being run in an assembly line manner and tasks cannot be completed without the preceding tasks in the assembly line, connectivity is something that is demanded at the earliest. Such urgency is dealt with by installing an ERP system by keeping all sectors of production interacted and updated.
Businesses have data in tons of amounts and sometimes all of it is not needed for a specific task or activity. In order to obtain the relevant information for any entity, such as giving records of employees above than 60 years to EOBI, is easily obtained by an ERP system by the functions of filtration.
Less Time Consumption
The tasks once put on a digital platform are executed much quickly, for example generating an invoice of any sale or purchase rather than writing it down, that too, roughly. Hence, when time is saved by such convenience, it can be used elsewhere in a much more productive way.
Avoidance of Duplication
The modules of an ERP system are designed in a way that if a single item appears in more than one module, it merges the item and redirects to the most relevant module, which helps in eradicating any copies of data. This also takes off the burden of storage from the database.
Good use of ERP by the business end towards its customers makes them satisfied with a steadfast service and ultimately makes them come back again in a time of need. The retention is based on how smooth the experience went, and how well an ERP system excels in it.
The businesses of the modern world not only focus on the current planning but also dwell on anticipating their future standing. They need to be pre-equipped with targets, measures, and solutions for problems that may arise. An ERP system gives appropriate reports for such decision-making for the businesses.
Allocation of Resource
The resources of a large-scale business are in vast numbers and of different natures and types. Such businesses have to critically allocate each resource in order to utilize them properly. They need to create budgets for spending their finances and avoid over-spending in one section. They also need to know the ratios of human capital to be hired in different departments. Lastly, they also have to make custodians of their assets and their usage. All of these resources are prioritized and spread around a business using an ERP system, which eliminates the risk of loss.
Customizability of Software
Not every business is of the same size or nature and hence has a unique structure and strategy being used in its processes. Manufacturing cannot use the same modules as a service business. This calls for ERPs to be flexible and adjustable according to the demands of businesses. Gratefully, ERP systems can be modified and used for the functions which are required.
The customers of the modern times are attracted towards businesses that are equipped with technological services because it provides convenience. Hence, the businesses that have incorporated an ERP system in their activities, develop an edge over the ones which run on manual proceedings.