ERP Software refers to an integrated software system helping businesses to manage both internal and external resources. This can include a wide variety of physical assets such as equipment and materials, but also human and financial resources. The prospect of integrating ERP software to your processes can suggest a complex project or invite skepticism at planning processes around a computer program. However, there are a number of benefits that will help to optimize even a large company.

Centralized Data

Successful ERP depends on utilizing data properly. It provides a central repository for data that can serve cross-functional needs, such as sales, warehouse, customer service, and project management. Like most data solutions, this will require a level of information management, determining who has access to what data and defined privileges as far as whether users can share, edit, or delete data records. But the advantage is that everyone is working with secured, consistent, and accurate resources.

Lower Cost

IT spending is expected to grow 3.3 percent this year alone. Bundling various requirements and data sources into one ERP system saves on the cost of additional software and the associated user licenses. Software training on a single system is easier to implement and improve. A single enterprise-wide solution lowers IT maintenance costs and labor. There is less time spent on patches, upgrades, event logs, security measures, and deployments. It also reduces stress on network bandwidth. ERP systems will help to reduce your IT expenditure in the long term.

Greater Flexibility

ERP software is not necessarily a single overpowering system. Many products are more conservatively engineered, and allow you to integrate with common desktop applications like Microsoft Office. Others will allow expansion through add-ons, custom development, or integration with cloud computing services such as accounting or predictive analytics. A modular approach to ERP also provides a more scalable solution, in that you can add or remove features as needed to meet your current operational needs.

Better Efficiency

Apart from reduced overhead and scalability, the real benefit of ERP software is that it helps your company to plan and develop more efficient processes. It can provide you with the data-driven insights to reduce waste, accelerate turnaround times, automate schedules, and improve supply chain performance and value.

Analysis and reporting of the data provided can identify and assist in reducing repetitive tasks and needless movement of goods. Establishing metrics and tracking workflows can help you account for every penny and every second.

Lower Inventory

Many companies have a great deal of money invested in inventory. This can take the form of both raw materials and finished merchandise. Maintaining optimal levels of both is crucial to supporting profitability, especially if your business deal with perishable goods or time-sensitive materials.

ERP software for the door and Hardware Industry, for example, will help reduce excess ordering that leads to stock overages. This can not only waste goods but tie up warehouse space needed for other inventory SKUs. ERP is a useful tool in better planning and ordering to get maximum returns on your inventory.

Improved Customer Experience

The most important goal for any enterprise is ensuring that your customers are satisfied and inclined to do repeat business with your company. Establishing a good reputation for performance and quality are essential to supporting your brand and marketing efforts. ERP makes it possible to monitor and analyze all your materials, merchandise, and productivity from advertising to product delivery. Transparency, reliability, and efficiency in your customer interactions will provide them the value they’re looking for.

The initial outlay for an ERP system can be high, depending on your needs and expectations. But the benefits and potential long-term savings make it a wise investment for any growing enterprise.

Author Bio:

Anica is a professional content and copywriter from San Francisco, California. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here. Anica writes for ContractERP, which provides software for the door and hardware industry.