The combination of geopolitical conflicts, inflationary pressures, and ongoing supply chain hurdles have made businesses across all industries far more budget-conscious. As such, your company is undoubtedly exploring ways to promote business continuity and shed unnecessary costs. While there are lots of ways to reduce costs, one often overlooked and highly effective strategy involves investing in cloud Erp Software.

Investing in a new technology Solution may seem counterintuitive at first, but modern, cloud-based ERP solutions will lower labor costs, reduce overhead expenses, increase operational efficiency, and provide you with actionable insights that support the long-term growth of your business.

More specifically, you can unlock meaningful cost savings with an ERP solution in the following ways:

1. Increasing Operational Efficiency

When your business relies on disparate applications and disjointed workflows, it becomes impossible to achieve peak operational efficiency. Despite your team’s best efforts, they will encounter communication mishaps and end up forced to contend with compartmentalized data, which can lead to project delays, inefficient invoicing processes, and team friction. 

ERP Software consolidates your business data and provides your team with a single source of truth. Unifying your data facilitates better collaboration across departments and teams, meaning your staff can pool their talents and work toward common organizational goals. You can also use ERP software to boost morale by empowering your teams with modern business tools. 

The software will further boost efficiency, as well, via its automation capabilities, which allow you to streamline redundant workflows and free your team up to focus on more dynamic tasks. 

Learn more in The Hidden Costs of Legacy Software.

2. Decreasing Labor Costs

Labor costs represent one of your organization’s largest recurring expenses, and fortunately, modern cloud ERP software will empower you to slash those expenses and do more with less, an approach that has become especially important amid ongoing labor and talent shortages, as it is often difficult to staff vacant positions or retain top performers.

With an ERP platform, you can replace traditional manual processes with automated workflows, thereby reducing the burden on your existing team. You can also support the needs of your operations with fewer workers, which can lead to significant cost savings both now and in the future. 

3. Reallocating Resources

Achieving optimal resource allocation is exceedingly difficult when you lack a holistic view of your organization and its workflows. To that end, ERP software provides real-time data about your resources and personnel, which you can use to reallocate personnel, equipment, and assets in a way that delivers an optimal ROI for your business.

Additionally, ERP software will free up your internal IT staff, as they will not have to spend the majority of their workweek maintaining legacy applications or troubleshooting antiquated equipment. Instead, they can devote their talents to pursuing new technologies, optimizing the uptime of existing solutions, and maintaining the security of your business data.

4. Lowering COGS

ERP software reduces the costs of goods sold (COGS) by improving procurement, production, and inventory management processes. You can avoid reordering using real-time inventory data while simultaneously ensuring that you have the resources in place to support your production processes.

Leading ERP solutions also include advanced forecasting and analytics tools, which you can use to predict future demand, guide ordering decisions, and adapt to shifting market conditions. Optimizing inventory, production, and procurement processes will allow you to decrease your COGS and strengthen your per-item profit margins, thereby increasing your total revenue.

Maximize Your ERP Savings With ASC

Realizing the full cost-saving benefits of ERP software requires that you do two things. 

First, it is vital that you choose the right ERP software. Acumatica ERP offers a usage-based billing model, meaning you can enroll as many users as you would like without incurring additional costs, and you’ll only pay for the modules, computing power, and data storage that you consume. More importantly, Acumatica is loaded with tools and features that are designed to help identify sources of waste, implement cost-saving measures, and strengthen revenue.

Secondly, once you have identified the ideal platform, you must proactively prevent implementation delays by working with a talented deployment partner like Advanced Solutions and Consulting. We provide the resources and knowledge necessary to accelerate your rollout, so contact us today to discuss your ERP software needs. 

Additional Resources

Simplifying IT Management: How Acumatica Cloud ERP Can Help

ROI Analysis for an ERP Replacement

Using Basic or Legacy Software? 3 Signs You Need an ERP Solution

Understanding ERP Software Pricing

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