ERP has come a long way since it was first developed. Today, its integration with cloud computation has made a remarkable change to business function, making it easy to use. Earlier ERP systems were intended only for large-scale manufacturing businesses, primarily for maintaining their processes. But today, ERP systems have applications in various industries.
So much so that the global ERP software market is projected to reach $78.40 billion by 2026. While the number is impressive, organizations that have never used it may find it difficult to understand how ERP can benefit their business. But as the market becomes more and more competitive and organizations try to get back on their feet after the Covid-19 crisis, it’s important to explore the benefits of ERP to gain a competitive edge.
Top Benefits of ERP Software
Cloud ERP Makes Remote Working Easier
In the post-pandemic world, many organizations have asked their employees to work from home because it keeps everyone safe while allowing them to cut costs. With the help of cloud ERP, businesses are working in a digitalized, seamless manner. They can fetch and upload data on a centralized system where it can be accessed by authorized people. Companies can centralize their operations and integrate several modules like e-commerce, sales, marketing, website, etc., to ensure their organization’s smooth working.
ERP Software Enables Seamless Inventory Management
Due to Covid-19 related safety protocols, warehouses have to deal with several challenges, such as – unfulfilled orders, short-handed staffing, inconstant goods inflow, and disturbed supply chain issues. ERP Software systems are helping them to operate seamlessly despite markedly reduced operational aids.
By utilizing RFID tags, barcodes, and serial numbers, businesses can keep tabs on inventory at every stage during the supply chain. Businesses can keep track of inventory levels at different warehouses and get information, such as – which items are in transportation and which items are on the shelves. Using this information, they can optimize the pick, pack, and ship process and make more accurate business decisions.
ERP Software helps Manufacturing Units keep Processes Under Control
Manufacturing businesses faced several disruptions due to disruption in the supply of raw materials and employee shortage. ERP Software systems help manufacturing businesses minimize the impact of the pandemic and generate revenue to sustain in the market by managing their inventory and manufacturing. It also provides insight into all manufacturing operations, including the shop floor, allowing businesses to optimize equipment, production schedules, and labor to maximize capacity.
Additionally, ERP helps manage Bill of Materials (BOM), fixed assets, and allows users to schedule equipment maintenance to reduce unexpected downtime, improving business profitability and supply chain relationships.
ERP allows Risk Mitigation through Analytics
After the pandemic, when cost-cutting is one of the main priorities of businesses, even a small disruption can prove to be costly. With the help of real-time data and advanced analytics, ERP software enables businesses to gain visibility into the critical business components and anticipate disruption. This allows them to act quickly and proactively adjust strategies for appropriately mitigating the risks.
ERP Software maintains Information Safety
Ensuring Enterprise Security is a big concern, especially after the pandemic, where a whopping 400% increase has been observed in the number of cybercrime incidents. As ERP software involves a strong authentication protocol for accessing and updating business data, every information stored and transferred through the system is securely maintained from external attacks.
ERP Eliminates chances of Human-error
When traditional methods are used for tasks like monitoring inventory levels, generating reports, processing orders, etc., it not only takes more time to complete but also increases the chances of human error, which can be a huge setback for businesses in these challenging times. ERP helps businesses automate the most tedious tasks and allows the system to perform advanced calculations within minutes, thus improving organizational efficiency and productivity.
ERP Software helps Businesses improve Client Satisfaction
Keeping clients happy in these stressful times is one of the main challenges of business organizations. But, it is a difficult task as the businesses struggle to manage their sales and inventory expeditiously. It becomes even more difficult when customer and inventory information is housed on multiple platforms. ERP helps maintain up-to-date information and facilitates client representatives to access the right, updated information and efficiently handle the customer information, thus improving client satisfaction.
ERPs can be integrated with a customer relationship management (CRM) tool, which can help businesses gain access to data across business functions, using which they can provide client-centered goods and services.
Covid-19 caused disruptions in several industries, but there is an important lesson that everyone can learn from it – to look at the opportunities for sustainability and business continuity. ERP Software systems help organizations stamp out the chaos and turn disruption from an existential threat into a competitive weapon.