Implementing an ERP in a company is an expensive process, but above all it is complex. It is normal that when deciding to implement an ERP in the company all kinds of doubts arise about its viability or if it is really going to help me improve productivity and take more exhaustive control over all the processes that help me grow.
It is not for less, the implementation of a business management system usually takes between 3 and 12 months to have it fully operational. If you want to continue learning about process automation to learn how an ERP system can help you grow your business, then try Prodio which increases productivity and monitor working time.
Both due to a large number of resources needed and the time it consumes, the doubts that the start of a process of this magnitude is more than justified. Why should I implement an ERP in my company? We tell you in these 10 benefits of installing a business ERP.
1. You Make Decisions With Real And Updated Information
An ERP is nothing more than software that brings together some of the processes of your company and from which you can manage accounting, production, inventory, logistics and shipping. These programs allow the creation of a shared database with which to extract information that those responsible can use to improve the decision-making process.
By having this updated information, estimates and decisions about the business can be made in a much more adjusted way. It is also possible to foresee future scenarios and adapt production rates, or staff, to satisfy demand, taking advantage of historical information.
2. You Avoid Duplicating Processes Or Tasks
If your company does not yet have an ERP, it is common to see how the departments act with a certain independence, sometimes creating duplicate reports. With a business resource planning system, the uniqueness of the information is obtained since the interdepartmental information is unified and accessible to all those involved in the same place.
The system is able to know what information is relevant for each department and, for example, show the pending orders when creating an invoice, in order to have an overview of the client when sending the invoice by email.
3. You Get A Task History
In addition to being able to make decisions in a more realistic way, with a system of this type you can have a history of the tasks that each person has carried out and known the status of them at all times. The software records all changes in the status of a task, also allowing the inclusion of explanatory notes or comments.
The same occurs in the case of the manufacturing department. You can have a real-time history of what happens from when raw material is received by the warehouse until it is delivered processed to the customer.
4. ERP Adapts To Your Company
As we said at the beginning of the article, the implantation of an ERP system usually lasts about 12 months. It is a complex process in which the entire company must be analyzed and the specific needs of each department must be known in order to create and adapt a system that is usable in all areas of the business. When installing a system of this calibre, the figure of a consultant is crucial. He is the person who will be in charge of detecting all the needs to be able to design an ERP that adapts to your company and the needs of each of the departments of the same.
A business management system is made up of modules that you can implement and uninstall according to your needs. If in the future your company evolves, you can adapt your ERP including new modules or modify or eliminate existing ones. An ERP solution must adapt to your company, not the other way around.
5. Improve Internal Communication
By having all the information unified under the same system, interdepartmental communication is improved thanks to the fact that the information is accessible and is updated immediately for all those involved. In the short-medium term, meetings become much more productive and less time is used to know the current status of each of the tasks, becoming meetings in which problems are solved or strategies are designed.
6. Task Automation
As we already mentioned in the blog, task automation allows you to manage interdepartmental tasks much faster. With an ERP solution, workflows can be created to streamline repetitive tasks or, in the case that includes different people involved, a flow is created that goes through and notifies the different stakeholders that they can already work on that task to speed up the process. and that the task is not forgotten.
7. Improve The Competitiveness Of My Company
With an ERP you have all the information in one place, as we have already seen it also allows you to avoid duplicating processes and even be able to automate tasks. If we add all these factors, it can be translated that with the integration of an ERP solution in the company you can improve competitiveness. In this way, with cost reduction we can:
- Increase the profit margin by dropping the unit cost of the product.
- Reduce the price of each product.
- Improve the preparation and shipment time of a batch.
- Be more flexible in the face of unforeseen events.
- Have a better opinion of our company by customers.
8. Avoid Data Loss
The information in the databases of an ERP has limited access by user permissions. Although all members of the organization work on the same database, the system guarantees the integrity of the information due to the fact that the employee only has access to the data in which they have an authorization , thus avoiding the loss or modification of data by third parties.
In addition, these databases have automatic backup systems to minimize data loss in the event of incidents. In the case of ERP solutions in the cloud, these backups are usually even more secure when replicated in different places.
9. Standardize The Organization
By having the entire workforce from different departments working on the same program, this situation forces them to be more orderly with the information and helps the different departments to know how others work. In the past, notes were often written on invoices in pencil, or memory was trusted. Now all this information is usually and must be, added in the ERP so that it is shared by all members of the organization.
As a consequence of this way of working with centralized information, “good practices” are created within the company staff so that the information flows and is understandable by all the departments involved.
10. It Helps You Grow In An Orderly Way
It is an objective of any company to grow in an orderly way in the long term. An ERP solution allows you to have the tools and have the information to analyze it and grow your organization so that you do not waste resources taking advantage of synergies.
With the control panels, you can make a real image of the situation of your company and easily determine where the weak point of the organization is at the moment. Thus we can know which areas we must reinforce to continue increasing the volume of business and grow in an orderly and efficient manner.
If you want to continue learning about process automation to learn how an ERP system can help you grow your business.