ERP has become one of the most sought software for companies across the world. A decade back, Enterprise Resource Planning software was only affordable to big businesses due to high cost involved in purchase and implementation of ERP software solutions. Today things have changed; you can see SME’s equally eager to reap benefits offered by ERP software solutions. Let’s take a look at detailed benefits offered by ERP software and the reasons for their popularity in business arena.
Prominent benefits of Enterprise Resource Planning system implementation:
The two biggest benefits of Enterprise Resource planning implementation is increased productivity and improved efficiency of customer service. The main objective of Enterprise Resource planning is to facilitate flow of information between different departments, reduce data redundancy and ensure availability of consistent and reliable business data for informed decisions.
Better collaboration:
The ERP software not only connects different departments within an organization but also allows businesses to connect to their business partners, suppliers and clients which allows for higher degree of collaboration. Several leading companies have effectively used ERP software to make their supply chains more efficient. ERP implementation can completely eliminate or reduce manual tasks in supply chain such as notification, authorization and follow-up and give the staff a detailed status of in-process task thus allowing them to execute tasks effectively.
Managing costs:
ERP software maintains information about different business processes in various departments which includes Manufacturing, Supply Chain Management, Financials, Customer Relationship Management and Human Resources. The data from various departments is stored in a common database and the system also prevents data duplication. The data can be utilized by cost reduction experts to find opportunities of cost reduction. Besides, ERP implementation also eliminates irregular buying and overspending in purchases.
Better visibility of inventory:
Maintaining adequate levels of inventory is essential for every business. However, it is necessary that your warehouse does not become home for goods as storing of goods also incurs costs. The warehouse or store should function only as a link between your supplier and customer. Enterprise Resource Planning software tracks inventory levels on daily basis and also keeps track of goods in transit and future consignments that will arrive in warehouse.
There are several other benefits of implementing ERP software solutions. There are two main types of ERP software- generic also known as traditional ERP solutions and customized ERP system. The benefits offered by customized ERP are always greater than generic ERP system. A traditional ERP is generally designed by an ERP software company after studying your business processes. Customized ERP software solutions are easy to implement and have a short learning curve. There are several examples where businesses have failed after implementing generic ERP software but have benefited from use of customized ERP software solutions.
Rajesh Shetty is a Director of Sales Department in BigsunWorld Technologies Pvt. Ltd. BigSunWorld Technologies PVT. LTD. is an ERP Software Company in Mumbai which provides ERP Software Solutions to various industries like healthcare, pharma, education, chemical, SME, TV, fashion etc.
