Many new businesses are looking for a low-cost tool, so it's not a big surprise that many of them have chosen to use Excel spreadsheets. Unfortunately, Excel's simplicity is what makes its limitations outweigh its benefits. On the other hand, an Enterprise resource planning system (ERP) allows you to align and customize management software with measurable growth for your business.
ERP is a type of multi-functional, multi-departmental management software solution that an enterprise or organization can use to collect, store, manage and analyze data. Data from our business operations, including product planning, cost, production or service provision, marketing and sales, delivery and payment. Especially suitable for startups and SMEs. The definition sounds very simple and precise. However, ERP is more than that. This article will help you understand and answer questions related to the benefits of an ERP system for your business.
Let's come back to basics first. Before we share the key benefits of ERP systems, we'd like to provide introductory information about ERP.
What is ERP?
When searching for ERP on Google, you might get shocked of seeing nearly 177 million results. If you have never heard about ERP, you might feel discouraged to get information from these results. ERP software stands for Enterprise Resource Planning, which is simply about doing resource planning for the business. ERP is merely an all - in - one technology model, which means all different functions to automate tasks and ultimate business processes across various departments are in one software package. This software integrates various applications into modules of a single package. It helps automate the A to Z resource-related operations of an enterprise. The system's functionality includes a lot of departments, such as Purchasing, Manufacturing, CRM & Sales, Purchasing, Customer web portal, Distribution, Dashboards, Finance, Time & Projects.
10 Benefits of ERP System for SMEs
The ten benefits of ERP System include the following:
1. Scalable Resource: Structured ERP allows new users and functionality to be added to develop an initially deployed solution over time. No matter how big or small your business, ERP will grow with it, attracting new users and new data whenever your business is ready to expand. No concerns about whether you need a brand-new system after years of using or new users need to be; when a company is prepared to scale up, ERP assists you in facilitating growth.
2. Cost Savings: For every business, you want to be smart with your finances and avoid making costly mistakes that could harm your business. With a source of accurate, real-time information, ERP reduces management and operational costs, allowing companies to spend money in other areas of need. It will enable manufacturers to manage operations proactively, prevent disruptions and delays, break down information, and help managers make faster decisions. ERP helps you become smarter at saving and spending in business.
3. Mobility: ERP software grant you access to a centralized database that allows you to work from home or at the office, or wherever you wish with various devices, including laptops, tablets or mobile phones.
4. Forecasting: ERP provides users, and most importantly, managers, the tools and resources needed to create more accurate forecasts of properly planning what they need for inventory and sales, finance and customer service; because the more precise the information, the better owners can make realistic estimates and forecasts much more efficiently.
5. Efficiency: Another benefit goal of implementing ERP is to increase efficiency. ERP software eliminates repetitive processes and minimizes the need to enter information manually. It improves business operations every day by streamlining business processes and making it easier and more efficient for companies to collect data for all parts of the company.
6. Productivity: An ERP platform eliminates repetitive processes and dramatically reduces the need to enter information, which not only improves user productivity manually, but it eliminates the possibility of inaccurate data, which could lead to making costly business mistakes
7. Flexibility: One of the most significant advantages of ERP in the present day is its modular makeup. Odoo ERP vendors offer several applications that can be implemented together according to business needs. Barring a few exceptions, each application is designed to be able to stand alone or integrate with the larger business suite. This way, your company can pick and choose which necessary applications and eliminate what you don't need.
8. Integrated Information: ERP's enterprise resource planning software acts as a centre for all the critical information your business and the parts within it need to maintain day-to-day business practices and practices. No more problems with data spread across separate databases; all data will be stored in a single location. This means you can integrate platforms like CRM software with ERP software, keeping data consistent, accurate, unique and updated in real-time across the entire system.
9. Streamlined Processes: As manufacturers evolve, their operations become more complex, increasing the risk of costly mistakes. Manufacturing software automates business operations between departments, providing accurate, real-time information for everyone using the solution while eliminating manual operations that often pose a risk of error. ERP increases efficiency and productivity by helping users navigate complex processes, preventing re-entry of data, and improving functions such as manufacturing, order fulfilment, and delivery. The process is streamlined and effective throughout.
10. Collaboration: Collaboration is one of the main benefits of using ERP software. No one wants to run a bad business with each department operating separately from the other. Department cooperation is an essential and often necessary part of the business, especially since business projects often involve more than one department. The data entered into the ERP system is centralized and consistent, updated in real-time, so whether you are using ERP in the morning, afternoon or remotely, the opportunity to communicate, information sharing and data usage are always available and accurate; these help departments work together effectively.
Whether you are just starting a business or expanding your business model, adopting the right ERP system is essential for the organization, but the theory will not work without knowing how to implement it. New models will be troubled with difficulties, but nothing is unmanageable. If you have a thorough preparation of the management system, you will have a chance to gain a position in the market.
Reference:
1. https://www.youtube.com/watch?v=3gYOJV6bDbQ
2. https://www.youtube.com/watch?v=Zj8_8Uh3EAo
3. https://www.odoo.com/
4. https://www.technaureus.com/retail-industry-erp-for-retail-industry-odoo-erp-for-retail-industry/
About us:
Will Nguyen, Business Analyst
Will is an IT business analyst at High Tech Masterminds. He also supports digital marketing and market research in Australia. In addition, Will is a financial consultant with 3 years of experience in the field of consulting financial plans for customers and product promotion.
High Tech Masterminds Pty Ltd is an Official Odoo partner in Australia. We believe that every manufacturing business can benefit from modern information systems and digital technology in its digital transformation journey. You can book a free consultation session today with one of our experienced consultants (No salesperson!) to talk about how digital technology can help you scale up.
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Want to scale up your business? top 10 benefits of an ERP system for SMEs