WHY WOULD YOU WANT TO BUY AN ERP SYSTEM?
Most potential benefits fit into three categories: direct and indirect cost savings, opportunities to increase revenue and greater business effectiveness.
Top Reasons to Buy ERP
Companies often choose ERP because:
- Their existing systems don’t allow them to work out processes in a simple way, or at all. Consider an accounting software, for example, that can’t handle multi-entity accounting or connect to the business’s inventory tool.
- Company growth makes it necessary to get a system that requires less manual labor, so team members can spend less time, say, responding to simple customer queries one-by-one and more time responding to only the most complex complaints.
3 Top Benefits of ERP Systems
1. Direct And Indirect Cost Savings
ERP systems drive cost savings in multiple ways. For example, they can help simplify and automate complex business processes, saving hours spent on manual work. They can also eliminate processes that don’t add value and integrate functions across the business, making employees better informed and more able to adapt.
By supporting standardized, repeatable processes, they can help improve quality and reduce waste. By replacing many software systems with one, they reduce the number of technology vendor relationships you need to manage, which typically saves on licensing costs as well as integration requirements, application administration and reduces the needs to train staff on the various processes.
Selecting a cloud-based software-as-a-service (SaaS) ERP system, where the service provider manages infrastructure, performance, uptime and upgrades, further reduces IT responsibilities.
2.Opportunities To Increase Revenue
ERP systems can drive sales by helping to ensure the right level of inventory to meet customer demand and building repeat business through consistently better customer service. ERP allows your team to give faster answers to customer queries, accomplish higher rates of order accuracy and on-time delivery, and incorporate more self-service options so customers can buy from you whenever they’re ready.
Additionally, with a central database for all financial information, an ERP system can help a business identify its most profitable products, improve cash flow and forecast demand.
3. Greater Business Effectiveness
Today’s ERP systems improve business effectiveness by promoting easier and faster collaboration, introducing best practices and automation into processes and providing real-time data about company performance across teams. They help managers identify emerging trends and opportunities and support strategic and tactical decision-making. With ERP in place, teams share the same data, rather than manually integrating data from multiple sources of varying ages and levels of accuracy. Once implemented, ERP systems should also offer a platform for growth and change, helping you introduce new offerings or enter new markets more quickly and easily.
Source: Oracle NetSuite