This post is part of a series. We recommend checking out the 3 Types of ERP Software before reading this blog.
In our previous blogs, we defined ERP, discussed its evolution, and explained its three classifications. To sum it all up, ERP software systems are used by businesses of all sizes to anchor their disparate processes to a central hub or single source of truth. Take a look at the top 7 reasons why businesses should invest in ERP software:
1. Offers Real-time insights
ERP implementation gives stakeholders 24/7 access to up-to-date business data. Everyone stays in-the-know and has the right information required to produce accurate decisions. For example, the staff can monitor daily inventory and have visibility into the status of future deliveries in transit. This information can be used to allocate your current resources more efficiently.
2. Enforces firm-wide collaboration
ERP systems lift the curtains between different business sections, so everyone has end-to-end visibility to the company’s bigger picture. Data from all departments get centralized into one system. It also eliminates geographical barriers among businesses that operate in multiple locations. It improves internal and external communication, empowering the employees with the tools and data needed to be more proactive and engaged.
Legacy accounting software prevents the integration of financial and operational data. ERP systems produce an accurate financial picture by integrating and synchronizing information from Accounting, HR, Sales, Operations and project management. The finance department can close the books earlier, and key decision-makers can access concrete, up-to-date numbers when assessing current performance and making future decisions.
4. Reduces IT and training costs
ERP software eliminates the need to purchase multiple software for different business operations. As a result, companies no longer have to worry about funding dedicated IT support for each application. Using a single system for all business operations removes the need to spend time and money training the end-users (your employees) on how to operate and integrate multiple applications.
5. Improves customer service
ERP systems enable employees to do their jobs more efficiently, ultimately benefiting customers as well as the organization itself. Since the consumer information stays centralized and accessible to relevant departments, teams do not have to waste hours updating spreadsheets. Instead, they can allocate the working hours on new customer acquisition and retention. ERP also offers marketing automation to provide relevant and timely customer interaction throughout the buying journey. Some ERP systems also handle e-commerce, integrating web purchase, order history, and client interaction across all relevant modules with no need for manual re-keying or duplication.
6. Eliminates human errors
The cost of human errors among employees has been estimated as high as $37 billion in lost productivity, tremendous reputational damage, and low customer satisfaction. ERP allows you to automate repetitive manual tasks such as data entry, so your accountants don’t have to spend hours manually assimilating or duplicating invoice contents and inputting information across multiple spreadsheets. Instead, they can focus their skill and energy on other high-level tasks, like assessing how to reduce a project cost by 20%.
7. Maximizes Scalability
Entering new market segments, acquiring new companies, rolling out new products or processes comes with growing pains that can kill momentum. Cloud ERP elegantly acclimates to the company’s growing needs by allowing you to add new functionalities with minimal downtime. It may also prevent the need to purchase extra hardware, like more servers. ERP software essentially keeps your business agile, enabling it to stay proactive instead of reactive when tackling new or unforeseen situations.
Enterprise Resource Planning (ERP) systems are indispensable to making your business grow even through disruptions. They single-handedly elevate the business’s entire ecosystem efficiency by breaking silos, increasing transparency, fostering collaboration, and providing everyone the visibility necessary to make smarter decisions. In a nutshell, they save you both time and money and make the workforce more productive.
Would you like to know if an ERP system is right for you and unlock the specific values it can bring to your business? Contact Us today to learn more. Let us help you get started on your ERP journey.
About 9Gauge, an E78 Partners Company
9Gauge will work with you to make sure you leverage your ERP system to its fullest potential. We conceive and build a solution for your business from the ground-up or optimize your existing system so your ROI is supercharged. Let us help you navigate these changes to ensure a seamless transition into growing your business and accelerating your vision. We look forward to using our technology and management expertise to help your business grow, pivot, and transition to new heights of success.
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About the Author
Ken Schatz, Director
As the Practice Director for 9Gauge Partners’ Technology Enabled Services-NetSuite Practice, Ken’s ultimate goal is ensuring the successful implementation of NetSuite to our clients. In this role, he is involved in everything from people management to delivery and sales enablement and is tasked with growing and maturing our industry-leading NetSuite team.