As the global economy starts to rise after the pandemic, organizations are continually seeking to accelerate digital transformation. Enterprise Resource Planning (ERP) applications are central to organizations in many ways. The global ERP software market is potentially worth $41.69 billion in 2021. Globalization has made markets smaller while companies seek tools to gain a competitive edge. Companies are capitalizing on gains from newer cloud-based ERP technologies compared to older ERP systems which lack complete automation and integration.
What benefits does an ERP provide?
Enterprise Resource Planning (ERP) software is popular among organizations that manage various business functions. ERP software gets used in many industries such as supply chain, healthcare, construction, hospitality industry and many more.
ERP software enables centralized information input and sharing across various departments. Key Performance Indicators (KPIs) are visible in real-time across multiple analytical dashboards in modern ERPs. ERP joins cross-department functions and data for a unified view on financial management, inventory, supply chain capabilities, customer management, human resources, and business intelligence into a single system.
Vault offers comprehensive organization functions like project management, operations, sales, HR, and Finance along with customization options.
The growing importance of ERP
ERP software manages many business functions in an organization. Some of the key reasons to switch to a modern ERP include:
Save money
Unlike traditional ERP software, modern ERP software has flexible pricing and modular usage options. It may seem expensive due to the huge initial costs, but it provides an excellent Return on Investment (ROI).
An ERP is a single system that provides cross-department functions. With a single system, you can avoid spending money on multiple systems across various departments for the core business. For example, your business operations, project management and finance functions will all be available in a single ERP system.
Unified systems help in better time utilization and information availability as it’s available in one location. You can save time and reduce the training efforts for new and existing joiners with a single system. Vault ERP enables automation of high-volume repetitive workflows, and robust processes across organizations.
Better collaboration
With ERP being a unified system of modules or features used across multiple departments, it helps in seamless collaboration. Cloud-based ERP systems are more flexible as they provide cross-device and application integrations. A centralized database is a single source of data and eliminates data errors.
Organization department team members can have role-based access across various features and work in a collaborative model. There is no longer a need to merge information across systems. Data on the ERP is accurate, complete, secure, and available at all times. Vault enables remote and home-based teams to work seamlessly using a robust cloud-based ERP.
Improved reports and analytics
ERPs have a central database which is a significant advantage for getting unified information views. It becomes very convenient for information access as a business intelligence tool. ERP's that have robust functionalities and reporting capabilities empower teams and staff to create their reports and customize their analytical dashboards. Updated information enables employees to monitor the KPIs or information that they always require. A KPIs view helps make faster and more accurate business decisions. There’s no dependency on IT staff to generate reports. There are different information access levels to ensure staff with correct privileges can access specific data.
Read on: Have you properly defined your KPIs to your best advantage?
Improve productivity
Traditional ERPs are a mix and match of automation, integration with disparate systems, and manual work. ERPs may often get information from different systems only at the end of the day during batch processing activities. This is a time-consuming process that takes a lot of effort from employees.
Typical tasks like invoice processing, generating reports, timesheet tracking, and processing work orders are classic examples of tedious, time-consuming tasks.
Working with modern ERP's, especially cloud-based Software-As-A-Service (SaaS) applications, gets rid of tedious tasks. Redundant tasks like data entry get minimized due to data integration and scanning apps. Team members can do more value-added tasks thereby improving the productivity of the organization. Using the latest ERPs increases the organization’s efficiency, productivity, and profitability.
Vault offers greater control and real-time visibility across your operations empowering you to make faster and correct data-driven decisions.
Increased customer satisfaction
As we’re in the digital age, customers are used to having goods and services on demand. For example, they can order goods online and get them the same day after paying by mobile or transferring money instantly. Digital technologies are enabling faster business and your customers have the same expectations for your business too. Companies today have become more customer-centric with a greater focus on making the customer happy.
ERPs enable client-centered goods and services. Many ERPs have a customer relationship management (CRM) module or have integration capabilities with an existing CRM. A CRM tool can access data in the ERP across all business functions in your organization. Using a CRM integrated with an ERP helps an organization view the customer vs. billing history and other varied combinations for a holistic view. Marketing teams can understand better perspectives of customers and target them accordingly for more sales.
Modern ERPs speed up business workflows and processes across departments helping companies process work faster, which leads to quicker deliverables for the end customers. Latest ERPs provide a digital experience which translates to a better customer experience.
Better risk management and compliance
Globalization has led to organizations doing business in various countries. That means different regulations are applicable based on the country. These may be financial, information security, environmental concerns, or human resource regulations.
ERPs have regional settings and configurable compliance settings that help companies keep track and ensure they’re complying with various laws. Generating compliance reports for regulatory purposes also becomes more manageable.
Most ERPs also have tools to manage risks. ERP in a centralized system enhances financial accuracy and reliability with minimal probability of errors. Forecasting tools help predict events for better management and improve budgeting activities. Having a wealth of centralized organization information in an ERP helps in alerts, risk management, creating better plans, forecasts, and schedules.
Better planning and resource management
Tracking inventory levels is a challenge for many organizations. ERPs are integrated with barcoding, RFID tags, and serial numbers to track goods in the warehouse and supply chain. ERP can show inventory stock levels across global warehouses and factories. The increased visibility helps purchase managers make the right decisions for managing stocks and can improve efficiency. Real-time inventory data dashboards help management and staff make the right decisions on time.
Learn more about the advantages of using software for resource management here.
Using a modern ERP provides immense benefits that surpass the initial costs, time, and effort to implement it across the organization.
You need to do careful research and choose a modern cloud-based ERP that empowers your digital transformation. Keeping up to date with ERP that’s capable of integrating with future technology trends is crucial to sustaining competition and volatile market situations.
Implementing an ERP into your business processes is a golden opportunity to make your business operations smarter, leaner, and more effective. Put the correct data in front of the right audience.
With Vault, our professional services team at Rare Crew have immense experience understanding business challenges and delivering successful solutions.
Be ready for the future. Discover Vault, a Cloud-based ERP, for positive business outcomes. Schedule a Free Demo.
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