Deciding whether to invest in an Enterprise Resource Planning (ERP) system is often a difficult decision, especially if you have never used one before. Implementing an ERP system can help you monitor your business to help it grow. Find out ABC Business Solution’s top 11 reasons you should invest in an ERP system.
The initial cost of setting up an ERP system can be a shock. However, this should be considered as an investment that saves money in the long run. ERP systems streamline your business processes without compromising their quality. This also reduces manual processes and potentially costly errors caused by accessing data across multiple systems. Since, only one system is used, the cost of training staff is also reduced.
Increase Your Profits
Strengthen the performance of your business by synchronising the input of your business data into one system. ERP systems allow you to efficiently plan your supply and distribution activities as you can action information as real-time reports are generated. The data your ERP system will provide you will enable you to engage more effectively with your customers wants and needs.
Your ERP system is able to identify weaknesses and risks in your business based on data to allow you to make appropriate changes and minimise loss.
Eliminate repetitive and manual processes from your business by automating it with an ERP system; this also reduces the chance of costly mistakes. Your staff are able to access all the tools they require for their jobs in one central location. ERP systems can generate and automate reports easier and faster.
This allows critical decisions to be prioritised and executed efficiently while allowing business processes and transactions, such as deciding what products to order. The time your ERP system has saved will allow you to spend time implementing business strategies, improving processes or adjusting your inventory based on customer trends.
Increase Productivity with Better Analytics
ERP systems allow you enhance business processes and make better decisions. ERP systems can perform advanced calculations, timesheet and inventory tracking quickly. This frees staff members to do other more useful work and improve Return On Investment (ROI) in real-time.
ERP systems manage your business functions in a centralised location. This allows data to be stored in one place and increases visibility of your day-to-day business processes, including: customer management, financial management, accounting, project management, compliance and supply chain operations. You can also automate many tasks and implement approved processes to delegate authority.
Satisfied customers are key to successful businesses. ERP systems allow you to improve customer satisfaction with an integrated Customer Relationship Management (CRM). You can increase your profitability by using ERP systems to holistically manage your clients. This enables you to gain a better understanding on how to meet your customers’ needs.
It is difficult to keep track of all the regulations imposed on your business, practically if you are operating interstate or internationally. It is important to ensure you meet all these requirements by considering the regulations surrounding: the environment; intellectual property and data security; your business; importing and exporting; and finance. ERP systems give you the tools to maintain compliance and reduce errors through automated workflow, simplified management, audit tracking and financial documentation.
ERP systems allow all data to be compiled, stored, shared and accessed through one integrated system. This provides opportunity to identify trends and risks across your business.
ERP systems provide you with tools to manage your risk, auditing tools to monitor resource use, trending cases or manage finances. Forecasting can also predict future trends in your business to help you manage potential risk.
Improved Inventory Monitoring
Tracking and monitoring expanding inventory is a major challenge for growing companies, especially if you have multiple products or warehouses. It is critical to increase the visibility of your warehouse to optimise the ‘pick, pack, ship’ process to maximise your business profits. The reports can be used to track what products are the most popular.
Pricing matrix allows for multiple pricing levels to suit your market positioning and improve your competitive advantage.
Improved Production Planning
ERP systems allow you to gain real-time data on your inventory to make good business decisions. For example, they can allow you to optimise production schedules, equipment or labour to maximise your capacity. Your ERP system is also able to forecast your future sales, which will allow you to predict the amount of production you will need and when orders for raw materials should be made.
Increase Competitive Advantage
In today’s competitive environment, it is critical that you stay in front of your competition. ERP systems can streamline your business processes to simplify visibility and accessibility of your data to reduce the risk of costly mistakes being made. ERP systems are able to increase your organisational performance and use trends to forecast data to simplify your decision making process. This gives your business a competitive edge that allows you to outcompete your competition.
ABC Business Solutions can help you decide what system is best suited to your business. We setup and support many systems.
One of our preferred systems is Ostendo, which helps you to grow by adding stock management, job costing, assembly, warehousing logistics and scheduling without leaving the familiarity of your accounting system (MYOB Account Right, Xero, Reckon, Moneyworks and more).
Another favourite is MYOB Advanced, which is a world-class, cloud based contemporary ERP system (Acumatica) customised to Australian conditions by MYOB and is suitable to bigger business.
MYOB Exo is also an Enterprise system for bigger business for those businesses wanting the functionality of a tried and proven ERP system trusted by thousands Australian Businesses. Contact us today for a consultation or to find out more.
We are also Xero partners, where an add-on to the general Xero system may give you all the benefits that you need to reach the next level.
Please contact us if your business is growing and you want to gain any of the benefits above (and more).