ERP (Enterprise Resource Planning) is a broad term used to describe a customizable software application suite which enables businesses to integrate and manage their most important processes. There are many benefits of an ERP system; it is a valuable tool which centralizes a company’s database of information, automates routine tasks and simplifies business procedures. The goal of a successful ERP implementation is to optimize operations and free up employee time so they can devote their resources to other less routine, more instinctual tasks.

ERP is an end-to-end solution which touches on many/all facets of the business, including but not limited to:

• Finance/ Accounts
• Supply Chain
• CRM (Customer Relationship Management)
• Procurement
• Manufacturing
• Human resources
• Service Management
• Analytics

Companies from across the globe, ranging from SMBs to leviathan multi-national corporations, have implemented ERP systems into their business processes and are reaping the rewards. Here are a few of the benefits of an ERP system:

Reduced Costs

When correctly implemented, an ERP system can have a more positive impact on your company’s operational costs than any other single IT investment. These savings are delivered through two primary vectors:

Time Efficiency: It is common for organisations to manage their resources through multiple different applications, manually inputting data which often leads to a duplication of effort and wasted resources. One of the benefits of an ERP system is that it allows the information to be input once and shared across departments in real time. Repetitive and time-consuming tasks, such as report drafting, invoice allocation, employee payroll, etc. can all be streamlined and automated. This allows your workforce to focus their energy on the high-priority tasks.

Cost realignment: Companies which do not utilize a centralized ERP system will often have to rely on a suite of disparate systems; a CRM system that the sales team operates in, a financial reporting system used by the accounts department etc. There are a multitude of problems that can arise from such a system, all of which can lead to increased costs for an organisation. The company may have to pay ongoing licensing costs for multiple software packages instead of a single ERP package which can be scaled and modulated as needed. Staff training and onboarding becomes a far more laborious task as staff may need to be trained on an entirely new and unfamiliar system when moving from department to department.

Data Visibility & Reliability

ERP software allows for total access to every important process in your business. Data from every department can be made easily accessible to senior management when required. For other users, permissions, roles and controls can be easily implemented to ensure that users only have access to the data that they need to complete their day-to-day tasks.

The availability of all your company’s data in a centralized location allows for increased collaboration and a more streamlined approach to project management. This allows for inter-departmental tasks and processes to be tracked and monitored with maximal efficiency. This vastly accelerates the capacity to make quick decisions, all in the confidence that the data underpinning your decision is complete and accurate.

Modular Scalability

When your business is experiencing success and rapid growth, the last thing you need is for this expansion to be hampered by a bottleneck in your business processes. As companies expand, be it through geographic growth, increased volume of product output, increased quantity of product lines etc. there will inevitably be a growth in complexity. Complexity arises from the organisational systems and processes failing to scale properly with the actual operational demand. This leads to lost productivity, delays, opportunity cost and reputational damage.

When properly implemented, an ERP system will seamlessly scale to your requirements, allowing your organisation to thrive in the face of change. All ERP systems, however, are not created equally. Older, archaic, code-heavy solutions can be extremely difficult and complex to adjust, making them ill-suited to scale sufficiently to suit rapid changes in requirement. With this class of systems, often there will be so much complexity that the in-house IT department may be reticent to apply new updates (if any exist!) for fear of “breaking” the system. Modern ERP solutions, such as Microsoft Dynamics 365 Business Central, empowers companies to pick and choose functional modules to rapidly adapt the software to evolving needs.

If you would like to learn more about how Microsoft Dynamics 365 Business Central can enhance your organisation, please leave your details below for a free no-obligations call back from one of our experts.

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