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Get a comprehensive understanding on potential for ERP Software
Get a comprehensive understanding on how to leverage maximum return and potential for ERP Software
Summary: A recent report by Allied Market Research reveals that the ERP market size will increase from USD 43.72 billion in 2020 to USD 117.09 billion by 2030. That’s an impressive growth of a CAGR of 10% from 2021 to 2030. Nonetheless, multiple companies might wonder why the ERP market is growing by leaps and bounds. They need to understand that ERP software is essential in helping businesses increase efficiency, cut operational costs, build an outperforming team, and create robust and evergreen customer relationships. In short, ERP is important because it provides a competitive edge that helps transform a company into a market leader.
Here are a few points that describe how ERP systems help organizations across industries to achieve their business goals:
ERP software can manage multiple business functions efficiently, but what distinguishes it from other solutions? The importance of ERP can be measured by its distinctive appeal to provide the best services at relatively affordable prices. The following list provides 8 reasons why ERP is important for your organization and why you should consider implementing it.
One of the most significant benefits of ERP software is improved collaboration between different business departments. Usually, traditional companies have data silos, which are information repositories that can be accessed only by a particular department. The problem is that it restricts different teams from accessing information instantly. But an ERP system destroys data silos by bringing all information repositories to a single platform. The benefits include —
Business management solutions have reduced their prices lately, enabling multiple companies to implement them and take advantage. But, ERP software is still considered to be a big-ticket purchase. So, if you look at an ERP system from a cost perspective, it might not appear to be a cost-saving proposition. To understand the real power of ERP software, you need to come out of the initial sticker shock.
Here’s how you can save money by implementing enterprise resource planning software in your business:
One of the most crucial benefits of Enterprise Resource Planning software is that it can perform tedious tasks. For example:
Companies can save massive costs by assigning the functions mentioned above to ERP software because by doing that:
Governments across the globe and international institutions are tightening the rules and companies that don’t adhere to them are finding them on the receiving end. The world is awakening to new information security, environmental, and human resource regulations and customers show higher levels of trust and loyalty to companies that care more about the environment around them.
If your company is operating in an industry that requires you to comply with numerous compliances, then ERP is important for you. Modern ERP systems are built keeping in mind you need to comply with government norms at every stage. In addition, they have built-in tools that take care of multiple tax provisions and document business critical things like recipes for the F&B industry or chemical potency and usage for the chemical industry.
Moreover, ERP systems play a pivotal role in managing risk. They have an advanced financial management module that eliminates errors while generating accounting reports and maintaining the general ledger. Cutting-edge forecasting tools enable users to predict crucial events like labor, demand, and budget leading to better work scheduling, secure budgets, foolproof product development plans, and matching up with customer demands in the short and long term.
Irrespective of your product line and the segment you are offering your services to, forging one-to-one customer relationships is the need of the hour. Today, in the digital age, your customers know more about your company than you do. And if you fail to provide what they want, they won’t hesitate to switch to your competitor.
Moreover, do you know that 84% of customers trust the internet to search for what to wear, eat, and how to live their lives as much as they do their friends?
One of the best ways to enhance customer satisfaction is by providing client-focused services and products. This is where ERP is important for your business as it has an integrated Customer Relationships Management (CRM) module that serves the following functions:
Do you know: It’s 5 times more expensive to find new customers than to retain the existing ones.
Moreover, CRM software also records other critical data points like billing information, order history, and past purchasing habits allowing decision makers to identify customers’ needs and wants and estimate what customers might want in the future. When you get access to critical customer details you can improve your sales strategy and improve lead generation.
Decision makers require reliable data, comprehensive reports, and analytics to understand changing market conditions and customer preferences. ERP is important because it collects crucial information from multiple sources and enables the upper management to gain valuable insights from that data.
Here’s how ERP software helps:
Is your inventory growing rapidly? How are you identifying the exact level of inventory you need? How are you tracking the real-time location of your finished products? This is why ERP is important because it uses RFID tags, barcoding, and serial numbers to track inventory at each stage of the supply chain. With such advanced tools, you can:
Increased warehouse visibility enables companies to optimize their supply chain performance — pick, pack, and ship — and removes the guesswork. Users can also configure KPIs to check:
ERP is important because it provides real-time data to warehouse managers enabling them to make precise business decisions.
Shop floor management upgrades production quality and efficiency. Today, with digitalization taking over each business aspect, identifying improvement potential across manufacturing operations is essential. And this is why ERP is important because it optimizes the entire shop floor operations giving more time to managers to focus on critical management tasks.
Here are the benefits of implementing ERP software for shop floor management: