6 reasons to implement an ERP software
News of 18.07.2017
ERP (Enterprise Resource Planning) software can transform the organizational structure of any type of company, offering it the ability to become highly competitive. It not only allows to reach the more advanced competitors, recovering a delay in production management, but also ensures continuous implementations over time.
Taking a step back, let's first consider the absolutely verifiable advantages of adopting an ERP system:
- Increased Productivity: If a company's employees manually copy data to different systems using spreadsheets, the real risk is to lose too many hours of work and slow down production, as well as generate errors that involve new costs to sustain. ERP provides end-to-end integration with external systems, creating shipping labels, orders synchronization, automatic tax information delivery, and so on.
- Business and Workforce Security: ERP facilitates the management of common procedures such as placing orders, number of stocks, shipping and receiving…but above all it defines the roles in a precise way and allows employees to access only the activities they are competing with.
- Immediate Accounting: A good ERP software can automatically account for common transactions as soon as they occur, including: sales, invoices, cost of goods sold, warehouse movement, sales taxes, production costs, etc.. By doing so you have the assurance that you will be able to retrieve accurate accounting data and cost details.
- Constant control: Single, ready-to-use software often focuses only on specific work activities, but maintaining company data on different systems makes it difficult to get an overview of the entire production cycle. ERP systems connect the data to each other to provide a complete control.
- Enhanced Implementation: ERP software can provide the flexibility you need to expand operations, add new locations online, or even modify your business without having to face the cost of new systems.
Regarding this last question, it's important to know that ERP systems include the ability to implement individual needs, can be used gradually or modified according to the type of business. They are standard systems including a basic module and many modules that can be connected to it, which makes the implementation simpler from an operational point of view. In addition, ERP suggests the so-called "Best Practices", ie optimum working methods resulting from the experience that the solution provider has matured over time, thanks to the work done with leading companies in various market segments.
So why do companies implement ERP systems?
- Improving business performance: It is a value-creating tool that provides real benefits to the business organization
- Facilitating Employee Work: By simplifying procedures, it increases employee productivity
- Compliance with regulations
- It sets the basis for exponential growth: it is always more beneficial to implement a new ERP system when the company is small or medium sized, which guarantees the habit of using optimal tools for productivity and building a solid structure by which to grow and expand.
- Starting international business operations thanks to an interface recognized and usable by foreign teams or domestic branches as well
- Stakeholder Requirements: If a company receives funding or is acquired by another company, the stakeholders involved may require specific accounting tools offered by ERP to standardize operations and ensure their transparency
When a company understands the utility and the potential gains arising from the use of an ERP system, it has to go through 3 major steps.
First, process analysis. It is necessary to understand the critical points and the improvement margins of each process in order to define the goals, timelines and the resulting economic benefits. This phase can be addressed directly by the software solution provider or internally managed by the company and then elaborated with the provider.
Then Software selection. In this case the supplier will illustrate all possible features related to the customer's business context.
Finally, development and activation of the service. The chosen supplier must have a consolidated approach based on the respect of deadlines in the development of the customization and on the constant customer support during the management. It must offer courses (in preparation for the software's use) and remote assistance.