Improving Profitability with an ERP solution
Enterprise Resource Planning (ERP) is a business management solution that assists businesses to store and manage transaction and information across the company. By doing so, businesses can access and analyse data promptly to enable better decision making.
ERP Solution: Your Missing Link To Improve Profitability
ERP solutions can be the missing link you need to manage your business better and to increase profitability. Below are some key benefits of implementing and using ERP solutions.
1. Data-Driven Decision Making
You have all your information in one single depository and do not require you to switch between different systems to get a full view of your business. The integration of different departments (sales, marketing, production, inventory, finance) means that you only need to access information in one system. You can easily make queries and generate reports to view the information you require and to help you make data-driven decisions.
2. Reducing Waste
All your workflows and processes can be documented in one single system so you can see what is slowing your operations. You can then identify and pinpoint issues that are affecting your productivity and immediately rectify those issues. The availability of information also means you can maximise warehouse space, shorten material delivery time, enable optimal inventory levels – which can contribute significantly to your bottom line.
3. Improved Customer Service
Your customer’s satisfaction is essential to the success of your business; thus, the ability to proactively improve on your customer service will be a key differentiation factor for your business. Your Customer Relationship Management (CRM) element will be integrated with the entire ERP solution, so you can coordinate better with internal departments to provide better services to your customers. You’ll have the ability to track the progress of their orders, advise on delivery time and also uncover opportunities to upsell and cross-sell.
4. Proactively Improve
The availability of information across all functions gives businesses the ability to improve their processes and workflows continuously. Eliminate guessing work with real-time data that allows you to understand your strength and weaknesses. This information can be used to improve your workflow and in turn, improve efficiency.
5. Improve Procurement and Purchasing
Your ERP system can forecast and predict your raw material and supplies procurement needs based on historical information (sales, forecast, use of supplies etc) to improve your purchasing processes. You can use the projection figures to make better purchasing decisions, to prevent over-ordering or understocking. Decisions of such can determine the profitability of your business because you want to make sure that you don’t have cash flow strapped in excessive inventory. At the same time, you do not wish to understock because this will mean the inability to fulfil customer orders when the need arises.
6. Big Data Analytics and Analysis
Tracking transactions and processes enable you to have a bigger view of your entire business. You can use this information to improve your overall business productivity. Over time, you will have sufficient data to understand the areas for further improvements and execute these changes based on the data you’ve collected. You can also use customer information to intelligently and proactively improve your offerings and services. Businesses with the ability to make tweaks and changes based on historical details give you an added advantage over competitors who don’t.
7. Improve Compliance
An ERP solution provides you with the ability to keep track of all the data as well as a detailed log of all the activities. The team will also find it easier to comply with local regulations and compliances with the ability to control and manage the workflows and processes.
Robust ERP solutions such as SAP Business One and Microsoft Dynamics 365 have the capabilities to do all the above and more and has assisted many businesses worldwide to achieve better efficiency and improve profitability.
Start your ERP journey with MicroChannel today. Contact us for a discussion on how we can help you determine the right business solution fit for your business.