Five Pain Points ERP will solve
In the process of growing a company to reach success, there are many important processes they must undertake. The processes adopted may generate the desired outcome but at times may be frustrating as the processes that also adapted when the company we established would be useless in the present or future. ERP solutions are designed to meet these specific needs and solve problems faced by these different types of organizations. Today, a multitude of competing ERP software solutions exists, even in niche markets. Some ERP solutions available on the market cater to the specific needs of target retail stores, while others serve the needs of healthcare facilities, and still others meet the specificities of oil and gas producers, and so on. Nearly every organization today can find a solution to meet their business needs. Here are some of the problems ERP can solve for a company
1. Inventory Inaccuracy
One of the main problems for a company is inventory management. Companies handling inventory on paper or on separate software solutions which are not integrated with manufacturing and sales. ERP systems have proven to provide accurate inventory numbers which in turn help many folds in making sales and marketing a product. Balancing between too much or too little inventory is a big headache for most manufacturers. Having the right inventory means the supply adequately meets the demands of your customers. The ERP system comes with an inventory control application that offers the manufacturer the visibility and inventory counts needed for more efficient production planning.
2. Ineffective communication between the departments
Lack of right information at the right time due to improper communication among the departments is the biggest problem faced by any company. When employees fail to pass on information effectively, negative outcomes can include lost orders, customers not receiving calls back and even sales falling through. To solve this issue, ERP offers an easy solution by providing a single source of truth in the form of a single database so that respective departments can access information whenever they want thus encouraging the uninterrupted execution of operations. The effective communication will assure that there is no delay before key information reaches the relevant department which will help to keep the time minimum between the completions of one business task to another.
3. Manual Paper Process
Believe it or not companies still handle paper which is a problem in itself. Large to medium corporations that do have electronic systems in place for manufacturing, inventory management and sales still have to use paper to run through processes of finance, human resource management and budgeting. So why use paper and different solutions when the answers to all pains of a company are in ERP solution. When implementing an ERP system, companies can gain speed, efficiency, and accuracy in its business operations. So through automation and integration, the ERP system can increase company’s productivity while reducing time and labor costs.
4. Integrated Solution and Single Version of Truth
For managers to be able to understand and guide operations within a company, they need a clear view of everything that’s going on. Having the ability to coordinate and align multiple information streams in a way that’s compatible with the growth of the company is vital. In order to showcase single information of truth, ERP solutions streamlines processes in simplest manner to reduce unnecessary duplication when it comes to managing the information that keeps a business ticking over. It also provides a degree of transparency allowing managers to identify redundant workflows and make data-driven decisions based on the reality of what the business needs. Similarly, instead of having data distributed throughout a number of separate databases, all information is now stored in a single location. Data is also kept consistent and up to date.
Data security is one of the major concerns for a company which incase hampered would affect the overall company. But with ERP, company can improve the accuracy, consistency, and security of data, all through built-in resources and firewalls. Restrictions to data can also be enhanced by managers of the solution, so we can customize the software as secure as possible.
Every organization has its unique processes, services and products which altogether make it different from others. Same like that, the problem arising from different companies need unique solution. With the implementation of ERP in the organization, will be highly beneficial to optimize successful business operations to boost growth and improve efficiency by solving these major problems more effectively and efficiently.