Enterprise Resource Planning (or ERP) software has revolutionised the ways in which companies work in the modern world. Efficiency and speed are now paramount in today’s highly competitive marketplace, and this is where ERP software can really help, since it allows for ongoing tasks and projects to be managed in a timely manner, thus streamlining the routine business of daily work and exponentially boosting productivity and profitability.
There are five key business inefficiencies that ERP software can tackle easily and we’ll take a look at them below.
Most people will agree that one of the most tedious and time-consuming tasks in any organisation is entering data manually. Being such a repetitive and dull job, it can cause humans to become distracted and make mistakes. It’s no wonder, then, that human error is common in this area. ERP software cannot just save time but also slash costs when it comes to data entry, and it also provides highly precise and accurate results.
Many businesses have several departments, but if there is a lack of communication between those departments, tasks often take longer to finish and productivity is low. ERP software significantly reduces this problem while also minimising the communication gap with freelancers and vendors via vendor management software.
When companies have multiple departments, they run the risk of working with no interconnected data – something that can prove costly in terms of bad debts, wasted inventory and lost customers. ERP software helps companies to interconnect their data in real time to boost productivity and efficiency.
Companies can earn a poor reputation if their customer service is substandard. If the sales of a product are greater than the speed at which that product is replenished, sales departments often lack the knowledge of when it will be restocked.
Being unable to tell customers a precise delivery date can cause dissatisfaction and, eventually, attrition of customers to rival businesses. ERP software boasts helpful functions like sales order management and inventory management software that can make operations run more smoothly.
In a multi-department organisation, data can vary between them. Should the data not be consolidated and stored in a single location, it takes managers more time to go through every document and spreadsheet to find the information they need. ERP software keeps all of the data in a single spot so it can be accessed with ease. It also ensures more accurate results with minimal effort.
The above five business inefficiencies can all easily be identified and resolved by implementing ERP software. This effective solution can make organisations run much more smoothly and in a streamlined way that increases productivity and profitability. It’s easy to see, therefore, why ERP software is such an excellent solution to improving the efficiency of companies across the board and to eliminating many of the issues that cause businesses to be inefficient.
Sridhar Ayalam | April 05, 2022
SAP Delivery Head, In2IT Enterprise Business Services Pvt. Ltd.