ERP software offers a pack of integrated applications targeted for systemic data collection, data storage, data management as well as data interpretation from diverse business activities, such as: product planning, service delivery, cost issues, manufacturing, product shipping, payment issues, marketing, sales, inventory management, accounts and financial management, etc.
This article focuses on 10 Reasons why you need ERP software in your company.
In every company, the front-desk system relies on the back-end departments, and vice versa in order to operate their regular scheduled tasks. For instance, the inventory management department requires the database from the sales department. Similarly, the marketing department and budgets & payroll management department depend on the accounting department for real-time information.
The ERP software can integrate different departments and organizational systems (accounting, purchasing, and manufacturing), who operate within the same company. This enables each of this business functions to work more efficiently and independently, as they can rely upon a single integrated database.
In Tally.ERP 9. we have 3 module, Accounting, Inventory and Payroll, which are integrated to each other.
The ERP software accelerates the pace of any business by supplying real-time information instantaneously. For instance, you need to know the average sales-margin of your company, while making the company business plan.
Now, if your company depends on the siloed system or spreadsheets, then you have to ensure that the data has been regularly updated and integrated manually; whereas, you can immediately access to the key information using the ERP software.
The ERP system allows the executives to take holistic views over the business operations of their company, whenever they need. Moreover, the staffs can use the ERP software to extract essential information they require to perform their assigned tasks properly.
To take business decisions, and operate daily business, your company will frequently need different types of reports, like, sales report, market research report, etc.
If your company does not use the ERP software, then employees have to rely on the paper-based invoices & sales orders to generate accounting and financial reports. And it will require them to invest a huge amount of time per week into different tasks, such as, data entry, information crosscheck, data reconciliation, etc.; whereas, ERP software performs this task instantly.
Thus, ERP helps to generate complex reports within the shortest possible time.
The ERP software can show the same updated information to many people from many devices at a time. It enables the staffs – who work under different of your company – to perform diverse tasks at the same time.
For instance, the Customer-care representatives can answer to the customer queries regarding orders, shipping, payment, service, etc., without engaging the staffs of another department. And the customers can view their account-status online whenever they want.
At the same time, the warehouse staffs can check their stock and maintain ordering process. All of these tasks can be done at the same time without hampering each other through the magic of the ERP software.
If your company works with multiple numbers of software for different departments, then the staffs have to go through some additional tasks, like system customization, patch integration and software upgradation, etc.
These tasks are complex, costly and time-oriented. Moreover, the traditional software can rarely meet up the changing needs of modern business; whereas, the cloud-based ERP software not only responds to the-minute demand of the business, but also integrates new functions through easy system up-gradation.
Therefore, if you want to keep your company abreast of your competitors’ business, then choose the ERP software.
Guesswork and standard ‘thumb rules’ can extract good decisions for few times, but you cannot be lucky every time. Decision making often requires real-time information along with business-experience; otherwise, it might cost time, money as well as the company good will.
The ERP software provides accurate and real-time data that helps the company executives as well as officials to make high-value decisions promptly and run the company smoothly.
ERP software can process transactions, perform audit and create financial reports automatically. This simplifies the month-end closings of the company. Moreover, the system can identify anomalies that require quick investigation.
It simplifies repetitive tasks that usually make the month-end closing complex and protracted. Faster closing gives you the scope to know the status of business earlier.
The ERP software can help your company to execute the business plans and procedures without unnecessary inter-system complexity that often leads to wastage of time.
This improves the operational efficiency among the different systems and staffs of your company. Moreover, greater operational efficiency can meet up the customer demands timely and accurately.
This generates customer satisfaction and goodwill for your company in the long run.
The ERP software can collect, calculate and manage the cost-related data from different segments within your company, which always represent an accurate and up-to-the-minute inventory of the production costs and profit margins.
Moreover, the ERP system assists in balancing the demand and supply of different systems within your company more efficiently.
The main target of your company is profit maximization, and it won’t be possible if your stuffs miss their schedules and take longer lead times. The ERP system helps the staffs to perform the tasks using accurate records, while maintaining the tight work schedules.
ERP software indirectly contributes in enhancing the turnouts of different systems and submitting the orders of the clients without leaving them in longer ques. Thus, the ERP software helps to make your company bigger turnouts.
Some company owners might bear the misconception that it is possible to handle the accounts and inventory management of their company without an ERP software.
However, if these companies employ ERP software, then the company owners & experts can invest their precious time in business planning; rather than spending time on time-consuming but laborious tasks. This will help the company in reaching their targets conveniently in the long-term.