Why You Need an ERP

By Neil Zawacki
Updated: September 08, 2011

ERP (Enterprise Resource Planning) systems have numerous benefits for a small business. The software can greatly improve resource utilization and connect all the different parts of a company together. It also provides effective methods for inventory management, shop floor control, and purchasing and receiving

Here are several reasons to adopt an ERP solution:

The first your company needs an ERP system is to improve the efficiency of your business. The most important daily tasks are streamlined and automated across the whole company, which in turn frees up your employees to deal with more complex matters. ERP also allows multiple departments to function as a single unit and coordinate tasks in an professional manner.

A second benefit of ERP is the amount of time it can save your employees. They will be able to follow up on leads at a much faster rate and determine which ones have the most potential for success. They also won’t have to spend as much time on data entry since the information will only have to be entered into the system once. The time saved can then be used for more important tasks.

You will also gain a greater level of information consistency with an ERP system. If a member of the sales department needs to look up a piece of customer data, they can will know that the customer service department has access to the same information. This can help to reduce embarrassing mistakes when a client needs to be transferred between different departments.

A fourth advantage of ERP is that it can help to reduce operational costs. Your company will use less paper and postage since the tasks that required them will now be automated. You will also have lower payment processing costs and not have to spend as much money on unnecessary inventory.

Another benefit of ERP is the organizational transparency the system provides. You can observe how an employee responds to a particular issue and see how they have dealt with similar problems in the past. It can also provide insight into how is specifically at fault with an argument during an employee dispute.

A final reason that your company needs an ERP system: it will help you to achieve global standards for accounting and reporting. The software will automatically make sure that you are meeting IAS and IFRS protocols and various disclosure requirements. If you are doing any sort of international business, this can greatly simplify the process and alleviate any concerns that you might have.

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