The Tangible and Intangible Benefits of a New ERP System

The Tangible and Intangible Benefits of a New ERP System

The decision to purchase a new enterprise resource planning system (ERP) once was a tough one. On the one hand, a new ERP solution brings dozens of tangible and intangible benefits to an organization. On the other hand, ERP rollouts used to cost a lot of money and time—it was the definition of a big IT project.

With the advent of cloud-based ERP, however, the decision has gotten a lot easier; cloud ERP is a lot more cost-effective than previous ERP rollouts because all the technology is hosted and maintained by the ERP provider, and there are fewer up-front costs. It also requires less time for implementation, because businesses can start with best practices and preconfigured, prepackaged ERP solutions for their industry.

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This makes a new ERP system a smart company initiative. Here are 10 of the many reasons why you should consider a new cloud-based ERP system for your company.

Tangible Benefits

Cost Savings and Greater Efficiency. Process automation within the system reduces time, effort and resources spent on daily, repetitive tasks, freeing up employees to focus on more meaningful work. Cloud ERP also eliminates redundant effort and promotes the adoption of industry best practices on a company-wide level to further boost productivity, and unification of business software cuts down on IT-related expenses.

Better Supply Chain Management. Cloud-based ERP can greatly improve a supply chain by linking supplier systems, automating key functions, and boosting responsiveness. This can lead to better demand forecasting, precise inventory management, efficient procurement and opportunities both for cost reduction and product innovation.

Improved Data Quality and Accessibility. As a single source for all business data, often collected, consolidated, organized, and analyzed through automation, cloud ERP systems improve data accuracy and reliability. Fine-grained access permissions can be set by user and job function, too, controlling data accessibility precisely so employees see everything that is needed to perform their job function and nothing else.

Increased Automation. Business processes can be linked and automated because all data flows into a single system or record. Sales orders can automatically flow into the financial system without manual re-keying, for instance, and your ERP system can trigger both a work order and an inventory check.

Reduced inventory and stock obsolescence. With complete, real-time visibility over all aspects of operations, including those with suppliers and customers, inventory levels can be refined and managed with greater precision. Increased tracking from greater operational visibility can also cut down on stock obsolescence and other wastage.

Continue reading the article here to discover the intangible benefits of ERP.

Article originally published on August 16th, 2019 on the Navigator Blog