ERP systems speeds up transactions and helps the company to manage its data without spending heavily on maintenance of human resources, therefore, a number of small and midsized companies are looking for automation of basic business functionalities.
The main benefits provided by ERP to companies are
Centralized data management: ERP provides the companies with a centralized data management system where all the data can be stored and updated immediately. All the financial information of the company and the data related to the performance of various departments is stored at one place which helps the organization to find out which department is performing better than other. The finance records can show how much revenue is generated by various businesses and which are not so profitable units. The organization can plan to shut down the units which are no more beneficial or try to improve the working conditions of the units that are not performing up to the mark. The forecasts provide by the software can be used to plan future investments.
Keep track of customer orders: All the information related to manufacturing and delivery is stored at one place. The software can be used to track customer demands, dock shops, loading, stock maintenance and sending invoice to the customer. The software can even provide a regular feedback from the customer as it can automatically send emails to customers to retain regular clients. It is easy to manage various modules such as manufacturing, inventory, delivery and billing through the software, and many orders can be managed at one time from one place without much effort.
Prevents wastage: Software can be used to reduce the need to keep huge stocks of materials. The inventory can provide updated information and the stocks can be bought and stored as per demand. The expense on maintenance of stores can be reduced by automated systems and this prevents wastages on inventory. The software can be used to engineer products and to provide the options to reduce wasteful expenses or crap.
Easy and cheap communication: The various departments can easily send messages and faxes even if the departments are located across boundaries. This enables the company to react immediately to the market demand. ERP installed at retail shops and Food and Agro based outlets - can be used to take orders from regular clients and send products immediately to the customer on demand. This enables the organizations to keep up with customer demands and ensure easy customer care.
Market forecasts and increase in production cycles: Software can provide information related to the inclination of market based on previous data and it helps the company's management to plan a production without delay. The data given by the salesman related to the new customer demand can be fulfilled by the production and the easy availability of data enables the company to increase production cycles.
Make it easy to follow standard methodologies: The organization can follow regular methodologies and standard ways of working, and prevent delays related to government based regulations. Automated systems provide regular alerts to prevent spending on penalties.