Question

What are the primary business benefits of an erp system?

Answer 1

This list provides the top 7 primary business benefits of an ERP system, and is based on feedback we’ve heard from our customers. The list gives project teams the foundational information they need to begin talking about an ERP Selection and Implementation Process.

1. Achieving Traceability and Compliance

In a growing number of industries, there is a need to be able to accurately track a product from its point of origin through all the changes made to it in the supply chain until it reaches the consumer. Features you may need include being able to track lot and batch numbers, expiration dates, ingredients, quality control test results and other data, in case of product recalls or other issues. Enterprise software like Trek Cloud ERP provides the solutions necessary to help you effectively comply with your traceability and compliance regulations.

2. Eliminating Manual Processes

By automating many of your current manual processes with system-driven capabilities in your ERP, your employees will have more time to focus on the core of your business. With automation in place, your employees will have more time to help grow your business such as by providing better assistance to customers and expanding your reach. You will have more capacity to add new products and services and will be able to deliver an even better service.

3. Reducing Key Business Cycle Times

Using a suite of ERP solutions that are tightly integrated together will help you to break down operational silos and improve processes and communication across your entire organization. This, in turn, helps you to improve efficiency and reduce the cycle times of your key business processes. Here are some of the efficiency gains you can expect by adopting Trek Cloud ERP:

Customer Order Cycle Times cut in halfExpedited Orders cut in half20% improvement in complete, on-time shipments

Additionally, if you select a cloud ERP solution like Trek Cloud ERP, you can take advantage of well-built web APIs that allow you to integrate the ERP with other software. You can integrate your ERP with your webstores, Point of Sale systems, CRM and other software to improve operational performance.

4. Streamlining Communications

Without an ERP system, employees are trying to communicate in other ways and are dealing with miscommunication: lost sticky notes, forgotten conversations, overlooked emails, and overwhelming numbers of paper forms. For your employees, this benefit alone answers the question for them as to What are the Primary Business Benefits of an ERP System? You can greatly improve collaboration with ERP. An ERP system can be configured to address your organization’s unique approval rules and established process steps. The system then replaces manual communication with consistent work flows that prompt employees when it’s time to do the next step in a process.

5. Enforcing Accountability

Your ERP system is set up so that entries, approvals and other actions are tied to Users based on their login. Users are given one or more Roles in the system that allows them to access the necessary features and data relevant to them. This setup allows you to more easily determine where issues occurred and make adjustments to prevent problems from recurring in the future. Finally, you’ll have a tool in place that automatically enforces accountability based on users, and their roles and actions.

6. Gaining Control of Your Spend

Many tools in an ERP system help you gain control of your spend. For example, you can fully automate your Procurement process. You’ll be able to utilize thresholds, set approval steps and gain control over spending. Having business-wide insight to the organization’s requirements for materials and products means purchasing can negotiate quantity-based terms. Multiple requisitions can be consolidated into a single purchase order. You can set min-max levels, make better use of price lists, and order the right amounts on time. Cost savings that are commonly achieved with a Cloud ERP include

17% decrease in inventory62% improvement in inventory turns28% decrease in stock-to-sale ratio7. Increasing Customer Satisfaction

It all really comes down to this. When you are considering, What are the Primary Business Benefits of an ERP System, it’s all about creating more satisfied customers. When you improve your organization’s speed and accuracy, customers are happier. When you reduce your overhead, you have the ability to pass some savings on to customers.

The way that a business operates has a profound impact on customer satisfaction. By improving and streamlining your business, you deliver a better service. Positive customer experiences lead to long-term business relationships and referrals.

When considering what are the primary business benefits of an ERP system, these three capabilities result in more satisfied customers: