What are the benefits of using an ERP?

Business leaders looking to scale up operational efficiency in their businesses may want to take a closer look at ERPs. ERP software stands for Enterprise Resource Management and is one of the software options quickly becoming a standard for businesses wanting to stay competitive in today’s economy.

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An ERP system can give you back the reins of your company by offering one cohesive platform for managing a host of separate business processes. This centralized hub acts as a control station for the entire business. It allows for a seamless operational workflow that is highly controlled yet extremely accessible to all departments and team members. Below are eight primary benefits of using an ERP that can assist as you consider adopting this fully-featured software to manage vital business processes.

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This article will cover the following topics:

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• What are the benefits of using an ERP?
• Selecting the right ERP

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What are the benefits of using an ERP?

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There are myriad benefits to using Enterprise Resource Planning software. It helps to explore these to uncover whether transitioning to an ERP is the right move for your business. Here are 8 of the most noteworthy benefits of having an ERP system.

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1. Optimized workflows

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Business processes often involve many manual steps and the storage of essential files on separate systems, emails, or filing cabinets. These disparate systems and processes can make it challenging to have a cohesive workflow. One of the major benefits of having an ERP system in place is that it brings together disparate systems, processes, and data. It provides accessibility to important files and data for various team members and departments while allowing for a cohesive workflow through one centralized dashboard.

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2. Enhances collaboration

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It can be challenging for team members from different departments to collaborate effectively on projects. This challenge arises due to issues with accessing shared data. To remedy this, employees will send emails back and forth with attachments and files that then get stored in desktop folders. This maze of folders and documents can become challenging to keep up with, and often changes made within files aren’t readily accessible across departments. However, with an Enterprise Resource Planning system in place, one dashboard provides easy access to shared data with editable documents and shareable updates. This convenient access improves collaboration in terms of faster communication and enhanced productivity.

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3. Effective forecasting

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Preparing for what lies ahead is one of the most effective approaches a business can take to make strategic decisions. One of the main advantages of using an ERP system is that a host of data is available from various departments in one location. As forecasting uses historical data to predict expenses, revenue, and future demand, ERPs offer the comprehensive data needed. This benefits stakeholders and decision-makers who need this data to guide the company forward effectively.

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4. Operational Efficiency

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There are many ways to ascertain a business’s level of operational efficiency. Comparing historical data is one approach, as is taking a quantitative approach by measuring sales and productivity. One of the easier ways to improve and gauge operational efficiency within an organization is by implementing ERP software. The software can track disparate metrics from separate business processes and compare them qualitatively to give a broader view of business performance. With this readily available information, business leaders know precisely what to scale and what to eliminate so as to improve the overall operational efficiency within their organizations.

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5. Enhanced Customer Service

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Every customer’s experience with a company is unique, and this journey can either be enhanced or detracted from based on the level and type of customer service provided. When a customer calls, this is an opportunity to make their experience a pleasant one. One of the ways to do this is by having all of the information related to their entire customer journey easily accessible. An ERP offers the ideal solution for this as a customer’s data can be readily accessed, including prior notes from support cases, phone calls, customer information, and order history. Without having to reiterate past phone conversations or customer support details, the customer can feel as though they are more valued. This leads to a higher perception of the company and the opportunity to build long-term relationships with loyal customers.

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6. Versatility

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ERP software offers the maximum versatility for businesses across all sectors. It does this by offering access to its centralized dashboard via the cloud so companies can stay connected from any location. This versatility lends itself well to a remote work environment, which many businesses have adopted in light of the Covid pandemic. With employees having shared access to robust and flexible cloud-based software, business becomes more agile than ever before.

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7. Automation

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By far, one of the most readily apparent benefits of having an ERP system in place is the capability to automate formerly manual tasks. As more businesses look for faster and more streamlined ways of conducting business, ERP software quickly takes the lead over previous systems. Enterprise resource planning systems are prized for minimizing the time needed to complete specific tasks. Many of these tasks were repetitive and redundant, not to mention error-prone and security-lax. ERP software allows for automation, creating a faster and more efficient workflow while drastically reducing the margin for error.

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8. Effective reporting

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When the finance team needs to access accounting information, they will likely have to log in to a separate system to retrieve the necessary information. This process can be time-consuming and may require access to disparate systems that may not be readily available. However, with an Enterprise Resource Planning system, any department can access the reports and data needed to complete critical business processes. Avoiding blocks in data access and making reporting easier is one of the main advantages of an ERP system. In addition, an ERP system can calculate KPIs, measure, and report on data vital to essential decision-making processes.

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Selecting the Right ERP Provider

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Every company is different, so it’s essential to do sufficient research before settling on any one ERP provider. With so many benefits, it makes sense to want to move forward with getting an ERP system set up as soon as possible. However, it helps to ask the right questions ahead of time to ensure that the provider you are considering is a good fit for your business needs.

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Some of the most important considerations when choosing a provider is whether or not the ERP software can integrate with existing business systems. You will also want to consider the training involved as well as the level of ongoing support provided. Taking into account the size and specific needs of your business will help to efficiently scale using the right ERP system.

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As you search for the ideal ERP system to meet your business needs, consider PayEm, one of the most robust and dynamic platforms supporting businesses of all sizes. PayEm offers seamless NetSuite integration and integrates with many different HR systems. Moreover, PayEm provides the following:

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• Complete visibility
• Real-time reporting
• Accessible data
• Accurate metrics
• Multi-territory management
• Deep ERP integration

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Ultimately, PayEm provides a connected experience with complete automation for increased productivity and smoother workflows. With access to all the benefits mentioned above, your business will be capable of scaling and managing growth while increasing collaboration for better operational efficiency and long-term profits. Curious to see how PayEm can help with your ERP goals? Contact PayEm’s experts for a commitment-free, no-cost demo of the platform.