10 ways ERP systems can save you money
Thinking about getting a new ERP system, but want to know exactly how it will help your business?
Every business wants to save money, which is why Enterprise Resource Planning (ERP) systems have become so popular in the last few years.
One of the top reasons companies invest in ERP systems is to help them improve their business performance. In real terms, this means becoming more efficient and saving money wherever possible. But how does that work? After all, these systems can involve a big cost, so where exactly will they reduce your expenses to make that investment worthwhile?
Here are 10 ways a good ERP system can help save you money:
No more wasted paper
Moving all your data into a digital format removes the need for all that administrative paper, which will ultimately have to be shredded and recycled. A digital format is also far less expensive to manage, as you don’t need to pay for cabinets or entire rooms dedicated to storing paper. Not only a more environmentally friendly approach to business, it will also save you a lot of money in the long run.
A single ERP system is cheaper to manage
Having a single, centralised ERP system means companies no longer need to pay multiple subscriptions for a range of separate (and often incompatible) platforms in different departments. This will help keep things consistent across the company and remove the need for many tedious, costly processes when dealing with data—such as struggling to consolidate financial information because your HR and inventory systems can’t communicate with accounting’s system.
Greater security means less chance of penalties
In these post-GDPR days, making sure your customer information is handled properly and securely is essential for any business to avoid strict penalties. A single, highly secure ERP system makes this far easier to achieve, as opposed to having data spread across numerous different systems (each with their own varying levels of security).
Fewer IT issues
In the past, there has been little chance for companies to maintain some consistency in their systems, as software has traditionally been specific to certain departments. Yet having multiple platforms across a business means far more chance of something going wrong. This has led to businesses requiring bigger IT departments or more expensive contracts with IT service providers, who need to cater for a range of different software issues. Introducing a single ERP system for the entire company will automatically reduce the numbers and variety of errors you will experience and therefore can drastically your IT costs.
Less staff training needed
Having only one system ensures a lot less staff training will be needed. It also avoids the problem of training specific staff on certain platforms, only for them to leave and you losing that investment in knowledge. Having everyone train on a single system is far easier, cheaper, and safer for the business in the long run.
Easier access to information
All good, modern ERP systems now offer remote access, cloud storage, and information in real time. All of which means that, no matter where you are in the world, with an internet connection this data is now readily accessible whenever you need it. No more wasted hours (and therefore cost) chasing other people for information or trying to decipher other people’s reports. You can now access all the information you need quickly and easily (usually on your own customisable dashboard) and be able to read or run-off any reports you need at a moment’s notice.
Quicker responses to customer queries
Having greater access to all your information also means that your team can respond to customer queries that much faster. Not only will you save valuable work time, but by improving the level of service they receive you make customers more likely to stay loyal, as well as potentially become champions of your brand. This can result in even more custom from their networks and reduce overall brand awareness/advertising costs.
Reduces operation costs
ERP systems can manage a whole range of information—from job allocations, processes and resources to inventory, labour costs, deliveries and shipments. This helps businesses with visibility over their entire operation and allows them better management of their resources to improve organisational efficiency. It can also enable better tracking of stock and orders and can help to improve forecasting. In the manufacturing industry, for example, more accurate projections for material planning can help prevent wasted money in ordering (and storing) things you don’t yet need.
A single ERP system means greater consistency, which means more accurate information across the business. This reduces the likelihood of human-related errors or discrepancies between departments, which can help you save time and money that would otherwise have been spent trying to fix issues later down the line.
Quicker, easier tax returns
Nobody likes having to do their taxes, but there are certainly ways to minimise the headache and ensure compliance. And having all your financial information in one centralised and easily accessible location makes tax time a lot easier. More accurate data also means less chance of making a critical tax error that could result in a costly audit process, while (as mentioned above) you’re also saving on long-running storage costs for all your records—as you can keep them as long as you have the software.
Still not sold on ERP and want to hear more ways it can help your business save money and improve performance?, we’d love to help.