ERP Benefits You Might Have Overlooked

When you think of the benefits that enterprise resource planning software can provide to your organization some of the first things that come to mind are:

• The reduction of redundant data
• Improved workflows
• A more efficient workforce
• Reduced inventory costs
• Better, and easier, reporting

While an ERP solution does have the capability to provide these benefits to you, there are additional benefits that people often overlook. Knowing every way in which this application can help your organization helps you gain additional support for your project so that is a plus, however if you fail to understand all the different ways a new application can benefit your company you may miss out on some unknown opportunities. So let’s take a look at some of the advantages you may be overlooking so you can maximize the effectiveness of your ERP solution.

Reduced operating costs

Reducing inventory costs certainly help control operating costs so it is easy to connect the dots and see how an ERP solution can have an immediate impact on your company. However, there are other costs that can be reduced as well. Because your workforce is no longer reliant on specialists like information technology or database administrators to run reports their specialty skills can be used in other ways that are more productive. Overall costs are reduced by having one central storage for data as well. Instead of each department having to hire people to collect, input and verify information it can be done by one team.

Better visibility

When everyone in the organization has access to information they are more effective. For example, if your sales team can see exactly what your current inventory levels are so they can better estimate a delivery date. Marketing can see what individual customers have ordered, and when they ordered, to better customize their efforts. Customer service can also get a better glimpse into what might be causing an issue for an unhappy customer. Business leaders can also gain from this increased visibility as they can better spot trends or holes in the marketplace.

Better security

While it is good for people to have access to the information they need, it is equally important to make sure that information is only seen by those who need to access it. When data is stored in one location, and when it is controlled by one application, it is much easier to control who has the ability to access it.

Additionally, modern ERP solutions make it easy to grant access to the right people without exposing other data. Making data accessible is as important to security as is protecting it.

Your vendor likely did a good job of promoting the ways their solution can help you based on what you told them you expect because we often buy something that meets our needs or solves our problems. However, ERP solutions can offer your organization a great deal more. Make sure that when you are planning your ERP implementation you have the right people on your team to help you uncover the hidden benefits that this software can provide to you. Those who take the time to learn your business and the processes you have in place will be the ones who will best understand where you can find some of these overlooked advantages.