Improving Business Profitability with an ERP
Improving Profitability with an ERP solution
Enterprise Resource Planning (ERP) is a business management solution that provides businesses with functionalities to improve efficiency and profitability. Businesses using ERP benefit from improved financial reporting, streamlined business processes, and better analytical capabilities that enables real-time data analysis for better decision-making
An ERP Solution: Your Missing Link to Improve Profitability
Utilising an ERP solution can drastically improve the way you manage your business. Below are some key benefits of implementing and using ERP solutions.
1. Data-Driven Decision Making
All your data is in one single depository, this means that you do not need to switch between different systems to get a full view of your business. The integration of different departments (such as sales, marketing, production, inventory and finance) means that you only need to access one system. You can easily make queries and generate reports to view the information you require and to help you make data-driven decisions.
2. Reducing Waste
All your workflows and processes are in one single system so you can identify what is slowing your operations. You can pinpoint the exact issues affecting your productivity and immediately rectify them. The availability of information also means you can maximise warehouse space, shorten material delivery time, enable optimal inventory levels – which can contribute significantly to your bottom line.
3. Improved Customer Service
Your customer’s satisfaction is essential to the success of your business; therefore, the ability to proactively improve your customer service will be a key differentiator for your business. Integrating Customer Relationship Management (CRM) functionality with the ERP solution allows better coordination between internal departments. This in turn leads to better services to your customers. You will have the ability to track the progress of their orders, advise on delivery time and also uncover opportunities to upsell and cross-sell.
4. Proactively Improve
The availability of information across all functions gives businesses the ability to improve their processes and workflows continuously. Access to real-time data eliminates guesswork and allows you to better understand your strengths and weaknesses. This information can then be used to improve your workflows and efficiency.
5. Improve Procurement and Purchasing
Your ERP system can forecast and predict your raw material and supplies procurement needs based on historical information (e.g. sales, forecast, use of supplies). You can use the projection figures to make better purchasing decisions, to prevent over-ordering or understocking. Improvements in procurement and purchasing can have direct impact on the profitability of your business. It can also reduce excessive inventory to maximise cashflow. At the same time, an ERP solution can ensure that you do not understock, to ensure the ability to fulfill customer orders when the need arises.
6. Big Data Analytics and Analysis
Tracking transactions and processes enable you to have a bigger view of your entire business. You can use this information to improve your overall business productivity. Over time, you will have sufficient data to understand the areas for further improvements and execute these changes based on the data that you have collected. You can also use customer information to improve your offerings and services. The ability to make tweaks and changes based on historical details gives you an added advantage over competitors who don’t.
7. Improve Compliance
An ERP solution provides you with the ability to keep track of all the data as well as a detailed log of all the activities. The team will also find it easier to comply with local regulations with the ability to control and manage the workflows and processes.
Robust ERP solutions have the capabilities to do all the above and more and have assisted businesses worldwide to achieve better efficiency and improve profitability.
Start your ERP journey with MicroChannel today. Contact us for a discussion on how we can help you determine the right business solution fit for your business.
Build up your knowledge of ERP functionality, emerging technology and industry insights with the 2022 ERP Buyers’ Guide. Save time and effort by getting things right the first itme with trusted ERP advice.
SAP Business One is an affordable Enterprise Resource Planning (ERP) software designed for small to midsize businesses. As a business management solution, SAP B1 streamlines business processes, provides real-time information, and help boost overall business performance. The solution covers finance, sales, customer relationship, purchasing, procurement, inventory and manufacturing in one centralised system, enabling accurate and precise information retrieval that assist in reporting, forecasting and analysis.
SAP B1 Modules:
- Warehouse & Production
- Purchasing & Procurement
- Inventory & Distribution
- Reporting & Admin
Read More on SAP Business One