Top 7 Benefits of ERP Systems


Enterprise Resource Planning (ERP) is software that centralizes data from multiple departments into a single platform, thus connecting the entire organization. 

Here are the Top 7 benefits of ERP

Top 7 Benefits of ERP
1) Reduced costs

Rather than paying for several different applications, all with costly subscriptions, ERP software allows businesses to use a single platform and eliminate excess software. Beyond that, companies can cut costs through the insights they gain from their business data — or, the subject of our next point, by streamlining their business processes.

 

2) Streamlined business processes

One effect of centralizing information for the entire business into one system is that different departments in the enterprise are now connected to each other. As a result, communication between departments becomes more efficient, and normal sales processes, such as order to cash, etc. are streamlined. For another example, if a business integrates their ecommerce platform with their ERP system, data will automatically be transmitted from the front end to the back end of the business so the order can rapidly be fulfilled. This eliminates the need to manually push data from one operational department to another, or one software to another.

 

3) Top-down view of entire business

One of the largest benefits of ERP systems is that they give decision makers a top-down view of the entire business. They have complete visibility about what’s going on and can easily see statistics and graphs, all sourced from accurate, real-time data. C-suite executives, managers, etc. can create dashboards that highlight information that is important to them in an easy to obtain and read manner.

 

4) Powerful business insights

With this visibility, management can make informed business decisions. On top of that, they can gain advanced insights from analytics tools. ERP software outperforms other business software in this scenario because ERP integrates data for the whole organization. In contrast, with separate software, data cannot be pooled together easily, and insights are accordingly less powerful.

 

5) Reduced errors

Fifth on the list of benefits of ERP systems is reduced errors. Human error is always present in organizations, but it’s important to reduce it as much as possible. ERP software assists in this because it eliminates contradictions in data between different departments. Instead, data is transmitted seamlessly from one division to another.

 

6) Enhanced labor productivity

ERP software enhances labor productivity — and in multiple ways. For one thing, employees don’t have to switch between software as often during their typical work sessions. This sort of behavior involves not only the direct loss of time needed to switch between programs, but a loss of productivity due to workers switching contexts. (Human beings are most productive when they are able to attack the same task in repetition. When they switch from one task to another, they slow down and take time to pick up speed again.)

A second way ERP software enhances productivity is that employees in different departments don’t have to input the same data multiple times (as they might if they were using multiple software), saving on labor.

Finally, from the insights they develop (see point #4), companies may be able to make workers more productive in the long run.

 

7) Easier regulatory compliance

Final on the list of benefits of ERP systems is that they give the full who, what, when, where, why regarding all business data. Because they keeps track of all this information then, they can ease regulatory compliance.

For example, in the meat processing industry, traceability of meat allows processors to respond to recalls quickly and accurately. All the relevant information is available in the ERP, and the business can easily find the batch numbers associated with the faulty or spoiled products.

Another example is the upcoming GDPR law in the EU. Because all customer data is in one location, rather than multiple software, for ERP systems, it’s easy to respond to, e.g. a request for deletion of an individual’s data. After all, a business just has to eliminate that data from one spot (or, at least, fewer places than otherwise necessary).


If you’re looking for these benefits and wish to implement an ERP system for your business, get in touch! Bista Solutions has years of experience implementing ERP and other business software for companies in verticals such as automotive, BFSI, healthcare, manufacturing, retail, and more. You can contact us using our contact form or at sales@bistasolutions.com.

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4 Comments on "Top 7 Benefits of ERP Systems"

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Richard Jones
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1 year 5 months ago

Very informative article in my vision. This blog cleared all my doubt related to it’s benefits. ERP software really helps to collect all department data at a particular domain. Thanks for sharing advantages of erp software, without its advantage one can not realise its importance.

Lisa Krishnan
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11 months 26 days ago

As a business consultant, I was searching for information about ERP. The way you have explained everything is amazing. Informative post indeed. Thanks a lot for sharing.

Ranjeet Kumar
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10 months 3 days ago

Thanks for the sharing such informative resource. I was searching for the benefits of ERP and you have explained it & its benefits very well.

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