ERP systems allow the creation of a shared database with more and higher quality information that managers will be able to view on their screen in real time, streamlining and improving the decision-making process.
By having higher quality information it is possible to make realistic estimates and forecasts in anticipation of future scenarios.
In companies that do not yet have an ERP solution, it is easy to verify that their departments act with some independence from each other, so they end up generating duplicate records and reports. The integration that ERP implies will drastically reduce these duplications.
ERPs are made up of modules. In this way, you can implement the modules that your company needs at all times. If your company evolves and grows in the future, your ERP will do so with it if you incorporate new functionalities.
All companies are different. For this reason, the provider of your ERP system must carry out a prior analysis of the needs of your organization to ensure that the application is perfectly adapted to it. The ERP solution must adapt to your business, not the other way around.
ERP systems facilitate product tracking throughout the organization, from the entry of the raw material to the delivery of the finished product to customers.
The new ERP II concept exceeds the limits of the company by adding other members of the value chain: customers and suppliers.
Thus the supplier becomes a strategic partner from which we can extract a competitive advantage by actively participating in the design and development of new products, contributing their experience.
With regard to customers, ERPs provide more and higher quality information that will allow them to adjust production and purchase orders to their needs. On the other hand, we will have a segmented database of our clients that will allow us to carry out marketing campaigns aimed at specific segments.
ERP removes barriers to information between the different departments by integrating them and improving internal communication.
ERP systems allow the automation of heavy and repetitive tasks that were previously done by hand.
In this way our operators will be able to dedicate themselves to more productive tasks that really are the ones that add value to us. But what is more, as the human component is reduced, the number of errors will fall (although it will not be completely eliminated since certain manual actions such as data entry will continue to be necessary).
The greater efficiency achieved, the reduction in the number of errors and the reduction of duplicate tasks allow to reduce business costs. The cost reduction will allow us to increase our profit margin as the unit cost falls.
Thanks to all the above advantages, an increase in profitability and profits can be achieved. In other words, the increase in performance achieved with the implementation of ERP compensates, in the long term, the initial investment made.