In this day and age, a business that does not use software for various business functions is rare to find. Most businesses use various tools to streamline processes and reduce room for human error. An enterprise resource planning or ERP system is one such software that businesses are showing interest in as they manage business functions within a centralized and integrated system.
Hospitality, construction, and healthcare are a few of the many industries that benefit from ERP systems and many use cloud ERP systems for increased efficiency. If you are considering the use of Netsuite ERP or any other enterprise resource planning system, these are eight reasons why ERP is important in 2020.
One of the key benefits to ERP in 2020 is that it gives room for better analytics. A business that makes use of a cloud ERP system like NetSuite ERP will have access to a pool of data that can be used for better analytics and reporting.
Enterprise resource planning software comes with tools and features that make compiling reports much easier. In addition to this, reports may also be easier to access on an ERP system, although access levels can be used to control who can access certain reports.
Compliance with regulations as well as risk management are also reasons why ERP is important in 2020. Regulations that a business must comply with change over time and a cloud ERP system like Netsuite ERP will keep track of the relevant regulations and ensure compliance.
Risk management is also enhanced through the accuracy and reliability and forecasting tools that are a part of an ERP system can be made use of to manage risk.
An ERP system is not a purchase but an investment. While flexible pricing has been introduced, especially for cloud ERP, the systems still cost a significant amount of money.
However, the price alone should not put you off. The benefits you get from an ERP far outweigh the cost. A cloud ERP like Netsuite ERP brings together all tools and programs currently in use in your business under one centralized system. This means that your employees need not use multiple systems for various business functions, but can access all necessary tools within one ERP system.
In a centralized system, information is easier to access and retrieve, thus increasing the efficiency and productivity of your team. You also need not train them to use multiple systems as knowing how to use the ERP will be sufficient.
An ERP is a centralized system and keeping track of inventory and updating as necessary is one of the reasons enterprise resource planning is important in 2020. A business can avoid shortages and monitor warehouses to ensure stocks of various products are sufficient to meet orders.
Companies have a number of departments that are responsible for various functions. While there is some collaboration between these teams and they work towards the same company goals, they also function individually to a great extent.
The use of a single ERP system across the organization allows for teams to collaborate more often. The teams will be working from a single source of data and this can increase efficiency as well as accuracy. There is also less room for human error as customer data is stored in one enterprise resource planning system as opposed to multiple software.
Documentation is a major part of running a business but it is a tedious task that not only takes a lot of time but is also open to human error. Any delays and errors in documentation can have huge consequences for a business, especially in terms of analysis and reporting.
However, with enterprise resource planning software, a business can use various tools to replace traditional methods of documentation so that the task is done efficiently with a smaller margin for error.
While an ERP system can help a business better manage inventory, it also improves manufacturing. Fixed asset management, for instance, makes it easier to schedule maintenance, thus improving supply chain efficiency.
While ERP systems are of great benefit to a business, they improve the services offered to the customer, thus increasing customer satisfaction. Customer-oriented marketing and sales will definitely contribute to the growth of your business and an ERP with a customer relationship management (CRM) tool will be of great benefit to you.