Posted by Indusa Admin on November 16, 2017 12:29 pm
Many businesses have recurring issues with their out-of-date systems but are unaware just how much an Enterprise Resource Planning (ERP) can really impact their bottom line. Having an ERP in place helps to ensure that the challenges holding your business back can be combatted.
7 Common Business Challenges to Solve with an ERP
So what are the typical challenges that are affecting the performance of your business? How can a good ERP help you overcome them? Let’s look at seven of the top challenges that you can easily address with the right ERP in place:
1. Tracking Inventory
Accurately tracking inventory is often challenging in the absence of an ERP. If you have no visibility into your supply chain, its becomes difficult to create work-orders, bill of materials, and other production-related documents. This often results in product overstock and outages. An ERP helps you accurately track assets, efficiently identify products in the supply chain, helping optimize inventory at all times. You can save costs, and improve efficiency while also ensuring that inventory count is up-to-date.
2. Achieving Inter-department Visibility
Organizations with departments spread across various geographies very rarely offer consolidated visibility to management. This often hinders decision-making capabilities. An ERP on the other hand allows multiple organizations, and departments to be on the same page. An ERP offers consolidated insights and reporting, enabling informed and accurate decisions.
3. Creating Sales/Purchase Orders
In the absence of an ERP, you generally end up entering data manually, mostly through Excel based reports or even worse through paper-based work. There is a high likelihood of error, and not to mention illegible or incoherent handwriting. With an ERP in place, you can save time entering invoices or sales related data; just enter data once, and for repeat orders, use the same data or template to replicate orders or re-issue them.
4. Making Payments/Invoicing
In most organizations, invoicing is a manual activity; you have to manually feed order details each time you want to generate or post an invoice. This is not only time consuming, but also increases the probability of human error. However, in an ERP, invoices are auto-generated – negating the potential of any error as information is retrieved from the linked orders itself.
5. Generating Reports
Organizations with no ERP in place rely largely on manual data extraction and report generation, offering very little opportunity for editing or personalization. Combining data sources and reporting capabilities are limited, as the primary focus of such systems is merging data sets and designing reports based on those data sets. This increases the chances of having various discrepancies between reports across the organization – making it difficult for business users to comprehend and consume. In an ERP, report generation is a breeze. Since reports are mainly pre-designed, you only need to mention the type of report required. You can access data from multiple sources, and build reports that are standardized across your organization.
6. Conducting Year-end Analysis
Organizations that do not have an ERP rarely have the required visibility into departments, lacking a connection between business users from different teams, projects, or locations. In such cases, collating data from different teams manually is both costly, and time consuming. An ERP brings all organizations and departments within one application, allowing you to conduct year-end analysis and reporting more efficiently.
7. Managing Risk
Although no one can accurately predict the future, an ERP is far more equipped in identifying trends, and using data to perform predictive analysis. Recent versions of ERPs score high on their risk management ability – they integrate historical data, allowing you to make decisions and build strategies based on accurate and crucial information. You can easily update plans, and proactively respond to a rapidly shifting business environment.
Boost Productivity and Efficiency
The latest versions of ERPs can help overcome some extremely tough organizational challenges. You can get the required insight into your business, while also boosting productivity and efficiency –which isn’t a luxury but a requirement these days. It allows you to seamlessly create purchase orders, unify data from different departments, generate reports instantly, accurately track inventory, understand customer needs, and avoid exposure to risk.
So, bid adieu to disparate systems and data silos and identify the right ERP for your business with an intuitive, web-based interface that brings all of your data in one single console!
About the Author – Manoj Nair
Manoj Nair is a seasoned IT professional with over 12 years of experience in Software Consultancy, ERP Implementation, Testing, ISV Development & Client Management. He is a Senior Project Manager at Indusa and is responsible of managing various software programs through cross functional coordination.
Contributing Author: Malavika Nityanandam