To be competitive in today’s global economy, manufacturing companies need to streamline processes, cut costs, and improve efficiency. Many manufacturers are achieving these business objectives by implementing new ERP solutions. Modern ERP can usher in a new way of doing business for your company with tangible benefits that impact your bottom line. Here are 3 big benefits of modern ERP you will see after deploying a cloud-based solution.
Benefit 1 – Inventory Reduction
A new ERP solution will streamline processes and consolidate information. Cloud-based ERP automates many manual tasks and connects your enterprise in a way that allows you to see what’s going on like never before. Real-time, accurate data on every aspect of your business is available 24/7. This can lead to huge reductions in physical inventory, including raw materials, work in progress and finish goods. Because your supply chain is being managed efficiently and orders are being filled accurately, you will not need as much inventory on hand. When inventory carry costs go down, you are able to run your business leaner. You save on warehousing the inventory, and your warehouse personnel become more productive and efficient. Improved order management leads to better customer service because fewer issues need to be corrected.
Benefit 2 – Productivity Improvements
A modern ERP system brings about a new level of productivity. Information is consolidated and available in real time, giving everyone access to the same data. This creates synergy within your company as groups work more efficiently in real time using accurate data. Increased visibility into production, quality, and scheduling will allow you to manage your resources efficiently and effectively. Having the right people with the right parts in the right place at the right time sends productivity soaring. You also eliminate many process that do not add value to your business. Data entry, recording production, and inventory counts are no longer needed. Improved supplier and customer relations increases productivity for your accounting and customer service staff. And, your IT staff can concentrate on adding value to your business.
Benefit 3 – Cost Savings
When you implement a new cloud-based ERP solution, you reap big rewards and save money. Cloud-based ERP solutions are typically paid on a monthly subscription basis. There are no software upgrades to buy and install, and IT hardware costs go down because there isn’t any on-site equipment to buy and maintain. Big reductions in inventory equal big savings on materials. Labor costs go down when you are able to accurately manage production and overtime decreases or is completely eliminated because the right parts are in the right place at the right. A smooth running operation produces less waste, saving money that would otherwise be thrown away, literally. You also save on paper and printer costs because information is now shared electronically. Savings are also realized through fewer product errors and less product returns.
Some benefits of modern ERP system are in inventory reduction, productivity improvements, and cost saving. These add up to greater profitability for your business. ROI for the new ERP solution is realized quickly, and those savings go directly to your bottom line.
Our highly-skilled team of ERP consultants at Revolution Group is ready to help you realize the benefits of modern ERP. If you would like to find out why Revolution Group has been a trusted ERP consulting partner for more than 20 years, call us at 614-212-1111 or fill out the form below. We would love to change the way you think about ERP.