Benefits of ERP
Today, ERP systems integrate all manufacturing and business processes, from production and inventory management to accounting and finance. When properly implemented, an ERP system can encompass every facet of the organization. This gives management the ability to see what is happening in “real time” across the entire organization.
Management can leverage information from virtually every department to make more informed decisions. The ERP System provides seamless integration across a company’s operations and users can quickly drill into real-time data that may have been previously unavailable to them. Keep in mind, for the process to be successful, everyone in the company from the top executive to the shop floor needs to buy into and be present for the entire implementation.
The benefits will largely depend on your current processes, the scope of your ERP project and the change it will enable. Here are just a few of the benefits that an ERP system can provide to your enterprise:
- Labor Savings: Duplicate data entry is eliminated which means that staff members can be allocated to more important tasks and responsibilities.
Real Time Integration: Transaction data is automatically gathered, processed and passed between modules across the entire enterprise.
- Scalability: An ERP system is easily scalable. It is simple to add new functionalities to the system as the business needs change. This could mean better management of new processes, departments, and more.
- Better Inventory Management: Traceability of each finished product and of each component of a finished product allows users to see where each piece came from in real-time.
- Increased Efficiency: An ERP system optimizes process management and increases the productivity of employees. This eliminates duplicate work and redundant information. Plus, processes are automated.
- Decreased Costs: ERP systems will reduce operating costs in several areas, including: staff, support, infrastructure, and applications. Standardized processes enable organizations to continuously improve efficiency, productivity, and decision making – enabling volumes to increase without needing an equal increase in operating costs.
- Powerful and Flexible Reporting: Production visibility gives users and decision makers a 360-degree view of the business and makes data easily accessible for managers. Management can produce reports on cash flow, cost control, financial risk analysis, source and application of funds, and what-if scenarios to enable more accurate decision making.
- Audit Transparency: Financial audits rely on a comprehensive transaction data layer that is preserved in the ERP system. Historical information can be queried to reveal and track all records that have been entered, modified and deleted by end users.
Modern ERP systems offer users a clear picture of what is really happening throughout the entire organization, from production and inventory management to accounting and finance. With real-time access to all data, users in virtually any size manufacturing company can now make better and more informed decisions.
An experienced ERP consultant can help you discover the savings, analyze current processes, and select the ERP system that is right for you. If you’d like more information on Revolution Group, feel free to reach out to us at 614-212-1111.