Time and time again, companies have called us regarding enterprise resource planning (ERP) software to say their main goal is data management and centralization. Some of these callers already have an ERP system in place, but it was never correctly installed or fully accepted or utilized by its users. And in some cases, the prospect’s organization has outgrown their current system, or it simply lacks the functionality and tools they need to be efficient.
In other cases, businesses use an accounting software, an inventory system, a product configurator, Excel spreadsheets, or simply paper and pen. It becomes problematic when these processes are manual and you have numerous systems relied on by employees and they’re not integrated or fully unable to work simultaneously. The training needed, the time spent maintaining, and the cost of using or running all these systems are all detriments to that type of company management and operations.
It’s usually at this point in the process where companies look for an enterprise resource planning solution to do everything for them. Why have your accounting, production, and sales in three different areas? There are many reasons why an organization should centralize their data in an ERP system below, we’ll discuss some of those reasons.
Rather than running four separate systems for accounting, inventory, sales, and shipping, for example, you can put this all on one system at one cost, rather than four separate vendors that will charge you each for support, training, and upgrades or updates. Switching to one ERP system for all data centralization and management makes your organization more efficient, saving you money.
Employees will no longer have to look in multiple areas for information. They can go to the one ERP where they know it will be since there are no other places. They will not be searching or looking for data at this point, they will already know where it is.
Anyone in the company, from upper management to shop floor employees, can now see everything in the system. There is no delay, no personalized access (unless you choose), and no lack of communication given they will have the exact same information at their disposal.
With an ERP, from the day a job is quoted until it is received by the customer, everything can be tracked. Is it pre-production? Is it being coated or painted? Is it being shipped? These can be answered at any point by checking the ERP to see where it is at in the process.
Before the sale even occurs, you can see what you have inventory and other orders to tell how long a job should take. You can forecast if you need to order more parts, fewer parts, or make changes to job priories. This leads to an improved efficiency and happier customers since they will have realistic expectations.
Simply put, having everything in one system eliminates the need to have the same data entered in multiple areas of the business. This keeps everything concise and given you enter it only once, it lessens the change for errors and inconsistencies.