You’ve dedicated a serious amount of time, effort, and work to starting and growing your business. With growth, however, comes a certain sense of urgency surrounding the management of every last aspect of your business – each has the potential to add or detract from your success, and now at an even larger scale. For business owners looking to get ahead of the competition, addressing productivity is key to not only keeping your business running smoothly but to minimize expenses as well.
Enterprise resource planning software systems, or ERP, can address your productivity issues by helping you isolate ineffective processes within your current business plan, even as you grow. Better yet, ERPs can assist in leading you to solutions that will make your operations more efficient. For these reasons, many businesses have begun to rely on ERPs to increase productivity across organizational systems.
What Is ERP?
Before diving into the many ways ERPs can help your business become more productive, it’s important to address the basics of just how ERP systems operate. At the most basic level, ERP systems track all the resources utilized by your business, including aspects like purchase orders, inventory, production data, distribution information, payroll and other accounting, sales, e-commerce, and more – if it’s data relevant to the operation of your business, ERP systems can track it. Then, the ERP system allows the information to flow between the different components of business and displays the relevant data for use by those who need it the most.
For businesses with an existing variety of data tracking and reporting applications, ERP provides the opportunity to simplify reporting to a single interface. Similarly, for businesses with multiple departments or numerous companies within a single business footprint ERP promotes the sharing of information between those entities. Even better, ERPs are very flexible and allow for continuous improvements as businesses grow and change.
How Can an ERP System Improve Productivity?
One of the best reasons to implement ERP systems is the efficiency benefits for businesses of all sizes. In particular, the primary benefit offered to small and medium businesses is the increased productivity garnered by implementing ERPs. Productivity benefits include:
- Integration and management. As mentioned, the purpose of an ERP is to centralize the data reporting and information generated by each of the many different aspects of a modern business. Instead of collecting digital reports, printouts, or other reporting formats from a number of individual applications for different departments, managers can view the information on a single interface. In addition, information cannot be lost or misreported, and it can be updated in real time to ensure the highest accuracy.
- Forward planning and strategy. Since ERP integrates all information from various parts of the business into a single structure, it is much easier to see the overall trajectory of the business. From the information given, you can begin to make informed decisions regarding the future of the business. On a smaller scale, decisions regarding day-to-day operations are made easier with complete access to information.
- Clarity of organizational and departmental performance. Utilizing an ERP to create a single reporting system allows you to compare the productivity of multiple departments and view the most inefficient parts of your business. Then, you’ll have the data necessary to make changes and view in real time how those changes affect the numbers. You can assess the performance of your organization as a whole or view departments separately to address internal productivity.
- Streamlined processes. While separate components of your business may operate and report a bit differently – particularly those that have their own reporting applications – ERP allows you to automate processes across departments. All departments and employees using the solution provided by ERP can access the necessary information and roll out changes as they occur. After the work is done, ERP prevents data re-entry and other redundancies and inaccuracies, making processes like production, order fulfillment, delivery, billing, payroll and more efficient.
- Financial oversight and control. Aside from the operational productivity provided by ERPs, these systems provide financial efficiency as well. You’ll be able to see where every dollar is spent and earned with a centralized financial reporting interface, which allows you to make informed decisions regarding your business’s spending. What’s more, you’ll have a better handle on your risk management measures to avoid future spending pitfalls.
- When each component of your business and its associated information is isolated from the others, encouraging cooperation between them often hits a dead end. With ERP systems, data is consistent and available from a centralized location, allowing collaboration between departments. Ease of collaboration means increased productivity during projects that require input from more than one department.
- Increased mobile productivity. Enhanced access to centralized information reporting means you, your managers, or your employees are always within reach of crucial data anywhere you work. Cloud-based ERP solutions provide the ultimate in mobile access, allowing optimum productivity whenever you need it. Better yet, the security provided by today’s cloud-based systems ensures the utmost in data protection no matter where you are.
- Cost savings. As a final piece of the productivity puzzle, the cost savings provided by ERP systems and their reduction in the amount of administrative oversight and operations costs can be shifted elsewhere in the business. The resulting streamlining of information and speedier decision-making can lead to a much more productive, cost-efficient business. If you choose the right ERP for your business, you’re bound to experience a significant return on your investment.
Avelera is pleased to offer our new cloud-based ERP system, with a partnership with VersAccounts, designed to improve productivity for business operations of all sizes. Whether you offer software as a service for other businesses or brick and mortar-based products for consumers, your business’s productivity is key.
Check out the features of our Cloud-based ERP software and schedule a dmeo today so we can learn more about how we can help you channel your productivity.