5 ERP benefits for your company

A serious ERP system and implementation is much more than transactional recording and financial / warehouse reporting. Proper system selection and implementation throughout the corporate operations can be a success/fail factor in today's cut-throat global market.

ERP is all about control. An ERP system creates a clear view of the flow of money, materials, resources and equipment utilization across the enterprise. This improved communication allows you to fine-tune processes, identify and eliminate waste, and streamline scheduling.

 1. Improve Cash Flow

Cash is the oxygen of your enterprise. You want it to move fast, minimizing collections time, improving your payment deals through careful planning of your commercial policy and your suppliers negotiations. Keeping track of your loans and optimizing them, surely helps as well. ERP will provide a clear view of where your working capital is and a consistent cash flow plan, which is paramount if you want to assist your organization to survive and grow.

2. Reduce Inventory Levels

Inventory management is a significant portion of operating cost. Inventory consumes employee time, production capacity, and ties up valuable working capital. ERP allows you to get a clear, across-the-enterprise picture of inventory flow. Assessment of inventory balances allows you to decrease materials on hand without impacting production and sales. Tracking expiration dates or discontinued items will allow you to reduce waste.

3.  Reduce Cost of Materials

ERP enables efficient supplier interactions. Proper forecasting allows for materials ordering without costly last-minute requests and small batch runs. Supply chain visibility allows your employees to spend less time trying to organize and order materials. Efficient use of your ERP can even automate aspects of ordering materials, freeing up valuable resources. And analysis of inventory on hand allows you to spot areas where more competitive pricing may be available.

4.  Improve Production Throughput

Enterprise Resource Planning means using data and information to employ all of your tangible and intangible assets in the most efficient and effective way possible. ERP stores all of your processes, all of your resources availability, all of your materials, and develops a schedule to maximize your return on investment. From minimization of costly changeovers to “right-sized” production runs to on-time delivery, ERP streamlines your operations. The result is improved information flow, less waste, higher quality, and improved customer satisfaction.

5.  Reduce Labor Costs

Labor is often one of the largest portions of your costs. ERP will assist you make the most of your labor investment. Improved forecasting ensures you do not waste production man-hours on unnecessary product. Proper scheduling makes the best use of your capacity, preventing product from being produced on overtime. Indirect labor is also significantly impacted. The transparency provided by an ERP implementation will make planning, scheduling and procurement more efficient.