Why your business needs an erp

Why your business needs an ERP?

An Overview        

Introduction Stat facts How to know if it is time to invest in an ERP? Why do businesses need an ERP system?

Before implementing an ERP: Pre-requisite study Advantages of implementing an ERP Pillars of ERP Conclusion

“Information is a source of learning. But unless it is organized, processed, and available to the right people in a format for decision making, it is a burden, not a benefit.�

-The words of William Pollard

Introduction • In this fast-paced business environment marked by cut-throat competition, decision making has achieved greater significance.

• With changing business scenarios, having updated information and integrated business processes are key to success.

• Businesses strive to achieve their objectives by working SMART- by switching to an Enterprise Resource Planning (ERP) software.

• ERP has helped businesses perform extraordinarily by streamlining business processes, saving money, enriching customer experiences, accessing real-time data, increasing productivity and profit margins.

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Stat facts A survey was conducted by Panorama Consulting, in order to find the reasons for implementing an ERP software. Here are the findings    

It’s an effective cost reduction tool Increases productivity Reinforces customer service Ensures consistent and smooth functioning  Provides constant flow of data

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How to know if it’s time to invest in an ERP? Following are the signs that show your business truly needs an ERP Software –          

Sales and customer experience is suffering Current IT system is complex and disintegrated Accounting has rigid structure and takes longer time No control over expenditure Your staff lacks analytical skills Sluggish order-to-cash cycle Disconnected departments and miscommunication Data security is a threat Compliance management suffocates you Innovation is very far from your vision

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Why do businesses need an ERP System ?

Your business needs ERP in order to –  Gain process automation  Less errors, more efficiency  Have better communication and increased productivity  Better information management  Evaluate business performance  Facilitate data analysis  Meet customer expectations

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Reasons you need an ERP I.

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Automated business process:

•. ERP allows a seamless operational environment for all departments that need to collaborate •. It helps to determine how the process is operating, where the bottlenecks might be, and highlight possible improvements •. Eliminates unnecessary manual tasks, thereby boosting productivity and reducing operational plus overhead costs II. Less errors, more efficiency •. Having a centralized data repository makes collaboration and interdepartmental work easier to execute •. Helps achieve operational goals by streamlining business activities •. Less errors lead to high efficient working by bringing real-time visibility within the organization and empowering datadriven accurate business decisions based on real facts and figures •. Eliminates data redundancy, errors, work delays and unethical business practices and brings efficiency in your business process

Reasons you need an ERP III. Better communication, higher productivity • Everyone can always stay updated and well informed, since the data is real time and accessible to entire organization • Internal employee communication gap is no longer an issue • Allows communicating all the insights and information with stakeholders, vendors, suppliers and customers • Eliminates unnecessary issues and improves your decision making ability to steer the company in right direction IV. Better information management • Position your business for growth through an updated data-keeping system that processes all your transactions and generates automated reports • Gain anytime and anywhere access to the data to know about the business activities going on • Helps companies to take strategic decisions based on the real data to gain a competitive edge

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Reasons you need an ERP V. Better performance measurement • Measures company’s performance by making it easier for all employees- lower to top-most - to understand the impact of the decisions taken • Empowers organization to be more receptive towards the rapidly changing customer demands and helps them fulfil those demands • Analyzes your business performance by evaluating your fulfilled commitments and takes action to improve further VI. Streamlines the business processes • With ERP, your business gains speed, efficiency and accuracy in its operations • Helps meet the demands of your business partners, stakeholders, and keeps your employees happy and productive • Brings in automation and integration which can increase your organization’s productivity while reducing time and labor costs

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Reasons you need an ERP VII. Facilitates data analysis • Helps to gather and transform real-time data across your business • Gives accurate insights into your entire business operations quickly • Helps in data mining, data processing and analyzing to generate the reports by eliminating human errors and extra efforts • Automated report generation facilitates business intelligence, reducing time spent on analysis and reporting • Aids faster, better and informed decision-making VIII. Meets customer expectations • Helps in fulfilling customer’s expectations by providing them with a consistent quality service • Ensures that all the departments are connected with each other seamlessly, so that relevant customer information is available at fingertips for improved responsiveness • Enables the customers to track their order status, deliveries, and resolves other queries too. This, in turn, allows to incorporate the desired changes and offer improved service

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Before Implementing an ERP: Pre-requisite study

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Implementing an ERP for your business is a difficult-yet-important decision. In-fact, choosing the right set of features from an ERP and collaborating those with your business processes is as important as water is for fish.

Hence, to select an ERP which could fit your business process perfectly, you need to do a fair bit of research.

Let us list down a few points that help you in ensuring the ERP you select would help your business move in the right direction – 1.

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Revisit your business processes and see whether they are still relevant Study your workplace environment and find out whether the employees are productive and happy or not Identify the business requirements keeping future scenarios in mind Consider your financial capacity and ROI Evaluate your existing software’s pain points and workarounds before taking any decision Prepare employees for the impending transformation through organization change management Determine the quantifiable benefits of an ERP implementation

Advantages of implementing an ERP successfully

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 Business integration and improved data accuracy: Provides real-time visibility to all the data and interlinks it to the relevant modules. Also, helps in eliminating duplicate data by notifying about the same multiple entries.  Centralized database structure: Enables better administration and security provisions, which also minimizes the loss of sensitive data . Also, helps in storing data in a systematic format.  Improved efficiency and productivity: Helps in boosting up your day-to-day operations and provides a better planning platform to focus on your order fulfillment, deliveries, vendor management, quality checks, financials, cash handling, sales cycle et al.  Flexibility and technology: Helps your business to adopt the changing trends, making your system flexible enough to run smoothly and perform efficiently.  Establishment of standardized procedures: The best business practises are implemented through an ERP, which helps in creating a systematic work structure, eliminating all illegal practises such as theft, fraud and obsolescence.

Advantages of implementing a successful ERP

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 Ensures compliance with regulatory requirements: ERP aids in meeting regulatory requirements by virtue of data security and validation, combined with detailed reports for analysis. This helps in reducing the amount of effort required to meet compliance requirements.  Improves reporting and planning: With the help of a single source of integrated information, an ERP system can readily generate useful reports and analytics at any given time. It helps you analyze and compare the business results across multiple parameters.  Data security: ERP helps in securing data by providing multiple level of access and notifications to the authorized departments. Sharing data across functional silos such as customer service, sales, marketing, and business development enhances collaboration throughout the company. A modern ERP also provides data on cloud, enabling centralized backup of your critical and sensitive business data.

Pillars of ERP  Focuses on building foundation of business success  Focuses on keeping all the information up to date  Focuses on bringing complete business functions on one single platform  Focuses on streamlining business activities  Focuses on making processes simple yet effective  Focuses on letting your business perform efficiently and smartly

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Conclusion • An ERP software provides a set of integrated applications helping your business to collect, store, manage and interpret data from your business activities, thus enabling smooth functioning of your business • It collaborates with different core processes such as finance, supply chain, manufacturing, sales & marketing, raw material procurement, planning etc., bringing them on a single platform • ERP solutions are designed to meet business needs of all type of organizations. Today, a multitude of ERP software exist in the market and so you must be careful and wise to do a thorough research before you implement one in your company Refer our guide on ERP Software Selection for Small Business which answers your queries related to ERP, such as: - Need and Challenges of Small Business and How ERP can help - Signs your Small Business needs ERP System - How to Choose Right ERP Software/Vendor

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About BatchMaster

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 30+ years of experience

 7 offices around the globe

 ERP solutions for small to mid-sized industries

 Available in 3 languages- English, Chinese, and Spanish

 SAP B1 and Microsoft-certified solution  Over 40,000 users worldwide  Headquartered in California, with footprints across the world

 Original developer of formulation system in ERP  Consistent record of never exceeding implementation time of 350 to 500 hours

 A global presence with offices in 3 continents- North America, Australia, and Asia https://www.batchmaster.co.in/