Plug the Leaks, Improve Profitability

1. ERP Helps Implement Standard Operating Procedures With ERP software, you can define and implement standard operating procedures. Describe precise step by step workflow, define rules and guidelines. You can prepare detailed checklists and validations for each & every activity of every function. ERP generates SOP related documents or formats and provides relevant reports to concerned managers to verify whether best practices are being followed or not.

Standard operating procedures ensure consistency & standardization in the company, reduce or eliminate errors, improve communication & coordination among departments & teams, improve efficiency & productivity. This reduces idle time, minimizes wastages thereby reducing costs & improving profitability.

2. ERP Helps to implement Financial Discipline in an organization ERP software helps to implement financial discipline by defining a set of rules, policies relating to every financial aspect of the organization, and ensuring that these rules are followed by everyone in the company.

With ERP you can set up specific budgets for each department, unit, cost centers, based on your business objectives. You can set up the “Dunning Process� an easy and effective way to manage the accounts receivable effectively. You can define the credit control policy. ERP automatically sends reminders, notifications, and alerts to ensure payments are received on time.

Thus, you can exercise stringent control on spending, avoid unnecessary or unplanned expenses, ensure positive cash flow, and Healthy working capital.

3. ERP helps implement Business Discipline You need good business discipline in every function of your business and at every stage if you want to scale & grow.

With ERP Software, companies can set up business discipline by defining clear guidelines, processes, and standards for Production, Inventory, Sales, Procurement, Finance, Quality.

Read more specific examples of how to implement Business Discipline for each function.

Business Discipline enables optimum utilization of resources, eliminates wastes, avoids delays & bottlenecks, strict quality control, assured product quality. This helps to speed up production, ensure faster time to market, save costs and improve profitability 4. ERP helps achieve Cost Reduction Cost Reduction is the process to identify and remove unnecessary expenses from businesses to increase profits without impacting product quality. Companies should identify the Biggest Costs and mark cost-cutting areas for continuous improvement. With ERP Software, companies can achieve cost reduction in areas such as Procurement, Inventory, and more.