When it comes to ERP implementation nobody is a know-it-all in the very beginning. While there are many myths associated with ERP software implementation the truth remains that companies with an ERP in place report much higher productivity than others. Businesses around the globe want to work smart, connect and access data at fingertips, drive productivity, enable better decision making, increase operational efficiency and much more. An ERP solution addresses these issues and ensures that a company can gain maximum traction from its implementation.
"81% of organizations are either in the process of implementing ERP software or have completed implementation." - Panorama Consulting
Here are some of the most asked questions when it comes to ERP software:
- What is ERP?
Let's start from the basics. According to Gartner, "Enterprise Resource Planning (ERP) is defined as the ability to deliver an integrated suite of business applications. ERP tools share a common process and data model, covering broad and deep operational end-to-end processes, such as those found in finance, HR, distribution, manufacturing, service and the supply chain."
When properly implemented, an ERP solution increases organizational efficiency, performance and profitability.
- What are the core benefits of an ERP system?
An ERP system brings forth a number of benefits that companies can reap:
- A single integrated system
- Streamlining processes and workflows
- Reduce redundant data entry and processes
- Establish uniform processes that are based on recognized best business practices
- Information sharing across departments
- Improved access to information
- Improved workflow and efficiency
- Improved customer satisfaction based on improved on-time delivery, increased quality, shortened delivery times
- Reduced inventory costs resulting from better planning, tracking and forecasting of requirements
- Turn collections faster based on better visibility into accounts and fewer billing and/or delivery errors
- Decrease in vendor pricing by taking better advantage of quotation comparison and tracking vendor performance
- Track actual costs of activities and perform activity based costing
- Provide a consolidated picture of sales, inventory and receivables
- What kind of organisations use ERP?
ERP software can be deployed by organisations irrespective of their size and industry. Obviously useful for large organisations, an ERP is equally effective for SMBs looking to integrate systems and maximise productivity.
ERP empowers the “go-digital” initiative of businesses in a huge way and gives shape to their digital strategies.
- How much does ERP software cost?
The primary factors driving the cost of ERP software are:
ERP software for large organisations tends to cost more than niche software. Also, it is possible to save money by only implementing the functionality they need instead of implementing a whole suite of solutions.
While ERP software is expensive, it should not be a primary factor motivating software deployment as the benefits achieved will recover the costs in the long run.
- What are the risks associated with ERP software?
While ERP has the potential to fulfill some key deliverables of the business, it is also a risky proposition. If not accounted for properly, ERP projects can go out of budget and sometimes the implementation timelines can mess with the operational functioning of a company.
If one does not align new technology with people and processes, it will be difficult to realise expected business benefits.
If you are looking at deploying an ERP software to streamline your business, head to www.factsoftware.com. Transforming businesses around the globe for over three decades, FACT ERP.NG is the perfect business solution that you require. You can also request a Product Demo at https://bit.ly/2TSHBd9.