ERP Benefits

As an ERP consultant, I’m always asked – what are ERP benefits?  What is gained by having a full ERP Solution?  Is it worth the cost of time, money and resources?  This blog will attempt to answer these questions and also provide some additional information about the ERP industry and reasons why companies big and small are choosing to take advantage of all the ERP benefits that come with a full ERP solution.

Supply Chain Planning: Many companies across all industries struggle with supply chain management.  It is often difficult to obtain the data you need to make an informed decision about how much product you should stock, where the product should be stocked and what are the needs of your customer base.  A good ERP solution will address these problems through reporting, real-time analysis of customer trends and stock levels and in some cases even recommend the appropriate amount of products and materials to purchase.

Service Management: For companies that service and maintain equipment, an ERP solution is nearly mandatory.  The ERP benefits gained by having access to a cradle-to-grave accounting of every piece of equipment cannot be underestimated.  An ERP solution can easily provide your technicians access to all pertinent information before they arrive to service any piece of equipment – Last Service Date, Solutions, Warranty Information, Maintenance Information, Running Hours, Etc.. This information allows your organization to plan better, have fewer failures and service the customer in a more efficient way.

Customer Relationship Management (CRM): A CRM solution gives your salespeople and managers access to every aspect of a customer’s account.  A CRM goes well beyond basic information, it can include a full accounting of every contact, sale, inquiry a customer or potential customer has ever made.  Over time, you will begin to recognize patterns such as:  In what circumstances do we lose customers?  Which salespeople have the best closure rate?  Are there certain markets that we do not do well in?  The possibilities are endless when you have all of the data and the software in place to generate the reports.  As far as ERP benefits, this in itself is often worth the price tag!

Financial Management: With a good ERP, this goes far beyond AP / AR.  Once the data has been collected, you will get a crisp picture of exactly where your money comes from and where it goes.  This is also an excellent way to benchmark your expenses in comparison to other similar organizations.  Is your IT budget as a percentage of sales in-line with other companies of your size?  Why not?  Are there specific processes that cut into your margins on certain sales?  Do you have to adjust prices on product or specific services?  These are the types of questions the Financial Management modules can easily answer.

As you can see the benefits of an ERP system can vary greatly from one organization to the next. The true benefits will be realized by the time saved and productivity increases within your company.

This is a brief overview of some of the potential ERP benefits for your organization.  This site will be updated constantly so be sure to check back often.