Enterprise Resource Planning (ERP) systems have changed the way businesses operate for the better. During the past decade this software has become a bit of global sensation, with business scrambling to get their very own multi-functional system. Here are five reasons why your company should join them and invest in an ERP solution:
1. One Central Data Repository
Having all your functional business data in one place is a must when you are trying to boost efficiency. For instance, if a customer calls in and tells your customer service operator that their shipping address has changed, the new information can be put into a single repository and all the departments within the company will have access to this updated information. In contrast, those companies that have separate standalone systems could easily overlook the amended address because it may not have been added into their system. By keeping all of your important business data in one place, the chance of human error is markedly reduced.
2. Increased Productivity
ERP increases overall productivity because it facilitates the flow of communication from one department to another. Constantly analyzing and storing the most up-to-date information, this software enables companies to get better results because potential problems are identified and addressed promptly. It also increases efficiency in other ways, by making it easier to know what to include on a particular order, managing shipments, generating detailed reports, completing paperwork, calculating earnings and much more.
3. Cost Reduction
A technology and services company called Aberdeen Group conducted a survey on over 1,100 small to midsize firms in 2010. They found that the main reason most companies wanted the software was to lower their costs, and ERP does just that. Better business process integration means that less time is wasted chasing up inquiries and updating information, which is good for both customers and employees.
4. A Better Customer Experience
There is a correlation between a positive customer experience and loyalty to a service or product provider, which is why so many firms are customer-centric these days. A research team found that positive customer-focused interactions correspond with a customer’s readiness to repurchase and their reluctance to switch. They are also more likely to promote the company to friends and family, as well as on social media, which is the most effective form of marketing you can get. But where does ERP come into this? An International Data Corporation (IDC) survey showed that there is a strong link between customer experience and the expanse of the software.
5. Adhere to Best Business Practices
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