What are the Biggest Problems ERP Tools Solve for Businesses?

Share

What are the Biggest Problems ERP Tools Solve for Businesses

A business without an ERP is just like a ship without a captain. In a manually operated or paper-based business, anything from inventory to production to dispatch can go haywire and a bulk of the confusion can creep in any corner resulting in chaos. Something similar was experienced by Sam in his process manufacturing business. What?? Do you sail in the same boat as Sam? Worry not, because Sam is going to meet his best buddy Liza, who owns and runs a successful business but without stress. You can also lend your ears to their conversation and, who knows, probably here rests the solution for your business defies too.

Sam: I wonder, how do you remain so carefree and relaxed? Don’t you experience the ups and downs of your business?

Liza: Trust me, Sam, I used to face a lot of troubles earlier. But, after having an Enterprise Resource Planning (ERP) solution, I am just sorted out with everything.

Sam: Why? What is so special about ERP?

Liza: That I will tell you later, first you tell me, why are you in a fix?

Sam: I don’t know where to begin with? I thought business expansion was a sign of growth. But for me, it has become a headache. Instead of generating revenues, I am losing a lot of money in managing orders and covering up additional costs. Since the time I have expanded my business, problems seem to creep in from every direction and I am just losing my cool.

Liza: Ohh… You are having a tough time then.  Can you brief me on the problems faced by you?

Sam: All my departments are dependent on each other for information and cannot execute a job independently. I am unable to regulate rising costs and all my customers are annoyed because of delayed orders. Quality issues creep-up every now and then. It seems like documentation has been taking forever to complete. In short, everything is out of control.

Liza: And it’s going to grow with every new branch you set up and every new office you launch because your business lacks a solid single platform for information exchange.

Sam: What to do then?

Liza: Straight away deploy an ERP solution. Because it will help you win over most of the business problems any manufacturer encounters in the absence of ERP. The top five ones I am discussing with you now, rest you might discover in the due course of your ERP association.

1 Beat the Mess due to Disintegrated Information

Lack of right information at the right time is the biggest problem faced by any organization. ERP offers an easy solution by providing a single source of truth in the form of a single database so that authorised personnel of respective departments can access information whenever they want; thus ending dependencies and encouraging the uninterrupted execution of operations.

2 Knockout Overall Rising Costs

The bottom line of any business is to make maximum profits, which can be achieved by cutting costs, boosting sales and minimizing waste. Strong inventory management allows maintaining optimum levels of inventory, therefore making ‘just in time’ production possible. It also eliminates any room for wastage or inventory decay, which contributes towards cost cutting and ultimately reducing extra expenditure.  Also, ERP takes up modern way of lean manufacturing to enhance production at minimum possible cost and losses.

3 Bang the Demand and Supply Imbalance

We can say that in order to earn the profits, you have to ensure that goods reach the end user at the right time, in the right quantity and inappropriate condition; and for that, proper planning is indispensable. To strike a perfect balance between demand and supply, an ERP considers available inventory, goods under production, material yet to be received and then lays a proper plan. ERP proves to be a single unified solution to provide real-time updates of the order placed, inventory stock, and delivery date so that you never disappoint your customers by delaying a delivery.

4 Overcome Decision Dilemmas

Many times, business owners come across situations, where key decision are to be taken instantly, but one lacks sufficient information or statistics to analyse the situation. ERP brings the entire business matrix at one place and just a click away from you in a pictorial representation with real-time updates. ERP offers an exceptional feature of Analytical dashboards presenting a clear picture of all the business processes. It enables you to use filters, which extracts data according to your convenience. You can easily spot problem areas and optimize processes that are doing well.

5 Defeat Financial Issues

ERP takes away your financial worries by synchronizing data of every transaction of sales, purchase, production, and warehouse transfers. Moreover, it allows multi-lingual and multi-currency support so as to support your multi-location branches and offices. Thus aiding in business expansion along with speeding up journal entries, bank reconciliations, and transaction postings for up to date bookkeeping.

Sam: Wow!!! This is spectacular. If ERP can do all this I must get it as early as possible.

Liza: ERP does not only this but much more to your business. To cut a long story short, ERP transforms your business operations and takes it to new heights.

In case you wish to know more about ERP how does it functions, ask for a free demo on sales@batchMaster.com.