Enterprise resource planning (ERP) is crucial for any organization aiming to effectively manage assets, invoices, orders, procurement, and finances. With custom ERP software built according to industry-specific challenges, it is possible to boost staff productivity, streamline business processes, minimize human errors, and reduce costs.
They are configured to support many departments. An ERP software system can be employed by accountants, manufacturers, supply chain engineers, distributors, HR specialists, and other employees.
Since ERP software solutions provide many benefits, companies are increasingly using them in their operations.
According to Valuates Reports, worldwide enterprise ERP market size is anticipated to reach $60.23 billion by 2026, growing from $43.44 billion in 2020. Industry Research Co. estimates the ERP software market will generate $19.52 billion between 2020-2024.This is an increase at a CAGR of 9% during the indicated period.
In this article, we will consider the main benefits of ERP software. Let’s get started.
How does ERP software work?
It serves as a means for integrating employees, processes, and technologies across a company. ERP software solutions centralize data and support business operations.Then, ERP ensures that the information collected from different departments is unified, accurate, up-to-date, and complete.
As a result, specialists don’t have to use multiple systems or have multiple records. All users can create, store, and apply the same data to perform different tasks. Therefore, this automates processes like data validation, reporting, and financial management.
For instance, imagine an organization that builds computers by purchasing and assembling components from numerous suppliers. With custom ERP software, the company will effectively track requisitions and plan procurement.
Through data centralization, each computer part will be tracked from order to payment.Also, you can identify and search items by filters. Such as name, size, material, price, source, serial number, and vendor’s name. With ERP, it is also possible to analyze and control expenses. You can do this by visualizing data on dashboards and generating reports.
Reasons to integrate ERP software
According to a Panorama Consulting Group report, 64% of companies chose to integrate ERP to improve business performance. In other numbers, 57% of participants wanted to reduce working capita. 49% strove for simplified employee tasks.
Most of the surveyed institutions accomplished their objectives by using ERP software systems: 48% of respondents realized between 51-80% of their projected advantages, while 43% obtained 31-50% of forecasted benefits.
With ERP solutions, these organizations managed to:
ensure the availability of information
provide data reliability
increase process and operation integrity
boost productivity and efficiency
improve lead time and inventory levels
cut down operating, labor, and IT maintenance costs
increase visibility into operations
improve interactions with suppliers and customers
Now, let’s see in what business processes you can use ERP applications.
Where can you use custom ERP software?
An organization can develop ERP software for various processes. Such as, accounting, inventory management, and tracking business operations, including HRM and marketing.
You can create an ERP software system for:
accounting, involving billing and invoicing
inventory and warehouse management
supply chain engineering
order and tax management
reporting and analytics
Additionally, you can integrate ERP software with a CRM system to do other things. For instance, automate data sharing, improve communication between departments, track turnover, view analytics, generate statistical reports on sales and expenditures. Read this article to explore the key advantages of using a CRM application.
Top 7 benefits of ERP software integration
1. Enhanced customer service
As customer, vendor, and partner data is centralized, specialists can focus on improving relationships with clients. Instead of maintaining numerous spreadsheets and searching for information. With finance management, process tracking, and analytics, companies enhance the quality of services. They do this by providing on-time delivery, faster responses, and order accuracy.
2. Facilitated reporting
By using an integrated database for all business processes, employees from different departments can access the required information. Thanks to a single source, a user stops using numerous spreadsheets to keep track of operations. For instance, when preparing a report, specialists don’t have to search data across multiple sources and verify it to accuracy.
3. Reduced costs
With custom ERP software, an organization doesn’t use various solutions for processes. For example, reporting, accounting, order processing, procurement and inventory management. As a result, a company can reduce costs by replacing systems that need a lot of maintenance, license acquisition, and sometimes team training on how to use each app.
Through ERP integration, you will boost employee productivity and optimize workflows. However, ERP software development requires investment, this will pay off in the future.
4. Data accuracy and error minimization
Data accuracy is among the main benefits of ERP software for businesses. Inventory, purchases, financial, and other data are stored in different places. It may take a long time for employees to find it. Resource planning and accounting require a lot of effort. Especially when information is updated in one location and not updated in others.
In some cases, specialists are too busy to make changes in documents. In others, they simply don’t have access to the right systems. Resulting in errors and extra costs that you can prevent by integrating an ERP software system.
5. Automated accounting
ERP software solutions allow companies to automate the accounting of goods, materials, components, and sales. Having a single database is much easier than keeping hundreds of spreadsheets and paper documents.
You can add all the required formulas in an ERP application. As a result, employees don’t have to create them on their own for calculations, which can also result in human errors. With ERP software, you will improve accounting and relieve the time of specialists for more revenue-generating tasks.
6. Effective collaboration
Improved collaboration is among the most essential benefits of ERP software integration. Without enterprise resource planning, organizations find their teams confused. This is due to dispersed data, complex access, and the necessity to verify information accuracy.
ERP can include a variety of things. Specifically, accounting, point of sale, manufacturing, inventory, warehousing, orders, projects, and services. Using an ERP platform shared across departments, data from various sources is recorded in one location. It has automatic updates, activity logging, and role-based access control. When using it, you will not only boost efficiency but also employee satisfaction.
7. Optimized supply chain management
An ERP software system can be used for many purposes, including supply chain management. In addition, you can track the production and delivery of goods, minimizing bottlenecks and achieving transparency across departments.
Tailored to industry-specific needs, an ERP application can help improve demand forecasting, plan procurement and distribution. By tracking inventory and predicting supply, you can analyze stocks, reduce overages, and cut down expenses.
Learn how you can resolve supply chain challenges with cutting-edge custom logistics software development.
Custom ERP software development
At Arateg, we help our customers meet business-specific needs and increase revenue by using software solutions. One of our featured projects is ERP software development for Pintel, a worldwide clothing brand.
Pintel used to have dozens of spreadsheets for tracking products and materials. They were used to control the availability of goods and components, employees had to check multiple documents. However, because process were manual, they consumed a lot of time, resulting in extra costs and team efforts.
For the purpose of addressing these issues, Pintel turned to our software engineering company. Building an ERP software system, we automated accounting of materials, available products, manufacturing defects, and enabled sales tracking.
By using the embedded formulas, employees don’t have to make calculations themselves or create a single formula for each column in a spreadsheet. Thanks to this solution, Pintel raised efficiency and improved job satisfaction. In conclusion, with streamlined operations, now specialists can devote themselves to more important tasks.
Want to develop something similar? Contact Arateg software experts on their website for a free IT project consultation.