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9 Examples of Enterprise Software (ERP) Reducing Operating Costs

How does an ERP system reduce costs for any business? Why is it so important today, and can I really see my ROI? These are some quality questions for any business owner or decision maker to ask, when they are considering cutting costs.

When an entrepreneur is considering efficiency within an organization, an ERP system should be of high consideration. Enterprise Resource Planning (ERP) solutions have been helping companies run their back office for over 40+ years, so let’s look at the pros of this solution!

Here are 9 examples of how an ERP solution can help your internal operations: 

1) It is an Integrated Solution (Integration brings together people and informational flows within the company! This covers a wide variety of activities like – manufacturing, management, accounting, logistics, CRM, inventory, e-commerce. This maintains flexibility for all users with customization tools available, and being oriented towards workflows & business processes. The best part about this? It is completely SCALABLE for the company’s growth without missing a beat!)

2) ERP’s automate and standardize operational processes. (Disorganized & manual operations are not effective, but an automation of business processing allows the company to perform its best. Minimal effort is done with importing thousands of products or clients, and details that happen automatically from one document to another. Commercial & company policies are also created and maintained within the system!)

3) Scalability! (Having a business solution within an ERP system, allows for the company’s infrastructure to grow with the company for years to come! Sometimes the pain of company growth, can stop businesses FROM growing!)

4) Tracks costs in detail. (The ERP system allows you to set spending budgets and watch actual costs. Flexibility to structure the budgets with various considerations like: departments, geographic location, customers, etc. This also allows the business to forecast budgets that may not have been an option prior to the ERP)

5) Optimize stock in Inventory (If a business has inventory for the company, having an ERP system helps predict the future demand while calculating quantity needed for estimated sales. The system also helps avoid risk of excess stock, while managing multiple locations & warehouses.)

6) Manage warehouses more effectively (An ERP solution allows access to real time information about any stock/inventory movements & changes. Customer orders are automatically transmitted from an ERP to the warehouse, helping to manage the business) 

7) Improves the sales process (The CRM system is designed for customer & prospects relationship management. Having all of the data in the same system ensures employees spending less time looking between systems, no matter which department they belong to: sales, marketing, service support, project management, etc.)

8) Choose an online shop integrated with your ERP system (An effective way to reduce costs is by implementing an online shop! This is a much lower comparison to a physical store, in terms of rent, taxes, maintenance, and wages. This store integrates with an ERP, meaning, all information about customers, products, inventory or prices is automatically transmitted!)

9) Improves the analysis and reporting process (Choosing a Business Intelligence System integrated with an ERP software gives you the possibility to create advance analysis even if you don’t have technical skills. The forecasting allows you to see how your company’s costs will evolve based on historical data.) 

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