The new normal for the world is volatility, uncertainty, complexity, and ambiguity. This is a challenging new normal.
Under these conditions, a business’s digital foundation requires a transformation in order to enable the standardization of business processes, and to integrate data together and deliver real-time information and better prepare for the unexpected. This usually means an ERP solution. How Can ERP Improve a Company’s Business Performance? That’s the question this article will attempt to address.
An Enterprise Resource Planning (ERP) system is the digital foundation that makes this business transformation possible. A new generation of cloud-based ERP can modernize systems, making them more flexible and scalable in line with business growth without unnecessary upfront investment—and that’s crucial in an era of tight budgets.
Business Benefits of an ERP System
The business benefits of an ERP system are many. Some of the ways that ERP helps:
ERP helps businesses become data-driven organizations. ERP is not just another software package. It provides overall business performance benefits, and first and foremost among them is data integration. With ERP, you get a holistic view of enterprise-wide data on a single dashboard and reduce data redundancy. It's as if your business had a health map pointing you to your weaknesses and strengths.
Advances in cloud computing, including analytics with artificial intelligence, empower a business to make predictions and get insights from data gathered from across the enterprise.
ERP helps businesses reassess business processes. An ERP system gives your business access to real-time data that can help you make the right decisions while improving inventory management, shipping, customer service, employee engagement, and more. Eliminating unnecessary, repetitive tasks and driving down costs without impacting product quality or customer satisfaction further boosts a company’s performance.
However, implementing an ERP system involves changing well-established routines and embracing more standardized business processes—and this must be managed carefully, as it has an impact on employees and their preferences. Change management needs to be rolled out for the project to be successful.
ERP helps businesses retain and attract talent. A modern IT system, including an ERP platform, will support hybrid work, mobility, and team collaboration, all of which are important to younger workers. ERP also incorporates human resource management, which supports workers’ career paths and recruitment while giving management insights into their productivity and performance.
HR can get a true evaluation of workers’ talents, which will help them make decisions on development plans and retention. ERP reduces the risk of employees or their achievements going unnoticed, so executives will have a more balanced and fairer workplace.
ERP helps Improve reporting. ERP’s real-time reporting capabilities enable businesses to keep track of product components, manufacturing, packaging and shipping, and more. This increased visibility can reduce the risk of compliance oversights and the costly repercussions those can bring. Businesses have the power to identify what needs to be changed and to anticipate how those changes will affect other processes.
By generating reports with real-time data, a business no longer needs to wait weeks or months to update their status—they can tackle problems as they arise. Regular reports will be supplanted by real-time notifications, enabling a business to become proactive rather than reacting to a summary of data.
ERP helps modernize IT infrastructure. If you subscribe to a cloud-based ERP platform, both its hardware and software are effectively upgraded on an ongoing basis. IT modernization not only happens during ERP implementation, but continues into the future.
ERP brings businesses the data and visibility they need to transform their operations, from reducing employee turnover and cutting shipping costs to mitigating compliance issues. The business benefits of an ERP system are many.
ERP in Supply Chain Management
ERP in supply chain management is particularly helpful. An ERP platform can enable enterprise-wide processes, ranging from business support to the ability to connect and interchange data with material requirement planning (MRP) and warehouse management. Businesses can increase the accuracy of their orders and get real-time data for better order management, leading to lean, just-in-time manufacturing. ERP can be interconnected with third-party logistics providers and EDI systems that improve supply chain performance.
In addition, ERP in supply chain management can help streamline the overall processes of the organization and make it possible to connect with third parties for a more comprehensive supply chain, resulting in increased overall efficiency, accuracy, and productivity. This gives companies the agility to quickly adapt to new opportunities. ERP also delivers real-time analytics, improving profits and efficiency.
ERP in Life Sciences
ERP software also can be configured for specific industries, offering near turn-key business performance improvements. One good example is Navigator’s SAP Life Sciences Solution. Our SAP Life Sciences Solution helps deliver a tier-1 platform for meeting regulatory compliance and the exacting standards necessary for a life sciences business.
Our SAP Life Sciences Solution can improve the use of raw production materials, reduce wasted costs and overstocking, and increase the efficiency and accuracy of procurement and replenishment. For firms that have different laboratories and third-party manufacturing facilities, quality control is critical. The SAP Life Sciences Solution helps with regular quality control tests, provide result tracking and process validation, and improve production standards.
It also can dramatically improve sales team performance by automatically producing sales quotes, notifying agents when to contact prospects, tracking customer histories, programmatically transferring information to sales orders, and helping to unify marketing with sales, among many other benefits.
The use of an ERP platform enables life sciences businesses to record historical data, facilitating seamless audit checks and document analysis for businesses with operations in various countries that must cope with multiple currencies and taxation regimes.
The business benefits of an ERP system are many. Learn more about the SAP Life Sciences Solution from Navigator can help your business grow.