The current economic climate poses many challenges for midsize companies. Struggles they deal with include increased competition, market volatility, rapid technological shifts, and skyrocketing costs. They need to be agile to remain relevant and stay ahead.
Managing resources and maximizing opportunities can be tough without proper processes and systems–even tiny errors can cost them big time. Relying on a combination of paperwork, spreadsheets, and disjointed software won’t cut it. Because of this, an Enterprise Resource Planning System, such as SAP ByDesign, can be a game-changer, especially for organizations looking to scale.
What Is an Enterprise Resource Planning System (ERP)?
An ERP is a software developed to integrate and automate essential business operations and help companies manage their day-to-day activities. An ERP suite helps with forecasting, planning, budgeting, and reporting to keep all departments on the same page; it prevents silos and enhances collaboration.
Before you start vetting ERP vendors, let’s look into some benefits of adopting an ERP system.
Improve Efficiency by Streamlining and Automating Processes
An ERP can help save time, effort, and resources by automating repetitive tasks, allowing employees to focus on more critical areas of the business. It does away with redundant work and further boosts productivity. For example, you avoid high volume, labor-intensive reconciliations with an ERP’s built-in account reconciliation and transaction matching.
Provide Better Data Quality and Accessibility
ERPs improve data accuracy and reliability by being the single source of truth for all critical business information. They can collect, consolidate, and organize information efficiently, reducing the risk of duplication and conflict. With an ERP system, it becomes easier to detect errors and inconsistencies and immediately act upon them; they also allow for granularity of data, allowing leaders to identify trends and opportunities leading to more informed decision-making.
Protect Data and Sensitive Information
A cyberattack can be devastating for any business regardless of size, but mid-market companies are especially vulnerable. Without a central system, sensitive files can be sitting on a manager’s unsecured desktop or shared carelessly via email. A security breach can result in permanent data loss and lengthy downtime that disrupts business operations.
The leading ERP providers invest in the latest technology to ensure that your data is protected from cyber threats–you can be assured that they have state-of-the-art security standards. If the ERP system sits in the cloud, it manages and protects sensitive data by creating multiple remote servers that allow for ease of access while providing redundancies in the event of a breach.
ERP systems also provide internal controls and auditing tools to better manage segregation of duties (SOD) and implement automated payment rules. They can document changes for easier tracking and auditing to better identify any anomalous behavior.
Achieve Regulatory Compliance
ERPs can be customized to make it easier to comply with industry regulations. Violating these rules, even if it is unintentional, could result in crippling penalties. Built-in reporting tools provide a way to track compliance and make necessary corrections quickly. For instance, there are ERP systems that help maintain compliance with GAAP regulations, which allows for easier audits and removes the pain of constantly adapting to changing regulations.
Visibility and Better Decision Making
Critical decisions depend on accurate information at the right time, and ERPs provide broad data visibility for complete and accurate insights into the business. They facilitate quick and decisive actions that ensure cost savings for the company.
Consider how frustrating it is for your customers when your products run out of stock–this will hurt your reputation and negatively affect your bottom line. When you need raw materials that do not come on time, it will lead to delays in production or unscheduled downtime. An ERP system can guarantee adequate supply levels with an automated inventory management system.
To learn how ERPs can streamline your business and drive the business forward, register for a demo with NBS today.