An Enterprise Resource Planning (ERP) system is a broad term describing software programs designed to integrate company functions and make business management more efficient. ERP systems provide a unified, secure platform to direct sales, marketing, inventory, human resources, finance, and other procedures. Investing in state-of-the-art ERP solutions has enabled thousands of companies globally to fine-tune their operations and improve their performance by leaps and bounds.
Most companies exploring the implementation of ERP systems may already be familiar with how an ERP can help support their everyday operations. However, one question such companies bring to providers is whether ERP systems can help them outpace immediate competitors in their home industries—and, fortunately, the answer is yes. Let’s examine five more specific ways that ERP systems can help businesses gain a competitive advantage:
Customizable according to the implementing company’s needs
Reputable ERP providers don’t offer purportedly one-size-fits-all solutions. Instead, they work with client companies to design systems tailor-fit to the organization’s unique strengths, needs, and goals. Instead of investing in large, uncurated software suites full of auxiliary programs they’ll likely never use, companies can choose which modules and functionalities to incorporate into their ERP system. The result is a one-of-a-kind, integrated digital solution that’s well-equipped to enhance company operations and enable the organization to distinguish itself from the crowd.
Simplifies workflows
The more complex a company’s processes are, the harder it will be for that company to perform at optimal efficiency and productivity. Businesses can expect challenges such as bureaucratic processes, unnecessary paperwork, and interdepartmental miscommunications. These challenges could invariably hurt a company’s performance, causing it to fall behind competitors. In contrast, businesses with streamlined operations may get more work done in shorter periods, outpacing their competition.
ERP systems’ integrated and consolidated nature promotes simpler business processes. Putting all vital business functions and processes on a single platform and making them draw from one database makes it easier for different departments to communicate and share information. ERP systems can also automate basic tasks and create neat, streamlined workflows to maximize employee productivity.
Provides accurate, real-time data
Today’s business environment deals with escalating digitalization, rapidly evolving consumer demands and unpredictable market trends. Regardless of industry, many businesses that run predominantly on legacy technology will find it difficult—if not impossible—to remain competitive in such fast-paced, demanding conditions. That’s because legacy software systems simply can’t gather data fast enough or with enough accuracy to drive intelligent, forward-thinking decision-making.
To meet customer and market needs in real-time, contemporary businesses require access to comprehensive, high-quality, and accurate data storage. Fortunately, ERP systems come equipped with highly advanced data collection and analytics tools to help companies gather, store, and manage this critical information effectively. They can then use this information to make more accurate business forecasts, develop sounder strategies, and set a productive course for the organization’s future.
Highly scalable
Businesses in highly competitive industries will always try to find ways to expand their reach, roll out new products and services, and capture a larger market share than competitors. However, successfully navigating the challenging expansion requires a flexible tech infrastructure that can grow as the business does. Hiring new staff, introducing new processes, onboarding new customers, and performing other tasks related to business growth will likely be difficult with only outdated software systems for support.
In contrast, ERPs are highly scalable solutions that companies can reconfigure or augment with additional modules as their needs change. Best of all, system administrators can implement the necessary changes or augmentations without hampering the system’s efficiency or compromising output quality. Businesses that use ERP systems thus have the opportunity to scale up their operations in the shortest possible time with relatively few setbacks.
Improves customer experience
It’s no secret that keeping customers satisfied, happy, and loyal to the brand is a must for businesses aiming to secure and maintain the upper hand over their competition. Such customers will, after all, not only continue patronizing the company in the long term but may also endorse it to others. Businesses that leverage ERP systems to improve their business procedures will also find their customer relations much-improved, even if their customers never interact directly with their ERP systems.
With a well-designed ERP system supporting productivity in the back office, companies can funnel more resources and personnel into improving relationship management and customer service. ERPs can also enhance client-facing processes such as order fulfillment, pricing, and billing.
A well-designed and well-integrated ERP can do many things to make a company more productive, efficient, and cost-effective, which ensures the business can offer better products and services than its competition. Companies that invest in robust ERP solutions should have no problem maintaining a long-term competitive advantage in their fields.