Cost Vs. Benefits of Implementing a ERP System
Many small and medium-sized business (SMB) owners are concerned about the implementation of an ERP (Enterprise Resource Planning) system. They are convinced that they are too limited, doing well without an ERP system so far, and so they would be fine without an ERP system, and one of the common yet important points that they consider are the cost, efforts needed to be taken, and disruption to the existing infrastructure and setup.
We are not saying that an ERP software implementation would not entail any cost, but; when one considers the cost savings and advantages of implementing the Enterprise Resource Planning software, you, as a company, in the absence of an ERP system, may have to make the purchase that is in addition to the cost of the operations.
- Having an ERP system reduces the inventory turnover period, which helps you in the reduction of costs.
- An ERP system helps in inventory accuracy which can range from 92% to 98%. Inaccuracy can result in high safety stock, obsolete stocks, and stock-outs.
- It also results in improvements in the accounts receivables and cash flow.
The business environment is becoming very competitive and many new technologies have been adopted by the companies like the Internet of Things (IoT), Machine Learning (ML), Block-chain, etc. Traditional systems will not be able to keep up with these technologies, you would need a modern ERP system like the SAP Business One that would be able to integrate the different business processes in your company and present a lot of data that can help make the right decisions.
A few important things like round-the-clock access to the data, use of business analytics and intelligence, integration of business processes, availability of crucial information on mobile devices, and cloud computing can be crucial to ward off the competition in today’s business environment. Join hands with Softcore Solutions, the perfect SAP Business One Partner in Pune, to implement the best comfort of the Enterprise Resource Planning (ERP) system to your business.
Sensors, in the machinery, helps in letting the manufacturer know about its working conditions and as and when servicing is required. Productivity gains can be made by automating mundane tasks and the time that staffs invest in them. New-aged workforce needs systems that are more user-friendly and easy to use. SAP BusinessOne fills in all these requirements which makes it one of the most sought-after ERP solutions.
Some of the benefits of using an ERP system are
- Instant availability of accurate data is helpful in decision-making.
- A piece of up-to-date information on the inventory.
- Easy-to-use interface, which becomes easier for employees with a system that is easy to work with.
- Knowledge of the stages where the important processes are.
The decision of moving from an existing system to a new ERP system can be an opportunity for the company to transform its processes and prepare for the high competition in the business environment.