How To Leverage your ERP for Business Success 

There are just too many advantages these systems have that can improve a business. It also allows a business to make more money, which is what business is about, right? 

Here I am going to make a list as to the benefits ERP has for a business.

• Less dependency on excess inventory

Reordering/Scheduling

Tracking the Products

Accounting

Excess Inventory  

An ERP system allows data to be entered into a centralized place where different departments can see what was entered from anywhere there is access to the internet. With the amounts of inventory being available, along with knowing how much is needed for sales orders it is easy to keep the excess inventory down to a minimal level. Inventory costs are cut by a lot through an ERP system.

Reordering/Scheduling  

The scheduling for what is going to be manufactured or produced in the coming days can be available and one can look on the ERP system to see how much inventory is on hand and when it needs to be reordered. When it is determined that more inventory is need to be ordered, a purchase order is done and everyone can see that on the system. Inventory receipts also are entered on the system when the product arrives and what it costs is available to view on the system.

Tracking Products  

Tracking products coming into the business and leaving the business is very important to see throughout the different sections of a business. You can track from the time an order is accept through the order being fulfilled. One can see how long it takes to get an order to the customer from the time it is received, which allows a business to see why it took the amount of time it took. If a company believes they can improve on the length of time to get an order out the door, then they can pick apart the process and see which took the longest time and could be improved upon.

Accounting  

The ERP systems allow synchronization between the departments of a company, even if they are in different countries. When the inventory department (sometimes referred to as warehouse) purchases and receives supplies or material, then the invoice with the price is given to the accounting department to pay the bills. However, when departments are not right next to each other, it is hard to send the papers. So the information is entered online in the data system and the accounting department can see and acknowledge the fact that this needs to be paid. 

In conclusion, if a business has skilled and trained employees who can enter data accurately, an ERP system would be very beneficial. It enables timely knowledge of the ins and outs of the business to keep all business processes flowing.