Benefits Realized From Implementing an ERP System
- Availability of Information 58%
- Improved Productivity and Efficiency 48%
- Integration of Business Operations 39%
- Reduced Operating and Labor Costs 23%
- Improved Lead Time and Inventory Levels 19%
Source: “Clash of the Titans, 2017”, Panorama Circle, Independent Study.
Multiple Systems Across an Organization Cause Confusion
Many manufacturers use multiple databases to run their company. For example, they may use an accounting tool for payroll, finance, and accounting purposes. Some combination of a spreadsheet, CRM, and or an e-mail client is typically used by sales representatives to keep track of customers. As such, understanding what’s really going on in your company can sometimes be challenging as the next section illustrates.
There’s More To the Story Than Disparate Systems Can Share
Typically every “object” in your organization has a rich story that touches all departments. We can imagine, for instance, how a customer may leave a history trail spanning multiple departments. Oftentimes, decisions require knowing the full story. Yet, there is a time cost involved with this, as focused work is interrupted to provide interdepartmental answers. That’s where an ERP comes in.
ERPs Understand The Forest and The Trees
The power of an ERP, as just alluded to, is its ability to connect all of the dots pertaining to an individual “object”, such as a single customer, a single machine, or even a single part. Yet, ERPs are typically able to synthesize information in a way that provide big picture information as well. For instance, how profitable is a particular division, when factoring in direct and indirect costs. You can begin to see how an ERP provides a rich information-base from which to run your business. Yet, not all ERPs are built the same. Read this next article to understand why SAP® is the world leader among ERPs, year after year.
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