The advantages of an ERP system are obvious to those on the shop floor, as ERPs improve efficiency and get jobs out the door faster, but are sometimes harder to see by CEOs and upper management who are more removed from day to day operations. But ERPs are actually a vital tool for CEOs and can help improve a company’s overall performance and profitability. Below are 5 ways that ERPs help CEOs.
1. Cost Savings
At the end of the day keeping more money in the company coffers is the goal. Though ERPs may seem like a costly investment up front, they will help you save money in the long term. ERPs help your business become more efficient, which translates to more money in your pocket. ERPs help you streamline your organization and processes, meaning better supply chain management and inventory control, as well as lower labour costs, which all translate into greater profits for your company. In small manufacturing operations, ERPs also help you substantially reduce your IT costs, by consolidating the number of systems, licences, and IT experts you need to run your business, again, translating into more money in your pockets.
2. Better Customer Experience
Keeping customers happy is the most important thing you can do to ensure repeat business. If your customers like what you are doing, they are more likely to stay loyal — and recommend you to other businesses. Even though your customers will never directly interact with your ERP system, it is a vital tool in creating better customer experiences. As your ERP helps you to streamline and make your business more efficient, you will offer more fair and consistent pricing, deliver a more consistent product, improve your service levels and delivery standards, and increase your customer service response times, leaving you with more satisfied customers. And these satisfied customers will reward you by placing bigger orders more often, leading to more business for you.
3. Better Reporting
Gaining better insights into your company is crucial in remaining competitive in today’s fast moving business climate. An ERP consolidates data from across your organization, and in real-time, letting you generate detailed and up-to-date reports. Most ERPs come with tons of detailed reports and template built into them, allowing you to create accurate reports quickly and easily. You can now analyze and compare metrics across your entire company without needing to rely on multiple spreadsheets and email chains to find the information. Better reporting, including financial reporting, lets you know where you are at, and allows you to plan and forecast with greater accuracy.
4. Total Visibility and Transparency
This is one of the top selling features of an ERP as an ERP allows total access to every important process in your business by making real-time data from every department easily accessible to you, your senior management, and your staff. ERPs introduce a level of transparency to your organization and are one of the most effective collaboration tools that exist. When everyone in your organization has instant access to the most relevant and accurate data, they can push projects forward to completion rather than waiting for updates to be shared. ERPs will also let you and your senior management know exactly where you stand, leading to point number 5…
5. Better Decision Making
Ultimately as the CEO you have to make the tough calls about your business. This isn’t an easy job and the decisions you make can have a major impact on your business and the people who work for you. ERPs give you a better understanding of your entire organization, and with more data and a greater insight into your operations you can make faster and better decisions in response to challenges, opportunities and market trends. You can also be more confident in the decisions you make as you know they are backed by real data. The tough decisions will never be easy, but an ERP can assist you in making the right call for your company.
In short an ERP is a crucial tool for your business, and will help you analyze, assess, and lead your business forward. Now you are ready for the next step, partnering with the right ERP for your business. Learn how to select the right ERP for you with our ERP selection kit for custom manufacturers.
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