In contemporary business, it would be difficult to name a tool or technology that has as much of a positive impact on a firm’s bottom line as ERP software. It doesn’t matter what industry you’re in, what size your organization is, or what processes you follow, ERP software dramatically and tangibly enhances everything it touches.
How ERP Improves Organizational Productivity
One of the primary benefits of ERP software is increased productivity. Check out just a few of the ways in which ERP greatly enhances productivity in both small and large functions.
1. Makes Employee Jobs Easier
First and foremost, ERP improves organizational productivity by making employee jobs easier. In fact, in a study of more than 300 different organizations that use ERP systems, 9 percent say the best reason to implement an ERP system is to make things easier on employees.
This was the fourth most popular answer. How do ERP systems make things easier on the workers? It’s pretty simple: When employees are less weighed down by inefficient business processes, they make better use of their time performing the duties that actually push the company forward and produce concrete results.
2. Improves Communication
The second way ERP software enhances productivity is by improving communication. With ERP, a company has built-in workflow alerts, consistent procedures and timely notifications.
This means business processes aren’t slowed down by a lack of person-to-person communication or delays between systems. As soon as something happens, the ERP system notifies all concerned parties and tools. This speeds up just about every process in the supply chain.
3. Eliminates Busy Work
When there’s no ERP solution present, businesses waste thousands of man-hours each year doing simple tasks that add very little value to the bottom line. Examples of such activities might include stapling invoices, copying documentation, filing away papers and sending out notifications.
With a robust ERP solution in place, non-value-added tasks tend to become automated and streamlined (if not eliminated altogether). This means everyone in the organization can focus on productive tasks that directly benefit the bottom line.
4. Leads to Better Decision-Making
Without an ERP system, employees must make decisions based on a combination of the information they have in front of them, standard rules of thumb and guesswork. Though this process may occasionally render good results, the incidence of poor decision-making can often be fairly high.
When an ERP system is in place, this kind of guesswork goes out the window. Real-time status information is available within seconds and data is meticulously organized in the proper places. Instead of random decision-making, organizations are able to make fact-based decisions.
5. Promotes Consistency Across Applications
When organizations employ a variety of solutions and manual processes, they’re less likely to enjoy any semblance of consistency. You’ll also see duplicate data, formats that don’t match up, and processes that waste resources by overlapping.
This all changes when there’s an ERP solution in place. The right ERP system establishes consistency across all applications, which reduces unnecessary friction and ensures everyone and everything is on the same page at all times.
As a result, the organization is able to spend more time increasing output and less time analyzing what went wrong.
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