Due to the rise of digital, the way in which companies conduct business continues to evolve at a rapid pace. Consumer and market demands change daily which creates difficulties for organizations to keep current and meet rising expectations.
The benefits of ERP will vary depending on each client’s unique situation. Herea we explain the key benefits for an organisation might not always be quantifiable. This doesn’t take away from the requirement to identify tangible, quantifiable benefits, and five areas where these can usually be found are listed below.
When working with clients to identify benefits, I have found that one of the first things they will talk about is “time saved”. They will back this up with expected savings in hours and days for various teams and individuals. This is not surprising, as ERP will usually eliminate manual, inefficient tasks and duplication of effort.
Introducing better planning tools can lead to an increase in product or service availability, resulting in less orders lost due to non-availability. Functionality to prompt up-selling and/or cross-selling may assist the customer service team to increase order values. If the customer service or sales teams have more time available, they may be able to use this to contact customers or prospects and prompt orders.
There are a number of ways in which ERP can lead to improved margins. Better and more immediate reporting can help an organisation identify and focus efforts on profitable lines. Information on historical spend and supplier tendering capabilities can lead to reductions in purchase costs.
If an organisation is not already availing of early settlement and other discounts and supplier rebates for bulk buys, then many ERP systems will provide functionality to allow them to track and claim these benefits.
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