The 10 biggest benefits of an ERP system

Does an ERP system bring real, tangible added value? Many companies ask themselves this question. The number of skeptics is at least as great as the uncertainty as to whether the introduction, required resources, etc. are really worth the effort. Of course, it is ultimately a case-by-case decision for each company. However, one thing is clear: an ERP system generates a multitude of benefits - there are good reasons to choose an ERP system. We have summarized the most important ones for you.

1. Optimized processes and uniform user interface

Many companies that have so far managed without ERP work with Excel spreadsheets, for example. There's no question that this works. The disadvantage, however, is that these do not interact with each other, do not automatically inform colleagues of any need for action and have to be maintained manually. While this is manageable with a low order volume, you can expect a huge amount of work with the risk of falling into chaos as demand increases. An ERP system, on the other hand, combines all your data in a standardized, structured interface.

• More overview and transparency as well as fewer misunderstandings and duplication of work
• Improved information flow across departments

Example:
You no longer record orders and their status in confusing Excel lists, but view both digitally via your ERP system.

2. Successful digitalization

Digitization is on the rise! ERP is often one of the first steps of particular importance. This is because it transforms manual processes into digital workflows sustainably and effectively.

• Reduced time expenditure
• Fewer paper-driven processes and manual archiving
• Digital access to data from (almost) anywhere
• Easily find specific documents thanks to the search function

Example:
Manual, paper-driven processes that are filed chaotically in folders are a thing of the past. With your digital ERP system, you can process important business documents at the click of a mouse.

3. Better collaboration

ERP systems offer functional benefits. At the same time, they are particularly helpful and noticeably beneficial for cooperation within the company. The digital storage of documents in one place enables users to access them directly instead of having to ask a colleague. Thanks to electronic collaboration, also known as e-collaboration, you can also assign tasks digitally to the responsible person and view the current status in real time.

• Reduces the complexity of processes
• Less need for coordination thanks to central data access: the ERP becomes the "single point of truth"
• Automated workflows

Example:
You are looking for information and need support from a colleague - but they are on vacation. This quickly becomes a problem for companies that work analog. If you rely on the benefits of an ERP system, all essential data is centralized in one place and can be accessed by everyone involved.

4. Fewer errors

Because all data is up-to-date and collected in one place, you avoid transmission errors, double entry and inconsistencies. The risk of errors is reduced.

• Documents are created with the correct data, as the necessary information comes from the ERP system
• Reliable reporting, as the information is based on a standardized database
• Always with the latest data, as you are not inadvertently working in an outdated file

Example:
It is easy for a document to be processed twice or a list to be created twice. This can have fatal consequences - and it is precisely these that can be avoided with your ERP. Because here you can see directly what the status of a process is.

5. Better decisions thanks to reliable reports

An analysis or report is only reliable if it is based on a complete database. As you ensure this with an ERP system, your reports become more meaningful.

• Complete reports with high informative value
• Better basis for making appropriate decisions
• Authorized employees at all levels of the company can access information at any time

Example:
You create a quarterly report on sales figures. To do this, you have to laboriously collect these figures, write to all your sales colleagues and hope that the tables you have created are complete. With the benefits of an ERP system, you can not only access your data more easily, but also completely. Practical, isn't it?

6. Integrate other solutions

An ERP system covers a wide range of processes. Thanks to the integration of other solutions such as DMS and CRM or intelligent evaluation tools such as Microsoft Power BI, there are even more benefits.

• More productivity, as processes run across system boundaries
• Time savings, as you have reliable access to the entire database in one system and do not have to jump back and forth between different solutions

7. Less time and costs

ERP systems pave the way for time savings: because the data entry effort is reduced, redundant work is eliminated and you have to search less, the effort is reduced.

• Reduction in administrative and organizational effort
• Data capture partly possible via scanner
• More time for your actual tasks and therefore a sustainable competitive advantage and cost savings

Example:
If there are problems with a batch or its components, things have to move quickly. However, manual lot tracking is time-consuming and extremely tedious. With ERP, you can track batches digitally and at the click of a mouse.

8. Motivated employees

Monotonous tasks in particular are often a boring part of your daily work routine. With an ERP solution, you can hand over these tasks directly to the software, making your job even more enjoyable. You carry out tasks more productively. Digital tools also give employees the feeling that they are working in a modern environment and are securely positioned for the future.

• Less pressure for employees and therefore more enjoyment of their tasks
• Regular sense of achievement
• Modern interfaces and apps increase working comfort

Example:
There is nothing more boring than filling Excel lists. And you no longer have to, because your ERP brings the information together for you instead.

9. Optimized warehouse management and successful project control

Keeping stock levels up to date manually requires a lot of effort and discipline. Because ERP systems have integrated warehouse management, your inventory is always up to date digitally. The customer is happy because you can make reliable delivery statements.

• Current stock levels at a glance
• Precise determination of the required order quantity and delivery date
• Timely repeat orders

Example:
Products are to be dispatched tomorrow and you quickly realize that there are not enough resources! This won't happen with ERP, because here you can view the status automatically and react in good time.

10. Mapping industry-specific processes

ERP systems in their standard version support companies from almost every industry in simplifying day-to-day processes. Nevertheless, there are particularly specific processes for each environment that are not covered by the normal functional area. In many cases, laws and regulations even make these mandatory. This is precisely where extensions come in.

Extension of a standard ERP with industry-specific special functions and the ability to digitally map company processes:

• Can also meet regulatory requirements
• Companies benefit from the provider's expertise and experience

As you can see: An ERP system offers a wide range of benefits. Efficiency, time savings, transparency and employee satisfaction - the list of plus points is by no means exhaustive, but offers massive additional potential. Ultimately, each company develops its own optimal areas of application for ERP and therefore the reasons for an ERP system also differ. The benefits in everyday life are therefore very individual in addition to the overarching benefits.

The final question is: What benefits does an ERP system offer for the different areas of the company? We have summarized this for the most important departments.

Benefits of an ERP system for controlling

• Access to the central and up-to-date data pool
• Time savings, as data sources no longer have to be merged manually
• Create reports with little effort
• Value comparison at the touch of a button

Benefits of an ERP system for the service department

• Seamless documentation and tracking of service cases
• View configurations via device files
• Mobile access to information via apps, even when on the move

Benefits of an ERP system for the accounting department

• Easier handling of large volumes of figures
• Straightforward and digital data capture, posting and checking of business transactions
• Simple and legally compliant archiving thanks to the integration of a digital document management system
• Automated invoicing from the ERP

Benefits of an ERP system for sales and marketing

• Create customized campaigns thanks to stored data
• Access to customer files and information with little effort
• View order histories and assess the likelihood of closing a deal
• Easily answer customer questions, for example about the status of an order

Benefits of an ERP system for management

• Make decisions based on reliable data
• View important key figures
• Maintain an overview of relevant information from different areas of the company
• Integration of other solutions

Benefits of an ERP system for purchasing

• Reduced coordination effort
• View stock levels and purchase orders for raw materials and components in good time
• Recognize requirements thanks to automatic order suggestions
• Digital access to all processes and the supplier file in discussions with suppliers

Benefits of an ERP system for logistics

• No more manual processing of delivery bills and shipping orders
• Simplified requirements for packaging materials from customers thanks to packaging material management
• Simplified handling of order picking and stock transfer thanks to digital processes

Benefits of an ERP system for production

• Automated creation and maintenance of parts lists
• Overview of the capacities of machines, people and materials
• Monitoring of orders directly from the production center, so that critical orders
• resource bottlenecks and other problems can be resolved in good time

From trainee to head office: ERP systems bring benefits for everyone.

An ERP system brings a lot of benefits and has the potential to generate lasting benefits and make work easier. From sales to accounting, the entire company can benefit and digitally simplify its day-to-day operations. However, regardless of the size of a company and the industry in which it operates, ERP only has an optimal effect if it meets the company's own requirements. Of course, good software provides a broad basis for the benefits presented and many more. But every industry has its own individual needs - and these need to be identified and implemented.

The secret to this is an industry-specific ERP solution. Because this is how you generate what should be the actual goal: maximum benefit.