How a Modern ERP Can Help Your Company Save Money and Increase Efficiency
Choosing and implementing a modern ERP is a significant undertaking for most small to medium-sized businesses, and even the thought of going through this process can be daunting. But organizations like Riley Sales, who upgraded to Acumatica with the support of Net at Work, realized benefits such as:
- Reducing their monthly close from 22 days to 5 days
- Eliminating the need for an additional FTE position
- Removing quoting responsibilities from sales and granting AR access to statements
In this article, we take you through the primary benefits of a modern ERP system and provide more examples of Net at Work customers who are experiencing these benefits through savings and increased efficiency.
Understanding ERP Systems
ERP systems serve as a central database for the entire company, offering valuable reporting potential and numerous ways to increase productivity and lower costs across the organization. By centralizing data, ERP systems provide cross-departmental visibility, enable efficient analysis, resolve data conflicts, and drive process improvements. This translates to cost savings and better productivity as employees spend less time searching for needed data.
Benefits of Modern ERP Systems for SMBs
- Data Security and Centralization: Modern ERP systems enhance data security by storing all company data in one place, reducing the risk of data breaches and improving compliance with regulations. This centralized approach also standardizes data formats, making it easier to generate reports and analytics.
- Increased Productivity: ERP systems can automate repetitive tasks, freeing up employees to focus on higher-value projects. For instance, automation can reduce manual data entry and processing, allowing staff to concentrate on strategic initiatives. This increased productivity means SMBs may not need to add as many new employees as they grow.
- Visibility and Decision-Making: With real-time visibility into business operations, managers can make faster and more informed decisions. This visibility helps identify inefficiencies and opportunities for cost savings, such as preventing over-production or rush orders.
- Scalability and Flexibility: Modern ERP solutions are scalable and flexible, adapting to changes in business operations as the company grows. Cloud-based ERP systems, in particular, support growth by managing hardware and software updates, ensuring that the company always has the latest version without additional IT costs.
- Collaboration and Customer Service: ERP systems improve collaboration by providing a unified view of business processes, allowing teams to work together more effectively. Additionally, they enhance customer service by offering a complete view of customer interactions, enabling personalized experiences and timely issue resolution.
How ERP Systems Help SMBs Save Money
- Reduced Manual Labor: By automating tasks such as data entry and financial reporting, ERP systems significantly reduce the need for manual labor, decreasing costs associated with employee time and reducing the likelihood of human errors.
- Improved Financial Management: ERP systems enhance cash flow management by providing insights into financial health, improving invoicing accuracy, and ensuring timely payments. Advanced accounting features help small businesses manage their finances more effectively, reducing costs associated with financial mismanagement.
- Efficient Resource Planning: ERP systems support optimal planning and management of a company’s resources. They help ensure efficient use of resources in areas such as merchandise management, production, warehouse management, and human resources, leading to time and cost savings.
Real-Life Examples of Savings and Increased Efficiency
After Genesee Country Village & Museum migrated to Sage Intacct, they noticed several areas of savings:
- A dozen hours saved during the budgeting cycle by automating manual processes
- Heightened efficiency allows their finance team to operate with just 3.5 FTEs, saving 2 additional hires
- Real-time financial visibility enables managers to monitor budgets and make timely adjustments
Midway Industrial Supply replaced a legacy ERP with Acumatica and realized the following ROI:
- 25% efficiency gains across teams and departments
- Automated workflows and business reduce staff touchpoints, decreasing the time to payment and increasing cash flow
- Even with three acquisitions, only one new finance hire was needed
Polycoat Products migrated to Sage X3 after their legacy ERP was sunsetted. The benefits they received from this upgrade include:
- Annual business audit reduced from a few months to a few hours
- Growth from 2 to 10 locations seamlessly supported, handling thousands of transactions weekly
- Customer self-service portal improves customer service and saves staff time
Choosing the Right ERP System
When selecting an ERP system, SMBs should perform a thorough needs assessment to ensure the chosen system supports current and future business requirements. It’s crucial to evaluate vendors based on their track record, scalability, and customization capabilities. Additionally, assessing the total cost of ownership, including implementation and operating expenses, is essential for making an informed decision.
Upgrading to a modern ERP system can be transformative for small to medium-sized businesses. By automating processes, enhancing efficiency, and providing real-time data for informed decision-making, ERP systems help SMBs save money and allocate resources more efficiently. Whether it’s through cost savings, improved financial management, or enhanced customer engagement, the benefits of a modern ERP are undeniable.
To explore how a modern ERP system can transform your business, contact us today for a complimentary Business Health Assessment.
For more information on ERPs and how they can help your organization save money:
English
हिन्दी