After analyzing “what is ERP”, it will be useful to hear about some of the benefits of using the ERP system. In particular, we will discuss two main problems when your company does not have an ERP system and what benefits your company can obtain from its implementation.
- Too many competing systems lead to failure of execution
Let’s suppose that the company does not use the ERP system. Instead, they use separate systems to perform the functions of an order, accounting, inventory, purchasing, etc. The companies that use this type of model have different practices. In fact, your accounting will be everywhere. This type of practice is as follows: you must enter an order in a separate system, then print it and then use another system to fulfill the order; Then go to the accounting system, and then go to the inventory system to track the inventory. As you can see, there is a great place for errors in this process.
- Companies will be difficult to grow
The second main problem that arises without an erp system is that it will be difficult for companies to grow. This is because the company will continue to add more people to its processes. While it is natural to add people to a growing business, a poorly organized business requires more people to conduct low-cost operations, such as double entry, reconciling differences between information systems and collecting data to assess what It happens to make decisions.
Ultimately, the hrm system facilitates growth. Without these systems, it can grow, but at a slower pace and with lower profits. You can be sure that your competitors will adopt these excellent systems and, therefore, have the best practices to make them more profitable and competitive.