When a company is in the process of vetting enterprise resource planning (ERP) software vendors, it can be difficult to decide which one to choose. All of these companies will tout the benefits their products offer and describe how it can help an organization become more efficient while bringing down costs. However, for decision-makers closely involved in the ERP platform selection process, understanding the value of the solution in a general sense can make choosing a vendor to work with much easier.
No two ERP software developers are the same. However the benefits provided by the different platforms on the market will be similar in terms of delivering the desired outcomes.
For organizations that still are unsure of which direction to go, here is a brief overview of the ways in which an ERP solution can improve a company from the top down. Once this is understood, the vendor selection process becomes much easier to complete:
- Brings the cost of operations down: Lowering overhead is one of the most critical focuses of any organization. Companies routinely look for ways to scale back on unnecessary business needs in order to maximize profit margins. ERP software enables companies to better manage resources through the delivery of real-time data that allows for better balancing of outgoing expenses versus incoming revenue generation.
- Delivery of business intelligence: BI is a concept where decision-makers have a complete understanding of an organization in terms of where its strengths lie and areas where the company may fall short. According to excITingIP.com, ERP software gives decision-makers a holistic view of an organization, providing the necessary insight needed to address areas where improvements should ideally be made.
- Allows a company to remain in compliance with established regulations: Most companies, especially those involved in manufacturing, will need to operate in accordance with guidelines mandated by the local, state or federal government. Failure to do so can result in substantial fines and penalties. The Ramco blog wrote that many ERP platforms allow these requirements to be entered directly into the system, proactively alerting decision-makers in the event that they fail to maintain compliance in one or more business areas.
- Improved interdepartmental collaboration: There are very few organizations comprised of multiple business units that allow each to operate autonomously. Most companies thrive and grow when each individual part of the company works in concert with one another. In essence, the right hand needs to know what the left is doing at all times. ERP software allows multi-departmental communications to flow seamlessly, keeping staff members updated with the most accurate information at all times.
- Provides better workflows: Some organizations are more complex than others. This is one area where ERP software can provide the most benefit . These platforms are designed to introduce a system that improves workflow, making a company more efficient in the way that it operates. This is one of the reasons why these software platforms have become so popular over the years.
- Big data: An ERP platform is only as good as the data it provides. Many vendors have begun integrating a more robust set of analytics that companies can use to gain a clear picture of how they operate. Big data has become a buzzword across a wide range of industries and organizations are always looking for tools that will provide them information that offers a deeper and more thorough look into every area of the business. When researching ERP software vendors, decision-makers will want to find out how thorough the reporting will be on the platform. This is a critical component in any platform selection process.