The Benefits To Using SAP ERP Software
Having a small business can mean lots of manual communication between a number of different departments. A reasonable solution to such communication is to use SAP ERP Software. This software has many benefits to using it, some of those being reduced costs, better communication and better use of time. Everything that a small business needs to survive in the industry.
If you own a manufacturing business on a decentralized system then that would mean that all the different departments within your business would not have access to all of the information from the different departments. This allows for human error and opens up the way for making mistakes. SAP ERP is a centralized system; this is the opposite of being decentralized. Having a centralized system means that all department within your company will be able to access each other’s data quickly and efficiently, removing any room for human error.
Each day in your business you will experience a customer calling to ask for raw materials, if you were to use SAP ERP Software you would quickly be able to access real-time data which informs you of availability and if it is not available it would also move the department responsible to make orders and that then would be updated on the centralized system. That means that the sales team can respond to the customer’s request on time. This is where you will see an increased revenue and good customer satisfaction. The sales team would then update the centralized system, so that all the departments remain informed about the product status. The production planning department is automatically updated by the centralized system for requirements. The production planning team checks the availability of the raw materials required via the central system, which is updated by the inventory department. Thus, data duplication is avoided and accurate data is made available. The shop floor team update their man power status regularly in the central system, which can be accessed by the HR department. In case of shortage of workforce, HR team starts the recruitment process with considerable lead time to hire a suitable candidate at market price, this will help to reduce labor costs. Vendors can directly submit their invoices to the central system, which can be accessed by the finance department, this ensures all payments are made on time and avoids possible legal action. The success of any organization lies in effective communication, and data exchange, within these departments, as well as associated third party such as vendors, outsourcers, and customers. Every single department will be running efficiently and smoothly with the use of SAP ERP Software.
Imagine the work that would be involved if each member of staff from each department was to do each of these steps manually, this would take valuable time from a number of employees for the sake of a few raw materials and as mentioned leaving room for costly errors. SAP ERP Software will increase productivity, give better inventory management, promote quality and reduce material cost.