An ERP caters to multiple business functions which helps improve productivity of a business. Its role is not merely limited to larger organizations. ERP improves productivity of small and medium organizations too. It serves multiple business functions like purchases, inventory, sales, accounts, manufacturing, and more – no matter what the size of the business is. It enhances cross-departmental coordination, transparency, and efficiency by providing access to real-time information without bothering employees for data.

Often organizations seek productivity improvement by automating manufacturing operations. Lesser organizations steer to IT (Information Technology) for the betterment of productivity. Much of this is due to the lack of awareness of how ERP improves productivity.

How ERP helps to Improve Productivity in an Organization

Apart from streamlining the business process, ERP can help in maintaining lean inventory and manufacturing cycles which directly impacts the profitability and customer experience. Moreover, there are lesser wastages, faster collection cycles, identification of profitable suppliers, and much more. These are few aspects to answer the question – how to improve productivity using IT? Look into some details of how ERP improves productivity in an organization:

Strategic Process Planning

Planning is the most important aspect of any business – that is where it all begins! But is your strategic planning backed by real data? ERP can provide real-time data to support important business strategies and plans in a well-organized format. All this without having to wait for reports from specific departments because you can access it through ERP reporting tabs. Quicker access to such precise reports can aid improve productivity through strategic planning.

Cuts down on Wastage

Analyzing business data that is fed into the ERP software can be a whole game changer for your business – from keeping a tab on the different departmental processes to identifying the loopholes in the process. Such intelligent data can help managers identify problem areas. It can be used to maximize resource utilization by identifying the wastages in production, whether it is time or raw materials and semi-processed goods.

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Enhanced Inventory Management

Ever wondered, how ERP could help the increase of productivity of the management of a warehouse? Well, a smart ERP system can track inventory consumption, set re-order levels, and make smart predictions based on historical data. If there are multiple inventory locations or warehouses it helps track material location precisely – so if you have exhausted a product at one location, you can still serve customers from other locations. Also, you need not worry about missing components in production because the system has already figured out the material requisition and intimated the purchases and accounts to restock it. ERP will also track on upon raw-material quality, its source, batch, lead time, and price -so that you optimize your vendor management as well.

Cross-Departmental Efficiency

ERP brings together data from multiple departments for the business owners to make decisions that can improve cross-departmental efficiency. Identifying vendors who suit your quality standards, pricing, and delivery schedule can be done through the purchase management module. Inventory cycles can be shortened, and the turnaround can be made efficient. Similarly, customer demands can be predicted based on past data available through the sales module. It is also easier to identify overdue payments and ensure improved collection turnaround time. ERP can optimize the manufacturing process by eliminating material and resource wastage. These are some of the aspects that ERP can help to improve cross-departmental efficiency.

Conclusion

Most organizations implement ERP to streamline their operations and improve productivity. No matter how organized your process is, there is still scope for better efficiency that can be attained through ERP implementation.

Turqosoft is among the leading ERP solution providers in India. Our ERP consultants can help you define your core business processes & KPIs. Get advice on how you can leverage technology through ERP solutions for small businesses. Connect with us through email info@15.206.92.4 or call us on +91 98412 05845. Also, you can follow us on LinkedIn, Facebook, Twitter, or Instagram for interesting updates.

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