Successfully implementing your ERP system is just the first step in maximising the ROI of your system – you should then consider the many benefits of ERP optimisation.
While we will look at the top 5 benefits of ERP Optimisation in this article, the overall result is a better performing business. You will be working more efficiently and reducing the manual workload on teams so they can focus more on value-add activities. Not only can this improve their working day, but it can ensure your company is getting the maximum ROI for your ERP.
Meet Changing Business Requirements
As your company grows in size and scope so will the needs of your organisation. These business requirements need to be supported by your ERP if you want to be working efficiently.
For your ERP system to meet these new needs, you often have to perform some ERP optimisation. This is because as you document your new business needs you will start to see gaps in how you actually operate. You can also design for future business requirements, for example if you know a new product is launching in the next six months, then it can be beneficial to have this mapped out and start thinking about how this might impact what you need your ERP to do.
Having these requirements documented is what allows you to create streamlined processes in your business and start to work on optimising your ERP to support them.
Depending on the complexity of your needs, adding extra functionality to your ERP through integrating add-ons can help. Every sector and industry will have different needs and options available to them but looking at additional systems can provide a range of new features.
Unfortunately, these add-ons are often not integrated with the main ERP system properly. This leads to information silos and lost efficiency when teams have to enter data in multiple locations.
ERP optimisation will ensure systems are working together, giving easy access to information across the company. Having multiple systems talking to each other also allows for more accurate reporting and data analysis when it comes to areas like S&OP. A common problem we see is many organisation’s S&OP is actually S&OE which is a potential sign of unoptimised systems.
Better Customer Service
Often an overlooked area but a well optimised ERP system will support your teams in delivering better customer service. By integrating with your other systems, such as CRM, finance, and sales, your ERP becomes the central information point and ensures you have one version of the truth across the business.
For sales teams this means they can help customers faster than ever before. They can quickly see items that are in stock, provide more accurate price or delivery estimates, and track lifetime revenue for different accounts. All this helps you build a customer experience that encourages them to return to you time and time again.
Another benefit of ERP optimisation here is the ability to gain insight into suppliers and vendors. With all the right information you can accurately see what suppliers are delivering on time and if any are underperforming.
Sometimes an ERP optimisation does not involve complicated links with add-ons, rather it is all about updating your software to the latest version. New versions are often released to address issues, add new capabilities, or just improve the general performance of your ERP.
If you have custom modifications to your ERP system, then installing updates will require some extra care to not break anything, so working with your vendor is always recommended for this.
As we mentioned at the start of the article, the overall result of ERP optimisation is a better performing business. By extension, this means you are improving the ROI of your ERP system.
Improving the ROI allows you to show the value that investing in systems can have in your business, getting decision makers onboard with future investments. It becomes easier for them to sign off on expenditure if they can see a history of strong returns and value to the business.
If you would like to see how the benefits of ERP optimisation could enhance your business, then get in touch with our team today.