How Does ERP Boost Profits?
CEOs, CFOs and everyone else in the C-Suite are constantly on the lookout for ways to improve their profit margins. But in many cases, executives are turning down one of the strongest solutions for cutting costs and growing revenue: ERP software.
Contrary to what many executives think, ERP doesn’t come with high costs and low rewards. It's proven to generate significant ROI and valuable manufacturing improvements. We’re going through a few ways that ERP software can optimize your profit margins.
As cycle times become increasingly shorter, an effective way to steal customers from your competition is to beat their cycle times. Increasing efficiency by taking manual tasks out of your processes can help you achieve this goal. Rather than get bogged down with paperwork and menial labor, users can focus on serving customers, improving products and finding new revenue channels.
Plus, with automated workflows and instantly updated data, your company doesn’t have to worry about human error. Users won’t need to manually enter data across separate spreadsheets or applications. Information entered in one module is updated throughout the system to ensure accuracy.
ERP brings together diverse modules and all your back-office data to facilitate enterprise connectivity. This gives users a full view of manufacturing performance, driving effective decision making. For example, you’ll be able to drill down into the costs of a product with data showing the costs of raw material, inventory, transportation and more.
ERP vendors are finding cutting-edge means to expand connectivity. Social collaboration tools mimic social media channels, letting users across departments and locations easily get in touch with each other on their mobile devices. Additionally, IoT functionality provides real-time metrics on shop floor conditions and equipment. This allows users to monitor the factory, schedule preventative maintenance and take measures to avoid unplanned downtime.
You can’t fix problems you can’t see, but having 360-degree visibility into your enterprise can be a challenge. Because ERP serves as a hub for back-office data, your users will have the accessible insights necessary to detect and solve issues. For example, users can monitor role-based dashboards to determine which assets are underutilized and locate areas of loss. Once these problems are discovered, your business can work to eliminate loss and cut waste to improve profit margins.
Manufacturers often struggle with quality and inventory control. Users might find a defect late in the production process or fail to realize they have low stock. ERP provides granular visibility, so your business can not only detect issues early in the supply chain but also leverage detailed metrics to avoid future errors. This level of visibility will reduce scrap, rework, stockouts and other costly issues.
An Epicor Gold Partner, Datix will do whatever it takes to maximize the value of your ERP solution. We’ve helped manufacturers increase profits for over 20 years. From start to finish, our certified consultants provide scalable solutions and reliable support.
Ready to transform your business through software? Contact Datix today to learn more about Epicor ERP!