What Are the Primary Business Benefits of an ERP System?

Today’s businesses increasingly rely on various digital tools designed to enhance productivity, accelerate performance, and increase efficiency. ERP, or Enterprise Resource Planning tools, are just one of the core technologies modern companies use in virtually every industry.  

An “ERP” system provides companies with the tools to manage day-to-day business operations like procurement, accounting, compliance, project management, and supply chain operations. Essentially, these tools give organizations an effective way of working and distributing crucial resources across the enterprise.  

For years, ERP solutions have been considered a fundamental tool for enhancing productivity, business performance, and cost savings. The market for ERP technology is growing towards an expected value of around $90.63 billion by 2029.  

But what are the core benefits of an ERP system, and why should companies use these tools? 

Table of Contents

What Are the Core Benefits of ERP Software?

ERP solutions streamline business operations, coming in various shapes and sizes to suit different brands. 

While ERP systems have traditionally been used most often in the manufacturing landscape and by much larger companies, they have benefits to offer virtually every enterprise.  

The primary benefits of ERP software include the following: 

1. Increased Data Security

For every business, data is an essential and powerful resource. It’s crucial to making the best business decisions and generating rapid growth. ERP software can help to protect this vital asset by storing endless pieces of critical information in one place rather than spreading it across multiple systems with various levels of security.  

Companies can store their data in a single repository, either on-premises or in the cloud, and improve regulatory compliance. Business leaders may also use access controls to determine who has access to which pieces of information at any given time, reducing data leaks. 

2. Enterprise Automation

ERP can improve business productivity in a multitude of different ways. The automation of repetitive, manual tasks is an excellent example. It frees employees to focus on more “value-added tasks.” 

Furthermore, by creating a central repository of information accessible by all departments, ERP makes it easier to find critical data.  

ERP systems also enable standardized organizational workflows, which help guide employees through the various tasks they must complete each day in a clear, step-by-step format. Not only does this improve productivity and eliminate confusion, but it can also eradicate discrepancies and ensure every team member follows the same best practices.  

3. Greater Organization Visibility and Efficiency

A core benefit of an ERP system is the ability to provide companies with better visibility into the various aspects of the business and its operations. Integrated information from all departments is consolidated into a single source, making it easier to view end-to-end productivity pathways. Additionally, this combined data helps to improve the quality of the information available to business leaders, giving them greater context.  

Visibility into the status of various business processes will also help teams to adhere to deadlines and recognize potential bottlenecks which could be holding the business back. ERP systems provide instant insights into potential problems with efficiency and productivity so that companies can make more intelligent decisions for growth.  

4. Enhanced Flexibility 

Like many technology solutions in the modern world, ERP systems are increasingly shifting toward the cloud environment. This unlocks opportunities for greater flexibility in the workplace. Cloud ERP systems enable workers to operate remotely without compromising access to crucial data. An ERP system can also accommodate more users and features as the business expands.  

A business can start small with essential ERP resources to help them track important accounting and supply chain management strategies, then gradually progress to unlock new functionality. 

Finally, it is possible to design ERP solutions to suit the needs of specific businesses. For instance, there are technologies specially created for those in the manufacturing or financial sectors.  

5. Cost Savings 

One of the main reasons many companies consider investing in ERP systems is that they have the potential to save the organization significant money. ERP solutions can cut costs in a range of different areas. As mentioned above, repetitive tasks can be automated, which reduces the need for the business to hire additional personnel to handle manual jobs.  

At the same time, the insights offered by ERP software can provide companies with valuable insights into where they could be losing out on opportunities. Business leaders can quickly identify areas where they’re spending the most money and generating the least return. Some ERP solutions even come with AI analytical tools that can offer advice to improve ROI.  

6. More Detailed Reporting and Analytics 

Access to advanced reports and analytics is one of the most immediate benefits companies can access with ERP systems. Most modern tools may create custom reports for tracking metrics across all business functions, from procurement to sales and marketing. Business leaders can even compare the performance of different departments when looking at specific KPIs.  

Because ERP systems collect data from all over the business to generate reports, they may provide access to relevant real-time and historical data in the same place. Users can track sales numbers as they evolve or look into historical trends to make better decisions. 

Moreover, many ERP solutions come with forecasting tools that allow businesses to predict their ongoing performance in terms of productivity, cost savings, and more.  

7. Additional Customer Context for Service Teams

ERP systems can be an excellent way for businesses to stay one step ahead of the competition when offering exceptional customer experiences. An ERP can pull customer information such as contact details, support cases, and order history into the same place, allowing for the creation of complete customer profiles. These profiles then assist agents and business leaders in delivering more personalized service to each customer.  

ERP solutions can also improve customer service by giving employees access to more accurate real-time data on inventory, supply chains, and other factors. This means staff can provide consumers with accurate updates on their orders and stock changes.  

Uncover which technology vendors lead the ERP space by reading our article: Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises 2022


— Update: 30-12-2022 — cohaitungchi.com found an additional article Benefits of ERP – What are the Primary Business Benefits of an ERP Systems? from the website dynamics.folio3.com for the keyword what are the primary business benefits of an erp system.

Entrepreneurship isn’t an easy feat, especially when you don’t have tons of money to play around. And out of the various challenges faced by startups and SMEs, investing in the right technologies is certainly amongst the trickiest challenge. The key here is to keep up with the technology and innovation that drives your company, while not wasting any precious capital by investing in technologies that aren’t in line with your business bottom line.

Now, when we are talking about the significance of the intelligent investment for startups and SMEs, it’s a fair question to ask if investing in ERP is worth it.

That’s precisely the question we will be looking to decode in this blog by looking at the various benefits of ERP for startups and SMEs, while also detailing the potential disadvantages of implementing an ERP system.

In general, irrespective of the size or model of the business, an ERP system is meant to assist you in enhancing your workflow process for increased efficiency and higher customization & flexibility; leading to smooth sailing for the business.

Introduction to ERP Software

Now, before we look into the benefits or limitations of an ERP system, it would be better to briefly decode the system and debunk some myths about ERP.

A Brief Overview

Keeping it to the most basic definition, an ERP system comprise of tools and features that help businesses to centralize their database and automate various routine tasks for greater efficiency and reliability. The ultimate goal of implementing an ERP system into the business workflow processes is to relieve the team of redundant tasks and direct them towards most instinctual tasks to generate more value for clients. By creating a central repository for the entire business database, an ERP system ensure timely and remote access of important data across all business functions for increased productivity and subsequently more revenue for the business.

What makes an ERP system truly unique is its capacity to optimize all business functions. In simpler words, an ERP system is end-to-end business mobility and growth solution offering various functionalities including;

  • Accounting
  • Inventory Management
  • Human Resources
  • Manufacturing
  • Customer Relationship Management (CRM)
  • Analytics and Reporting

What are the primary business benefits of an ERP system?

Now that we have a brief introduction and functioning of an ERP system, let’s now quickly discuss what are the primary business benefits of an ERP system.

Below we have listed down some of the primary benefits of an ERP system:

  • Optimization of workflow processes
  • Remote and instant access to business data
  • Easy sharing of relevant information across all business functions
  • Automation of redundant and time-consuming operations
  • Lowering of costs of litigation
  • Elimination of redundant data
  • Maximizing the operational efficiency
  • Optimization of control and analysis of management
  • Improved customer support with customized and flexible services
  • A more competitive business model with the ability to compete with national and international businesses

What are the benefits of ERP systems for startups?

While many startups and SMEs see an Enterprise Resource Planning (ERP) system a tool meant for large organizations, in reality, the system is equally beneficial for startups and small businesses. There are various specific benefits of ERP systems for startups from customer servicing to efficient operations and from maximizing productivity to lowering the cost of operations. Below, we will specifically be looking into the benefits of ERP systems for startups and how it can help startups to sustain and grow in a highly competitive marketplace.

Benefits of ERP Systems for Startups:

Synchronization among Departments

In today’s digital business environment, it’s not uncommon for businesses to operate and manage different business functions from remote locations. In fact, the key to success in today’s digital age is to manage remote business operations efficiently with robust intra-function synchronization amongst various departments.

With a robust ERP system implemented into the business workflow process, it becomes possible for startups to easily and effectively manage remote operations with a central data repository and encourage collaboration between different departments. It also enables filtering and merging of data coming from different business functions like warehouses into a unified data repository.

Faster Turnaround Time

Enterprise resource planning (ERP) is almost synonymous with efficiency and productivity. With a robust ERP system integrated into the business workflow process, it’s become easier to have real-time insights into all aspects of business and take immediate well-informed decisions based on stats metrics. All of this leads to more efficiency and faster turnaround time; crucial to keep the competitive advantage.


By integrating all core business functions; the ERP system creates a unified data flow, which can be accessed remotely by all operational teams with access permission. This leads to better coordination and collaboration amongst different teams; subsequently resulting in increased productivity and revenue for the startup.

Read more  Benefits of ERP – What are the Primary Business Benefits of an ERP Systems?

Managing Operating Costs

Lack of capital is one of the biggest challenges faced by all startups. Any capital with a startup got to be utilized with utmost diligence. Also, in order to be competitive in the industry, startups need to keep their operational costs to a bare minimum. The key to minimizing the operational cost is to negate any changes in data redundancy or duplicity. By implementing a robust ERP system, startups get to leverage superior data synchronization and identify any operational loopholes leaking money.

Decision Support Systems

Enabling the top management to make well-informed and timely decisions is among some of the top benefits of ERP systems. Since ERP systems come with various modules to cover almost all essential business functions, it enables executives and leaders to get insights into the business health and take any necessary steps with an agile approach to keep the competitive advantage.

What are the benefits of ERP systems for SMEs and Enterprises?

ERP systems aren’t just useful and beneficial for startups, rather they also offer high-value to SMEs and enterprises by enabling them to optimize their business functions and automate redundant tasks for greater efficiency. Now that we are done with the benefits of the ERP systems for startups, let’s take a look at some of the benefits of ERP for SMEs and enterprises.

Synchronizing the flow of information

In order to compete with the established and large businesses, SMEs and enterprises are required to keep up with the operational and production pace. This can only be achieved with a consistent and fast flow of data and information amongst various business functions. For instance, the operational function of any SME needs to be integrated with the finance function to ensure the timely release of payments and tracking all business transactions. A robust ERP system enables SMEs and enterprises to create a central data repository for all business functions; thus ensuring timely flow of information across all business departments.

Increased productivity

By ensuring a fast and consistent flow of information across business functions through a central repository, the ERP system enables faster coordination amongst employees resulting in improved efficiency and higher productivity for SMEs. The ERP system maintains all critical data like vendors’ lists, bill of material, operational processes, and others, which can be accessed by all relevant team members to create consistency and coordination in work processes; saving time and improving the productivity for SMEs.

Maintaining Control and Reducing operational costs

One of the most challenging tasks for SMEs and enterprises is to scale their business; which often requires impeccable control over data and controlled scalability of operational structure. Many SMEs with inadequate planning and resources end up collapsing utterly in their bet to scale and grow. The ERP system is the ultimate resource for SMEs looking to expand and scale their operations while maintaining complete control over their operations and avoiding any unwanted chaos. Contrary to the simpler and inefficiency tools like spreadsheet or QuickBooks, which are better-off for the very limited scale of operations; an ERP system gives businesses the intelligence and power of automation they need to keep up with their growing needs and handle more complex business processes including higher transactions and greater operational procedures. Also, by controlling the scalability dimensions of the business; ERP system ensures lower operational costs for businesses; which remain crucial for all SMEs looking to remain competitive and relevant against the national or international competition.

Greater flexibility

The greatest strength of SMEs and enterprises against the industry giants is their agility and flexibility to adapt to varying market needs. While the industry giants fail to implement change across their business functions given their clumsy operational lines and legacy systems, SMEs are in a better position to adapt and mold their operations as per the changing market conditions. A dedicated ERP system offers SMEs greater flexibility they require to keep agile workflow processes and incorporate any necessary changes to data management or in any other business functions to keep the competitive advantage.

Long term planning

Keeping records for all business transactions is crucial for the sustainability and growth of SMEs. However, many traditional budgetary tools like spreadsheets or physical receipts aren’t the best option when you are looking for long-term sustainability. Not only these practices are inefficient; limiting the productivity of SMEs, but also there are greater chances of errors of loss of crucial data. Alternatively, with a dedicated ERP system, SMEs are in a better position to keep up with their data storing requirements, while also keeping an efficient system for tracking business transactions on a daily basis.

Intelligent decision making

Last but not least, the ERP system enables business leaders and top management to make well-informed and intelligent business decisions backed by data and business insights. All reputed ERP system comes with robust reporting and management features that enable the leaders & executives to get real-time access into the performance of all business functions through dashboards. They can also generate interactive reports with stats metrics for all business functions, enabling them to monitor the health and performance of all functions and make intelligent data-backed decisions.

Best ERP system implementation practices to gain full benefits out of it?

Now that we are done with the benefits of ERP for startups, SMEs and enterprises let’s move on to an important aspect – the implementation of the ERP system. It is important because to be able to leverage the full potential of an ERP system it’s important to thoroughly plan and execute the implementation strategy while taking on board all stakeholders including the executives and team members who will be the end-user for the new system. Below we have come up with the best ERP system implementation practices that will enable businesses to leverage the full potential for their investment.

Prioritizing the Key Business Requirements

The first step for ERP implementation starts with an understanding of your key business requirements. As we said earlier, the ERP system comes with various modules for individual business functions like accounting, marketing, sales, customer service, operations, and others. Also, each of these modules come with at higher costs, which means the best way for businesses to minimize their investment and maximize the utility of ERP is to understand their need from the ERP system and prioritize the ERP modules they need the most.

Key Performance Metrics

An ERP system doesn’t come cheap, especially when we talk about startups and SMEs; already battling their way through the limited capital. Thereby, when you do invest in an ERP system, you need to make sure that you are exploiting the full potential of the system and reaping its benefits. But how do you measure the success of the investment? The most definite and obvious way to measure the success of your investment into an ERP system is to develop key performance indicators (KPIs) that will enable you to quantify the performance improvement in business functions post-implementation of the ERP. It will also help you to measure tangible improvements into the business functions to help assess if the investment is worth its value or not.

Invest in Training

Moving on, another crucial step when it comes to leveraging the full potential of your investment in the ERP system is to invest in the training of all the stakeholders; especially the employees who will be the end-user of the system. One of the most common reasons why many businesses fail to realize the full potential of an ERP implementation of improving their business performance is because they fail to invest in upping the skills of their employees for the new system. Not consulting the employees and other stakeholders for the implementation is also one of the most common reasons why many businesses struggle to implement the system effectively; as they face internal resistance towards the change implementation. Thereby, before you invest in the ERP system itself, make sure you invest in your employees and other stakeholders by taking them into confidence about the new system and upping their skills in line with the new system.

Early Data Migration

Last but not least, you need to ensure early and complete data migration onto the ERP system for successful implementation. Remember, your business data is amongst the most crucial and precious asset and any loss here would translate into the loss of revenue and even business reputation. Thereby, when you are looking to implement the ERP system, make sure you give adequate attention and resource for early and complete migration of data from old to the new system.

Disadvantages of ERP Systems in 2020

With all the benefits and advantages of the ERP system that we have discussed above, you must be thinking about the potential downsides and limitations of the system, right? Well, it’s only rational to think that any system would have its due share of limitations or downsides for the business and ERP systems are no exceptions. There are certain risks and drawbacks that come with the implementation of ERP systems and below we will be looking at some of the major drawbacks of implementing a new ERP system.

The Cost

Well, the most obvious drawback of ERP implementation is the cost of the system, which could easily run up to five figures for a single license. Ok, not all ERP systems come with such huge implementation costs, but even if we are at the lower end, the cost is still the single biggest drawback and limitation of the ERP system that deter businesses to implement. In fact, only the upfront cost of the ERP implementation can be prohibitive for most businesses; especially startups and SMEs. And while SMEs or startups can minimize the upfront costs by choosing a cloud ERP solution, they would still have to pay monthly subscription charges; which again isn’t the cheapest investment.

Implementation and Maintenance Cost

Even if you make up your mind to invest with the huge upfront and monthly subscription cost, there are other major investments that come with the ERP system and the implementation cost is one of the major investments; which may cost you as much as four times. Before you decide to implement an ERP system into the business workflow process; you need to consider the manpower and time required to effectively implement and maintain the system. In many cases, you may need to hire separate IT staff or outsource the implementation and maintenance needs to a professional ERP consultant (again an additional major monthly investment). Also, you would have to consider the costs of employees training for the new system, while also taking into consideration the costs required to purchase requisite hardware like servers or other mobile devices.

A better and more affordable alternative for SMEs and startups is to choose Cloud-based ERP software which is offered as SAAS (Software as a Service). With a cloud-based ERP solution, businesses not only save the upfront costs of the implementation but also save huge costs on the maintenance and hardware purchase for the new system. However, while a cloud-based ERP system may reduce the overall implementation costs, it will still be a major investment for businesses.

Customization Process

The endless possibilities for customization are perhaps one of the best aspects of an ERP system, however, on the downside unplanned customizations may get out of hands pretty quickly. While customizing may seem an exciting prospect for business, it isn’t an easy feat to achieve and requires lots of time, expertise, and money to implement correctly. Also, not adequately allotting the resources and money required for customization often results in utter failure and loss of money for businesses. Thereby, if you are looking to customize your software, make sure you got the expertise, resources, and time required to achieve it effectively.

Folio3 is Your Perfect Dynamics ERP Partner

Folio3 is a leading global IT service provider that excels in implementing customized and high-value IT solutions to meet your unique business needs. Our experienced and expert programmers and IT professionals collaborate with clients closely to develop the most innovative and perfect solution specifically designed to improve the efficiency and productivity of your business. We are one of the premium Microsoft Dynamics 365 ERP implementation partners with hundreds of successful implementation jobs completed. Our vast industry experience and strong development expertise enable us to offer our clients the best in class, most affordable, and completely bespoke IT solutions that meet and exceed their expectations.

— Update: 30-12-2022 — cohaitungchi.com found an additional article What are the Primary Business Benefits of an ERP system from the website erpmeaning.com for the keyword what are the primary business benefits of an erp system.

What are the primary business benefits of an erp system
What are the Primary Business Benefits of an ERP system

In today’s era, Enterprise Resource Planning has provided countless advantages. It will be really surprising for anyone to know how beneficial these ERP systems are. Nowadays, Enterprise Resource Planning (ERP) software is used by different types of organisations in order to get more benefits in their business. The primary benefit of an ERP system is mainly known for the providing smoothness in the work. The ERP has an impact on the processes related to coordination, productivity, flexibility and operational cost etc.

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Let’s go in detail to know about the functions of Enterprise Resource Planning (ERP) system

Primary Business Benefits of an ERP system?

Enterprise Resource Planning software is available to manage the data within a business organization of industries . It can be defined as a group of sophisticated and strategic business planning management technologies. To manage the information and processes in an effective manner is really difficult for any company and organization. They all have to face the same difficulty in order to manage the several processes. In these situations, ERP systems come as a boon to solve the issues related to various business organizations and companies.

ERP systems represent the combination of numerous aspects of an organization and comprehensive knowledge system as a single one. There are no limitations to operate the system, it can be accessed by all the members presented in the organization. ERP software is beneficial in a variety of organization such as health care, businesses, charitable organization, construction and Hospitality etc.

How Can it be Decided that a Business needs to Upgrade their ERP system?

Organizations related to different types of industries use Enterprise Resource Planning (ERP) software that provides a lot of benefits to them. There are few key trials that indicates when any business required to update or implementation in their ERP system, which are following:

  • Time period of growth: The status of the organization that it is growing, has grown or is just planning to grow.
  • Problems in operations: if any issues occurred in operations then organizations needs to update the software to make the process smooth.
  • Expired legacy systems: If the present system of any organization, is old and not to be updated or unable to serve the business and users anymore.
  • Advanced strategic roadmap: The organizations who are looking for latest technology road map to improve their business, then implement in Enterprise Resource Planning system is must

Primary Business Advantages of ERP system for the various industries

Coordination between Departments

The ERP system is helpful for businesses to transfer the data by using a single source across all departments of any organization in a rapid manner. The system has the ability to provide the real time information which streamlines processes and develops a single record system across the several branches.

By using ERP, businesses are able to take their critical decisions on exact time. The risk of the wastage of resources has also been decreased with the help of ERP. It provides the exact information about hurdles that can create a barrier in the production. Due to this, administrators are able to recognize any issues on time and they can take more powerful decisions with a visible image of the complete organization.

Increase Productivity with More Flexibility

The ERP system is responsible for collaborating the team members more quickly, which will result in more efficiency and productivity for SMEs. The ERP system can store all primary data including vendor list, Bill of things, operational processes and many more. The speciality of the ERP system is that it can be accessed by all prominent staff members.

It provided uniformity and coordination in all work processes related to any organisation. On the other hand, by saving time, the EPR system also increases business productivity in several ways.

Thus, the specialized ERP system offers SMEs with the flexibility to handle workflow processes and to create important modifications to data management. It also helps to remain stable in the competitive edge in any business task.

Transparency in Tracking and Organization

An ERP system having one more advantage is that it also can detect the progress of services and products in the pipeline. Besides this, ERP systems have a wide range of services like raw material management, order monitoring, inventory tracking and revenue tracking. For instance, Amazon and FedEx use this high technology system to transfer their products on exact times with low expenses.

Better Customer Service

ERP system provides an impressive manner in customer services. It offers effective services in shipping and delivery systems that are beneficial for customers not only in the front-end but also in back-end interactions.

To maintain the supply chain with the proper flow and without any issues, an ERP system is effective. Thus, by using ERP, a supplier can easily supply the materials according to demand.

By improving the order accuracy and faster response times, you can establish a better relationship with your customers.

Benefits of cloud Safety

ERP platforms are engaging in high security and top level of data protection with a single input system. The chances of source conflicts might be higher while the data from various systems get combined. But the ERP software plays a vital role to maintain the company’s data with accuracy, consistency, and security in a single input system.

However, an ERP platform stands for any organization as a central hub, but it can not deliver the same level of access to all staff members.

Although, managers have the power to improve the security system from the advanced user permission settings. With these settings, employees are able to access the information related to their jobs.

Benefits of an ERP in Distribution Business


ERP provides a single central platform for all distribution processes. The necessary data of the whole bank can be accessed in a simple way. To prepare reports and fill the data, an ERP system has already been functioning.

By seeing the efficient KPIs that are visible on the dashboard, management can handle the situations quickly. The requirements for repetitive staff activities have also been minimized by ERP.

Effective Collaboration

ERP increases the possibility of collaboration effectively and efficiently among a large number of departments. Moreover, an ERP system also improves collaboration with remote personnel. With just simple clicks, both offshore and nearshore workforce will be available to your command to offer a valuable workflow.

Benefits of an ERP in Operational Cost Management

The internal server breakdown is a common issue for organizations. A Cloud-based ERP is helpful to remove the disturbances or if in any case, issues occur then ERP is able to resolve it. It helps to improve inventory planning and to make better procurement management.

Advantages of ERP in Manufacturing Industries

Helpful in Automation

Any software can be used by the manufacturers to maintain the automated work orders including the date and time of execution, information about customers, order details, options related to finance, amount of product, details of staff and much more.

Perfect Strategy And Decision

Decision-making ability is the key feature for the success of any manufacturing industry. ERP solution is beneficial for the detailed insights and visibility for all departments of an organization and business process, providing to make any organization more educated, accurate, and timely business options.

Advantages of ERP in Supply Chain Management

  • An ERP offers a better opportunity to manage the acquisition and supply of goods, services and other resources to maintain the supply chain with regular work flow.
  • ERP system is responsible to deliver the things on exact time and it also provides the complete information about shipment and delivery details to the customers with more efficiency.
  • To maintain the supply chain with more accuracy, an ERP can reduce the bottlenecks between Internal operations and external suppliers.
Primary Users of ERP Software

Who Are the Primary Users of ERP platform?

The Enterprise Resource Planning (ERP) has multiple functions which can be useful in numerous fields including from accounting to manufacturing. The some the primary users of ERP systems are mentioned below:

  • Distribution Business
  • Banks
  • Large Businesses
  • Education Departments
  • Government sectors
  • Startups
  • Manufacturing
  • Supply Chain Management Departments
  • Health Care
  • Professional services
  • Industrial services
  • Service business


According to recent research, ERP projects are more successful in comparison to the past. The ERP software software which are available on the market these days, are more convenient to implement. It is really a crucial thing to improve the business benefits.

If we’re talking about the primary business benefits of an ERP system, it can be more beneficial to making business, better Customer services and delivery tracking handy with transparency.

Are you still wondering about the ERP system, then you have to make a full stop on your overthinking. If your business is not implemented with an ERP system then it’s the time to get up and make your business smarter. There is nothing difficult in it, you just have to select a software that will be suitable for your business and budget. After that, just implement it and take the advantages of Enterprise Resource Planning(ERP) and feel the difference in the growth of your business.

  • Importance of ERP System in Business
  • ERP Migration and Data Migration Best Practices
  • Key ERP Modules – Types, Features & Functions
  • Who Are the Primary Users of ERP systems?
  • What is ERP Consultant? How to choose an ERP Consultant?

— Update: 30-12-2022 — cohaitungchi.com found an additional article 12 Primary Business Benefits of an ERP System from the website www.syncoria.com for the keyword what are the primary business benefits of an erp system.


What are the primary business benefits of an erp system?

Enterprise resource planning software is ubiquitous in the business world today.

All kinds of businesses from small to large make use of ERP software in order to improve their processes and push the revenue ceiling.

ERP software belong to are a type of business software typically employing a number of modules that are closely integrated.

This close integration of different modules that handle different aspects of the business process allows an organization to collect, store, manage, and interpret data from many business activities. 

As time progresses, the important of ERP systems in the business world will only continue to grow.

It was a logical next step in the evolution of competitive business processes due to the increasing computing power of microprocessors and their ever-decreasing market prices.

Innovations such as the downsizing of powerful computers to the office desk and the introduction of the Internet led to the first ERP systems being developed in the 1990s.

However, the roots date back to the 1960s with the creation of software programs for supercomputers to organize scheduling of work orders and monitor the inventories.

The main feature of any ERP software system is the ability to offer its customers a great degree of synchronized reporting and automation.

The system pools data into one database divided in to sections according to type, with integration among dependent data variables.

There would no longer be any need to maintain separate databases and spreadsheets for each type of data and then manually merge those spreadsheets to make reports, which ERP solutions offer. 

Primary Business Benefits of an ERP System

What are the primary business benefits of an erp system


Enterprise Resource Planning (ERP) is essential for businesses operating today.

Operating a business without an ERP system is akin to attempting to complete a scavenger hunt without any clues at all.

While you may still be able to make gradual progress towards your goals for growth, you’ll only be acting mostly on clues and intuition with limited factual reports.

An ERP system creates order out of chaos, improving productivity, decreasing costs, increasing efficiencies, and streamlining processes.

Such achievements will help you to effective manage your business objectives and the processes to lead towards those objectives.

Implementing an ERP system brings with it expectations of the system acting as a vehicle for integrating people, technologies, and processes across your business.

Despite the fact that modern businesses need ERP systems more than ever, it is found that only 40% of manufacturers across industries make use of an ERP system and there are many businesses that fail in their ERP software implementation projects.

The aim of this article is to highlight the main benefits of a successfully implemented ERP system and the qualitative advantages that such an initiative can bring to the business.


The absolute primary function of an ERP system is to organize all the data received by a business organization, including data involved in the day-to-day business activities of the organization such as accounting, procurement, and project management into one unified source.

ERP systems are critical for managing thousands of businesses of all sizes in all industries. For these businesses, the ERP system is as important as the electricity that keeps their infrastructural systems operational.

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All the members of the business organization ranging from the CEO to the office clerks can create, store, and use data from the same source using common processes.

Such a centralized storage or data ensures that data can be drawn from it and referred to with confident accuracy and completion.

Data integrity checks are often an automatic feature of many ERP software suites for every type of task performed throughout the organization. 

In modern times with the prevalence of the Internet, ERP systems have been developed with cloud computing in the center.

Embedding ERP systems with the internet makes available new features and options for functionality while simultaneously offering affordability for smaller businesses, lowering operational expenses and capital expenses.

Cloud ERP solutions are hosted from an external source maintained by the ERP software suite developer.

This takes off the infrastructural load from the end user, enabling focus on more value-added tasks away from having to manage and maintain the infrastructure.


What are the primary business benefits of an erp system
  1. Streamlined technological costs: As state earlier, ERP systems are designed to unify all of a business’ IT costs and improve efficiency. Having ERP means that there will be one system being worked by the staff instead of multiple different system with their different dedicated staff groups, infrastructure and equipment, support teams, and licenses. A single unifying system means that your employees will only have to learn one system, greatly reducing the resources required to train your employees and keeping them to maintain the system. Most ERP systems usually come with multiple functions and additions to the computerized business process such as customer resource/relationship management, manufacturing resource planing, HR management, accounting, and supply chain management, being modular in design. Such a design allows you to choose and focus on the features aligning to your needs.
  2. Reporting and planning with total visibility: Since the implementation of an ERP software suite across the departments of your organization introduces a single, unified reporting system for each and every process, the system can readily generate useful reports and analytics complete with valuable insights on your processes whenever you wish or whenever you schedule the system to do so. You can easily compare and analyze performances across departments without having to cross-reference multiple documents. Finance is often where ERP systems shine the best as reports such as income and cash flow are automated built-in processes allowing custom report generation very quickly.

An ERP system also allows complete access and view of every important process in your business by making all the data readily available to you and the management.

As stated earlier, the data is centralized which allows for collaborative use resulting in streamlined completion of tasks. You can track inter-departmental processes with maximum efficiency.

As an entrepreneur, the most important thing is to be able to see the complete picture at any given moment and this what the visibility accorded by an ERP system gives you.

  1. Improved efficiency: ERP systems reduce the time, effort, and resource expenditure from your workforce to carry out daily activities. A properly implemented ERP system greatly reduces and eliminates repetitive manual processes which leaves your employees free to focus on tasks that more directly affect the revenue. ERP software suites are also often updated with information on new industry practices and regulations, allowing you take action immediately and integrate them into your processes.
  2. Flexibility in customization: The modular design of most ERP systems is one of their biggest advantages. Most ERP vendors offer several different applications focusing on specific parts of the businesses process. Users can use these different applications at will depending on their requirements. Each application is designed to be used in conjunction with other applications and the system as a whole. The other aspect of customization in regards to ERP software suites is how the software itself is implemented. You can choose between on-premise and cloud-based systems with the former involving the installation of the software on all company computers and servers with the latter involving the software being hosted on servers maintained by the ERP provider.
  3. Customer service: Your business is not the only entity benefiting from the benefits of the implementation of an ERP system, your clients do too. This is because ERP systems centralize and streamline all client information, allowing your sales team to focus on building and maintaining customer relationships, instead of maintaining spreadsheets. The end-to-end tracking and insight offered by ERP software suites help you provide better customer interaction from targeted marketing all the way through late-phase customer service.
  4. Data security: The provision of a single input system allows ERPs to maintain a high level of data security. Merging information from multiple systems can often cause conflicts between sources while on the other hand, a single system feeding a singular repository of information greatly helps improve the accuracy, consistency, and security of your company’s data. An ERP system’s databases are also centrally backed up automatically to save your critical and sensitive data. Cloud-based systems enjoy an extra layer of security as your company’s data is managed through the cloud and security experts are employed by the ERP vendor to ensure protection.
  5. Data quality: For the same reasons, the quality of your business’ data pool is significantly improved upon the implementation of an ERP system. The feeding of data and information from multiple sources allow data to be cross-referenced and checked automatically for matches and consistency.
  6. Improved workflow: Any business thrives on collaboration and an ERP system makes this easy. The ERP platform streamlines the process of collaborating with others by providing employees with access to the data they need when it is needed. The close integration of the data systems allows for project updates to be presented and communicated clearly and quickly across the whole company. There is an on-demand access granted to the entire company’s wealth of data.

The prime benefit of this is that the tools required for making proactive decisions are made available easily, increasing efficiency and reducing operational costs associated with manual data tracking.

  1. Standardized business process: As stated earlier, ERP systems are designed with the best industry practices and current regulations in mind. These practices bring major benefits to a business that adopts and maintains them, allowing them to standardize their own process and systems. The consistent result delivery of the standardization of these processes allow you to continually improve how you operate your organization. The automation of these processes greatly reduce errors and costs, improving collaboration between between departments overall.
  2. Assistance in compliance with regulations: Meeting regulations while trying to be profitable can often become a hassle for a business. While you are legally required to maintain the best accuracy possible when it comes to your financial records, it is often easier said than done. ERP software suits aid in regulatory compliance through securing and ensuring the validation of data, combined with built-in reports. The reports may also be automated.
  3. Scalability: As your business grows, the specific needs of your business will evolve too. ERP systems are designed to allow enough control to facilitate new priorities and new types of data input. Adding new functionality to an ERP platform to fit the growing needs of your business is easy with the right system.
  4. Improved supply chain management: ERP systems greatly improve the supply chain management of companies dealing with production and manufacturing by shortening lead times and improving the timing of deliveries alongside a whole host of other benefits that lead to an overall more efficient manufacturing process.


What are the primary business benefits of an erp system

These can source from a failure to properly implement the system. The primary concern is cost; on-site ERP systems often cost astronomically high and oftentimes prohibitive for small business.

Luckily, circumvention is possible through the use of cloud-based ERP vendors, who charge a monthly fee depending on business models.

Maintenance is the next biggest concern as typically an ERP software suite development would come with the need to recruit more staff trained in IT and the need to invest in new hardware. 

The customization abilities of an ERP system may often sometimes get complex and tedious as the process itself is time consuming requiring a lot of effort, expertise, and money.

Too much customization can also deprive the business from being able to readily adopt industry best practices.

Furthermore, the complexity with which an ERP software suite comes is often underestimated by many businesses, which leads them to find themselves in a tangle mess because the implementation process was not planned out meticulously.

While there are potential downfalls, the vast benefits and growing potential ERP software suites can give you are enough of an incentive to invest in ERP. The advantages outweigh the disadvantages. Plan ahead, plan meticulously. 

Hope the above information answered your question on what primary business benefits of an erp system.

Syncoria is a digital transformation firm based in Canada and an official Odoo Ready partner.

— Update: 30-12-2022 — cohaitungchi.com found an additional article What are the Benefits of an ERP System? from the website www.myofficeapps.com for the keyword what are the primary business benefits of an erp system.

There are many advantages to an ERP (enterprise resource planning) solution. Though there are some perceived disadvantages such as increased costs, (we dispell that myth,) the benefits outweigh the perceived disadvantages. Many companies are unaware of what an ERP system can do. ERP software is used to create visibility into the company data, simplify operations, and streamline your business processes. We prepared an analysis of the most important benefits of an ERP software.

1. Total Visibility

To be able to see into your business processes is more valuable than an everyday commodity. Every business needs to be able to look at data from various departments, and how they are interacting. This is the main benefit of ERP software. It allows a business to control inventory levels based on the data they receive. This provides the company access to information that will allow them to forecast, and make better decisions when purchasing future inventory, in turn, saving money. Using reports generated from the system, you can analyze and compare production, tracking, and workflow within every department. A huge aspect of any successful business is the ability for the different departments to interconnect. This is done through collaboration that is provided by an integrated ERP solution.

2. Simplified Business Processes

A simplified business process allows a company to streamline their business operations. When a company can standardize their processes, it provides a greater efficiency and potential ROI. Because the processes are automated, there’s no room for common errors, duplicated content, or forgetting the necessary processes with the right ERP solution. Employees get to have access to data whenever they need it, so they can make informed decisions without having to wait for time-consuming, costly email responses. With customizable features, each department can see what they need to, without seeing a flood of irrelevant information. Some ERP solutions like Kechie, even provide customizations down to the user-level, so that you can get into the software and see only what you want. Real-time data, with real-time access allows businesses to focus on what really matters in their companies.

3. Fully Integrated ERP Solution

An ERP solution that is already Fully-Integrated is much easier to work with, than purchasing various pieces of software, trying to connect them together. You get real-time data, automatic updates, and accurately communicated data. This is important when it comes to streamlining any business. Employees need a consistent user-interface from an easy to use software that won’t require much training. You might think that all ERP software is fully integrated based on the definition, but not necessarily. When a software is fully integrated, that means you don’t have to have different software to try to accomplish your everyday tasks. While it is important to have third party integrations (ex. Shopify, Woo Commerce,) it’s also just as important to control your inventory without having to customize the software with a separate module, hoping it will work.

ERP software has many benefits that let you get insights into your business to make the best decisions. By streamlining your operations, you are increasing your ROI and improving your workflow, as well as, the collaboration of your departments. When your business is fully optimized by an ERP solution like Kechie ERP, it can drive increased profitability, streamline operations, and let you focus on what matters to your business.


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About the Author: Tung Chi