The benefits of ERP are not just simply management software but also the “operational brain” of modern enterprises. A systematic ERP implementation plays a core role in supporting sustainable and systematic business development.
The following article by Bizzi will point out 10 benefits of ERP so that managers have a more in-depth look at what the software brings.
What is ERP software?
ERP (Enterprise Resource Planning) is a comprehensive business management software that helps integrate all core business activities such as:
- Accounting – Finance
- Purchase – sale
- Warehouse management – supply chain
- Manufacture
- Human resources - salary
- Project management – services – reports,…
All of the above activities are centrally managed in a single system, sharing a common database, helping to operate smoothly and efficiently.
What are the benefits of ERP for businesses?
ERP software plays a core role in supporting sustainable and systematic business development. Below is a detailed analysis of the benefits of ERP for business development:
Centralized information management and accurate data
- ERP is where most of the activities of the main departments of the enterprise operate, acting as the main axis that allows providing information while orienting and coordinating work between departments.
- It allows storing, managing all information and workflow of a business.
- This system consolidates financial, inventory, production and sales data on a single platform.
- ERP provides a comprehensive and real-time view of an organization's production and business activities.
- Information is collected from all departments and consolidated into a single source, making it easier to share data in a more consistent, unique, and accurate way.
- This helps to minimize data collection and manual data entry time, while increasing accuracy and reducing information transmission time.
Minimize costs and optimize resources
- ERP helps cut unnecessary costs by optimizing employee performance, cutting training costs and limiting lost expenses in the business process.
- It helps reduce overall business operating costs by simplifying or eliminating manual data entry processes and administrative paperwork.
- Good financial management, especially cash flow management, also helps reduce costs.
- For manufacturing, the benefits of ERP can reduce inventory management costs by closely controlling inventory quantities and production progress in real time.
Improve productivity and automate processes
- ERP is one of the key solutions to improve overall operational productivity and increase profit margins.
- The system automates core business processes, freeing employees from routine, repetitive tasks so they can focus on more valuable tasks.
- Standardizing and optimizing complex processes improves functions such as manufacturing, order fulfillment and shipping, or customer service.
Support accurate planning, forecasting and decision making
- ERP provides real-time financial, inventory and revenue reports, helping businesses quickly grasp the business situation.
- The system can predict market trends and customer needs based on historical data, generating automatic reports with high accuracy and reliability.
- Allows managers to develop strategies for importing goods, sales, production plans and prepare necessary costs and resources in a timely manner.
- Management will quickly grasp the operating situation and make decisions to optimize the entire business operations.
Enhance collaboration and communication between departments
- ERP helps build a better working environment through collaboration and sharing to improve work performance.
- By collecting data from different departments and consolidating them on the same system, the benefit of ERP is that it helps departments coordinate their work more closely and effectively.
- This reduces approval wait times and delays due to absenteeism or manual reporting.
Improve product/service quality and enhance customer experience
- ERP systems help improve product quality by managing activities such as construction, evaluation, testing, monitoring, and quality management.
- ERP helps create a seamless and flawless customer experience by reducing order processing time, ensuring product availability and on-time delivery.
- Comprehensive customer information storage system (contact, purchase history, debt) helps businesses provide better service, manage credit limits and create appropriate pricing policies.
- It also optimizes after-sales support by tracking and processing warranty claims, providing customer support in a transparent and efficient manner.
Optimizing Logistics and Transportation Operations
- Benefits of ERP provide comprehensive solutions for transportation process - Logistics operations in the enterprise.]
- It helps businesses plan in detail the timing, quality of production and product supply plans, based on factors such as line performance, partner requirements, raw material supply management, and transportation capabilities.
- The system provides detailed reports on order information with forecasts of production and business needs, the status of existing orders, inventory data, delivery status management, placing orders with partners, and managing the production capacity of the enterprise.
Secure information security and regulatory compliance
- ERP systems provide high data security, consolidating information into a single database to minimize the risk of data loss and ensure integrity.
- Access to the software is tightly managed, ensuring only authorized users can view or edit important information.
- ERP also helps businesses strictly comply with regulations of the manufacturing and service industries, continuously monitor changes to adjust, and ensure product/service quality meets market requirements.
Enhance competitiveness and flexible adaptation
- ERP helps businesses significantly improve operational efficiency and production capacity, thereby increasing competitiveness in an integrated economy.
- It allows businesses to adapt flexibly to market and social changes, especially in times of volatility.
- ERP systems can be tailored to the specific needs of a business and scale over time as it grows, eliminating the need to purchase new solutions.
Run your business anytime, anywhere
- Modern ERP solutions, especially cloud ERP, enable employees to work remotely effectively.
- Users can access the database from anywhere, on any device as long as there is an internet connection.
- This helps leaders monitor business operations at all times and ensure production and business operations are not interrupted.
Bizzi solution integrates seamlessly with ERP systems
Bizzi is a software platform that helps businesses manage finances and invoices, especially electronic invoices. Bizzi provides solutions to automate financial processes, helping businesses save time, costs and minimize errors. Bizzi's Payables Automation Platform:
- Designed to flexibly integrate with your business's existing accounting & purchasing processes.
- Automate without disrupting current operations, saving businesses time and increasing accuracy without changing core processes.
Bizzi Integration with ERP systems leading ERP systems such as Oracle Netsuite, Lark, Odoo, Microsoft Dynamics 365, so that they can both take advantage of the benefits of ERP and optimize and perfect the automation process in management. Businesses do not need to deeply edit the current ERP system but still optimize the invoice and financial processing process by:
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Open API – Suitable for cloud applications
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- Quickly and easily connect to popular SaaS platforms without IT support.
- Open API allows enterprise cloud systems to integrate directly with Bizzi to: Exchange invoice data – Synchronize payment status – Automatically check & reconcile documents
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Integrate with complex, legacy systems
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- Connect to legacy ERP systems, complex internal enterprise data.
- Bizzi ensures secure, fast data sharing; complies with security and accounting regulations
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File Integration – Suitable for On-premise systems
- Support data export and import via files for systems that do not support API.
- Bizzi designed custom file templates ensure compatibility with on-premise applications and separate accounting and ERP tools
Conclude
ERP is not only a management tool, but also the “central nervous system” of modern enterprises. Applying ERP helps enterprises operate intelligently – grow sustainably – compete more effectively in the market. However, besides the benefits of ERP mentioned above, the software still has some limitations that require enterprises to integrate additional support platforms, especially in financial management.
Bizzi is a SaaS (software as a service) platform that simplifies manual invoice data processing through the application of AI technology and robotic process automation (RPA). Bizzi's platform can be integrated with existing accounting solutions, and connects suppliers and customers to automate financial processes such as checking, reconciliation, invoice payment, etc.
To get free consultation and experience of Bizzi's solutions, register here:
- Link to register for a trial of Bizzi products: https://bizzi.vn/dang-ky-dung-thu/
- Schedule a demo: https://bizzi.vn/dat-lich-demo/
