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How ERP Systems Can Increase a Business’s Operational Efficiency

Mon, 10/28/2013 - 3:36pm
Aimee Claire

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Every business wants to get ahead of the competition and increasingly looks to innovative ways of achieving effective solutions that cut costs but retain a smooth-running, efficient organization. Many businesses, especially in the medical field, are turning to Enterprise Resource Planning (ERP) to increase operational efficiency by integrating organizational systems into a single program.

ERP is a software solution comprised of a variety of modules that link departmental data and information together with real time updates. Businesses can choose the modules most relevant to their needs, and add more as they develop and expand further.

Management Integration
ERP enables its users to join up multiple areas of the business into one program and allows managers to have access to an overall database that covers client information, orders, invoices and figures. The users, who will require high quality training on the system, can update changes and then implement them in real time. Information is accurately stored and will not get lost across other applications or spreadsheets.

Cost Benefits
With the medical industry constantly examining ways to cut costs but maintain efficiency, ERP can bring significant cost benefits to the sector. Using ERP means that managers can make considerable reductions in costs relating to inventory and administrative mistakes. With information available to be exchanged across all levels, communication between all departments is made much easier. As each department is able to access a central database, the cost associated with multiple data centers is diminished, with both time and money saved,

Operating costs can also be reduced using an ERP solution. The program works to merge all aspects of the business into one central system, allowing businesses to improve their processes and cut down on waste or unprofitable areas. By increasing organizational efficiency, ERP not only helps decrease operating costs but can also reduce control and inventory costs as well as costs incurred in help desk support and marketing.

Strategic Planning
ERP can help managers as a strategic planning resource, allowing them to pinpoint their target market and define exactly what their aims and objectives are. In terms of day-to-day activities, the software gives quick and easy access for managers to the information required for better decision-making.

Financial Controls
With finance at the heart of every organization, managers need to keep a close watch on how the financial department is operating. ERP give management comprehensive visibility into the department’s performance, so the functioning of accounts can be viewed with full integration of business analytics. By keeping on top of the financial situation there are opportunities to boost organizational profitability and to improve financial controls and risk management.

Organizational Performance
The creation of a single system allows management to drill down to see how efficient and productive individual employees are, using precise, accurate data from each department. As a result, organizational performance together with staff efficiency can be increased.

An Effective Solution
When ERP is rolled out across an organization, and provided it is implemented correctly, it has the ability to transform the operational, financial and human resources aspects of any business.

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