Why do businesses have to apply ERP system?

Some outstanding plus points when businesses implement ERP software
December 5, 2023 by
Uyen Duong

Before implementing ERP, businesses struggled with fragmented processes, inefficient operations, and poor communication due to lack of uniformity in systems, specifically difficulty tracking orders, lack of paperwork, and lack of communication, accounting sheets and reports have many holes, customer satisfaction is decreasing, sales forecasts are based more on guesswork than actual data, inventory tracking is difficult... Therefore, implementing technology software or business management software is an ideal solution to help businesses solve the above problems.

In the Industry 4.0 era, a series of software products were born, streamlining management activities in businesses. These integrated tools serve as indispensable assets, helping businesses save time and money, while increasing productivity and providing a significant advantage in specialized tasks.

Moreover, 2020 marked a significant year for Vietnam's digital transformation, as declared by the Ministry of Information and Communications. This emphasizes the growing importance of selecting and implementing software in the management and operation of modern businesses.

Enterprise Resource Planning (ERP) software has proved to be an indispensable part of any business

Business management software is known as a solution that integrates all common functions of an organization into a single system where those functions are interconnected and can be customized. ERP software has now become the optimal choice for every business. This helps ensure uniformity and accuracy in data as well as providing synchronous and effective management capabilities for businesses. More specifically, the benefits that this solution system brings include:

Operational Efficiency

1. Operational Efficiency

ERP systems boost productivity by automating tasks, freeing up employees for more valuable projects and streamlining processes. This efficiency eliminates the need for additional hires, allowing existing staff to take on new tasks aligned with their skills. Improved efficiency benefits the entire organization from recruiters to warehouse managers to C-level executives. 

2. Standardized/Centralized Data

The significance of ERP stems from consolidating information across departments into a unified system. This prevents data dispersion and inconsistencies found in various applications. The system standardizes critical data, ensuring a consistent format for efficient reporting and analytics. This standardization streamlines decision-making, saving time and resources for the business.

3. Real-time Reporting

An ERP system offers immediate and customizable reporting across all functions, such as finance, inventory, orders, procurement, sales, marketing, and HR. Whether measuring specific metrics or essential KPIs, an ERP solution can handle it all. This capability enables tracking and comparison of different business components, shedding light on what propels the business forward and what hinders progress.
Real-time reporting is crucial for relevance and informed decision-making. Immediate updates, reflecting each sale in real time, are essential for staying current and making timely decisions based on the latest data.

Real-time Report

4. Flexible customization

When applied in enterprises, business management software needs to align with the specific operational characteristics of that business sector.  Businesses can selectively choose applications for deployment based on their current operational realities.

One crucial aspect is the high security of ERP software, where administrators can grant detailed permissions to users according to their job positions, roles, and responsibilities. Therefore, even though users access an integrated software system with numerous applications, they will not be able to view data from others without the administrator's permission. 

Benefits of ERP

In addition to the above benefits, ERP software solutions also bring businesses other practical benefits such as project management, mobility, scalability, and data sercurity... That is why this tool has become a tool to help businesses increase competitiveness and optimize production and business activities.

What has your business been doing and what will it do to apply the ERP software system effectively with the benefits of the above features? Please contact SotaSolutions to receive consulting support from experienced experts.