What is an effective way to get a real return from implementing a management system in medium and large manufacturing companies? It is best to analyse the effects of the implementation of the system and to identify areas that have been improved by its implementation and to assess the extent to which the intended objectives have been achieved.
You can basically list 5 main benefits of implementation that users of ERP systems point to.
Availability of information and reliable data in real time
Among the most frequently mentioned benefits of implementing the system are the availability of information and the improvement of data reliability. However, access to up-to-date and reliable data is the first step. Only by analyzing them and transforming them into information, better business decisions can be made. It is worth emphasizing, because such an advantage is perceived by most managers.
Improving cooperation between departments
Another benefit of implementing an ERP solution is the systematic and uniform flow of business data between all departments of the organization. In the ERP system, all information is collected in a common database that supports the basic business processes of the company. This leads to the integration of departments and processes across the organization, while reducing costs.
Improving work efficiency
Many companies also notice a significant increase in productivity after implementing an ERP solution. The system eliminates multiple data entry and repetition of the same processes in different tools, as well as tedious “manually” performance of different tasks – this significantly saves valuable time for employees. This allows employees to focus on other business areas or processes that need improvement.
Improved lead time and inventory levels
Reducing the time of production of a product or order execution is very important from the point of view of any company engaged in production and distribution. It is this effect of implementing the system along with the optimization of the level of inventory is an important element that helps companies to develop.
Reduced operating costs
The implementation of an ERP system finally helps to reduce the operating costs of the company. This is because the system helps employees to better manage their working time and use company resources, and consolidated financial reporting makes it easier to manage administrative costs.
Such a short analysis shows how many significant changes the implementation of the ERP system brings with it in the form of improvements that translate into business benefits that can be converted into measurable financial results. When planning the implementation of the system, it is of course worth taking into account the costs and expected benefits based on the opinions of entrepreneurs who have already implemented the system. You can also ask how their organization would function if they did not have an ERP system.
