Why companies invest money in ERP systems?

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First of all, investing money in ERP systems is a long-term investment not only for the mid-term, but also for the next 10-20 years. Such investments are not always exactly measurable, but help your company to be more effective in increasing revenue.

Let’s start from the simple simulation. When we do shopping we go to the different stores like a grocer, butcher, baker, fishmonger, chemist, pet shop or bookstore. But it takes all the day to finish all shopping. Now you can come to the big shopping center and buy all you need in some minutes.

So ERP system- it’s something like that. This is the place where you have all the information about your company, its resources, business processes, customers, employees, suppliers and company’s situation. It also means, that you get all the information you need about the state of affairs in the company regardless of the presence or absence of any employee at work. You always know how much your company earns and spends. Moreover, investing money in such a system –it’s like to buy never tired, multifunctional, truthful personal assistant. Using this tool, you are able to make decisions, not relying on intuition, but on concrete data.

Do you like it? Every company wants to reduce costs and improve efficiencies. Enterprise Resource Planning gives you this opportunity.

ERP system –is a tool for business management. Reporting gives you pictures of what is happening and allows you to make fast decisions. But reports and performance analysis can be different. It`s one thing when it is computer based analysis on primary data and quite another situation when it makes someone manually. Which of these reports will you trust? Do you know that simple mistake in your financial departments like an Accounting, Management, Purchasing, Logistics etc. could cost your company millions of dollars?

In an age of advanced technologies “The time is money” are not empty words for businessmen. Time saving in intra company communication between departments is not the one thing that enterprises can achieve via their investments in ERP software. Benefits of implementing ERP system in your enterprise are quite wide-ranging. Your company improves productivity, increases efficiencies, decreases costs and provides high-quality customer service.

That’s why nowadays the question “Should the company invest money to ERP systems or not?” is rhetorical question.

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