You invested in your business’ future and brought an enterprise resource planning (ERP) system into the fold. You did the research, applied the resources, and did the work. So, was your ERP project the success you expected? There are many ways to gauge the effectiveness of ERP implementation.
Perhaps the best way to test your ERP’s effectiveness is the level of business integration you’ve achieved. Or in other words, finding out how seamlessly your new system integrates, connects, and fits into your business or organization. Here’s what you can expect to experience with true business integration after ERP:
Alignment of people, processes, and technology
A good ERP effectively aligns people, processes, and technology by making data readily available. In turn, this limits wasted time, manual processes, and human error.
By investing in an ERP, you allow your employees more time to focus on new initiatives while automating processes with the implementation of state-of-the-art technology. At a basic level, ERP allows everyone within your business to be on the same page. It’s a technology that’s able to support your business goals.
You can deliver on order promises
ERP systems enable companies to deliver their products in a more dependable, reliable, and timely manner by effectively planning their resources company-wide.
Here’s an excellent way to know if your ERP system is integrated into your business processes: You offer earlier delivery times and meet them.
Perhaps you’ve also achieved visibility into every step of your supply chain and have constant contact with all your suppliers. That’s another good sign of ERP integration.
Inventory levels are accurate
It doesn’t take a rocket scientist to realize that proper inventory levels are good. You lower costs, increase order fulfilment rates, and see happier customers. Businesses often get flustered and frustrated by the inability to access information they need quickly. With an ERP, however, data becomes centralized and communication becomes effortless. That’s the power of business integration.
If your business is seeing an uptick in inventory record accuracy or can quickly conduct a root cause analysis to understand what happened and how to fix the issue moving forward, you’re already reaping the benefits of your ERP and have achieved an enhanced level of business integration.
Inventory levels are balanced
A great sign of business integration is a balanced inventory. Businesses worldwide struggle with correct inventory levels, and if your inventory is balanced (neither too low nor too high for demand), you’ve likely already integrated your business.
When employees adopt new business processes due to increased amounts of readily-available information, organizational silos disappear and data flows between departments and functional areas more smoothly. In turn, this ensures accurate demand forecasts and bills of material, lowering inventory excess and overhead.
Reporting is simple and automated
Reporting and data consumption are critical to any digital strategy, especially when a business transforms from a paper-based business into a paperless or cloud-based system. If your business’ reporting functions are automated and straightforward, your business is integrated.
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