Benefits of Using an ERP System for Companies

PT. Sistem Anugrah Prima - By implementing an ERP system, distribution companies can gain clear benefits in every process carried out from managing inventory, supply chain and order receipt to billing. An ERP system will provide a complete picture and provide better visibility into how the company is running (trends and processes). Therefore, an ERP system can improve distribution business management in the following ways:

• Speed up ordering time
  

In the business world, especially for companies that have developed, processing sales orders manually may cause errors and many delays. However, ERP systems automate or speed up sales order processing and delivery order creation. This can eliminate delays while providing complete control, from setting rules and credit limits to managing multiple warehouses and shipping products, helping distribution companies meet client demands more efficiently. Orders and invoices are handled automatically by the system.

• Increase customer satisfaction
  

Real-time visibility into inventory on stock, in transit, and on backorder helps improve delivery times and customer satisfaction. ERP systems can also track products returned for any reason. It can optimize bidding, receiving, entry, and fulfillment while minimizing inventory and costs. At the same time, process automation can help customer retention because businesses can provide faster service, accurate delivery, and quick resolution to any issues that arise during the order fulfillment process.

• Increase Sales
  

Purchases from existing customers usually dominate distributor sales. Therefore, things that influence sales are price, order quantity, and distribution. An ERP system can minimize risks that may arise from these three factors through optimal sales prediction and monitoring. Thus, management can set the right strategy to increase sales.

• Good warehouse management
  

ERP includes warehouse management modules designed to automate picking, packing, moving and physical counting. Manual tasks are eliminated, which helps increase productivity and accuracy.

Know the true costs

ERP systems can help break down costs and profitability across the business or by warehouse, location, or individual production line. All available information is updated in real-time. The power of real-time data enables cost control throughout the supply and distribution chain. Whether an ERP system is priced per user or per function, implementation costs can be offset by savings enabled by optimized business processes and increased accuracy and efficiency.