5 Reasons why CEOs and Executives Should Care About Enterprise Resource Planning
By Bradley Stroop, CEO UXC Eclipse
For many CEOs and executives, the enterprise resource planning (ERP) system is just the business management software that keeps things running in the background. However, innovative and forward-thinking CEOs and executives have recognised ERP’s potential to significantly transform their business processes and add exponential value, which ultimately improves the bottom line.
Bradley Stroop, Chief Executive Officer, UXC Eclipse said, “A single integrated view of your business, made possible by ERP, drives decision-making in the boardroom. It is critical to effective decision-making and running a solid business.
“Choosing a suitable ERP solution for the company is a complex process and we know from experience that CEOs regard ERP implementation as a high-risk operation. These business-critical projects require the right resource commitment up front in order to provide a significant return on investment. Engaging the CEO and executives early enough in the process manages these expectations across the business and ensures the best possible results.”
Here are five reasons CEOs and executives should care about ERP.
Cost control from integrated database
A comprehensive, integrated database makes it easier for companies to conduct stricter, more efficient controls when necessary. A change in one place updates in all systems, which means the entire organisation has accurate, up-to-date information at all times.
A suitable ERP solution provides transparency across all departments, which means consistency and coherence in all business operations. This will reduce the time it takes to make smart business decisions and respond to challenges, opportunities and new market trends.
Increased cash flow
ERP systems deliver effective supply chain and inventory management, freeing up capital that was previously tied up in inventory. This money can be reinvested in the business.
Stability in business operations made possible by ERP ultimately leads to a solid customer base that is loyal because their needs are met. This provides room to focus on expansion and growth.
The real-time information provided by ERP systems increases flexibility to scale up business operations for high-demand periods and scale down in non-peak periods, making it easier to plan and ensuring the business is running as lean as possible.