Enterprise resource planning software helps organizations in a variety of ways. However, the single most important benefit of an ERP platform is to help a company become more efficient in the way it operates. A system of this kind is designed to give decision-makers a more holistic view of the business.
This tool can help uncover areas where the organization is strongest, while also highlighting the places where improvements can be made. From inventory control to warehouse management, ERP platforms allow companies to improve their supply chain logistics management and overall efficiency of the business.
A recent press release highlighted a study conducted by Allied Market Research. The company found that over the next five years, the ERP software industry will have a valuation of $41.69 billion. This figure represents a compound annual growth rate of 7.2 percent.
One of the key drivers of this growth will stem from companies adopting these platforms to become more streamlined in their financial operations. Allied Market Research found that 30 percent of the increase in platform implementations will be tied to the software's finance functions.
Another contributing factor will be the aerospace and defense industry integrating ERP software into its operations. This particular area of industry is expected to install platforms at a CAGR of 8.86 percent between now and 2020.
Lastly, of the $41.69 billion marketplace value of ERP software, the Asia-Pacific region is expected to contribute approximately $9.77 billion to this figure. From a growth perspective, this area of the world is expected to be the most lucrative of all markets integrating the use of ERP software into its operations.
The Most Important Benefit of an ERP Solution
ERP technology benefits companies in a variety of ways - from enhanced data collection to inventory management. However, in an article for SmartData Collective, Daan Pepijn wrote that one of the more unique advantages a company employing the use of ERP software can have is found in customer satisfaction.
"In general, ERP software helps ensure customer satisfaction by making business operations more efficient," Pepijn stated. "By compiling various relevant business data for better analysis and presentation, operations are better managed so a business is able to deliver better services or offer better products to customers."
The success of any operation is deeply rooted in ensuring that its customer base is happy at all times. Business-to-consumer organizations are fully aware that their marketplace is extremely crowded and competitive. These days, consumers have a variety of options when it comes to deciding whom to business with.
As such, companies must take whatever steps necessary to position themselves as being the No. 1 choice for customers. So how does ERP software factor into this?
For starters, an ERP platform can collect detailed data relating to consumer preferences. For example, if there is a particular item that is popular with customers and a company is finding a hard time keeping the product in stock, an ERP solution can give decision-makers detailed information related to sales, making it easier to forecast how many items must be kept in stock at all times to satisfy demand.
In addition, ERP software can also be used to help companies make improvements based on customer feedback. When consumers are happy about something or perhaps have a complaint, the system logs all of this information and decision-makers can parse through it and decide what changes need to be implemented to better overall consumer satisfaction.
The benefits of integrating an ERP platform into businesses' operations are plentiful. This is perhaps one of the key reasons the marketplace is expected to experience such significant growth over the next five years.