Jun

REAL Benefits of ERP: Forecasting

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Across the web and through industry channels, you’ll likely hear most of the sameerp forecast “benefits of ERP”; lowers costs, increases productivity, customer service improvements, etc. It can become exhausting reading variations of the same talking points over and over again. Now, this isn’t to say that these claims aren’t true – a new or upgraded ERP solution for your business does provide all these positive benefits for your company. That’s why we have the same lines sprinkled throughout our own site.

However, I would like to delve into some of the more specific, tangible, and relatable benefits of ERP software. The type of advantages that you can look at and think “Yes, I want that!” – as opposed to a long-winded roundabout way of telling you that it improves your business.

Forecasting

Demand planning and scheduling is one of the most useful yet overlooked features in an ERP solution, at least by some advertisers. By using historical data and trends stored in your ERP system, you can attempt to predict the future and plan accordingly. I emphasize “attempt” due to the fact that, as mentioned in a previous blog post, you shouldn’t place 100% trust in any crystal ball that claims to know the future. Any small change in the marketplace or even politics could have an unforeseen effect on your prediction.

With that warning out of the way, demand and financial forecasting is an incredibly powerful tool inherent in the best ERPs. Looking ahead and getting a feasible prediction of the type of demand you can expect is integral to running an efficient supply chain, from inventory management to employee scheduling. This leads into your financial predictions, allowing manufacturers to create a budget based on incoming orders and payments as well as examining the potential expenses on the horizon. This type of functionality may not be the most glamorous, but it’s importance in running a successful manufacturing enterprise cannot be overstated.

In our next post, we will discuss the benefits of Collaboration within an ERP system, and how that refers to more than what you might initially think it does.

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