9 Ways Custom ERP Software Can Improve Workflow
Today, as software developers compete for their customers like never before, the capabilities of business software have developed to meet virtually any need of an organization. Whether it’s integrating additional functionalities with an existing system or creating custom ERP software from scratch, the more tailored the software is to the organization’s needs, the more boost the workflow gets.
In this comprehensive blog, we will discuss how custom ERP can improve everyday operations for companies in need for some organizational improvement.
How Can Custom ERP Improve Workflow?
There are several ways to improve workflow with ERP software, and they are discussed below.
1. Reduced operational expenses
As custom ERP is a great automation tool, it helps reduce operational costs. By helping automate many repetitive manual tasks, the custom ERP software streamlines day-to-day operations while also allowing businesses to save on labour costs and employees to open new opportunities for career growth.
2. Higher level of productivity
Oftentimes, with the integration of new software changes in the workflow have to be made. That is especially the case with the ready-made ERP system. By opting for ready-made software, companies are taking a huge step in an attempt to optimize their workflow, but oftentimes all they get is a one size fits all solution that requires the existing workflow to be adjusted to justify the new software.
Custom ERP software, on the other hand, is built exclusively for the company’s needs. Because it is tailor-made to the company’s requirements, it often mimics the existing workflow, making adjusting to the new software easy and with minimum disruption of the existing operations.
3. Automated approval management
There are lots of aspects to manage in a company. From invoices, purchase orders to time-off requests and communication with clients and partners. Trying to stay on top of all of these aspects may be overwhelming and often leads to missed deadlines and confusions between employees, clients and partners.
Custom ERP software is a unique tool that allows managers to oversee and automate approvals across the organization. Such a streamlined approval process also allows for a more transparent communication between employees and across the organization in general.
4. Better information management through business automation
Every business, big or small, operates huge volumes of data. Accessing that data quickly and easily as well as accessing the right data (not just data) defines how efficient and successful a business is.
Custom ERP software automates data access across the entire organization for every staff member (if so is desired). It provides enhanced data security within the organization by allowing managers to set access rights to certain information for certain employees and departments.
5. Better bottleneck management
Custom ERP software solutions allow companies to oversee the entire workflow and ensure a high level of operational transparency. This allows managers to easily spot bottlenecks and take proper actions to eliminate them. The system’s data analysis tool allows managers to identify the root of the problem and adjust the existing strategy or implement new ones to improve business’s output.
6. Enhanced collaboration between employees
Communication gaps are one of the most common reasons why companies fail to achieve their goals. Custom ERP software allows for better inter-department communication which positively affects all processes within the company.
7. Improved data security
Custom ERP’s advanced data management tools allow managers to control who has access to what information, ensuring better data security and minimizing security threats. Employees have access only to the information they need to perform their job duties. This ensures that the information doesn’t fall into the wrong hands.
8. Improved decision making
Decision making is the driving force for the growth of any business. So making sure ERP software streamlines decision-making instead of complicating it is essential.
At the early stages of custom ERP development, software providers often offer their clients to top up their custom software with data analysis and business intelligence tools. Even though these tools are optional, they are often a must-have for companies that want to grow and expand.
9. Increases customer satisfaction
Some custom ERPs can have a Customer Relationship Management system embedded so businesses can manage their customer orders and coordinate the production process accordingly. An integrated CRM system positively impacts all business processes, from inventory to finances.
Companies can go further and ask for an online ordering system to be integrated with the CMS to give their customers more freedom to manage their orders.
Custom ERP is a modern-day tool to manage business operations. It is a centralized hub for all business related activities. It is also a powerful automation tool that makes day-to-day business workflow more efficient and productive, not to mention improved employee productivity and customer satisfaction.
Custom ERP software solutions are slowly taking over the corporate world and will quickly become a must-have for any company that wants to grow and scale up.
Frequently Asked Questions (FAQs)
Why is having a customized ERP so important?
Customized ERP is often looked at in opposition to a ready-made system. The key difference between the two is that a custom ERP system is built exclusively for te company’s exclusive needs and requirements. It is designed specifically to address a company’s pain points and ensure the operational processes are optimized for maximum efficiency.
A ready-made ERP system is a generic system with modules that have been pre-selected based on general industry requirements. Customization of a ready-made ERP system is limited and often costs more than a custom ERP system.
What is a customized software example?
Let’s look at a customized software example for a company manufacturing and distributing metal products.
The core activities of such a company would be the production of metal products and their further distribution to either end customers or other resellers. Obviously, such a company would require software to support their manufacturing process, e.g. metal fabrication, cutting, bending etc.
They would further need a system to manage their inventory and shipping processes. They would probably also require accounting software to manage the company’s finances, purchase orders, invoices etc. If the company has a large database of clients and partners, they would most likely require a CRM module to manage their relationships with them.
This is a very common example of how a custom built ERP system is built.
If the company grows and its activities expand, they will most likely see a need for additional modules to be integrated into the existing software, such as quotation system, product configurator, QR code generator or any other module that can be developed by custom ERP software development company to meet their specific needs.
What kind of companies use customized ERP solutions?
Custom ERP software solutions are used across a multitude of industries. From metalworking and manufacturing to healthcare and food industries. Fore and more businesses consider ERP to manage their day-to-day activities and streamline their workflow. In fact, according to Finances Online, the global ERP software market values are projected to reach $96.71 billion in 2023 and 97.15 billion in 2024.
Industries that have shown to benefit from the ERP use are the following:
➤ Manufacturing and distribution
➤ Non-profit organizations
Is custom ERP the same as CRM?
The job of a CRM system is to manage the relationships between companies and their customers. A custom ERP software is a more comprehensive solution that manages all aspects of a business’s vital functions. Along with finances, inventory and production management, CRM can be an individual module that comes in an ERP package.
What are the different types of ERP systems?
Since their first implementation, ERP systems evolved significantly. Modern ERP systems are categorized based on their availability, industries they serve and deployment:
➤ Custom, Ready-made and Hybrid
➤ Generic and Industry-specific
➤ Cloud-based and On-premise
Custom ERPs are designed to meet the specific requirements of a business. A read-made ERP system is a generic solution “built for all”. It comes with a set of modules that target common problems faced by businesses (finances, inventory, production management etc.). A hybrid solution is a combination of both ready-made and custom modules where an existing ready-made system is complemented with custom features.
Generic ERP solution is similar to the ready-made one. It includes the most commonly-used modules and generally caters to businesses of small to medium size. Industry-specific software is oriented at businesses in specialized industries. An example of such is an ERP system for the metalworking industry.
On-premise ERP is installed on the company’s computers and is available for use to only a certain number of users. A cloud-based ERP is hosted on the vendor’s servers and can be accessed from anywhere where access to the Internet is available.
What are the advantages and disadvantages of customizing ERP software?
Custom ERP software is a powerful tool that help businesses optimize their operations, particularly:
➤ Optimized business processes
➤ Improved decision-making
➤ Greater flexibility in terms of managing business operations
➤ Reduced operational costs
➤ Increased customer satisfaction
Just like other software products, custom ERP software has both advantages and disadvantages.
Even though minimal and easily manageable, customized ERP solutions have one disadvantage which is its cost. The initial cost of customized ERP solutions is usually higher than that of off-the-shelf systems. However, the initial investment is paid off in the long run and usually equals the cost of the off-the-shelf software paid over the course of several years.