Automated ERP System: Features, Implementation And Business Benefits

What Are The Features Of An ERP Automation System

An effective automated ERP system includes the following ten features:

1. Centralized Database: Provides a single source of truth for all business data.

2. Real-Time Data Processing: Allows for immediate updates and reporting, enabling better decision-making.

3. Automation: Many repetitive tasks, such as payroll and invoicing, can be automated. It saves time and reduces errors and duplication of work because computers do the job instead of people.

4. Integrated Applications: ERP automation connects different parts of a business, like sales, finance, and inventory, into one system. This means everyone can access the same information.

5. Accounting: They help manage financial tasks like tracking expenses, revenues, and budgets in one place.

6. Supply Chain Management: ERP systems optimize the flow of goods and services, making it easier to manage suppliers and deliveries.

7. Data Analytics: ERP systems collect data from various departments and analyze it using multiple tools like reporting, dashboards, etc. ERP can generate reports in a few minutes, which a human cannot.

8. Tracking and Visibility: ERP allows businesses to track their products and services from start to finish.

9. Customer relationship management (CRM): Helps businesses manage customer interactions and build long-term relationships with them.

Benefits Of An Automated ERP System

Did you know that a case study by Infor found that companies using ERP automation can reduce invoicing time by 70%? All thanks to automation, ERP systems have reaped immense benefits for business.

Some of these include:

Reduced Errors- Since computers do the work, there are fewer mistakes than when people do everything manually. This leads to more accurate information.

Saves time and costs- All the manual, repetitive tasks like data entry, processing, invoicing, etc, are done by automation. This not only saves valuable time for employees but also reduces operational costs for the company.

Provides accessibility- Since the COVID pandemic, companies have shifted to remote work. With cloud-based ERP systems, employees can access important information from anywhere, using any device.

Boosts Teamwork - An automated ERP system connects different departments, allowing them to work together more effectively and share information easily.

Improved Productivity- Automating routine tasks frees up employees to focus on strategic activities. This increases the work efficiency of employees.

Reduced Carbon Footprint - With access to real-time data on computers, the necessity of paperwork and stationery is cut down. Notably, companies save paper each year, contributing their Corporate social responsibility to a green environment.

How Is ERP Automation Different From A Traditional ERP System?

As discussed in the beginning, an automated ERP system is different from the traditional ERP system.

What Are The Top ERP Automation Processes?

Accounts Payable/Receivable- Automated ERP systems streamline invoicing, approvals, and payment processing. This automation results in faster cycle times and more accurate financial management.

Inventory management - Inventory management system gets better with ERP automation. You can track stock levels in real time, thereby preventing overstocking or understocking of assets.

Human Resources Management - Streamline payroll, employee onboarding, and performance tracking through eHRX, enhancing HR efficiency.

Document Management - ERP automation to digitally store, manage and access all important documents.

Sales Order Processing - Automation reduces the time taken from order placement to fulfilment by automating workflows and approval processes.

At Ekklaya, we offer all ERP solutions for finance, human resources, recruitment, data analytics, inventory and documentation.

Best Practices For Implementing ERP Automation

To successfully implement ERP automation, consider these five best practices:

1. Assess Business Needs : Identify specific processes that require automation.

2. Engage Stakeholders: Involve everyone, from employees to managers and heads across departments, to ensure proper training.

3. Choose the Right Software: Select automation tools that align with your business objectives and existing systems.

4. Test and Implement: Before going live, test the ERP automation tool and adapt it to fit your specific business workflows and reporting needs.

5. Monitor Live operations: After the software is customized, monitor the live operations for any technical inefficiencies, loopholes, or other issues.

Common Challenges You Can Face While ERP Automation Process

While we saw that ERP automation provides n number of benefits for organizations, it also comes with challenges, including:

1. Resistance to Change : Employees might be reluctant to adapt to new systems.

2. Data Migration Issues : Moving data from old systems can be complicated.

3. Cost Overruns: The budget for implementation may be underestimated.

To address these challenges, organizations can benefit from clear communication, careful planning, and a gradual implementation process.

How Can ERP Automation Tools Help Improve Business Operations?

Various ERP automation tools, such as SAP and Microsoft, that are available in the market can streamline processes and improve productivity.

Using our ERP product at Ekklavya, businesses can automate their reporting processes, leading to faster and more accurate financial insights. This not only enhances operational efficiency but also supports better strategic decision-making.

How Does ERP Automation Contribute To A Centralized Database?

What if a finance department runs on one database while the operations department runs on another? This would only lead to more work and wastage of time and resources.

ERP automation has a centralized database which integrates different business processes into a single, unified system. Centralization in ERP leads to numerous benefits like:

Increased transparency

Better reporting

Accessibility of information

Savings of Time

Streamlined workflow

Improved communication and collaboration in departments

How Does ERP Automation Streamline Finance Functions?

ERP systems significantly enhance finance functions by automating key processes such as:

Accounts payable - ERP systems automate invoice processing and payment approvals to get maximum operational efficiency. An example of Coca cola demonstrates how ERP automation led to an 80% reduction in the time spent on financial reporting, allowing finance teams to focus on analysis rather than data gathering.

Financial reporting - With real-time data, companies get access to instant reports and analytics.

Budgeting and Forecasting - ERP makes it easier to create accurate budgets and forecasts by integrating real-time data. This allows companies to adapt quickly to market changes, customer demands and competition.

Improved Cash Flow Management- ERPs help monitor cash flow in real-time, allowing businesses to make informed financial decisions and optimize their working capital.

Regulatory compliance- With built-in compliance checks, ERPs ensure that financial practices align with industry regulations, reducing the risk of penalties.

What Are Emerging Trends In ERP Automation?

Recent innovations and trends in ERP automation include:

AI-Driven Insights: Utilizing AI to generate predictive analytics for better forecasting.

Integrated Platforms: Combining ERP systems with other business tools for seamless operations.

These trends are shaping the future of ERP systems, leading to increased flexibility, customization, and the ability to respond to changing market conditions.

Is ERP Automation Suitable For All Business Sizes?

According to a report from Capterra, 60% of SMEs plan to implement ERP systems in the next few years. Thus, the ERP automation process can be implemented across businesses of all sizes, from SMEs to large enterprises.

However, considerations differ:

Small Businesses: Focus on affordable solutions that can scale as the business grows.

Large Corporations: May require more complex systems with more incredible customization options .