As the world becomes more paperless, companies are progressing toward a similar technological evolution. And in many ways, this transition saves a lot of time, effort and space by eliminating overwhelming stacks of documents that have taken over office areas. For baking and snack companies, this is where enterprise resource planning (ERP) comes into play.
What Is ERP?
If your business handles a lot of documents, then you can significantly cut costs by using an enterprise resource planning system instead of going through the process of manually or digitally processing all that paperwork. ERP leverages technology to provide improved and secure business operations that result in optimized costs, better performance and increased value for the organization.
Why ERP Is the Strategy for Your Company?
Bakery companies that don’t already use an ERP system can still implement one even if they are not currently paperless. It has been proven that a business that utilizes ERP spends 36 percent less than a business that doesn’t utilize the system.
A lot of this expense reduction is due to the cost of storing paper documents. This can lead to fees for storing, protecting and protecting documents, charges for staff that physically process documents, interruptions to the work process and other costs.
By using an ERP system, a company can eliminate these expenses and then some by storing documents electronically. This keeps them safe from theft, fire and other threats.
This is especially good for companies that don’t have a lot of space, especially those that work in small areas and don’t have spare room to store documents, books and other paperwork.
Though the expense reduction of an ERP system is great, it also enables the company to create more efficient processes that produce better results and thus, higher profits for the business.
It also reduces demand on management by simplifying operations, which also lowers costs. For example, an ERP system can integrate directly with point of sale systems. This integration helps the management discern customer buying patterns and uses this information to make smart purchasing decisions. When they are making correct decisions, it leads to significant cuts in waste and excessive purchases.
It also cuts down on inventory turns. When products of the same variety are bought in bulk, for example, an ERP system can ensure that they are all used appropriately throughout the entire lifespan, which results in considerable cost reductions and averts the need to buy unnecessary quantities or reorder a lot of items. This significantly reduces the amount of money than a business has to spend on supplies.
An ERP system also ensures that your organization is following all laws and regulations. This is especially important when it comes to bakery companies, since their products are subject to a lot of government regulation. By utilizing an ERP system, it’s considerably easier to track when goods have been recalled or need to be recalled.
Not only does this make it easier to maintain your compliance with laws and regulations, but it also saves the company a lot of money in avoidable fines and other costs.
An ERP system can also be used to manage inventory, equipment use and worker productivity.
All these factors combined combine to create a system that will not only let you cut down on costs but also increase profits and protect your business from extreme cost savings.