Faced with labor shortages, lingering supply chain issues, and inflationary pressures, today’s businesses are very cautious about investing their money. Tightening budgets and limiting resource allocations seem like reasonable responses to broader economic uncertainty. But there is a very real cost for those who forgo strategic technology investments and insist on sticking with limited or outdated business systems that constrain growth and stifle earnings.
The truth is, investing in the right ERP system is a reliable way to save money.
Cloud-based ERP software improves businesses’ profitability by empowering them with the features, functionality, and insights they need to succeed. The right ERP system will boost operational efficiency, reduce labor costs, lower costs of goods sold, and reallocate IT resources from tedious manual workarounds to business-enhancing innovations.
As benefits go, these are solid gold. And they’re not just for a certain type or size of business in specific industries. They’re for any business—including yours—that wants to reduce costs in an increasingly uncertain economy.
Today, we’ll examine the top four ways the right cloud ERP solution will help you save money.
The Top 4 Ways Cloud ERP Can Save Your Business Money
Here’s how ERP cost reduction happens.
1. Boosting Operational Efficiency
One of the more challenging aspects of running a business is ensuring efficiency, which is difficult in the absence of modern technology—like a cloud ERP solution—that can streamline your business processes.
An ERP system automates tasks, such as data entry and reporting, and eliminates manual workarounds and human-induced errors. The right ERP system will also help you streamline the order-to-cash cycle, get deliveries to customers on time, accurately track inventory, and optimize storage and loss costs.
Essentially, automation and cloud ERP solutions work hand-in-hand to enhance operational efficiency.
2. Reducing Labor Costs
Attracting, retaining, and supporting labor is critical in a marketplace still trying to recover from “The Great Resignation” and “The Great Reshuffle.” As of July 2023, there were 9.8 million job openings and 5.9 million unemployed workers, which makes for stiff competition in finding and keeping quality employees.
Thankfully, the right cloud ERP solution will help you decrease labor costs and operate with fewer workers. For example, gaining efficiency and replacing manual processes may allow you to consolidate or eliminate roles (e.g., data entry, reconciliation, etc.), which can lead to significant payroll savings.
Another example? Training employees—an often complex, time-consuming task—becomes simple when they only have to learn how to use a single, intuitive system instead of multiple platforms.
ERP systems also improve production processes, which, in turn, increases employee efficiency. This enables employees to produce more units—reducing both labor costs per unit and total labor costs, creating a lean business outcome.
3. Reallocating IT Resources
Your IT department is integral to your success in today’s digital economy. As a Business Partner Magazine (BPM) article explains: “An IT department is a vital part of any organization, large or small. IT departments are responsible for managing the technology that keeps businesses running smoothly. This includes everything from computers and servers to networks and data storage. In addition to keeping things running smoothly, IT departments also play a vital role in reducing downtime and ensuring that data is secure.”
This is true for companies that rely on multiple business management solutions and/or an on-premises ERP system, but, if you choose to implement a cloud ERP solution, your IT department’s role will shift in response.
By optimizing resources with cloud ERP, you will:
- Cut IT maintenance tasks, since the ERP provider maintains, updates, and secures the software.
- Eliminate the IT department’s system integration responsibilities, since a cloud-based ERP solution consolidates business functions into one platform, removing or reducing your reliance on multiple systems.
- Make vendor support an important but peripheral IT duty, since ERP providers offer technical support themselves.
The result? Burdens are lifted off the in-house IT team’s shoulders, which allows them to focus on innovation instead of troubleshooting. Cloud ERP and IT resource management are a perfect combination.
4. Lowering Costs of Goods Sold
Your goods are priced according to how much it costs to produce them, but ERP software reduces transaction costs through improved inventory management, efficient procurement, and optimized production processes.
ERP systems offer real-time visibility into inventory levels, so you can make better forecasts, avoid overproduction or waste, and reduce the cost of goods sold.
They also streamline procurement processes, so you can find and secure the best prices from suppliers and lower the cost of raw materials.
Across the board, ERP systems optimize production schedules, reduce downtime, and improve equipment efficiency.
Cloud ERP as a Catalyst for Business Growth
Ultimately, the right ERP system will provide a robust foundation for scaling your business. But what makes an ERP system “right?”
According to real customers and expert analysts, usability and functionality are key, and Acumatica regularly receives recognition for its powerful ERP usability and robust functionality.
Acumatica is consistently rated as an ERP Leader by customers and analysts alike, including our recent recognition as one of the Top 20 ERP Software Products of 2023 and Top Financial Reporting Software in 2023 by Crozdesk, a software review platform that provides unbiased recommendations through AI and machine learning ranking algorithms.
For Acumatica, these top ratings bolster our commitment to delivering a cloud ERP product that meets and exceeds our customers’ highest expectations while providing generous cloud ERP benefits, including improved efficiency, reduced labor and production costs, and empowered IT departments that can focus on exciting innovations—not technological upkeep.
Acumatica also offers customers an unlimited-user licensing model, allowing them to:
- Operate with unlimited users at one low price (based on their usage requirements).
- Lower their ERP implementation costs.
- Enjoy unrestricted growth.
Discover how our unique pricing can help your business save money. Embrace the digital economy with Acumatica Cloud ERP, which is tailored to deliver powerful business benefits and cost savings. Contact us today to learn more about how our system can transform your company.