Control the profitability of your SME in real time

How can I improve profitability in real time using ERP software?

The first point to note is that an ERP (Enterprise Resource Planning) system must be adapted to your company's needs. This means that you have to check whether it can respond to your sector of activity or whether the necessary modules are activated.

The main indicator that will help you find out if you are on the right track is ROA (Return on Assets). It is easily calculated, and an ERP system allows you to manage the accounts and calculate the profit and loss account. This means you will have timely information on the company's status.

That said, the very concept of an ERP system is designed to improve your ratios in real time. This is especially important in SMEs, where it is common for a single person to assume several integrated functions. It is therefore worth knowing how to improve profitability in real time. Let's see how this done:

Control of inputs and outputs

In production or distribution companies, control of inputs and outputs is crucial. Each worker can submit real-time information, which improves profitability in several ways.

For example, a distribution or parcel delivery company. Knowing where dispatches are located is vital to provide a better service and avoid the negative effects of incidents. This is where real-time connectivity helps immensely to improve profitability.

In the end, a cloud-based ERP system helps to avoid unnecessary travel or expenses, thanks to improved communication. Whenever you can, opting for an ERP system with specific modules for inventory control will help you.

Modification of orders

Modifying orders or texts is another way to improve cost-effectiveness, mainly because you work better and reduce overlaps.

A practical example is integrated modules. Let's think about CRM: the information we update will also be integrated with the accounting module, if both are activated. The result is that any communication or modification that is made will be simultaneous. And, moreover, this can be done by anyone who has access to the ERP software. The fact that writing is automated saves a lot of time, making this a worthwhile option.

In the long run, modifying orders or items in this way reduces the likelihood of errors exponentially, which positively affects profitability ratios.

Remote work

The paradigm of centralised work in offices is in the process of disappearing. Although Covid-19 was an exceptional case, it must be said that, in Spain, 13% of the employed population already works remotely on a regular basis.

Meanwhile, on business trips it is common to make an entry, payment or balance enquiry, and the advantage of an ERP in a cloud environment is that you are not tied to a physical position to log on and work. Therefore, it is also important to think about the possibilities of working from anywhere, as this improves profitability in real time.

In addition, authorised persons will also be able to access and edit that information, regardless of where they are.

Variable queries

Variable queries and real-time report generation help to improve a company's profitability. Today, having good information is essential; thanks to the Business Intelligence, you can source good information. Simply enter the corresponding information into the right search fields.

Such queries are very simple and can be done from anywhere. If you want to improve your way of working, this is a good way to do it. The lack of information, or, worse, the use of irrelevant or erroneous information, is one of the main problems.

The interface of an ERP software such as SAP Business One is friendly and facilitates the process of finding the information you need to consult and reports at all times.

Faster decision-making

One of the advantage of working online is that decision-making is faster. You do not have to duplicate trips or actions and, moreover, you can obtain the information you want in record time.

Making the right decisions in real time means you save time. And, let's be clear, saving time is also saving money, because you can use that time (both you and the rest of the workers) in other company activities.

This means that anything that helps you not to waste time and to use effective tools is key.

Automated production decisions

This aspect is common in industrial companies, but it can also be applied in other sectors. Using Artificial Intelligence (AI), an ERP system allows you to automate decisions and change them in real time.

For example, a machine may have certain production orders, but you can change them depending on the situation or the precise need. You only need access to the ERP software and, obviously, the corresponding module.

Thanks to AI, you can save on labour and, above all, reduce human error. And all this, through the development of IoT, controlling processes from any device using sensors.

What are you waiting for? Control the profitability of your SME in real time!

Real-time returns are key if you want your company to be competitive. For this reason, contracting the SAP Business One ERP system will help you achieve your goals. Don't hesitate to contact us to find the product that suits your company profile!