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6 Things Your ERP System Should Do  -  Metrics and Dashboards

2 Minutes Read

6 Things Your ERP System Should Do  -  Metrics and Dashboards

In the dynamic world of business, the role of an ERP (Enterprise Resource Planning) system in gathering and utilizing feedback on performance is indispensable. An ERP system not only simplifies the management of complex business processes but also enhances the decision-making capabilities by providing comprehensive insights into financial, operational, and customer performance. Let's explore how these three critical areas are interconnected and how they contribute to sustained business growth through effective ERP implementation.

Financial Performance:

  1. Revenue Growth: An ERP system tracks revenue in real time, providing a clear picture of income generation trends and market position. It facilitates strategic planning and forecasting, enabling businesses to capitalize on growth opportunities and expand customer base efficiently.

  2. Profit Margins: By integrating financial data across departments, ERP systems offer a detailed analysis of costs versus revenue. This visibility allows companies to optimize operations, control expenses, and maximize profit margins.

  3. Cash Flow: Effective cash flow management is crucial for the stability and growth of any business. An ERP system automates financial operations such as accounts receivable and payable, ensuring that cash flow remains positive and investments in growth opportunities are well-supported.

  4. Days Payable Outstanding (DPO) and Days Sales Outstanding (DSO): These metrics are crucial for financial health, and ERP systems help manage them by automating and optimizing payment cycles and collections processes, improving relationships with suppliers and customers.

Operational Efficiency:

  1. Inventory Turnover: ERP systems provide accurate inventory data, enabling businesses to manage stock levels effectively, reduce holding costs, and respond quickly to market demands—key factors in maintaining high inventory turnover.

  2. Order Fulfillment Cycle Time: An ERP enhances the order processing efficiency from purchase to delivery, reducing cycle times, improving customer satisfaction, and decreasing costs associated with excess inventory.

  3. Machine Uptime and Production Yield: Monitoring machine uptime and optimizing production processes are facilitated by ERP systems, ensuring that operations run smoothly with minimal downtime and maximum yield.

  4. Defect Rate: Quality control is streamlined with an ERP system, which systematically tracks production defects and facilitates the immediate rectification of issues, thereby minimizing the cost and impact of defects on customer satisfaction.

Customer Performance:

Effective ERP systems enhance customer relationship management by ensuring timely delivery, reducing returns due to quality issues, and providing insights into customer behavior and preferences. Tracking financial interactions with customers, such as revenue growth and sales order efficiency, an ERP helps in nurturing and retaining valuable customer relationships, ultimately driving business growth.


An ERP system is not just a tool for automating business processes; it's a comprehensive solution that integrates and analyzes data across all facets of an organization. By focusing on key performance indicators in financials, operations, and customer relations, ERP systems enable businesses to align their strategies with operational execution, navigate market challenges more effectively, and position themselves for long-term success.

Joseph Timmins