Business

Advantages and Importance of the Integrated Management System for Your Company

Advantages and Importance of the Integrated Management System for Your Company

Still not sure what an integrated management system can offer you? So, now know some of the many advantages perceived throughout the entire process of using the platform:

1. Cost reduction

No matter the size of the company, reducing costs will always be an objective and the integrated management system makes this possible. With the automation of processes and increased productivity, all the cost involved in this operation is reduced.

In addition, the intercommunication between sectors allows the sharing of precious information regarding the maintenance of machinery and the correct execution of tasks, avoiding failures and the repetition of processes.

Finally, there are savings with various materials, employees, payment of fines, in addition to more specific targeting of tasks according to the availability and competence of each employee, which also contributes to business growth.

2. Process optimization

Process optimization is one of the main features of the management system and allows quick execution of tasks in less time. Through it, it is possible to speed up operations, with less risk of failure.

An interesting example is when a sale is made and the employee needs to “write off” the stock manually. It is a common practice, but very subject to human error with dire consequences for the business.

Optimization also leads to the standardization of actions, a fundamental measure for production with equivalent quality. Process standardization results in more complete products, developed in less time and at less cost.

3. Decrease in stock

How can an integrated management system reduce stocked products? The software controls the entire inventory, collecting and managing information about products that have been idle for a long time, items with higher or lower storage costs, objects with low or high turnover, etc.

With this information, the manager can outline more efficient strategic measures to make that stock turn. Stalled stock is stagnant money and, worse, lost money, especially when merchandise is damaged by improper storage.

4. Workload reduction

Optimized processes, machines with more efficient operation, reduction of failures, information passed on without noise and all the other benefits of the system reduce the workload of the employee, especially the work that requires physical effort.

Still, talking about the previous example in which an employee would need to manually control the stock every time there was a sale, imagine how much time he would save if this task was performed automatically?

Adopting an integrated management system also contributes to improving the organizational climate within the work environment, with employees feeling more valued and recognized in their roles.

A consequence of this is the directing of this employee’s productive energy to other more demanding functions, which require greater mental effort. It is even possible to perceive previously hidden competencies in people who occupy operational functions.

This workload reduction also extends to the manager. The ERP system works as a managing partner, making the entire process simpler, faster, and easier, allowing him the opportunity to focus on strategic actions that demand greater focus and concentration.

5. Safety

Security in the maintenance and handling of information is an essential factor in any business. Although many entrepreneurs are afraid to invest in online management systems for fear of exposing their data on the world wide web, the truth is that storage on physical devices is much riskier.

The management system offers several ways to protect your business data, with access controls, backups for data recovery, cloud storage, encryption technologies, and other equally secure technological innovations.

In addition, virtual storage is also linked to the Data Protection Act, which defines strategies for the safe maintenance of documents and data stored in the cloud.

6. Sales tracking

The ERP system allows the manager to monitor the entire sales process, issuing reports on sales flows, issuing orders, budgeting, and controlling salespeople’s commissions, for example.

This intelligent control of the sales sector awakens valuable insights in the manager that can change the course of the business. When realizing that product x or y sells much more or much less, it is easier to think of strategies to improve or change that situation.

Direct monitoring of the sector also implies the automatic monitoring of the stock sector, since they are departments that complement each other.

What is the importance of the integrated management system?

A very common failure that involves the management of companies is the lack of control over the financial system of the business. This imbalance is one of the main reasons responsible for the bankruptcy of companies.

Usually, the fault lies, among other issues, in the wrong way the manager uses to monitor and control his assets, systems, and information. Most still bet on conventional and individual management when, in fact, it would have much more management capacity if it included everything in a collective data system.

So, we can see that the integrated management system is a strategy that aims at the sustainable growth of the business through intelligent, modern, and technological solutions that improve the entire management process.

Furthermore, it is a platform that makes the manager’s routine much more flexible, simple, and less bureaucratic, as it also organizes all the important financial documents for the rendering of accounts and other activities inherent to the professional’s position.

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When is it necessary to implement an integrated management system?

First of all, it is important to mention that implementing an integrated management system is not a task that should be done overnight. On the contrary, it is a strategy that must be very well thought out, planned, and discussed, as it involves all sectors of the business, including employees.

The management system is not just another tool that will be part of the company. It’s a different way of working and seeing all the production processes. By totally modifying this structure, it is a transaction that requires a lot of planning.

Knowing this, we can cite some common situations in several companies that suggest the need for centralized management. Check it out:

  • Disorganized cash control

Disorganized payments and receipts, lack of cash, difficulty in including information in spreadsheets, loss of payment date for invoices and slips are some very common situations, but they should be avoided.

The management platform does not allow these actions to happen because it is linked to the business account of the business. So, all activities complement each other, avoiding information conflicts.

  • Difficulty keeping up with changes in the law

It may be due to lack of time or even little knowledge on the subject, but failing to study the market and the constant changes in the law can cause serious problems for your business.

The integrated system is constantly and automatically updated, making this no longer a concern for you.

  • Questions about tax collection

By not keeping up with the news and updates on changes to laws and tax collection enforcement, this subject becomes taboo for many entrepreneurs.

What is very comfortable can also be very risky and prevent the manager from thinking about alternatives to reduce expenses, with tax avoidance techniques, for example.

With the management system, all discounts are calculated correctly and automatically, preventing your company from failing to pay any tax and being classified during inspections by the Internal Revenue Service.

  • Mismatch of information

Do you know when information leaves one sector but arrives in another in a distorted way? And sometimes it’s not even enough, which can make the situation worse.

In small companies, this is very common and in large companies, it happens much more often because of the size of the organization and a large number of sectors and employees.

If your company also suffers from the history of the “cordless phone”, it is worth investing in management software for more precise, direct, assertive, effective, and noise-free communication.

The management system integrates sectors, remember? Therefore, data from all departments also complement each other and facilitate the manager’s decision-making, benefiting everyone.

  • Disorganization

If you are always missing deadlines, need to re-order, request or repeat quotes because you don’t know where you kept the previous document, know that it is also possible to change that with a management platform.

In addition to issuing reports, slips, and invoices, the system also keeps these documents organized, in addition to offering ready-made report templates, further streamlining bureaucratic issues, an obstacle in business management.

  • Loss of documents

The disorganization or improper storage of documents, as well as the lack of attention when handling them, can cause serious damage to the information contained there.

A computer failure, a change saved in the wrong way, a crash in the conventional data system, and all the information contained in that equipment may migrate into the hands of unauthorized persons who may act in bad faith in possession of this data.

If this has already happened in your company, you know how scary it is to imagine the possibility of permanently losing an important amount of documents and business data. Not to mention the confidentiality of this information.

The integrated management system offers at least three ways to keep your data safe: access controlled by passwords, backup system, and usage history, which also facilitate access control.

So, if you have already witnessed or been through any of the situations mentioned, it is time to think about implementing an integrated management system. Thus, you guarantee a more organized, peaceful, and secure management.

  • Lack of performance indicators

Would you be able to say, now, which are the products of your company that present greater or lesser profitability? If the answer to this question is negative or inaccurate, know that your business is a little lost.

Performance indicators are necessary tools for the manager to evaluate the progress of all his work and see if the company is generating the profit that everyone wants and needs.

How is it possible to know if the new promotion launched was a success if there is no sure way to measure all sales? If that’s how it works in your business, it’s time to change your strategy.

The integrated management system issues report gives a clear idea of ​​how your billing is going and which products or services contribute to a good or bad result in this regard.

In Conclusion

These are some of the many advantages that a management system can provide to a business. And if you, as a manager, still don’t know if it’s time to invest in a centralized method of organizing information, the best tip is to study the current situation of your business, think about all the advantages and possibilities that a multifunctional software offers and evaluate the cost-benefit involved.

The Author

Oladotun Olayemi

Dotun is a content enthusiast who specializes in first-in-class content, including finance, travel, crypto, blockchain, market, and business to educate and inform readers.