How to reduce costs in companies with an ERP system?

Cost reduction in companies is usually a major challenge, although it is increasingly essential for management. In a scenario of high economic instability like the current one and high competitiveness in the market, having a good ERP software can strongly contribute to ensure your profitability.

You may even think that investing in a system will be expensive, but the truth is that, if used well, this type of software has the ability to compensate the amount invested due to the savings generated and the results obtained. With technologies and functionalities that allow you to automate your management processes, you can say goodbye to that manual and bureaucratic work that prevents you from growing.

Learn now what ERP is, its advantages and how it contributes to the cost reduction of your business.

ERP: what is it and how can it help me?

ERP is a management system and stands for Enterprise Resource Planning, which can be translated as Enterprise Resource Planning.

This type of system is able to automate and centralize all the company's management processes and sectors, making them more accessible and organized so that the different teams can control the information related to expenses, revenues and profits.

With ERP software it is possible to carry out end-to-end financial control:
  • Accounts payable
  • Accounts receivable
  • Cash flow
  • Asset management
  • Sales
  • Invoicing
  • Tax
  • Payroll and other functions
In other words, in a single tool, the manager or entrepreneur can verify the performance of each area of the company and even analyze the data to locate waste and unnecessary costs.

Without a system such as ERP, it is common for each sector to use its own tools - some of them manual and without any technological intelligence - which generates poor resource management: communication failures, errors, rework, waste and production losses.

To give you an idea, a Canadian survey showed that 49% of companies reported an improvement in all their business processes after implementing an ERP and 95% reported greater efficiency in some processes.

What are the advantages of ERP?

ERP is the ideal solution to make your management more efficient, precisely because it is a system that centralizes information, allows its visualization by all sectors and integrates everything that financial and accounting management needs.

This allows you to make better use of the company's various resources (cash, stock, equipment, suppliers and others) and increase productivity.

Check now the main advantages of using an ERP:

Drives growth

ERP allows companies to grow and, even more, to become scalable, without this increase in work complexity resulting in more errors, waste and loss of information.

Offering better products and services also allows to increase the profit margin, which is important for the growth and profitability of the company.

Ability to work with smaller teams

By automating processes and repetitive tasks, it is possible to reduce the number of employees in operational activities. This also leads to a significant reduction in costs and it is possible to invest in people who perform more strategic, innovative and creative functions.

Reducing errors and fraud

Manually controlling inventory, cash flow, invoice issuance and other management processes can lead to many errors - and even open the door to internal fraud. Automating these processes with ERP eliminates human error and makes information much more reliable and auditable.

Increased productivity

A very common problem in companies is rework with manually performed tasks, because the communication between sectors is faulty and the same activity ends up being done several times. By automating them, this problem is mitigated, leaving your professionals available to perform other tasks and thus expanding the productive capacity.

To give you a better understanding, if the company receives a purchase order, for example, immediately the data from this operation can be accessed by the sales, marketing, stock, logistics, production and financial teams. This speeds up productivity and ensures better communication between all departments of the company.

More accurate reports and indicators

ERP software allows you to generate reports quickly, which is essential for good management. From the data and graphs generated, it is possible to perform strategic analysis, which will be the basis for decision making. Due to the integration between the different sectors, the standardization of processes and the automation of operational tasks, it is possible to obtain more complete and substantiated reports.

In the system, it is also possible to define performance indicators (KPIs) to be monitored, which allows a much closer control by management.

Greater control over cash flow and budget

Manually managing cash flow is synonymous with failures and delays. The ERP allows you to perform this control in an automated and agile way. With the system, you generate collections quickly, simplify processes, keep inventory levels minimized with just-in-time, easily find problematic accounts and optimize your invoicing.

In addition, the software allows you to adequately provision for future expenses, providing the manager with the insight needed to maintain cash liquidity, prepare budgets, plan investments and make more assertive decisions.

Organizational efficiency

Having an ERP means centralizing operations, standardizing internal processes and reducing unnecessary effort. All teams will have their operations facilitated, facilitating faster delivery and better communication between sectors. More productivity in less time means efficiency.

Real-time information

All information entered into the ERP system can be accessed, analyzed and managed in real time, ensuring better tracking of the operation. This speed is essential for very dynamic and complex businesses that work with large volumes of data.

Increased data security

Automated and centralized information is easier to control and if you opt for an ERP in the cloud. In addition to gaining mobility to access data from anywhere, there is no need to worry about losing information if something happens to the computer being accessed. Unlike what happens with controls stored in spreadsheets and notebooks.


With the implementation of an ERP, access to information will be made from the most diverse devices, such as notebook, tablet and cell phone, making the printing of any document no longer necessary, making your business more sustainable. The significant reduction of paper emission also reduces material costs and the impact on the environment.


One of the keys to success in a company is to create a culture of continuous improvement. Otherwise, the company loses competitiveness against its competitors and can be involved in various operational or financial problems.

The ERP comes precisely to give you greater control of its operation and the company's resources, increasing profitability and optimizing processes.

If you are interested in having an ERP system in your company, you have to know SYDLE's ERP ONE. A responsive web platform for Android and iOS, which your team can access from anywhere.

In addition to all the advantages mentioned above for managing your entire production chain, this is an innovative software that is more complete than traditional ERP and has the advantage of offering high parameterization capacity. This means that ERP ONE is fully parameterizable and can be adapted to any business model.

In addition, the system is all-in-one, i.e. it has several management tools integrated into the ERP, such as BPM, CRM, ECM, Service Desk, Analytics, E-commerce and others.