4 Benefits of Business Process Standardization (Abolish the Ambiguity)

by Panorama Consulting Group | Nov 11, 2021

business process standardization

There are many benefits to standardizing your business processes. Whether you’re doing so as part of an ERP implementation or apart from technology, standardization can bring huge efficiency gains.

When employees across departments and locations are performing the same task in five different ways, it’s safe to say that at least one of these methods is egregiously inefficient.

Business process standardization involves identifying the best way to perform a process and implementing it across your organization. As you do this for various processes, you’ll find that you can minimize errors and redundancy while boosting efficiency.

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We surveyed SAP, Oracle, Microsoft, and Infor customers to find out what their selection and implementation process was like. If you haven't begun researching ERP vendors, this report is a great place to start!

Why Standardize Your Business Processes?

Business process standardization and quality often go hand in hand. When every employee knows exactly how to produce the goods and services that keep your business afloat, then you mitigate risk and improve customer satisfaction.

Before going further, we wanted to mention that it’s possible to standardize a process across departments and locations, while rejecting the standard functionality your ERP vendor provides for that process. There are certain cases where this makes sense, and the below benefits still apply.

1. Enhance Scalability

As a business leader, you naturally want your company to weather all storms and grow over time. Part of achieving that longevity is ensuring operational stability and scalability. 

When you standardize your business processes, you have a blueprint that tells employees exactly how a task should be completed. This blueprint is accessible and repeatable, eliminating guesswork and ambiguity.

If you have process ambiguity between departments and locations, you’ll struggle to scale your business quickly enough to meet increased customer demand. To do so, you’ll not only have to streamline your processes, but first, you’ll have to standardize them – both of which are time-consuming.

2. Improve the Customer Experience

Have you ever had a great slice of pizza at a new restaurant, only to return the next day, order the same thing, and find that it doesn’t taste the same? If so, then you know how important it is to get a good thing right, time and time again. 

When all employees are following the same processes, then product quality and consistency understandably improve. This is because you’re reducing the amount of variability in your offerings, which improves the customer experiences and your overall brand image.

3. Create a Culture of Continuous Improvement

Great companies are born out of a culture of continuous improvement. This is a company environment in which everyone feels empowered to look for and share ways to improve their processes.

Standardization allows you to establish the basics first, so employees are speaking the same “language” when they collaborate across departments and locations to solve pain points in their processes.

4. Faster and Cheaper Implementation

Whether you currently have an ERP system in place or plan to implement one in the future, you know that automating your business processes can save you time, money, and sanity.

However, jumping right into automation without first focusing on business process management, can be a costly mistake.

We recommend improving and standardizing your processes before the implementation phase. Hourly implementation experts don’t come cheap, so you don’t want to waste their time with decisions you could have made in advance.

When it comes to the type of standardization that goes beyond internal standardization and you actually standardize your processes based on software functionality, standardization brings cost savings in other forms – you realize these cost savings because you have less need for software customization.

Essentially, when you standardize most of your processes based on your ERP system’s best practices, you don’t have to spend as much money accommodating processes that you’d like to perform differently than the industry standard.

Is Business Process Standardization Right For Your Company?

Business process standardization is ideal for any company that wants to deliver high-quality, consistent products and services with a high degree of predictability. Most executives would nod their heads and say that’s exactly their goal. 

While the benefits of this approach are obvious, some companies may prefer to adopt a more flexible business model. This is usually the case with fast-growing companies who need to be able to adjust their operations at any given time.

Our ERP consulting company can clarify any confusion you might have regarding the term “standardization” because it can mean different things depending on the context. Within an ERP software implementation, it certainly has multiple meanings. Request a free consultation below to learn more.

FAQs About ERP Implementation Failure in Pharma​

How do food and beverage ERP systems differ from general-purpose ERP?

General-purpose ERP handles orders and financials well, yet it tends to treat a recipe as a static bill of materials. Purpose-built food and beverage ERP systems support yield variability and catch weight pricing, and they allocate inventory based on remaining shelf life rather than on the date a lot was received.

What should we look for in ERP for the food and beverage industry during demonstrations?

Ask vendors to run your own scenarios rather than their prepared script. A mock recall traced backward from a finished pallet to every ingredient lot will tell you more than any feature matrix, because it exposes where the platform still relies on manual reconciliation.

Is food traceability software a separate purchase from ERP?

Some vendors embed lot genealogy and recall reporting directly in the core platform, while others expect a bolt-on product or a warehouse management layer to carry it. The distinction matters at contract time, because integrated food traceability software is priced inside the license, and a bolt-on arrives as a separate line item with its own upgrade path.

How long does selecting food and beverage ERP software usually take?

Timeline depends far less on the software than on how many distinct manufacturing modes the business runs. A single-plant processor can move from requirements gathering to contract signature considerably faster than a multi-site operation where harvest operations and formula-based manufacturing each need their own requirements workshop before any vendor can be scored fairly.

What is the biggest risk when selecting a food manufacturing ERP system?

The biggest risk is underspecified requirements. When only IT and finance define scope, the realities that plant supervisors and quality managers handle daily stay invisible until testing begins, and by then configuration decisions are already locked. Requirements workshops held on the plant floor before vendor contact are the cheapest available correction.

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About the author

Panorama Consulting Group is an independent, niche consulting firm specializing in business transformation and ERP system implementations for mid- to large-sized private- and public-sector organizations worldwide. One-hundred percent technology agnostic and independent of vendor affiliation, Panorama offers a phased, top-down strategic alignment approach and a bottom-up tactical approach, enabling each client to achieve its unique business transformation objectives by transforming its people, processes, technology, and data.

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