Does your company need Enterprise Resource Planning (ERP) upgrade?
Revenues are increasing, and it appears that you are employing new employees every week! Growth, on the other hand, brings with it plenty of management issues.
So, how can you know when it's the perfect time to implement new business management software?
For growing businesses, it’s not a matter of if they’ll need enterprise resource planning (ERP) software, but when.
As a business grows, so does the amount of data it generates—and the number of data sources it must track.
Managing all of that data across numerous systems is time-consuming, expensive, and prone to errors.
While there is no hard-and-fast rule for when it's time to invest, many business owners have similar problems that an ERP system can help.
Even if the implementation your company chooses has a high initial cost, it will save money in the long run by reducing operations and increasing workflow efficiency.
what it has the potential to do for your company
Read: Your 9 Red Flags Need an ERP Upgrade, ASAP!
What Enterprise Resource Planning can do for your business?
An ERP system provides a centralized platform for companies to manage data from various departments and operations.
Because the volume of data you work with is smaller than that used by larger companies, you can get away with using separate systems as a small business.
However, if your company grows, managing all of that data across many software systems will become costly, time-consuming, and prone to errors. This problem can be solved by using an ERP system, which can handle accounting, manufacturing and distribution, CRM, HR and payroll, and inventory management – all critical aspects of your organization – in a single database, application, and user interface.
The right ERP system will enhance productivity and efficiencies across your entire company, and with the growing number of cloud-based ERP solutions available, the decision of whether to install is becoming much easier.
If your business is experiencing these 4 signs, you may need an ERP:
- Your current program has outlived its usefulness.
In a recent survey of more than 300 ERP buyers, the key driver of when to switch to an ERP solution was ranked #1 as corporate growth.
Adolescent businesses go through similar growing pains with software as we did with our favorite Led Zeppelin tee as teenagers (a sad day indeed).
Your company's lifeblood is data, and you must keep it flowing.
You'll need a more powerful system to handle all that heavy lifting if you're processing data in entry-level software applications designed to hold only a certain amount of data.
How ERP software can help: ERP software is built to store massive amounts of data across a wide range of corporate functions. Accounting, manufacturing, and customer service are examples of these operations.
ERP systems provide SMB owners with the flexibility they need to continue growing while also providing some much-needed piece of mind.
- Your current practice is inefficient.
Don't worry if you're losing track of all those spreadsheets, switching between software all the time, or having trouble getting your programs to connect with one another—you're not alone.
These are some of the most common issues faced by growing businesses, as well as some of the primary reasons for upgrading to an ERP system.
Demand forecasts, for example, are used by manufacturers to monitor production and inventory levels.
However, a simplified supply chain approach that integrates sourcing, sales, distribution, and other factory planning functions is required to do so accurately and efficiently.
Unwanted overstock or shortages are almost likely to occur from a lack of communication between codependent systems. Such inefficiencies, especially in manufacturing, can derail production, throw schedules off, and wreck havoc on a company's bottom line.
How an ERP can assist you: ERP's main feature is its ability to seamlessly integrate functions, bringing together disparate operations in a single, centralized workspace.
This eliminates the majority, if not all, of the redundant procedures you're doing across many applications. Because information only needs to be entered once into a centralized system, it also decreases the chance of data entry errors.
Read: Can a Business Survive Without an ERP System?
- You're overpaying for software integration.
Without an ERP, your company is likely to rely on a variety of software interfaces to streamline data and allow cross-departmental access. However, integrating numerous programs is not inexpensive.
The cost of owning and integrating many pieces of software can quickly pile up due to license payments, staffing, training, operations, and the labor required to get them to operate properly together (assuming they even work together at all).
Most businesses have called on software advisers and recommended ERPs prefer an all-in-one system.
How an ERP can assist you: Whether you choose an integrated ERP system or a best-of-breed ERP system for your company, all ERP systems streamline data while lowering training expenses, user error, and the cost of maintaining numerous systems.
An ERP system can assist you in scaling effectively and accounting for any growth in demand in this situation.
How an ERP helps: The following are some of the ways that ERP software can aid in the streamlining and simplification of the manufacturing process:
- Accounting, CRM, order management, and shipping are just a few of the departments that ERP systems acquire data from.
- It also compiles all of this information into a single, easy-to-use dashboard, resulting in increased efficiency, accuracy, and visibility into your internal processes.
- These efficiencies are critical in ensuring that your consumers remain satisfied and loyal clients.
Your consumers are crucial to your business, and the last thing you need as a developing company is for your product to fail to deliver on its promise.
ERP software allows you to organize and access data in a central spot, whether you're having trouble managing and tracking inventories, collecting customer-specific financial information, or providing detailed reports for clients.
Let's say you're a company looking to expand operations and add a new plant. However, you're still tracking inventory and processing purchase orders using manual procedures and separate systems, and things are getting out of hand.
Read: Revealed! The hidden costs of not implementing an ERP
These 4 signs are some of the common reasons or business triggers for upgrading to an ERP solution, however, each business has its own reasons.
If you are just starting to think about ERP for your business, we recommend that you take the time to determine whether or not your business meets the criteria for an ERP system.
Here are some initial steps you should follow:
- Meet with employees and key stakeholders to find out the operational challenges experienced by using multiple systems.
- Perform an audit of your current business processes and systems to see if an ERP system can improve your workflow or not.
- We believe that your business needs the right solution for you. Themis Bizpro provides expert guidance and experience to help you make those choices and has a team to help you apply them to your business. Contact us today if you are thinking of implementing an ERP!