Is Your Business Ready for an ERP System?

ERP is short for Enterprise Resource Planning. ERP software is a business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing.  ERP systems are considered enterprise applications as they are designed to be used both by larger businesses as well as scaled to specific niche industries.

Companies that could benefit from using an ERP system typically have similar problems and shortcomings. Is your business facing some of these issues? See if your business is facing some of these issues:

You Have Multiple Software Programs for Different Processes

Take a second and take stock of your company. How many systems do you have that record, track and process information? Do you have a Human Resources software for storing employee information, and a separate program for your sales team? Does your warehouse rely on a different software for tracking shipping?

In the spirit of efficiency, having multiple software programs can actually run counter to any attempts to improve operations. If there are backlogs or data is not transferring efficiently, than issues such as inaccurate financial statements may emerge which can then create a ripple effect throughout the company.

ERP software integrates all of these systems, ensuring accuracy in data reporting, seamless data transmission, and time efficiency for your employees so that they can better focus on their jobs, not on trying to track down that memo.

Customer Service is Suffering

As companies expand, one of the biggest obstacles is often inventory management. How do you ensure that you have sufficient product availability to meet demand?

When sales, inventory, and customer data are maintained separately, it is more difficult to accurately track product availability and information. This can be problematic for companies as both customer service and sales will suffer simultaneously. You don’t want to develop a poor reputation because your management software is inept.

An ERP system ensures that all data is real-time, meaning that you have the ability to determine exactly how much product is available and plan for periods of high-demand by seeing trends in data. Additionally, ERP ensures that customers will have direct online access to their accounts, so that they can track their order status information.

Your Business Information is Poorly Organized

Understanding and accessing your KPI’s (Key Performance Indicators) at a moment’s notice is essential in today’s fast paced business environment. If you have to reconcile accounts manually or cross-reference spreadsheets when you want to determine how well your business is doing, then it is a clear signal that you are behind the times and you need an ERP system.

With an ERP, you can quickly diagnose bottlenecks in your companies’ operation, helping to streamline business and management practices. For example, ERP systems can provide a sales representative with detailed information of a customer’s purchase history, better assisting them in improving renewal rates while increasing sales opportunities.

Your IT Confuses Your IT Department

Ever wonder what happens when your own IT department is too complex for your own employees? Well, efficiency and productivity suffers, which means cash-flow is affected. According to Ron Gill, CMA, CFM, “…more than two-thirds of mid-size businesses are running outdated versions of their business software.”

Rather than adding additional software to a cumbersome system, it is best to implement a system-wide ERP. Which is why having a cloud-based ERP service provider is critical. Additional functionality is easily scaled as your business grows.