Enterprise Resource Planning (ERP) is software that allows businesses to manage business processes and information. Long thought to be a tool exclusively for large businesses, there are an increasing number of solutions being made available to small and medium businesses. Despite this, many business owners are unsure as to whether ERP should be integrated into their business or not.
There are several common business situations that indicate your business may be ready to implement an ERP solution. Here are 5:
1. Your business is entering the growth stage
If your business is experiencing a period of growth of profits, sales, and employees, chances are high that the number of systems and processes you use and require are also growing. If not managed properly, you could see a significant slowdown in growth due to inefficient processes.
By integrating an ERP solution, you can avoid this largely because these systems allow you to manage processes from a central location and provide you with the right resources when you need them. Essentially, they provide the platform that can support the systems and processes that enable healthy growth.
2. You have a tough time accessing business information
Companies without ERP often see employees wasting time tracking down important information. Think about the time you need to spend looking for accounting data. Is it available at the click of a button, or do you need to search for it across different locations?
If you are spending more time tracking important information than actually using it, you would do well to look into an ERP solution. It can centralize information and make it much easier to access when you need it, thereby increasing your overall productivity.
3. Finance and HR processes are becoming harder to manage
Companies with a small number of employees or customers can likely get by without specific software to help track relevant information and can use spreadsheets instead. But as soon as you see growth, you will quickly find out that spreadsheets simply won’t cut it and managing Finance and HR related activities and information will become an uphill struggle.
If your teams rely on paper or other base information to develop reports and fill orders, you could see labor costs shoot up, possibly becoming your biggest expense. By integrating an automated solution like an ERP, you can cut back on these costs and make your employees’ jobs more manageable.
4. Databases contain double entries and errors
When each department uses their own software to keep information, it can become impossible to manage it all and ensure that all systems contain not only the same information but are up-to-date. When different departments have different information for the same client, person or function you are going to see inefficiencies and errors made.
These mistakes and the time spent correcting them can result in increased wages, decreased productivity, and even potential loss of sales. By implementing an ERP, you can ensure that everyone is accessing the same information which is not only correct but also up-to-date.
5. There are numerous processes carried out on different software and systems
It is common to see many businesses invest in different software and systems for different functions and departments. In many cases, this can lead to high overhead and management costs which in turn can eat away at profits.
Many ERP solutions are developed to support a variety of business processes and departments. What this equates to is one solution that covers all aspects of your business. This is almost always more affordable than multiple systems. The same can be said if you need to add new employees. With traditional systems this means investing in new software licenses. However, with ERP you can usually add a user for a low monthly cost, or even no cost at all – depending on the solution you integrate.
If you are looking to learn more about ERP and how it can be implemented in your organization, contact us today and discover what might turn out to be a successful solution for increased profits and productivity.