5 reasons you might want to invest in an ERP.

May 3, 2021 |
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When you run a business, having a plan is not optional. You have to manage so many areas and oversee so many tasks on top of your own. Without a streamlined system in place, it’s easy for the tasks to slip through the cracks, the deadlines to not be met.

This is where an ERP system comes into play. Just like your brain controls all parts of your body to make sure they work simultaneously, your customized ERP system will control all parts of your business to make sure everyone’s doing what they need to do.

Enterprise Resource Planning or ERP is a business management software that can handle all of your business processes using one comprehensive system.

Which sounds great! But the real question is, does your business need one of those in the near future? Today, we are going to figure that out.

Do you want to save money in the long run?
Getting a custom-built ERP software might be expensive. But chances are, if built right, it’ll end up saving you money. How so?

Even if you don’t have an ERP for your business, there’s at least some kind of software you use. And software integration does not come cheap. You have to pay the licence fee, train your employees to use the software and get all the softwares to work together (if that’s even possible). The costs can add up real quick.

An ERP system will lessen the training cost, save further licence fees and reduce data error significantly. Moreover, the amount of efficiency an ERP can provide will end up improving your customer satisfaction.

Do you want to grow your business?
We grow out of things. Just like the shirt we wore to high school does not fit us any more, your manual business management system will also stop fitting your growing business. It’s better for your business’ health to move on to a newer system that suits it well.

To grow your business, accommodate more clients and employees, store and process the growing data, only a customized ERP system can provide the scalability you need.

Are you struggling to keep the data flowing?

Every business needs to process large amounts of data. If you are using an entry-level software to process your business data, you might start struggling soon.

An ERP software can be used to hold a big amount of data. It can generate reports that are customized to your business needs. And keep the data flowing among various departments of operations – from sales and distribution right back to manufacturing planning.

Do you think your process can be more efficient?
Losing track of all those documents and spreadsheets? A bookmark here, a sticky note there and so many Google Doc files becoming overwhelming? If only you could find a centralized system that perfectly fits your process of business! Oh wait, you can!

An ERP will provide you and your team with one single workspace that can seamlessly manage all your operations. It will also consolidate the processes and data into one easy-to-navigate dashboard. No more going back and forth among multiple softwares and websites.

Let’s explore the story of Fulton & Roark, a retailer of men’s grooming products, whose business was saved by the implementation of an ERP.

This North-Carolina based business used to track their inventory in a spreadsheet and finance in a desktop accounting software. As their sales kept doubling year-over-year, they outgrew this system quickly. Spreadsheets couldn’t account for changing inventory costs, and the accounting software couldn’t calculate Cost of Goods Sold (CoGS). The team had to perform double data entry.

Soon, they decided to implement an ERP for their business. Within 20 days, their software was ready and good to go. This software enabled them to-

– Catch and correct inventory related bookkeeping errors
– Stop working with external accountants
– Increase sales by about 50% year over year
– Get a more accurate picture of margins and inventory.

Implementing this ERP was the stepping stone towards a tremendous growth in their business and management. The efficiency saved them both time and money.

Now, let’s get back to why you might want an ERP for yourself!

Are you wasting valuable time on redundant tasks?
Working among multiple spaces means entering the same data multiple times, performing the same process over and over. That time could be used in much more efficient ways.

Working in a central workspace will automate most, if not all, of the redundant tasks. It’ll also mean less data entry error because data will only need to be entered once.

Now that you are aware of why your business may need an ERP system, you might be wondering what features will best serve you. Here is a list of 7 standard ERP modules to get you started.

1. Financial Management System
An FMS will help you understand your business’ current financial situation and help with a financial forecast. Some of the features of this module include tracking Accounts Payable and Accounts Receivable, as well as the general ledger.
2. Supply Chain Management
This module tracks each step of the supply chain – from suppliers to retailers or consumers.
3. Order Management
This module tracks orders from receipt to delivery.
4. Customer Relationship Management
A CRM stores the contact information of all of the company’s customers and prospects as well as the communication time and order history.
5. Service Resource Management
This module will allow you to plan and manage projects. Service based businesses often use this module.
6. Human Capital Management
An HCM is much like a CRM for the employees. It stores detailed records on all employees as well as tracks the hours worked and Paid Time Offs.
7. Ecommerce
This module will help you to quickly launch a B2B or B2C ecommerce website.
These are only some of the modules you can choose to customize your ERP software. The most effective ERP for many businesses is SAP. It stands for Systems Applications and Products. Unfortunately, it can get highly expensive. A local solution, on the other hand, can be a more affordable choice for your business.

By this time, you have probably already decided whether an ERP software can be beneficial to your business. If the answer is positive, you might want to consult your team and seek advice from someone who specializes in Enterprise Solutions like this.

As an expert on the subject, we are ready to help. Call us now.

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