ERP (Enterprise Resource Planning) is a type of business management software. An ERP solution offers an integrated set of applications that manage business procedures. Together, these apps aid manage the operations and track business resources such as cash and raw materials while allowing effective supply chain management.
Why an ERP system is important:
ERP suites usually offer a complete accounting and financial management program. Itnormally contain CRM (Customer Relationship Management) tools along with data analytics & visualization/reporting abilities.
If you are meticulous& diligent about your industry, it runs pretty well even without an ERP software. Certainly, a lot of profitable fears work fine with the least Information Technology inputs. But, every corporate could run better and be more lucrative. With that in mind, here’s a guide to aid you assess your risks as well as measure the prospect of implementing a great-fit ERP:
Reasons to implement an ERP system:
- You rely on manual handoffs between accounting & operations – Does your team have to use email or paper to transferthe information from operations to accounting? An ERP system incorporates accounting and operations managing software, getting you out of this manual task.
- You are using spreadsheets to examine your business data – reports regarding sales growth, order statuses and so on are created on Excel. ERP has rich data analysis tool that work in real time.
- You are adding excessive staff as you progress – This is anindication that your knowledge worker output is lagging. Ideally, the staff headcount in operations &accounting management should rise at a lower rate than the revenue growth. ERP facilitates greater output through automated workflows and process transposition between systems. ERP systems can also aware you about issues happening in your business.
- You have got additional inventory on hand – Inventory ties up cash. If you have more stock, work in progress or finished goods inventories that you need, it is a signal that you lack the means to measure and track inventory efficiently. ERP delivers real time detail on inventory and the capability to set the quantity or dollar limits, with warnings for circumstances where the limits are surpassed.
- Your cash cycle is increasing – ERP systems gives you better real time visibility into payables, orders and receivables, allowing you to get ahead of cash deficits before they are noticeable as problems.
- Your client satisfaction is falling – Late deliveries, faults in orders and so forth are taking your clients away. Yet, you are not aware of it till it’s too late. An ERP system reports this problem in 2 ways. First, better order management as well as oversight of delivery & service helps you avoid client issues. You will get notified when there is a problem. Second, an integrated CRM system allows you involve more deeply with the clients and enjoy more positive and growth-oriented relationships.
If you are facing any of these indicative signs of ERP need, you might want to talk to us. We have broad experience assessing a company’s necessities for ERP and then executing the right ERP solution.