ERP System for SMEs & Enterprise
When it takes longer to reconcile financials
at the end of the month, when Sales Forecast are based more on guesswork
than solid figures, when there is no idea how much inventory is there in the warehouse, then it may
be time to consider an ERP system.
#1:
There is much Different Software for Different Processes
Spend a few minutes thinking about how
employees at the company record, track and process information. When various
front- and back-end systems run separately, it can wreak havoc on the processes
that are meant to ensure the company is running smoothly. Without accurate data
from sales, inventory management may suffer, while not having the latest
information from accounting can trigger a ripple effect on everything from
marketing budgets to payroll.
ERP software integrates these systems so that
every business function relies on a single database. With one source of
information that contains accurate, real-time data, an ERP solution helps staff
make better decisions more quickly and frees up their time to help the business
grow even faster.
#2:
Don't Have Easy Access to Information about the Business
The pace of business is faster than ever
before, which means employees across the company need immediate access to key
data. With an ERP solution, executives can get a holistic view of business
operations at any time, while other staff can get the information they need to
do their jobs more effectively. For example, sales representatives should be
able to view a customer's full transaction history and more proactively improve
renewal rates while increasing upsell and cross-sell opportunities.
#3:
Accounting Takes Longer and Is More Difficult
Often, the first noticeable signs that the
company needs an ERP software will come from the accounting department. If
employees rely on paper-based invoices and sales orders—and spend hours every
week manually entering them into different accounting and sales systems, then
the need to consider how much time is being wasted on tasks that ERP software
can handle in an instant.
The same goes for financial reporting—if it
takes ages to consolidate or reconcile financial information across systems and
through countless spreadsheets, an ERP solution can make a significant impact.
With all financials in a single database, accounting staff won't need to spend
hours cross-posting information, rekeying numbers, or reconciling data
manually.
#4:
Sales and the Customer Experience Are Suffering
As companies grow, one of their biggest
challenges is often inventory management. Ensuring that the right amount of
products is in the right location at the right time is a vital part of business
operations.
When sales, inventory and customer data are
maintained separately, it can create serious problems across the company. If a
product is run-out then sales will be off until the next shipment arrives.
Meanwhile, if a customer calls to inquire about an order and employees can't
track it to see if it's been shipped or if it's even in stock, then the company
will start to develop a poor reputation for reliability and service.
With an ERP system, on the other hand, staff
in every department will have access to the same, up-to-the-minute information.
Customer-facing reps will be able to answer customers questions about order and
shipping status, payment status, service issues, etc., without having to hang
up the phone and check with another department. Meanwhile, the warehouse
manager can see that stock is getting low and can reorder.
#5:
IT Is Too Complex and Time-Consuming
One of the biggest downsides of having
multiple systems across the business is that IT management can become a
nightmare. Customizing these systems, integrating them and maintaining them
with patches and upgrades can be complex, costly and takes more critical time
and resources.
Rather than adding more individual
software and complexity, ERP technology can give you the ability to respond to
changing business needs rapidly. That's why selecting an ERP provider is
critical.
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