For many growing businesses, it is not a matter of if they’ll need an enterprise resource planning (ERP) system, but when. So what exactly is ERP? In short, it is a suite of applications that is built to manage and integrate core business processes. Finance, procurement, and human resource are just some of the areas in which ERP can assist. ERP provides you with real-time information that is accurate. With this information, stakeholders in your company can make informed decisions that are based on data.
Every organisation manages employees, buys products or services, sells or distributes something, and accounts for finances. Whether it is for small and medium-sized enterprises (SME) or large corporations, ERP helps businesses from all industries integrate and manage these processes. If your business is growing rapidly, it may well be time to implement a new ERP system. Because with growth comes more management headaches.
Read on to discover some of the signs that indicate that your company is ready for an ERP system.
1. When Access to Data and Information is Difficult
If you are finding it hard to keep track of all your information, it could mean that your existing process is inefficient. What kind of information are we talking about here? It could be receivables and payables used by accounting staff or customer orders that are entered by sales teams. Usually, multiple software is used to house different types of data. However, the downside to this is that too many systems can lead to many processes inefficiencies and can make it hard to track accurate and timely data.
Easy access to your business data and information is important because it allows for increased productivity. An ERP system is able to integrate these systems so that every business function relies on a single database. With one source of information that contains accurate, real-time data. Employees are now given the opportunity to make quicker decisions and reduce the time spent on manual tasks.
2. When Manual Processes are Slowing Down Operations
Another factor that can lead to inefficiencies is having too many manual processes that could be automated. Some of these manual operations include data entry, inventory updates, or processing purchase orders. In order to avoid things getting messy, it is important to actually automate these tasks.
ERPs can take care of many administrative obligations, unburdening users from repetitive duties. This also translates to boosted productivity. ERPs also remove human error and consequently, reduce the time needed to perform complex financial tasks.
3. When You Find Inconsistencies in Inventory
Balancing supply and demand in itself is a daunting task. Inventory planning and management are among the most important tasks. When not managed well, the failure can be catastrophic. It is important to keep balance – enough stock on hand to fulfil orders, but not so much stock that your warehouse is filled to the brim with inventory that won’t move for months. Inconsistencies in inventory can lead to unhappy customers who are likely to seek out your competition.
An ERP system provides real-time inventory information to the entire organisation. This data can then be used to make informed decisions, create accurate forecasts to meet future demands, and reduce the chance of ending up with excess stock. Having your inventory history and metrics easily available also eases planning and increases customer satisfaction.
4. When Your Business is Unable to Meet Customers’ Demands
Your customers are vital to your organisation. Ineffective business operations will inevitably fail to deliver on the promise of your product. Be it struggling to manage and track inventory, or difficulty in retrieving customer-specific financial information, ERP allows you to organise and access data in a central location. It collects data from across many departments and consolidates it into a single, easy-to-navigate dashboard, providing greater efficiency, accuracy, and insight into your internal processes.
In turn, these efficiencies ensure that your customers remain happy and increase the retainment rate. Issue resolutions become a breeze with ERP too. When customers experience problems with their orders, service reps can log their cases into an ERP system.
Trying to keep a company running smoothly is no easy feat. You may feel the need to be constantly ahead and, on your toes, to keep everything on track. ERP software can help to manage these backend processes and keep the essential functions of your businesses moving like a well-oiled machine.
Choosing to implement an ERP system may seem like a difficult decision, but it does not have to be. Here at Naviworld, the go-to ERP software vendor in Singapore, we have skilled consultants that can help you and your company with ERP implementation. Reach out to find out more today.
