Every business is unique, with a distinct set of operations, processes, services, and products. However, the operational challenges that they come across during the entire evolutionary phase remain similar for them. In the present times, when businesses evolve at such rapid pace, they can become even more complex. This is the reason that the adoption of Enterprise Resource Planning (ERP) solutions becomes imperative for optimizing the operations at all levels.
These solutions can help businesses in a myriad of ways, from bringing efficacy in management of human resources, operations, and business processes, to boosting overall productivity and growth. Enterprise Resource Planning (ERP) software is employed in a number of industries like manufacturers, retails, finance, governmental agencies, non-profit organisations, and, etc. It centralizes the business information into a single database which is helpful in streamlining the business process.
When should you consider investing in an ERP software?
When it comes to decide whether you really need to invest in an ERP solution, the answer is subjective. It really depends on the problems and frustrations that you are currently facing and the ones that may come up in the future. Here are some signs that indicate that it is right time for your company to embrace an ERP solution.
Different processes and software are getting tougher to handle
As a business grows in size, so does the number of processes, operations and employees. The complexities of managing them increases even if you adopt innovative software to do so. From employee management to accounting functions, process tracking, inventory control, and more, everything becomes easier to handle. An ERP software can integrate the diverse systems with a single database for every business function. With a single source of information with accurate, real-time data, the solution enables better and faster decisions and also frees up their time to be allocated to business-critical activities.
Accessing the information related to the business is not easy
As the data and information related to sales and other aspects of the business grows at a rapid pace, it becomes tougher to record and manage it. Companies have to rely on outdated systems and spreadsheets which require constant updating and manual reconciliation. This can be a waste of time for the employees, while not having access to key data is another problem that they may face. In these circumstances, implementing an ERP solution can be a good measure to give the employees a holistic view of the business operations and data they may require at any point in time.
Accounting is time-consuming and difficult
Another sign that your business requires ERP software sooner rather than later is that the accounting functions are becoming time-consuming and difficult to handle. If they have to depend on manual invoices and sales orders and spend hours studying and maintaining them, it will translate into several hours wasted every week. Similarly, this may also lead to the financial reporting becoming cumbersome with countless spreadsheets and information systems to manage. With an ERP, all the financial data will be in a single database, reducing the manual workload of rekeying numbers, cross-posting information, or reconciling for the accounting staff.
The IT infrastructure is becoming too complex
While your enterprise may be witnessing booming growth, there will be several complexities to deal with. One of these that may have a far-reaching impact is that of the IT infrastructure, with multiple systems across the business making things difficult to manage. The challenges are numerous, from customization and upgrades in the systems, installation of security patches, integration with the legacy systems, and more. Implementation of an ERP solution is the best way to cope with the complexity as it drives agility and ensures that the business aligns its IT infrastructure with its growing size. The solution resolves issues related to system updates and enables the addition of new functions without burdening the IT staff.
You are facing issues on sales and customer experience front
Inventory management is a critical business function as it ensures that the right amount of products is available at the right time and at the right location. This has a direct impact on your sales and customer service function too because absence of inventory can translate into lost sales and unhappy customers. You can address this challenge effectively with an ERP system in place. This will bring the employees in operations, sales and customer servicing departments on the same page as they have access to the same, real-time information on the status of inventory, sales, and customers. All of them will be able to do their work better and ultimately satisfy the customer.
Why is investing in an ERP software considered as a smart decision?
Now that you know when it is right time to implement and ERP solution within your organization, you should also understand the benefits it can drive. Here are some reasons that investing in an ERP software is regarded as a smart business decision.
Eases the management of resources such as assets, human resources, cash, and banking.
Enables tracking and automation of production, inventory, supply chain, orders, and vendors.
Facilitates automation of marketing campaigns, sales, service contracts, and contacts.
Assists in management of projects like creating estimates, tracking projects, managing abilities and resources.
Helps the business to manage global currencies and language capabilities to get established as a global setup.
Provides real-time information to assist optimal business decisions leaving behind guesswork and/or thumb rule.
Implementation of industry-specific ERP system makes the business processes easy and flexible.
Provision of instant information about the business operations and supply chain to the employees.
Simplification of period-end/month-end closings through automated audit and financial reports.
Enhancement of the process accuracy and speed in each aspect to drive digital transformation for enterprises.
Accurate records ensure the best scheduling and focusing on priorities to make smart decisions.
Supports management of risks attributed to lack of updated information, operational errors, unplanned investments, timeliness, and more.
Despite the extensive benefits that it offers, the biggest challenge lies in the implementation of an ERP system as it is not easy as it seems to be. The significant factor that influences the entire management system is the choice of the software. There are some software development companies providing ERP solutions and services, while you can also get a custom ERP solution to match your specific requirements. It is essential to compare the available different options and understand the basics of the company needs.
The organizations which do not use ERP find it tough to undertake proper planning for maintenance and production of the materials. Implementation of ERP in the processes of an organization can prove to be highly beneficial to optimize successful business operations to boost growth and improve efficiency.
Whether you opt for one of the ERP software that is available in the market or have a custom-made enterprise application, you need to have a technology partner that can assist you in its implementation. Finding someone who is trustworthy and has the domain experience is a good approach because such a provider will be able to understand your key challenges and create a solution that addresses them with a result-oriented approach.
Rhombus Infotech provides advanced Enterprise based web-solutions that help to connect and manage your business in a better way. We create specialized applications that can streamline the entire business processes, starting from investments, supply chain management, manufacturing, inventory, operation management, and more. Connect with us to share your requirements and we will have a perfect solution to match.