As organizations expand and offer products and services to thousands of clients all over the world, technology also plays a major role in coordinating, automating and simplifying of different processes that takes place in every business. Enterprise Resource Planning (ERP) technology helps companies effectively navigate their ever-changing business operations.
An ERP system is a software that integrates activities across different sectors and departments within an organization, acting as a master software where different activities can be performed in a coordinated way. For example, an ERP system brings together the customer orders, manufacturing, shipping and accounting functions into a functional whole.
However, many fast growing organizations that could benefit from such well-coordinated systems are yet to deploy ERP systems in their day to day operations because they aren’t sure if the investment is necessary. Here are way 5 ways to know when your organization needs an ERP system:
1. You’re using multiple software packages for different operations: Complex activities spread across different departments calls for an ERP system. Typically, we consult for clients who are using different spreadsheets and document templates across their departments, leading to reduced productivity. When productivity becomes negatively impacted by the lag from coordinating the different software, it’s time to get an ERP system. An ERP system provides that platform that ensures centralized activity and efficiency.
2. Outdated critical information: Fast moving organizations, with large sales volumes need accurate, timely information at their fingertips. When critical operational information such as the number of orders, production data, and financial information within a specific period isn’t immediately available, the organization needs an ERP system. ERP systems are specially adapted towards putting essential pieces of information together in a comprehensive manner.
3. Increased operational costs: When it’s costing your business more and more to run operations the increased operational costs will lead to lower profits. An ERP system ensures the efficiency of operations, reduce working capital, and improve the bottom line of the organization.
4. Reduced customer service: Customer satisfaction is bound to decline when the organization doesn’t have critical information readily available to answer customer queries and respond to complaints. When customers are not satisfied with the quality of services, they receive, sales are bound to. An ERP system provides the ability to deliver efficient customer service and avoid complaints.
5. Your competitors all have ERP systems: If all other organization in your industry or business segment have ERP systems, it is a good indication that your organization would benefit from one as well. Ask what your competitors are doing well and don’t be left behind.
In all, ERP systems provides the efficient coordination needed for the organization to scale up successfully. We have covered the basic pointers that should indicate if your organization needs an ERP system. In summary, if coordination and integration of activities become problematic within an organization, the organization needs an ERP system. ERP Advisers provides a complimentary business assessment. Give us a call today to schedule yours with a goal of making your business more efficient and as a result more profitable.