7 Signs Your Company Is Ready for an ERP System


man looking at erp modelApproximately 88 percent of organizations across multiple industries report that implementing an ERP system aided in their business success, according to Selecthub. Enterprise resource planning (ERP) plays an integral role in business, giving modern organizations the tools needed to streamline their core processes within a single system.

ERP software can be used to manage a wide range of business functions, such as services, project management, accounting, risk management, manufacturing, and supply chain operations. ERP systems use the latest technologies, such as artificial intelligence (AI) and machine learning, to provide efficiency and intelligence across all aspects of a business.

There are certain signs to look for that may indicate a company is ready for a new or updated ERP system:

1. Tasks Are Not Being Automated or Streamlined

A business is only as profitable and efficient as the processes that support it. When a business relies heavily on outdated legacy systems, growth can suffer. Manual tasks can be time-consuming and are at a higher risk for human error. ERP systems can help automate or streamline these tasks to save money and boost efficiency.

There are many ways that businesses can leverage ERP systems to reduce expenses and boost revenue. ERP tools can be used to create sales orders, email invoices, allocate inventory to sales orders, replenish low stock, coordinate cross-department workflows and track receivables. It is particularly useful in the accounting department as it helps diminish the need for paper-based sales orders and invoices.

2. Your Organization Does Not Utilize a Central Software

systems connected with central server softwareMany businesses make the mistake of investing in many types of software and systems to help their organization run better. However, this technique can actually have the opposite effect by creating silos throughout the business. When employees are forced to utilize several different software applications and processes, it can waste time and have a negative effect on morale.

Tracking, recording and processing information is more efficient when employees have access to a single, central system. With a centralized ERP system, there is a reduced risk of duplicate information and all data is available in real-time. This means that employees in the accounting department can access the same information as workers in the warehouse.

3. Essential Business Data Is Not Easily Accessible

Business delays occur when employees do not have access to the information they need, whether it be financial data, customer information or other resources required for daily operations. It can be time-consuming to update spreadsheets and software manually and the business can suffer as a result. With a modern ERP system, employees can gain access to the essential business data they need without delay.

This information can be accessed in real-time from any location and any internet-enabled device. Executives can benefit from having a holistic view of business operations at any time, leading to better leadership. These benefits can also extend to customers as sales representatives can view a customer’s transaction history with a click of a button.

4. Changes in Compliance and Processes are Difficult to Facilitate

ERP systems can aid businesses in compliance and can help organizations keep up with growth and process changes. Incomplete or inaccurate data is no longer a major issue and employees and management alike can enjoy a solution that is both scalable and easy to use.

5. Sales Numbers and Customer Satisfaction are Dropping

A noticeable drop in sales numbers or customer satisfaction is a red flag that a company may be ready for an ERP system. With an ERP system in place and operations running more smoothly, the customers will be the ones to reap the benefits of a transparent process, which should result in higher customer satisfaction.

6. Your IT Systems Are Too Complex and/or Outdated

server room data flow conceptIT systems that are outdated or too complex to use can cause major frustration among staff. It can be challenging to customize and integrate these types of systems and handling upgrades and patches can be a nightmare.

Making the switch to a central ERP system can help simplify a complex IT system by bringing all of the information that a business needs into one place. ERP technology enables organizations to respond swiftly to changes and select an ERP system that works best for their business, such as on-premise ERP, cloud-based ERP or a hybrid solution.

7. Your Organization is Being Reactive and Not Proactive

Identifying or addressing problems after it is too late can lead to wasted time, money and resources. Businesses should be proactive in their approach to problem resolution by identifying potential issues as early as possible. ERP systems can help businesses run more smoothly by giving them the tools needed to keep operations running smoothly.

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