Enterprise resource planning (ERP) solutions transform organizations. By connecting data, systems, and users in an integrated platform, ERP technologies benefit complex organizations by simplifying processes and boosting collaboration. If your organization has not yet invested in ERP software, now is the time. Without an ERP solution, your organization is likely suffering from inefficient operations, costly and outdated systems, and lost customer opportunities.
What is ERP? It's a suite of software that integrates core business operations, including accounting, finance, HR, production, distribution, sales and marketing, and human resources. Here are 9 ways your company suffers without an ERP implementation:
1. Processes Are Not Centralized
All too often, organizations use one software program for tracking and recording information, while accounting teams use another software solution, and HR uses another solution. As a result, organizational processes are disjointed and not connected. With an ERP solution, your processes are centralized, meaning there's one source of information and interactions. ERP solutions eliminate the need for multiple front- and back-end systems while providing a single source of information, reports, and analytics.
2. Decision-Making Is Faulty
Your ERP solution provides decision-makers with the best information delivered in real time. Too many organizations suffer from data silos that keep information closed off to other parts of the business. Without a collaborative approach, organizations can’t easily share information and communicate about it effectively. When you need data from finance, sales, warehouse, purchasing, production, and distribution to make the right decisions, you need a system that connects the dots and gives you the latest insights. ERP software facilitates better communication and data sharing, leading to more effective, smarter decisions in the moment of need.
3. There Are Multiple Software Systems
Many businesses suffer from outdated legacy software systems. Why? There has been so much invested in those systems, many of which have had to be customized with third-party adaptations, software coding, or add-ons. The costs often mean executives are hesitant to replace older software programs. However, there's a greater cost for holding on. These legacy programs usually involve manual entry and reentry, costly workarounds and compromises, and efficiency compromises. Replacing these myriad systems with a single integrated ERP technology means more efficient processes and fewer workaround expenses.
4. Accounting Is Difficult and Takes Longer
If your company still relies on paper invoices and sales orders, you're probably wasting hundreds of hours annually with manual entry. It's also likely that your accounting and sales departments are often out of sync when it comes to customer relationships, with sales, discounts, bills, and payments lagging. With an ERP solution, your accounting team can automate many manual processes. Financial reporting can also suffer without an ERP option in place. Reconciling financial accounts across multiple spreadsheets and programs makes it far more difficult to gain a clear financial picture. ERP software puts all your financial information in one shared database. It helps your accounting team be more productive, accurate, and clear, with information available quickly.
5. It Takes Too Long to Retrieve Information
Speed matters in every business today. To maximize profits and leverage new business opportunities, your company needs quick access to information. With older legacy systems, it's much more difficult to extract, organize, report on, and use data effectively. ERP helps you gain a holistic view of your business and enable your employees to access the right information at the right time to work efficiently.
6. Inventory Management Is Inaccurate
Your supply chain needs to be visible and available, with in-the-moment information about suppliers, materials, and inventory rates. This information helps with reordering, production scheduling, customer service, and accounting. However, poor inventory management that continues to rely on manual spreadsheets and files means your company is struggling. Inventory management tools are a common component of ERP solutions, giving your business accurate information about materials on hand, in transit, and in need of reordering. When inventory information integrates easily with customer relations, sales, and production data, there is better communication and outcomes. When accounting knows about upcoming purchases, customer service can handle inquiries better with accurate responses, and sales teams can accurately quote prices and timelines.
7. IT Teams Are Scrambling
When your IT team needs to maintain multiple systems, your business suffers. With legacy ERP systems, your teams need to stay on top of different solutions, upgrades, features, and maintenance issues for each software package you deploy. Often, that means details are missed. With an integrated, single source for your technology, you can reduce the demands on your IT staff, letting them focus on more critical projects. With cloud-based ERP solutions, many updates are downloaded and installed automatically, ensuring that security upgrades are added without delay.
8. Mobile Access to Information Is Spotty
As employees increasingly work remotely, there's a need for access to information from distant locations. That means having solutions that provide access on mobile devices on different operating systems while working on home and public WiFi networks. Not having mobile access to information slows down work and decisions. Make sure that your ERP solution offers apps that work well on smartphones, tablets, and non-corporate networks.
9. Compliance Remains an Issue
Many companies today are bound by requirements for enhanced data security and data privacy. ERP software provides for the accurate tracking and reporting of information necessary to remain compliant with mandates from federal, state, local, and international jurisdictions.
At ManoByte, we help companies achieve their business growth goals with inbound marketing, sales enablement, tech solutions, ERP, and website design and development. Learn more about our ERP solutions by contacting us today.