Every growing business reaches a point where the old ways of doing things just aren’t sustainable. You have too much data spread across too wide a landscape, and you need increased visibility and a better way to manage all of your critical operations. Enterprise resource planning (ERP) systems can help by syncing data across your organization and automating many of the tasks that growing businesses have traditionally done manually. But how do you know if your company is really ready to make that investment in a new ERP system, or to reinvest in updating your current system? Here are some signs that it may be time to consider an ERP system.
As your business has grown, you’ve likely added various software solutions to increase efficiency in multiple areas of your operation. For example, you may have one piece of software for accounting, another for tracking inventory, and another for order management. But having all of these separate systems can lead to outdated information, gaps in data visibility, and put a higher burden on your IT department and leave you with more vendors to manage. An ERP system can bring all of these activities under one roof and make it faster and easier for your employees to access the information they need to make good decisions. So, if you find yourself drowning in a sea of software, that may be a sign that it’s time to adopt an ERP solution.
Supply chain issues
If you are having difficulty managing your supply chain, that’s a clear indicator that you need an ERP system to continue growing your business. As businesses expand, their supply chains often become more complex, and it can lead to issues in procurement, warehousing, forecasting demand and reverse supply chain. One of the main benefits of an ERP system is that it allows you to manage the entire supply chain more efficiently. So, if you’re having issues in any of the areas mentioned above, an ERP could be an effective solution to your problems.
Lack of multi-dimensional reporting
To continue growing your business, you need to be able to adapt quickly to the shifting business landscape. That means your core software systems need to provide full visibility into cash flow, prioritized KPIs, receivables and other financial and operational reporting metrics. Without these insights, your organization will likely be slower to respond to changing market conditions and be at a strategic disadvantage compared to your competition. If your current systems lack these kinds of multi-dimensional reporting features, that’s a clear sign that upgrading to an ERP system could offer the visibility, control and agility you need to sustain profitable growth.
If your employees are spending an inordinate amount of time duplicating work because your internal systems aren’t properly integrated, you may need an ERP system to give you the data connectivity you need to succeed. Administrative tasks and manual data entry can slow down your more important business operations. Thankfully, an advanced ERP system can mitigate duplicate work and automate many administrative tasks so you can be more efficient in your resource deployment.
You may have a robust ERP system in place. But if your employees aren’t able to access that system from anywhere in the world, it may be time to reexamine your investment. The world has gone mobile, so you need a cloud-based system that can provide individual end-point access so your employees always have the information they need to respond as quickly as possible to challenges and opportunities. If you’re still running an on-premise system that doesn’t provide universal access to key individuals, you may want to rethink your ERP investment.
No regular updates
If your current ERP system is falling behind the industry in terms of functionality, system integrations or especially security, it’s definitely time to make a switch. Your ERP vendor should be constantly updating their technology to account for industry trends, new business needs, emerging technologies and new security threats. If you feel like your current ERP system is out of date, it may be time to reinvest in one of your most valuable software systems.
Because every business is unique, it’s impossible to say something like, “Once you’ve reached X dollars in revenue, it’s time to invest in an ERP system.” But by identifying inefficiencies and examining specific problem areas in your operation, you can assess the value of a new ERP system to your business and make a decision that will maximize your available resources.
If you’re thinking about investing in an ERP system, contact Green Business Systems today to learn how our NetSuite optimization services can drive results for your business.