I’ve been talking with an increasing number of manufacturers and distributors who are beginning to think about upgrading technology and specifically their ERP (Enterprise Resource Planning) system. There are many ERP softwares to choose from and staying current is essential.
Selecting and implementing a new ERP system is no small endeavor; however, it can yield vast results in the right situation. A few reasons to consider an upgrade include:
1. Service: Your customers are more comfortable with your ability to service them. For example, one of my clients has a key customer who requires an ERP system to assure them that this start-up company will have the proper business processes and systems in place to succeed.
2. Platform for sales growth: How do you grow your business successfully and at a quick pace with already overloaded resources? Leverage systems and look for an ERP solution.
3. Customer need: In order to satisfy your customer’s needs without ballooning in size and increasing error rates, technology is required. For example, in today’s environment, e-commerce must be an assumption. Does your system handle it well?
4. Cash flow: Typically upgrading your ERP software will provide enhanced tools for inventory management. By implementing this best practice functionality, you have the opportunity to decrease inventory levels while maintaining/improving service levels.
5. Margins: ERP systems allow for numerous opportunities to improve efficiency. Additionally, there are robust reporting capabilities to slice and dice key data for management decision-making. Wouldn’t it be helpful to know which customer is most profitable or which item is least profitable?