When you should ditch your bookkeeping service and invest in ERP
Most people do not start using something until it is very clear that they need to.
This is often the case with Enterprise Resource Planning systems. A lot of people wait for one or two signs that things are not running smoothly in the business to determine that a change in software could be what they need.
Of course, you need to know what these signs are and how they point to an ERP system and business improvement.
If you’re looking to save time and money while boosting productivity, here’s when you should ditch your bookkeeping service and invest in ERP.
Incomplete and inadequate reporting is often the first sign that a company is missing the benefits of ERP. Accurate reporting is vital for businesses of all sizes and the communication of information is the basis of all business operations.
This is why you need to have good reports and reporting systems in place. The reports need to be error-free and as streamlined as possible to ensure efficiency.
High Operational Costs
If you find that you are unable to manage your resources or it takes a lot of time and your operation costs seem hard to calculate, your operations are likely to be inefficient or not as lean as you need. This will often lead to high operational costs. Real-time collection of data is generally needed to accurately calculate costs.
This is due to it allowing for the analysis of the business and the determination of areas which need operational improvements. When you move to a leaner process, you will reduce the costs of the operation. Waste and delays are the issues that will be addressed and this can make a significant difference to your bottom line.
According to Natalie Crabtree, who runs a holistic counselling education business, using an ERP actually decreased costs saying that “having one piece of software to take over the role of accounting, customer relationship management, and so much more has saved a lot of money. It’s like having multiple employees, with just software”.
Inefficient Supply Chains
When you have a supply chain that does not have responsive procurement, demand forecasting and inventory processing, the costs will generally be higher than you would like.
There are some supply chain processes that need a complete overhaul and you should not delay with this. It is possible to comprehensively improve your supply chain which will open the doors to new opportunities with your suppliers that will benefit both businesses.
Not Adapting To Emerging Trends In Your Market
A lot of people believe that their business processes are running smoothly only to be taken by surprise when there is a major development in your industry. This can cause you to rethink everything related to your processes.
When you have the right business software, your business will be able to adapt to emerging trends in your industry. These trends could be consumer habit trends or new technology that is being used in the sector.
According to the team at ACT Shades, staying on top of trends is impossible as a small business saying that “you’re busy spending time running your business. When you do have time to look into trends, it’s only for any immediate problem you’re facing. But when you’re using an ERP, it has all the on-trent features available. You know what’s happening and you have the tools at your fingertips”.
Poor Customer Relationship Management
There are times when your CRM is not helping you meet your sales objectives. In these situations, you might be missing some of the integration that your CRM system offers which work with your ERP system.
Renovations entrepreneur Melissa Freasier believes that having a CRM is critical for every business owner. “Using a CRM is a great way to keep all of your clients and their info in the one place, but it isn’t going to directly create sales for you. A business owner has to do a lot, but you should be prepared to tackle all of that head on.”
If you find that your repeat business is not what you want, you need to have something in place to monitor all of your communication with customers. A revamped CRM system can help, particularly if it is aligned with the other parts of the business which need to be incorporated and your overall ERP system.