An ERP system is a software solution that helps a business manage and automate processes. More specifically, it’s an integrated solution for managing many processes on one platform, like billing, customer management, accounting, manufacturing, and logistics. If your business doesn’t have one yet, here are 5 signs for serious consideration when deciding to implement this piece of software.
1. You Have More Than One Location
You’re likely to need an ERP system if you have multiple locations under the same name and need to share data between them for purposes such as sales tax or inventory. The possible solutions, depending on your business’s needs, include cloud-based systems, which can be particularly useful for small businesses. Most importantly, all locations have access to the same information.
An ERP system integrates all your locations and makes tracking information like sales, inventory, and customer data easier. For example, you can instantly run a single report on all sales or inventory transactions for your entire business.
2. Your Business Processes Change Frequently
As the needs of your business change, especially concerning inventory or billings, you will need an ERP system that can track these things. You can also use a system like this to help you manage cash flow and make better decisions on where to allocate resources. It’s much easier to manage a system that keeps accessible records of past transactions compared to one that requires searching for historic data, manual entry, and more time for processing. Implementing a turnkey ERP solution can be accomplished fairly quickly and will allow you to see how your business is doing in real-time, helping you manage your processes more effectively.
Changes in business processes can also lead to errors. This is especially true concerning billing or inventory since the information takes a few days to make its way through the system. Systems that can store information and process transactions in real-time give you an advantage. Many of these changes happen to come at crucial times when you’re trying to close out your fiscal year, which makes ERP systems even more important.
3. You Want to Automate Processes
You want to take advantage of this, as it will make your life easier in the long run. You don’t have to re-enter the same information repeatedly with your ERP system. You can get a lot of information done quickly, and it will also be easier to analyze what has historically happened with the data to see trends or changes.
Automation will also improve the efficiency of your business. You can get sales figures and reports on the go, making it easier to take advantage of opportunities when they present themselves. In inventory management, you can get an accurate account of what you have on hand, making it easier for you to identify when something is missing and prevent theft.
4. You Want to Make Better Decisions
You can’t go wrong with an ERP solution for this. One of the biggest problems small businesses face is that they don’t always have enough data to make good decisions. An ERP system will help you gather all of the relevant data, and it will also help you track it better, so you can see what has historically been done and where money is being spent. This will allow you to make better investment choices and take advantage of new opportunities when they present themselves.
Businesses that tend to make bad investment choices, like those who don’t take advantage of opportunities because they are in denial of their true situation, benefit the most from an ERP system. They can keep up with what’s going on with their inventory or where the money is being spent and make decisions based on the data and information provided.
5. You Want to Protect Your Business Information
An ERP system will also keep your business information secure. This means you don’t have to worry about someone stealing the data on your computer or trying to hack the system itself. These ERP systems are also very easy to back up, which is essential for protecting this type of data and making more space available on your computer.
You can store this information where it’s safe and secure and get it back whenever you need it. This makes it easier for you to take advantage of opportunities when they arise. If you’re in a situation where it is difficult to get data from your system, this can be very damaging for your business. There will be delays and problems, which can be disastrous if you’re trying to make a sale or have an order placed at that time.
ERP systems are a great way to improve your business, especially if you’re a small business. Suppose you find yourself struggling to get all your data together in one place and spend valuable hours searching for something that may be stored in multiple databases or locations. In that case, it’s time to take this step and implement an ERP system.