5 Reasons to Invest in an ERP Solution.
Your business will benefit immensely from a well-designed and well implemented Enterprise Resource Planning (ERP) solution.
The benefits of Enterprise Resource Planning Solutions
The impact a well-designed and well-implemented Enterprise Resource Planning (ERP) solution can have on your business is tenfold. You will be able to make more informed decisions, access detailed information faster, prepare key reports automatically and track transactions as they occur. You will be able to see, at a glance, daily sales, stock levels, accounts receivable, work in progress and a host of other key performance indicators. You can prepare customised dashboards for individuals, work-groups, managers and specific roles. This all works to allow you to spend your time looking after your business instead of looking for information.
So what is ERP? An ERP system is essentially a technology that takes your businesses key data from a variety of sources within your business and then transforms that raw data into actionable information – all from a single graphical interface. A comprehensive ERP solution enables you to match sales projections and the sales pipeline with inventory and back-orders. You can combine expenses and apply them to particular jobs. You can track orders and identify which products sit in the warehouse the longest.
In short, you can run your business from a single, all-encompassing application.
An ERP solution is ideally situated for a growing business. You already have a financial system that helps you track general ledger, accounts receivable and payable and maybe even invoicing, banking and payroll. But any time you want to add more functions or include more than a few users you reach a roadblock.
The truth is that most financial packages are very good at what they do. The problem is that they are limited in scope. As you grow, your business becomes more complex. Doing things ‘the same old way’ just doesn’t produce the results you need. An ERP solution will release you from these limitations and transform the way your business does business.
Now we are starting to see some sort of structure. You know which people are in need of information and you know where those information resources are. The challenge is combining these two assets. Your business management system will help you deliver the right information to the right people in the right format.
So now you are ready to document the business processes. One strategy is follow the data – when and how is it captured, what vetting is done to it and how does this information make its way to the decision makers.
Or you can work the other way…how do your managers access and use the information? How does the information get to them and how much data manipulation is performed before they see it? Do they access spreadsheets? Can they change key indicators themselves or do they request changes? Do they take educated guesses if they can’t get the data they need?
Next, you need to break down the individual steps supporting the overall business processes. This is where costs start to come in. How much does it cost to prepare ad hoc reports? Is there redundancy in data entry?
Do people have to spend a lot of time ‘cleaning’ data? Is there a costly time-lag between the time a report is requested and the delivery? And is that data out-of-date by the time it’s read? What are the ramifications?
Nobody knows your business better than you do, but sometimes an outside party can add value at this stage of the process, especially if that party is a specialist and has helped similar organisations implement a ERP solution. Third-party consultants will have time-tested methodologies to quickly and efficiently conduct data audits and may resolve any internal issues that might otherwise impact an in-house audit.
They can help you document your current state of affairs and suggest ways of improving your procedures. As you continue along the path of looking at implementing an ERP solution, it’s a good opportunity to review your business processes and retain which ones work well and upgrade those that can be improved.
If your business is running along very well, an ERP solution will help you automate and standardise your procedures so that you can work faster and more efficiently. If you are facing challenges; bottlenecks, missed deadlines, stock shortages, high turnover or diminishing returns; An ERP solution can help you turn things around and gain more control over your operations.
Who can benefit from an Enterprise Resource Planning Solution?
You can! Most small to medium-sized businesses can implement a ERP solution at a cost that is affordable and justifiable. Today’s ERP solutions are optimised for the mid-market and there’s a wide variety of specialist firms who can help you implement a comprehensive ERP solution quickly and easily.
Sure, there’s costs involve, software licensing, database cleansing, report design and maybe even a hardware upgrade, but when you start to look at the overall benefits to your business processes, the return on your investment will jump out at you.
Once expensive and reserved exclusively for big business, ERP is now a mainstream option for your business and is readily accessible. In today’s competitive environment, an ERP solution can help you and your business thrive. It is not easy running a business and you need to take every opportunity to keep up. ERP is ideally placed to give you the edge you need to succeed.
Top 5 Reasons to Invest in ERP
> Your business is growing and becoming more complex – ERP helps you plan and manage that growth;
> The cost of doing business is becoming more expensive and you need to boost productivity while keeping a lid on costs – ERP helps you work faster, smarter and more efficiently;
> Vital business data is often locked away in ‘silos’ and inaccessible to the people who need it – ERP helps you leverage your database resources to the maximum extent possible giving those that need information access to it instantly;
> You want to foster inter-departmental communications and increase transparency across your organisation – ERP provides a ‘single version of the truth’ so that all of your staff are using the same up-to-date information for decision-making;
> You want to standardise your business processes, reporting and data capture procedures – ERP enables you to implement uniform procedures across your organisation and ensure that business rules are followed.
Centralising your business processes
“We had islands of information with our previous system. Our stock ledger was handled by our old DOS accounting system, we had a separate customer marketing database, separate stock pricing spreadsheets and another system to track sold machines. We wanted one system that would maintain all of this information centrally,” says Christian Scott, General Manager of Scott Machinery.
“We also wanted a system that could adapt to our sales process – in particular to quickly generate a detailed quotation complete with product logos, images, text and tables. Also, that it would have CRM (customer relationship management) capabilities, so we could handle and prioritise the sales process onceour quotations had been delivered to a customer.” Scott Machinery is now a satisfied MYOB EXO customer. “The answers to most questions reside in MYOB EXO now – for example, we can quickly and easily find out how long a client has had their Leadwell CNC lathe, what options it was supplied with, and who did the operator training. In fact, any question from anywhere in the sales process should be able to be answered from MYOB EXO. The whole system is great – very flexible and adaptable,” says Scott.
Want to find out more? This blog was written to help businesses like yours, reach the next level in their growth. Please take the time to read our Client Case Studies> to see how Axsys and Exo have helped businesses take the next step.