So do you really need to invest in an ERP system ? This is a very common question among every business person. Many start up manufacturers use spreadsheets to track the business operations from sales,inventory till payroll. This can be simple to handle at the initial stage but as the business grows one might be at risk of losing data leading to several chaos. So what is the right time to start your search quest for an ERP ? Let us discuss some of the factors which indirectly tell you that your company needs an ERP software system.
8 Signs that says you should adapt an ERP system :
1.Too many spreadsheets :
As we already said, it is common to find companies using spreadsheets to handle their operations. Yes of course spreadsheets are powerful tools to customize our needs and provide accurate calculations. But at the same time there are some disadvantages as well. The changes in spreadsheets are only done by one person who is proficient in excel. This dependency is not a good factor as everytime the person should be available and even a risk factor when he/she leaves the company. Even Though you can manage your process with spreadsheets It cannot serve you for a longer time especially for a growing business.
2.Trouble with existing systems :
You can sense the time to change the system when there is a lack of data accuracy, a knowledge gap among the employees and more idle time in production. The spreadsheets and other legacy tools will stop delivering you the desired result. There is also an invisible cost increase that you might not notice.
3.No proper functionality :
Production and manufacturing industries deal with more complex and sequential processes. One cannot afford to make mistakes as it will lead to disruptions in productivity. While using spreadsheets you cannot maintain accurate inventory controls whereas in ERP software it is able to give prior notification on all possible and predictable errors.
4.Increase in errors :
Since the employees in each department use their own standalone systems, there is no centralized data. Hence the information flow is restricted that causes more error. Multiple entries and duplication of data can be greatly eliminated when using an ERP system. This gives no room for manual errors. Since every single detail is recorded and readily available in the software there is no need to depend or wait for any employee. The production will be carried out without any discrepancies.
5.No visibility on real time data :
Manufacturing process involves the right quality materials at the right quantity and at the right time to be available for production. The shop floor activities must be updated on a real time basis so as to monitor and immediately take actions on occurance of any issues. But this instantaneous information cannot be fetched when using a legacy system. Without the visibility on the real time data the complete process lags time and takes more cost.
6.Poor cash flow :
Cash flow is an important factor for any business. It is nothing but the amount of cash which the company receives or spends in the process of production. Manufacturing industry involves purchasing and selling various materials and other required resources. Hence there should be a strong secured tool that handles the value with accuracy. When this fails then the company cannot plan for better growth in the long run.
7.Need ISO certification :
The International Organization for Standardization(ISO) is known for standard quality management to achieve production of good quality products with lesser expenses and improved profitability. ISO is all about documenting your manufacturing processes. This documentation will be a hectic task when using a legacy software tool. But using the ERP system is time saving and a perfect solution in gaining the name “ISO certified company”.
8.Planning to expand the business :
You can plan your business expansion only when all your operations are on the right track. With all those disruptions on your plate you cannot even think about a plan for the future. Hence using legacy systems and always on a struggle in solving issues won’t really help you achieve this. An ERP system can reduce inventory, streamline processes, centralize the data, improve communication, ensure quality and lead to low cost consumption with optimized resources. All these are the healthy factors that help in business growth.
Hope you can relate with the above listed reasons on why you need an ERP system. For more clarification and discussion you can fix a demo with us. Call Now!
