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.
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:
- 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.
- Platform for sales growth: How do you grow your business successfully and at a quick pace with already overloaded resources? Leverage systems.
- 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?
- Cash flow: Typically upgrading your ERP system 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.
- 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?