Is Your Profitability Suffering From the Lack of an ERP System?
Are you tied to the accounting and database programs you’ve been using for years? Are you reluctant to move on to newer software because of the cost or because it seems intimidating to use? If you answered yes to these questions, you may be missing opportunities to be more profitable.
Enterprise resource planning (ERP) systems are not new. They’ve been around for years, with one caveat: their price was usually prohibitive for small and medium-sized business. Now that software publishers are developing ERP programs aimed at smaller businesses, implementing one of these systems is a smart way to improve your business management.
The beauty of an ERP system is the transparency of its data. This is achieved with a single database that holds the information from every department in your business. Many executives may be skeptical – how can a single database be the sole source of transforming a business and increasing profitability?
Business owners that can’t fathom the usefulness of a single database often choose multiple software solutions instead. The first challenge with this is cost. While an ERP system is definitely an investment that shouldn’t be taken lightly, implementing multiple software programs costs more than just money. When there is more than one system to work with, employees need more training, your information technology staff will need more expertise, you’ll spend more time trouble-shooting and updating, keeping your data secure will be more difficult, sharing information amongst your employees will be slower, etc.
For businesses still using older accounting software, searching through Outlook emails for customer orders or relying on Excel spreadsheets to generate their financials, the journey to profitability is hampered by the existence of silos of disconnected information. Without the constant collection and real-time updating of data, decision-makers are acting on incomplete and/or inaccurate information.
The old methods of billing clients, paying vendors, and processing payroll associated with those older systems require excessive manual data gathering. Searching for the correct information and then manually entering it where necessary drives up labor costs. Finally, these methods are much more prone to error, as it is easy to inadvertently invert numbers or put a formula in the wrong cell of a spreadsheet. Implementing an ERP system can eliminate many of these processes / tasks, allowing your staff to focus on higher value processes/ projects.
ERP systems can also increase profitability with respect to the product cycle. The seamless flow of information and the real-time updating from the ERP’s single database means that material costs are always up-to-date, machine maintenance schedules are available to prevent unnecessary downtime, shipping and receiving information is available at all times, and inventory levels are controlled based on user specifications.
Still another way to utilize ERP systems to increase your profitability is with mobile technology. Due to the single database, access to your data can be given to employees to use anywhere. With a secure internet connection and a password, your staff can be productive outside the office with their smart phones, tablets, and laptops. Interacting with your clients this way – providing immediate access to things like purchase history or credit information – is invaluable. Better decisions will be made in less time, offering a smooth interaction with your clients.
Want to use amazing technology that makes managing your business easier while also increasing your profitability? It’s definitely time to consider an enterprise resource planning system. Contact Mantralogix today to learn more about getting an ERP.