Waited too long… When to implement an ERP
Most companies that are on a growth trajectory or reach a certain size and complexity realize their tools and systems cannot take them to the next level of profitability. Studies done by the Aberdeen Group have shown ERP can reduce operational costs by 23% and administrative costs by 22%. Therefore don’t wait until you have a problem, the longer you delay the more opportunity is lost.
Some of the best success stories implement ERP systems early in their journey as they look towards building a lasting future. With ERP the benefits pay out significantly over many years and will accelerate your business growth as it brings structure, visibility and resourcing efficiency.
Some common reasons companies delay implementation is because they think they are too small or their business is too complex, however this leads to missed opportunity as it’s just a matter of finding the right system that matches your business profile.
Here are a few warning signs that you should implement an industry specific ERP:
- Excel is working great to capture information, but you don’t have the ability or time to efficiently analyze the data and infer any logical business decisions.
- Your operations tools for recording information (field services, manufacturing, etc.) work fine for creating invoices but they lack “real” integration into your accounting system.
- You have hired additional people to enter data.
- Your business uses paper or excel for everything.
- You do not have a system for financial cost control (work orders, purchase orders, sublet management) integrated with finance causing value leakage.
- Your business is not able to keep up with inventory and have no ability to properly forecast.
- You are always asking people to run reports, and they are taking too long.
- You feel overwhelmed with the amount (or lack) of software systems you run.
The good news is if you choose the right ERP there is never a bad time to implement the software. Choosing the right ERP is becoming more important than ever as industry specification is critical in reducing implementation time and reducing costly customizations. All of the above problems can be solved with an ERP that values operational data collection as much as financial control.
The concern of "We don’t have time or resources" to implement ERP is very common. However, this can be easily mitigated with the proper due diligence. Look for companies that offer implementation in-house versus using 3rd party consultants, as well as companies that have software designed for your industry. These two factors tilt the deck in your favour as you will avoid long and costly on-boarding and customizations. They will also reduce the on-boarding burden from your team as these companies prioritize going-live versus prolonging implementation.
Making the choice to implement ERP is a decision that your business will appreciate right away. If you want to simplify your operations, improve employee morale and become more profitable, the time is now!