11 signs it’s time for an ERP system

You want your business to be more effective and run efficiently. You’re ready for growth and want to maximise your resources. How do you achieve this?
 
More processes? Work your staff harder?
 
Well yes, you could continue to run your existing finance system and bog down your staff with more admin and reports to check their progress. Or, you could accept that an ERP System can help your business become a more efficient organisation. So if you’ve been thinking about whether your business should be moving to an ERP or not, here are the main signs that may signal that your business is ready to benefit from an ERP solution.
 
 
The 11 signs that show your business should be considering an ERP system
 
Clearly, the business case for moving to an ERP system depends on your business circumstances and the industry you work in. For many companies an ERP system is essential, such as in fresh food or manufacturing. Your business may already be noticing one or more of these signs. If you are it may be worth considering the move to an ERP.
 
1) Legacy systems are not efficient
Your existing finance system is not working for your business. You notice there is a disconnect between finance, the finance system and other departments. Each department is using their own processes and systems, so connecting the dots is becoming more and more difficult.
 
2) Disparate systems across multiple locations
Your business has grown year-on-year and now you have multiple sites, with multiple systems with limited integration. Data from finance and operations sits in silos and it’s increasingly difficult to work effectively as a business.
 
3) A rise in customer complaints
More and more customers are complaining, perhaps because you’ve sold stock that you couldn’t fulfill or it took too long to provide a great service. Customers are at the centre of your business, so rising complaints are something that needs to be stopped now.
 
4) Staff are not being productive
Too many manual processes, double-checks or needing to call each other to check stock availability or to track customer orders. ERP systems can increase productivity and provide consistent information on orders, sales and inventory.
 
5) Working capital is too high
It’s costing your business more and more to run its daily operations. ERP systems can reduce working capital and allow your business to run more profitably.
 
6) All your competitors have ERP systems
If all your competitors, of a similar size, have ERP systems then it’s time to ask yourself why. ERP solutions provide companies a competitive advantage and for certain types of business they are a necessity. Don’t be left behind!
 
7) Business performance could be better
The common thread in all of these signs is your business is not running efficiently or effectively. If you think this is true then consider the move to an ERP system.
 
8) The business wants to grow
There comes a point in business growth when the finance systems you’ve used for years are no longer appropriate. Unless its a Sage system, your accounting software doesn’t scale and it’s time to choose a system fit for purpose - connecting sales, operations and inventory seamlessly together.
 
9) Processes are inconsistent across the business
Through acquisition or organic growth your business has accumulated a range of work practices and procedures. Moving to a global set of standards can help make your business more efficient. An ERP system can support this move and ease the adoption of processes across the business.
 
10) Operations and sales figures don’t match
Sales has sold more stock than you have, so whose fault is it? Sales blame operations for not having enough inventory. Operations blame sales for over-selling and not informing them soon enough. This disconnect is the major reason why companies implement an ERP system.
 
11) The business doesn’t trust the numbers
This is a big one. If it’s taking more and more time to check and reconcile the numbers within your business, then its taking longer to make important business decisions. ERP Systems provide real-time insight into the state of your financials so you can make better business decisions faster.
 
 
What other signs have you noticed that show a need for an ERP system?