Are you thinking to invest in an ERP system? Are you not too sure if you need an ERP system for your business?
Let us explore.
Holistically, a business with over 30 staff and a $10M turnover should seriously consider implementing ERP. There are other factors for your consideration:
The complexity of the business
If your company has complex business rules, processes, and procedures, you will get massive value from ERP. For example, complex manufacturing, services and retail business.
ERP has built-in features to automate standard processes for customer onboarding, sales order, procurement etc. Further, modern ERP provides a robust tool for implementing custom workflows to manage end-to-end business processes.
Your customer expectations determine the needs of ERP. For instance, if your customers expect self-service (online invoices, new orders). Then, you may need an ERP solution to facilitate real-time information for the customer portal/website. Many ERP solutions come with a built-in customer portal.
If your business has to deal with a high volume of transactions, customers, suppliers, then ERP is the way to go! ERP solutions can process complex calculations (MRP, Batch payment runs). Similarly, they can design to handle a high volume of transactions (e.g.multinational retail business)
Importance of real-time information
How critical is real-time information is for you? For example, do your business need real-time Sales order information for procurement decisions? ERP systems manage all your business information in one centralised system. So, information is available to all teams in real-time. So, for example, the procurement team can check real-time information about the orders.
The volatility of the business you are operating:
If the market volatility strongly influences your business decisions, e.g. the stock market, oil prices, interest rates. Then, ERP plays a vital role in developing robust BI reports for planning and forecasting. The BI reports assist your business to make decisions with real-time data and intelligence.
Your competition and industry standards
It is a no-brainer if your competitors are already using ERPs. For example, it is common for small and medium-size manufacturing businesses to have ERP systems. ERP within this industry is a necessity, not a choice.
Future vision and growth targets
Review your business plans and growth targets. If business growth and expansion is your target, the EPR system can be a game-changer for you in many ways.
Summary: Do I need an ERP system for my business?
ERP systems have a significant role to play within your business. However, if your business turnover is over $10M, then the question is not much if you need ERP. Instead, the question is when we should implement it!