Maybe you have considered switching to an ERP system and are on the fence. Or maybe you haven’t even considered going the ERP route, but you know you need a better way to manage your company as it continues to grow. The big question that many companies have is when do you know it’s time for ERP? With such a huge investment between time and money, no one wants to implement ERP before they really need it.

Luckily, there are some tell-tale signs that your company needs an ERP system. If you notice that your company is suffering from a few of these issues, the best next step to take to ensure your company keeps growing is to consider implementing ERP.

  1. Your Systems Aren’t Efficient
    If you’re not using an ERP system currently, there is a good chance your departments are on a disconnect. Especially with finances, your departments may all be using their own system separate which makes keeping track of everything much more difficult.
  2. Customers are Complaining
    Every business will have a few complaints here and there, but if you’re noticing an unusual rise in complaints it’s time to take a step back. These complaints could be from running out of stock to taking way too long to fulfill an order, all of which are avoidable with an ERP system.
  3. Lack of Production
    This isn’t to say you walk into a department and find your workers are sitting around twiddling their thumbs. This is where your employees are stuck doing manual process that are taking up too much of their time, something that could be made more efficient by automation through ERP.
  4. A Rise in Working Capital
    As you continue to grow, it will inevitably cost you a little more in your daily processes. However, if you notice a steep increase then it’s time to consider an ERP system. ERP reduce working capital because operations will run more smoothly and efficiently.
  5. Last Man Standing
    If all of your similar-size competitors have ERP systems and you’re the only one without one, this is a sure sign that you should start implementing ERP. All your competitors will begin to outrun you while you’re left in the dust.
  6. No Room to Grow
    Your business wants to grow, and you’re starting to see an uptick in customers, but your old system simply cannot handle and hold up the growth. ERP systems give you the ability to connect your accounting system with all the other necessary operations.
  7. Inconsistency
    If not everyone is on the same page and your business has multiple processes that it is using to get work done, it’s time for ERP. ERP systems can help to move you to one efficient process that lives up to the set of standards within your specific industry.
  8. Figures Don’t Match
    You have sold more than your inventory has stock of, and now you’re in a big mess. Who’s to blame: sales for overselling or inventory for under-stocking? Neither, at this point the only one to blame is yourself for not having an ERP system that would have helped to avoid the whole mess.
  9. You Can’t Trust the Numbers
    If you’re manually running the numbers and having to double check them constantly, or if you don’t know what to do with the numbers once you have them, it’s time for ERP. You can gain real-time insight into all of your business process, and how they work within other departments with an ERP system.
  10. Low Performance
    All of the above issues tie into one major problem: efficiency. Majority of these could all be avoided if you were using an ERP software that made these process faster and more useful.

If you could check the box off on two or more of these, it may be time to take the plunge into an ERP system. It may seem like a big chunk of change now, but when looking at the long run you’ll actually save a lot of money. You’ll also save yourself from a lot of headaches.

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