Small businesses can often put the implementation of ERP software in the “too-hard” basket. It’s not only the financial investment but the investment of resources to migrate your business to a new system, to train staff and to get everything running smoothly that can seem daunting.
However, you will always outgrow the management systems that you relied upon as a start-up. Those who fail to recognise this (or act on it) will hinder the very growth that they are striving for.
If you’re a small business that needs to grow but is hindered by your systems, consider these five ways that ERP software will grow your business.
1. Stock Control
Stock management is an essential part of running any successful business (that handles inventory). ERP software will enable you to take control of your stock while integrating purchasing, accounting and point of sale functions.
Nowadays ERP software has evolved to provide niche industry specialisations for stock control. It means that you can more efficiently and accurately track the movement of stock through your business regardless of business or industry complexity. Once issues such as these are identified, action can be taken to improve processes. Further, you’ll always know the stock that you need at any given time and the stock that you have so that you can adjust accordingly.
2. Improve productivity
Because an ERP system integrates your business functions, you will benefit from streamlined processes and increased efficiency of workflows. You will eliminate double entry into multiple databases, saving countless hours that can be re-allocated to other tasks. Many small businesses struggle with manual or multiple systems that don’t talk to each other and as their business grows this becomes unmanageable. When researching ERP, look for a solution that is customisable and adaptable, that will work for both your industry and your unique business.
3. Real-time data
We all know that running a small business is fast-paced and that decisions need to be made quickly. If your systems can’t keep up with the pace, you are forced to make critical decisions on limited or inaccurate data.
ERP software provides a single source of truth for business reporting in real-time so you will be able to make smarter business decisions on the fly. You’ll be able to instantly access information such as stock levels across all locations, live financial data, and calculate purchase orders based on current figures.
4. Reduce costs
Of course, you have your initial investment to take into account but you can expect to quickly see return on your investment from cost savings across your business. One system across all areas of the business means one source of truth, enabling staff to make decisions using the information available on a single platform without consulting multiple systems or departments. This streamlines work and reduces the time required to complete tasks.
5. Improve customer satisfaction
There is nothing more frustrating for customers than when their desired product is out of stock. With integrated stock history and movement to calculate predictive orders, an ERP system will ensure that you always have the correct stock to meet customer demands. Many ERP systems also allow you to reward customers with inbuilt loyalty systems, improving customer satisfaction and increasing customer retention. Look for an ERP system that allows you to offer percentage discounts, points accumulation and redemption, rewards vouchers and more, to keep your customers happy and engaged.
Satisfied customers will not only return to your business but will be more likely to refer your business to family, friends and colleagues. Customer satisfaction is the gift that keeps on giving!
Joanne Hendriksen, Implementation & Support Manager, Foresiight
