Why is ERP Software Needed?

Itay Abuhav 18/12/2019 0
Why is ERP Software Needed?

Signs Events and Omens that are trying to tell you: you need to implement an ERP system!

When do you need an ERP system?

How do you when and why you need an ERP system? Nevertheless, it is a substantial investment of money and resources. So I list here some of the signs, omens or events that will indicate you of a need for a system to manage your business i.e. an ERP system.

Unanswered Daily Questions Regarding Your Business

Unanswered question may mean that you no longer have control over your processes. Many questions are left unanswered and you feel the need for an instrument that will shed a light of what is going on in your business. Which Questions are not answered?

  • Is he already a customer of mine? Someone is calling and wanting too place an order – he is mentioning that he already placed such order a few years ago, but do not remember. In this case customer master data will help you find him as a customer and the product master data will show you which is the product
  • What are the delivery terms to this supplier? Your supplier send you a reminder for a payment, but wait a minute, I must pay in 90 days… Have not we agreed upon this? Creating an order in an ERP system will indicate the payment terms with each supplier.
  • How much I have form this product on stock? You are scheduled to deliver a product, you prepare the boxes you go to the shelf… No products on the shelf! Oh my god! You must order them from your supplier… it will take a few days but the transport is waiting outside… What a mess. An ERP system will alarm you when minimum level of products is below its defined level so you can prepare on time.
  • Did I deliver this already to the customer? A customer is calling and claiming I have not received the product? But you do remember that you sent it. Or not? An ERP system help you manage all deliveries with quantities, dates, and responsible persons.

Data Volume

Another aspect to look at it is the data volume with which your organization is managing its processes. This data is normally managed with small designated systems like bookkeeping systems, Excel lists, Access software, many manual forms. When it is becoming to difficult to track and integrate information and data form such systems or you notice that you are spending more time with paperwork, it is a sign to move on to a brighter method that will seize and manage all this systems, data and information under one umbrella.

Poor Communication in the Organization

If you notice that the communication between the different entities in your organization is becoming hard and poor – that means that the information between the different departments or business areas is not flowing effectively; wrong information is being communicated or information is not being communicated at all. An ERP

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