The High Cost of Delaying an ERP Implementation
If your business has been putting off an ERP implementation, you’re not alone. Implementation can seem like a lot to put on your plate. After all, manufacturers and distributors already have enough to do attracting customers and keeping prices low while maintaining high product quality. But no matter the excuses you may have, ERP implementation is a necessity. Putting it off any longer is likely hurting your company more than you realize. Here’s what’s happening behind the scenes every day a business thinks they’re doing alright without ERP.
Inefficient Processes
You may not realize it now, but there are processes and workflows in your business that are inefficient and wasting money. The nature of ERP implementation exposes these areas of wastefulness. ERP must be mapped to your business processes, and it’s crucial that you understand them and streamline them before any software project. For example, as part of our proven methodology, our consultants map out every single task, role and workflow that your business needs to run. That mapping helps businesses find processes that may be duplicated, too complex or simply unnecessary. Without an ERP implementation, you could be losing time and money without even knowing it.
Lost Customers
Without a central nervous system managing your business and providing accurate, real-time data, there are cracks where customers could fall through. Say you have a salesperson out on a visit to a potential client’s site. The client wants to make an order, and your salesperson thinks they have a rough idea of the number of those products currently in stock. They make a verbal agreement on pricing and delivery times. However, by the time that salesperson gets back to the office, the item is sold out or the information given to the client is incorrect. That will result in an awkward call back to the customer to tell them they’re going to have to wait longer—or pay more to rush production. A blindsided customer isn’t a happy one, and they’re probably just going to look to your competitors for more reliable numbers.
With an ERP implementation, you can take the guesswork out of this equation. ERP provides a single nexus of accurate, real-time data that can integrate the work of your back, middle and front offices. The result will be better customer service than you could dream of. When you host your software in the cloud, you can also access this information across mobile devices to enjoy business insights on the go.
Slow, Outdated Software
A lot of companies that think they don’t need an ERP implementation are already running an outdated legacy version of the system. By nature, legacy software is not easily supported. As your platform gets older, vendors will invest fewer resources into making sure it works efficiently. Eventually, bugs and security issues will compromise your data and processes, and there will be no resources to revive your system. At Datix, we’ve encountered users who have put up with 4+ hour long wait times for multi-line product quoting.
At what point does the delay and risk of legacy software become too much for your company? By the time you’ve become fed up with the software, it will be more difficult (and expensive) to move your data from that legacy platform onto new ERP. With each day you waste on your outdated platform, the cost of an ERP implementation increases while your current system gets even slower.
Departmental Silos
A growing company often falls victim to inefficient and duplicate processes. For example, multiple departments might think they are responsible for a single task and end up wasting their time on something that has already been taken care of. Information silos will also accumulate as each department maintains separate sets of data. Communication and total enterprise transparency is key in any business. Those qualities will allow you the flexibility to grow sustainably and ensure that the successful processes that led to your growth get replicated in new offices or factories.
ERP serves as a central nervous system that integrates and manages all processes and data. It can target those areas of inefficiency and streamline them, ensuring everyone in your business is rowing in the same direction. Additionally, some ERP systems include enterprise collaboration tools to help employees reach out to each other instantly across departments and locations.
Lagging Behind the Competition
With the advent of flexible and cost-efficient cloud ERP solutions, more and more businesses are implementing the system. That means your direct competitors are probably currently running ERP or just beginning their implementation, gaining an immediate advantage in your industry. From the benefit of short-term efficiency and customer service improvement to the long-term cost savings, ERP can give other businesses a step up in your market. Do you really want to fall behind?
The Time for ERP is Now
Whatever the excuse for doing so, putting off an ERP implementation is costing your business in ways you may not even be aware of yet. For example, it’s very common for companies to think they don’t need ERP because the way they are currently doing things is fine. That kind of thinking is narrow and doesn’t account for future growth or what your competitors are currently doing. Don’t hedge your future success against current complacence.
If you are thinking about implementing ERP and want to learn more about how it can help your business stay competitive, save money and promote efficiency, get in touch with an expert at Datix. We have over 20 years of experience in the ERP industry. Plus, as one of a handful of Epicor Gold Partners, we are top consultants in Epicor implementations for mid-market manufacturers and value-added distributors. Datix can help you select, design and implement the best system for your business requirements.
No more excuses: Contact us today, and stop putting off your ERP implementation!
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